IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
SPECIAL LEAVE PETITION (C) NOS. 25331-33 OF 2015
DNYANDEO SABAJI NAIK AND ANR ..Petitioners
VERSUS
MRS.PRADNYA PRAKASH KHADEKAR
AND ORS
..Respondents
J U D G M E N T
Dr D Y CHANDRACHUD, J
1. The Special Leave Petitions in the present case arise from
three orders of the High Court of Judicature at Bombay in a First Appeal:
(i) an order dated 22 November 2013 by which a year’s time was granted to
the petitioners (in terms as prayed) to vacate the premises which formed
the subject matter of a decree for eviction, until 30 November 2014;
(ii) an order dated 2 December 2013 by which the High Court disposed of the
First Appeal in terms of the undertaking filed by the petitioners; and
(iii) an order dated 16 June 2015 by which the petition for review has been
dismissed. There is a delay of 503 and 522 days respectively in the
Special Leave Petitions filed against the orders dated 2 December 2013 and
22 November 2013. Since the petitioners moved the High Court in a petition
for review, we condone the delay and having heard counsel, proceed to
dispose of the Special Leave Petitions by this judgment.
2. The subject matter of the dispute comprises of commercial
premises bearing Shop No.8 A, Bhatia Bhuvan Ground Floor, D S Babrekar
Marg, Off Gokhale Road (North), Dadar, Mumbai 400 028. The finding of
fact (as will be elucidated hereafter) is that the premises were granted
under a conducting agreement to the petitioners for carrying on the
business of a laundry. The case of the original plaintiff who sued for
possession was that the premises were granted on the basis of a conducting
agreement on 31 July 1968 on a royalty of Rs.260 per month. The suit for
eviction was filed against the petitioners in the Court of Small Causes on
26 April 1984. Initially, the suit was decreed on 15 September 1999. In
an appeal filed by the petitioners, the appellate Bench of the Small Causes
Court by a judgment dated 10 January 2002 held that since the petitioners
were in occupation of the premises under a conducting agreement, there was
no relationship of licensor and licensee. As a result, the Court of Small
Causes was held to have no jurisdiction under Section 41 of the Presidency
Small Causes Courts’ Act. The appeal against the judgment and decree of
the Trial Court was hence allowed. The judgment of the appellate Bench was
questioned in a Writ Petition filed by the predecessor-in-interest of the
respondents. The petition was dismissed by a learned Single Judge of the
High Court on 24 June 2002.
3. The respondents thereupon instituted a suit in the City Civil
Court for recovering possession of the premises. The suit was decreed by a
judgment dated 5 May 2012. The trial judge entered a finding of fact that
the premises had been given on a conducting basis. In support of this
finding, the trial Judge adverted to the admission of the first defendant
in certain proceedings which were instituted before the Labour Court under
the Payment of Wages Act to the effect that the laundry had been taken over
on a conducting basis from the original Plaintiff. The finding recorded by
the trial judge was in the following terms :
“The question to be considered in this case is as to whether the business
of the laundry was given to the defendant no.1 on conducting basis or not.
It is pertinent to note that the workers of the Kismet Laundry had filed
case in the Labour Court under the Payment of Wages Act bearing Case
nos.530 of 1974 and 531 of 1974 against the defendant no.1 and the
plaintiff. In that case defendant no.1 had given evidence. He has admitted
that he has taken laundry business “Kismat Laundry” for conducting the
laundry business on 01/08/1968 on payment of royalty of Rs.260/- from the
plaintiff. In his cross-examination DW-1 Dnyandeo Sabaji Naik in this suit
admitted about giving deposition in the labour Court. Thus, from the
admissions of the defendant no.1 it is established that the original
plaintiff had given laundry business on conducting basis to the defendant
no.1. In his cross-examination defendant no.1 has also further admitted
that stock-in-trade, furniture relating to the business were given to him
and the royalty of Rs.260/- per month was fixed. He has also not disputed
the receipts which were issued by the plaintiff accepting of payment of
royalty of Rs.260/- from the defendant no.1 towards conducting his
business. Moreover the copy of license issued under the Bombay Shops and
Establishment Act produced in the Small Causes Court relating to the
business run from the suit premises has been admitted by the defendant no.1
in his evidence. It is admitted that in the licence the name of business
of Kismat Laundry managed by Bluestar Art Dyers and Cleaners has been
mentioned. In the licence Narayan Narvakar was shown as the owner and Naik
was shown as conductor of business. Thus, on the basis of the documentary
evidence and on the admissions of the defendant no.1 it has been
established by the plaintiffs that the suit premises and business therein
was given on conducting basis to the defendant no.1.”
4. Against the judgment and order of the Trial Court, decreeing
the suit for possession, the petitioners filed a First Appeal. On 22
November 2013, the learned Single Judge of the High Court passed the
following order in the First Appeal :
“In this Appeal, after hearing the learned counsel for the Appellants
fully, I disclose that there is no merit in the Appeal. However, as the
Appellants have been conducting the business at the suit premises since
more than 40 years, it was suggested that some time can be given to
Appellants to vacate the suit premises. The learned counsel for the
Appellants sought instructions and makes statement that the Appellants are
ready to give undertaking that they will vacate the suit premises on or
before 30th November, 2014. The learned counsel for the Respondent Nos.1
and 3 submits that Appellants to disclose the names of all the occupants of
the suit premises.
2. The learned counsel for the Respondents submits that if the Royalty
of Rs.5,000/- per month as directed by this Court is continued to be paid
till 30th November, 2014 and undertaking be given that Appellants will not
alienate the property or create any third party right in any manner in the
suit property or part with the possession of the property, then the
Respondents are ready and willing to accept the said undertaking and ready
to accommodate the Appellants by giving time to Appellants to vacate the
suit premises.
3. In view of this development and submissions made by the learned
counsel of both the sides, Appellants to give their undertaking. Stand over
to 29th November, 2013 at 3.00 p.m.”
5. In pursuance of the above order, the petitioners filed
undertakings to vacate the premises on or before 30 November 2014. The
petitioners took the benefit of the order of the High Court by which they
were granted a year’s time to vacate the premises. The undertakings formed
the basis of the order of the learned Single Judge dated 2 December 2013
when the First Appeal was disposed of. The matter did not rest there. An
application for extension of time to vacate the premises was filed before
the High Court which was allowed by the learned Single Judge in the
following terms, by an order dated 5 December 2014 :
“Application is moved for extension of time till 31st May, 2015 and also
seeking leave to deposit the rent from September, 2014 onwards. This Court
by order dated 2nd December, 2013, has granted time to the applicant to
vacate the suit premises till 30th November, 2014. Now the applicant seeks
extension of time. The learned counsel for the applicant submits that his
daughter is doing her post graduation and the applicant wants some time to
find out other premises for their laundry business. The learned counsel for
the respondent submits that the applicants have put up partition in the
suit premises and abused respondent when they went to take possession 30th
November, 2014 at 7.00 p.m. In view of the submissions, Civil Application
is disposed of by passing the following order.
Order
Applicant shall vacate the premises and hand over possession of suit
premises to respondent at 7.00 p.m. on 31st March, 2015.
This is the last extension and hereafter no extension will be given.
Applicant to remove any construction i.e. partition if put up at the time
of handing over possession.
The applicant shall give undertaking to that effect on or before 9th
December, 2014.
The applicant is directed to deposit the arrears of rent from September,
2014 onwards till 31st March, 2015, on or before 17th December, 2014.”
6. By and as a result of the above order, the petitioners obtained
an extension of time until 31 March 2015 to vacate the premises. The
petitioners then filed a Review Petition before the High Court on 17 March
2015. Together with the Review Petition, the petitioners filed another
application for extension of time to vacate the premises by a further
period of five years. The learned Single Judge dismissed the Review
Petition on 16 June 2015.
7. The petitioners moved this Court under Article 136 of the
Constitution. On 28 August 2015, notice was issued in the application for
condonation of delay as well as on the Special Leave Petitions and a stay
of dispossession was granted conditional on the petitioners depositing an
amount of Rs 15,000 towards compensation for using the premises with effect
from 1 December 2013.
8. The submission which has been urged on behalf of the
petitioners is that the learned Single Judge of the High Court was
manifestly in error in rejecting the First Appeal without reasons. It was
urged that the petitioners would be entitled to assail the judgment and
order dated 22 November 2013 on merits notwithstanding the fact that the
petitioners had filed an undertaking to vacate the premises by 30 November
2014. In support of the submission reliance was placed on a judgment of
this Court in P R Deshpande v. Maruti Balaram Haibatti[1] to advance the
submission that the filing of an undertaking does not disentitle a litigant
to question the legality of the judgment dismissing the First Appeal.
9. We are unable to accept the contention which has been advanced
on behalf of the petitioners. The order of the High Court dated 22
November 2013 indicates that at the hearing of the First Appeal, the
learned Single Judge indicated to the petitioners that she found no
substance in the First Appeal. At this stage, counsel for the petitioners,
upon seeking instructions, stated that the petitioners would be willing to
furnish an undertaking to vacate the premises by 30 November 2014. The
respondents acceded to this request subject to the compensation being
determined at Rs 5000 per month as was directed by the High Court
previously. The order of the High Court indicates that the petitioners were
granted a period of ten days even thereafter to reflect upon the
undertaking which they were to file and it was only on 2 December 2013 that
the First Appeal was eventually disposed of in terms of the undertaking.
The petitioners sought and obtained the benefit of an order granting them a
period of one year to vacate the premises. The matter did not rest there.
The petitioners moved the High Court again for extension of time which was
allowed to them by an order dated 5 December 2014. The order of the High
Court indicates that the extension was sought on the ground that the
daughter of the applicant was pursing her post graduate studies and in
order to enable the petitioners “to find out other premises for their
laundry business”. This sequence of events leaves no manner of doubt that
the undertaking was not called for by the High Court to secure the
occupation of the premises during the period that the petitioner would have
required to further assail the order of the High Court in this Court. The
petitioners, on the contrary, clearly indicated that they would rest
content with a time of one year to vacate the premises and in fact obtained
a further extension of time of four months even after the expiry of the
initial term of one year.
10. The judgment of this Court in P R Deshpande (supra) lays down
the following principle:
“11. A party to a lis can be asked to give an undertaking to the court if
he requires stay of operation of the judgment. It is done on the
supposition that the order would remain unchanged. By directing the party
to give such an undertaking, no court can scuttle or foreclose a statutory
remedy of appeal or revision, much less a constitutional remedy. If the
order is reversed or modified by the superior court or even the same court
on a review, the undertaking given by the party will automatically cease to
operate. Merely because a party has complied with the directions to given
an undertaking as a condition for obtaining stay, he cannot be presumed to
communicate to the other party that he is thereby giving up his statutory
remedies to challenge the order.”
11. The above principle applies in a situation where an undertaking
is filed by a litigant, as a part of a condition for stay of operation of
the judgment of the High Court. The filing of such an undertaking does not
deprive the litigant of the remedy to question the judgment of the High
Court under Article 136 of the Constitution. Such a situation must,
however, be distinguished from a case (such as the present) where a
litigant rests content with seeking time to vacate the premises and the
circumstances of the case indicate that the litigant did not intend to
pursue any further remedy before this Court to assail the judgment of the
High Court. Having furnished an unconditional undertaking to vacate the
premises, it would be manifestly an abuse of the process for the
petitioners to seek recourse to their remedies on the merits of the issues
which arose in the First Appeal.
12. This case indicates a blatant abuse of the process of the
Court. The petitioners not only took the benefit of an order of the High
Court granting them one year’s time to vacate the premises but obtained a
further extension of a period of four months to vacate. The petitioners
then filed a Review Petition before the High Court and moved another
application, this time seeking an extension of five years to vacate the
premises. The time of the High Court and, unfortunately, of this Court as
well had to be devoted to a thoroughly frivolous proceeding. Learned
counsel for the petitioners in fact sought to urge that as a result of the
judgment of the City Civil Court, the petitioners have been deprived of
establishing that their status as licensees fructified into a tenancy with
effect from 1 February 1973. Quite apart from the fact that such a plea
would not be open to the petitioners in the background of what has been
observed earlier, we find even on merits that the submission requires only
be stated to be rejected. We have extracted in the earlier part of this
judgment the specific finding of the Trial Court based on the admissions of
the predecessor-in-interest of the petitioners that the premises were
granted to them on the basis of a conducting agreement. Besides this, in
the earlier proceeding that was instituted in the Small Causes Court, it
was found that the premises have been granted under a conducting agreement
and there was no relationship of licensor and licensee. That being the
position, the petitioners would not acquire status as tenants with effect
from 1 February 1973, there being no licence in their favour.
13. This Court must view with disfavour any attempt by a litigant
to abuse the process. The sanctity of the judicial process will be
seriously eroded if such attempts are not dealt with firmly. A litigant who
takes liberties with the truth or with the procedures of the Court should
be left in no doubt about the consequences to follow. Others should not
venture along the same path in the hope or on a misplaced expectation of
judicial leniency. Exemplary costs are inevitable, and even necessary, in
order to ensure that in litigation, as in the law which is practised in our
country, there is no premium on the truth.
14. Courts across the legal system - this Court not being an
exception – are choked with litigation. Frivolous and groundless filings
constitute a serious menace to the administration of justice. They consume
time and clog the infrastructure. Productive resources which should be
deployed in the handling of genuine causes are dissipated in attending to
cases filed only to benefit from delay, by prolonging dead issues and
pursuing worthless causes. No litigant can have a vested interest in
delay. Unfortunately, as the present case exemplifies, the process of
dispensing justice is misused by the unscrupulous to the detriment of the
legitimate. The present case is an illustration of how a simple issue has
occupied the time of the courts and of how successive applications have
been filed to prolong the inevitable. The person in whose favour the
balance of justice lies has in the process been left in the lurch by
repeated attempts to revive a stale issue. This tendency can be curbed
only if courts across the system adopt an institutional approach which
penalizes such behavior. Liberal access to justice does not mean access to
chaos and indiscipline. A strong message must be conveyed that courts of
justice will not be allowed to be disrupted by litigative strategies
designed to profit from the delays of the law. Unless remedial action is
taken by all courts here and now our society will breed a legal culture
based on evasion instead of abidance. It is the duty of every court to
firmly deal with such situations. The imposition of exemplary costs is a
necessary instrument which has to be deployed to weed out, as well as to
prevent the filing of frivolous cases. It is only then that the courts can
set apart time to resolve genuine causes and answer the concerns of those
who are in need of justice. Imposition of real time costs is also necessary
to ensure that access to courts is available to citizens with genuine
grievances. Otherwise, the doors would be shut to legitimate causes simply
by the weight of undeserving cases which flood the system. Such a
situation cannot be allowed to come to pass. Hence it is not merely a
matter of discretion but a duty and obligation cast upon all courts to
ensure that the legal system is not exploited by those who use the forms of
the law to defeat or delay justice. We commend all courts to deal with
frivolous filings in the same manner.
15. We accordingly dismiss the Special Leave Petitions but while
doing so, direct that:
(i) the petitioners shall vacate the premises on or before 7 March 2017;
(ii) In case the petitioners fail to vacate the premises by the date
indicated in (i) above, they shall expose themselves to civil and criminal
consequences under the law;
(iii) the petitioners shall pay all arrears for use of the premises
computed at the rate fixed in the order of this Court dated 28 August 2015
within four weeks; and
(iv) the petitioners shall pay costs quantified at Rs 5 lakhs (Rupees five
lakhs) to the respondents within two months.
16. We also clarify that this judgment shall not affect the
contempt proceedings which have been initiated against the petitioners.
17. There shall be an order in these terms.
...........................................CJI
[JAGDISH SINGH KHEHAR]
.............................................J
[Dr D Y CHANDRACHUD]
….........................................J
[SANJAY KISHAN KAUL]
New Delhi;
March 1, 2017
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[1] [2] [(1998) 6 SCC 507]
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|REPORTABLE |
