08 April 2015
Supreme Court
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FORESHORE CO-OP.HNG.SOCIETY LTD. Vs PRAVEEN D DESAI (D) THR.LRS. .

Bench: M.Y. EQBAL,KURIAN JOSEPH
Case number: C.A. No.-007732-007732 / 2011
Diary number: 4627 / 2009
Advocates: ARVIND MINOCHA Vs P. V. YOGESWARAN


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REPORTABLE

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

Civil Appeal No. 7732 of 2011 Foreshore Co-operative Housing Society Limited  ..Appellant(s)

versus

Praveen D.Desai (Dead) thr. Lrs. and others ..Respondent(s)

with

Civil Appeal No. 5514 of 2012

Razia Amirali Shroff and others                    ……Appellant(s)

versus

M/s Nishuvi Corporation and others     ……Respondent(s)

Civil Appeal No. 5515 of 2012

Razia Amirali Shroff and others                    ……Appellant(s)

versus

M/s Nishuvi Corporation and others     ……Respondent(s)

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Civil Appeal No(s). 3396   of 2015 (Arising out of SLP(C) No.24880 of 2012)

Nusli Neville Wadia …..Appellant(s)

versus

Ferani Hotels (Pvt.) Ltd. and others                ..Respondent(s)

Civil Appeal No(s).3397  of 2015   (Arising out of SLP (C) No.2989 of 2012)

Punam Co-operative Housing Society                …..Appellant(s)

versus

Pratap Issardas Bhatia and others     ..Respondent(s)

Civil Appeal No(s).3393-95   of 2015  (Arising out of SLP (C) Nos.16373-16375 of 2013)

Rama Vijay Kumar Oberoi thr. GPH …Appellant(s)

versus

Sunita Sudam Ranaware etc.                        ..Respondent(s)

J U D G M E N T

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M. Y. EQBAL, J.  

Leave granted.

2. In  these appeals  question has been raised about the  

ambit and scope of Section 9A CPC as inserted by the Code  

of Civil Procedure (Maharashtra Amendment) Act 1977 vis-à-

vis the provision of  Order  XIV Rule 2 of  the Code of Civil  

Procedure.  Before adverting to the legal question, it would  

be proper to mention the nature of the orders passed by the  

Bombay High Court in these appeals.

3. In  Civil  Appeal  No.  7732  of  2011  (Foreshore  Co-

operative  Housing  Society  Limited  vs.   Praveen  D.  Desai  

(Dead)  thr.  Lrs.  and  others)  the  Division  Bench  of  the  

Bombay High Court upheld the order of the learned Single  

Judge dismissing the appellant’s suit on the ground that the  

suit  was  barred  by  limitation.  In  Civil  Appeal  No.5514  of  

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2012, the appellants are aggrieved by the impugned Order  

dated 15.3.2012,  whereby  the  Division   Bench refused to  

interfere with order dated 24.1.2011 passed by the learned  

Single  Judge  in  Notice  of  Motion  No.3616  of  2010  in  Suit  

No.2901 of 2010.  The Notice of Motion was taken out by the  

plaintiffs seeking certain interim reliefs pending hearing of  

the suit.  The learned Single Judge by the said order directed  

the defendants to file reply to the Notice of Motion and also  

directed that the Notice of Motion itself be placed for final  

hearing.   Grievance  of  the  plaintiffs  before  the  Division  

Bench  was  that  the  learned Single  Judge  has  declined  to  

pass  any  ad-interim  order  in  favour  of  the  plaintiffs-

appellants  without  giving  any  reason  for  doing  so.  The  

Division Bench noticed that the defendant-respondents had  

raised objection to the maintainability  of  the suit  itself  as  

also  on  the  question  whether  the  suit  is  filed  within  the  

period  of  limitation.  In  Civil  Appeal  No.5515  of  2012,  the  

appellants are aggrieved by the order passed by the learned  

Single Judge whereby the prayer for grant of ad-interim relief  

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was  declined  pending  hearing  on  the  preliminary  issue  

raised  by  the  defendants  under  Section  9A,  CPC,  till  the  

jurisdiction of the court to entertain the suit is decided. The  

Division  Bench in  the  matter  of  Nusli  Neville  Wadia  (Civil  

Appeal arising out of SLP(C) No.24880/2012) set aside the  

judgment of the learned Single Judge and directed inter alia  

that the issue “Whether the claim of the Plaintiff in the suit   

is barred by limitation” be raised under Section 9A and tried  

as  a  preliminary  issue.    Whereas  while  dealing  with  the  

appeal against the order of learned Single Judge framing a  

preliminary issue under Section 9A with regard to limitation  

and decided to try it as preliminary issue, the Division Bench  

in the matter of Punam Co-operative Housing Society (Civil  

Appeal arising out of SLP(C) No.2989/2012 ) upheld decision  

of the Single Judge.  In the matter of Sou. Rama Vijay Kumar  

Oberoi  (Civil  Appeal  arising  out  of  SLP(C)Nos.16373-

16375/2013), the defendant raised an objection that the suit  

was barred by limitation, the trial court held that the issue of  

limitation being a mixed question of fact and law could not  

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be framed as a preliminary issue under Section 9A, CPC.  In  

appeal,  learned  Single  Judge  of  the  High  Court  in  the  

impugned  order  directed  the  trial  court  to  frame  a  

preliminary issue under Section 9A as to whether the suit  

was barred by limitation.

4.  Since the question of law in all these appeals is similar,  

we  would  like  to  narrate  the  factual  matrix  of  the  case  

pertaining to Civil  Appeal  No.7732 of 2011 (Foreshore Co-

operative Housing Society Ltd.) which relates to the rights  

enjoyed by the parties therein over the suit property.  The  

Appellant  is  a  co-operative  housing  society  consisting  of  

owners of various flats in the building ‘Advent’ which exists  

on the suit property. The Appellant filed Suit No.2939/1999  

for declaring that Respondent Nos.1-6 and 8 have no rights  

whatsoever over the suit property and that they were not  

entitled to carry out construction of the building by name of  

‘Divya Prabha’ within the suit property and for permanently  

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restraining them from doing so. The Appellant also prayed  

for  declaring  the  revalidation  of  the  I.O.D.  (Intimation  of  

Disapproval) and commencement certificate by Respondent  

No.  7  -  Municipal  Corporation in  1998,  2004 and 2005 in  

favour  of  Respondent  Nos.  1-6  and  8  to  carry  out  

construction of the building by name of ‘Divya Prabha’ in the  

suit property to be illegal.  

5. The suit property was originally leased to the Golwals.  

In  1958,  the  Golwals  entered  into  an  agreement  dated  

17.03.1958 granting development  rights  over  a  portion of  

the suit property to Respondent No.1 and also executed a  

Power of Attorney in his favour.  Respondent No. 1 in turn  

transferred  these  rights  in  favour  of  his  company-

Respondent  No.  2  vide  agreement  dated  23.10.1959.  

Respondent Nos. 1 and 2 constructed the building ‘Advent’  

whose flat owners are the members of the Appellant Society.  

The  Municipal  Corporation  granted  I.  O.  D.  and  

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commencement certificate to Respondent No.1 in 1966 for  

constructing a building by the name of ‘Divya Prabha’ in the  

suit  property.  In  1968,  the  Municipal  Corporation  issued  

notices for  stopping the construction of  ‘Divya Prabha’  on  

account of irregularities therein.   Respondent No. 1 filed a  

suit challenging these notices, however after the plaint was  

returned for presentation before the proper court, the same  

was not pursued.  

6. In  1968-69,  disputes  arose  between the  Golwals  and  

Respondent Nos. 1 and 2 in relation to the land development  

agreement and the Power of Attorney executed in favour of  

Respondent No. 1 was revoked. The Golwals then assigned  

their  entire  leasehold  interest  in  favour  of  the  Appellant  

society vide agreement dated 25.03.1969 and the Appellant  

was  confirmed  as  the  lawful  assignee  by  the  Municipal  

Corporation.   

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7. The Appellant pleaded that in 1987, Respondent No.3  

entered  into  the  suit  property  and  began  carrying  out  

construction of ‘Divya Prabha’ on the basis of an agreement  

purported to have been executed by Respondent Nos.1 and  

2 in his favour in 1980 and on the basis of the agreement  

and power of attorney purported to have been executed in  

his favour by Golwala in 1984 and 1986 respectively.  The  

Corporation  is  said  to  have  issued  a  notice  in  1987  to  

Respondent  No.  3  to  stop  the  construction  and  a  suit  

challenging the same was filed by Respondent No.  3.  The  

Appellant  further  pleaded  that  Respondent  Nos.1-6  had  

executed a deed of assignment dated 14.10.1994 in favour  

of  Respondent  No.  8  selling  the  suit  property  and  the  

building ‘Divya Prabha’ to the latter.  

8. The Appellant filed Suit No. 6734/1994 in October, 1994  

before the City Civil Court for declaring that Respondent Nos.  

1-6 and 8 have no rights over the suit property, that they  

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were not entitled to carry out construction within the suit  

property and for declaring that the revalidations of I. O. D.  

and  the  commencement  certificate  were  illegal.  On  

28.06.1996,  the  validity  of  the  I.  O.  D.  and  the  

commencement  certificate  of  1966  were  extended  till  

19.06.1997  and  the  suit  was  amended  to  challenge  the  

same.  When the validity of the I.O.D. and commencement  

certificate expired,  learned Single Judge of the High Court  

permitted  Respondent  Nos.  1-6  and  8  to  apply  again  for  

revalidation  and  directed  them to  communicate  any  such  

order to the Appellant.   Respondent No. 8 was alleged to  

have  forcibly  entered  into  the  suit  property  on  various  

occasions in 1998 and begun construction of ‘Divya Prabha’  

without informing the Appellant of any grant of permission  

whereupon the Appellant filed a suit for injunction.  

9. Revalidation  certificates  dated  18.09.1998  and  

05.10.1998 were issued in relation to the I.  O. D. and the  

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commencement certificate, and the Appellant amended the  

plaint to challenge the same.  However, by an order dated  

16.04.1999, the plaint in Suit No. 6734/1994 was returned  

for presentation before the proper court as it was improperly  

valued and exceeded the jurisdiction of the City Civil Court.  

The Appellants filed an appeal against the said order,  but  

afterwards withdrew it.  In 1999, Appellant then filed a suit  

being Suit No. 2939/1999 before the Single Judge of the High  

Court,  which  was  amended  to  challenge  the  revalidation  

certificates granted on 08.03.2004, 09.03.2004, 08.07.2004  

and on 06.08.2005 during the pendency of the suit.  This suit  

was also permitted to be amended in 2005 for incorporating  

pleadings to the effect that Suit No. 6734/1994 was filed and  

prosecuted before the City Civil Court in good faith and with  

due diligence.   

10. The  Appellant  filed  Notice  of  Motion  for  grant  of  

injunction  and  Respondent  No.  8  raised  preliminary  

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objections regarding the maintainability of the suit.  Learned  

Single  Judge  noted  that  Section  9A  of  the  Code  of  Civil  

Procedure provides for  hearing an objection regarding the  

jurisdiction of the court to entertain a suit as a preliminary  

issue  when  such  objection  is  raised  in  an  application  for  

grant of interim relief. In view of the same, learned Single  

Judge  framed  a  preliminary  issue  as  to  whether  Suit  

No.2939/1994  was  barred  by  limitation  or  not.   Learned  

Single  Judge held  that  though the  matter  in  issue in  Suit  

No.6734/1994  and  Suit  No.2939/1999  was  the  same,  the  

Appellant was not entitled to the benefit under Section 14 of  

the Limitation Act as it had failed to prove that the earlier  

suit was pursued with due diligence and good faith.  Learned  

Single Judge noted that the plaint initially did not have any  

pleadings for  availing the benefit  under Section 14 of the  

Limitation Act and that the same was incorporated by way of  

an  amendment  in  2005  after  the  reply  to  the  notice  of  

motion was filed and preliminary issue regarding jurisdiction  

was framed. The Appellant was required to prove not only  

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the diligent prosecution of Suit No. 6734/1994 but also its  

diligent  institution  and  the  Single  Judge  held  that  the  

Appellant had failed to do so having been unable to show  

that the said suit was incorrectly valued despite due care  

and caution.  The Appellant was also held to have not cited  

any particulars or  evidence for  having pursued the earlier  

suit in good faith.  Learned Single Judge dismissed the suit  

as barred by limitation vide judgment dated 20.01.2006.   

11. Aggrieved  by  the  judgment  of  the  Single  Judge,  

Appellant filed an appeal before the Division Bench of the  

High Court. The Appellant pleaded that the bar of limitation  

was not a bar on the jurisdiction of the court and that the  

question of limitation was a question of law and fact which  

had to be decided along with the other issues in the suit. The  

Appellant also contended that it was entitled to the benefit  

under Section 14 of the Limitation Act, 1963 and that even  

assuming that it was not so entitled, the suit would still be  

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within the period of limitation as the cause of action arose  

when the I. O. D. and the commencement certificate were  

revalidated  on  18.09.1998  and  05.10.1998  and  when  the  

Respondents  trespassed  into  the  suit  property  on  various  

occasions in 1998.

12. After  hearing  learned  counsel  on  either  side,  the  

Division Bench held that the moment the issue of jurisdiction  

was raised under Section 9A of Code of Civil Procedure, such  

issue had to be decided first  as the same was mandated  

under Section 9A and as valuable time could be saved in  

case it is found that the court does not have jurisdiction. The  

term “jurisdiction” under Section 9A was held to have been  

used in a wider sense and subject to any statutory bar on  

the maintainability of a suit. The Division Bench held that the  

court was bound to dismiss a suit barred by limitation as it  

had  no  jurisdiction  to  entertain  the  same.  The  plea  of  

limitation was held to be a question of law which related to  

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the jurisdiction of the court and the court was held to be  

precluded from adjudicating the matter on merits when the  

suit was barred by limitation.   The Division Bench went on to  

hold that the suit herein, which was filed on 18.05.1999, was  

barred by limitation as the cause of  action arose in April,  

1994.   The view of the Single Judge that the plaint initially  

did not  have any pleadings for  availing the benefit  under  

Section  14  of  the  Limitation  Act  and  that  the  same  was  

incorporated by way of an amendment in 2005 was upheld.  

The Division Bench held that the Appellant was not entitled  

to the benefit under Section 14 of the Limitation Act as there  

was no proof of the earlier suit having been prosecuted with  

due diligence and good faith and dismissed the appeal vide  

the impugned judgment.

13.   Hence,  the  present  appeals  by  special  leave  by  the  

appellants.

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14. We have heard Mr. F.S. Nariman, Mr. P. Chidambaram,  

Mr.  Shekhar  Naphade,  Mr.  Jaideep  Gupta,  learned  senior  

advocates appearing on behalf of the appellants.  We have  

also  heard  Mr.  Kapil  Sibal,  Mr.  Salman  Khurshid,  Dr.  A.M.  

Singhvi, Mr. Ashwini Kumar, Mr. A. Sharan, Mr. Shyam Divan  

and  other  learned  senior  counsel  appearing  for  the  

respondents.

15. At the very outset, Mr. Nariman drew our attention to  

the aim and object of bringing Section 9A by Maharashtra  

Amendment in the Code of Civil Procedure.  According to the  

learned  senior  counsel,  Maharashtra  Legislature  used  the  

word ‘jurisdiction’ in all matters concerning jurisdiction, i.e.  

the pecuniary or territorial, notwithstanding that in Order XIV  

Rule 2 preliminary issue is to be raised only when it is of law.  

It cannot be raised when the issue of jurisdiction is a mixed  

issue of law and fact.  According to Mr. Nariman, ‘jurisidction’  

used in Section 9A is confined to its textual interpretation  

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i.e., any plea as to the jurisdiction of the court with reference  

to  the  subject  matter,  territorial  or  pecuniary  jurisdiction,  

which  ousts  the  jurisdiction  of  the  court.   Mr.  Nariman  

submitted  that  initially  Section  9A  was  enacted  by  

Maharashtra Amendment Act of 1969 because of judgments  

rendered by the Bombay High Court.   It  was only for  the  

purpose of deciding objections as to the jurisdiction either  

territorial  or  pecuniary,  Section 9A was inserted.   Learned  

senior counsel submitted that since the date of enactment of  

Section 9A in 1970 the questions of territorial and pecuniary  

jurisdiction have been decided.  Mr. Nariman then referring  

the  decision  of  this  Court  in  the  case  of  

Mathai vs. Varkey Varkey,  (1964)  1  SCR 495,  submitted  

that a court having jurisdiction over the subject matter of the  

suit and over the parties thereto, though bound to decide  

right  may decide wrong,  and that even though it  decided  

wrong  it  would  not  be  doing  something  which  it  had  no  

jurisdiction to do. In other words, courts having jurisdiction to  

decide  right  or  to  decide  wrong  and  even  though  decide  

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wrong, the decree rendered by them cannot be treated as  

nullity.  The gist of the argument of Mr. Nariman and other  

counsel  is  that  a  preliminary  objection  as  to  jurisdiction  

under Section 9A would not include an objection that it  is  

barred by limitation.  Learned counsel put heavy reliance on  

the decision of this Court in Ramesh B. Desai and Ors. vs.  

Bipin Vadilal Mehta and Ors., (2006) 5 SCC 638.

16. Per  contra,  Mr.  Kapil  Sibal,  learned  senior  counsel  

appearing for the respondents submitted that the application  

of  Section  9A  comes  at  the  very  initial  stage  of  the  suit  

whereas the provision of Order XIV Rule 2 can be invoked at  

the time of framing of issues.  Learned counsel submitted  

that no prejudice would be caused inasmuch as the Court  

may in its  discretion refuse to hear the preliminary issue.  

According  to  the  learned  counsel,  question  of  limitation  

concerns the jurisdiction of the Court as the limitation goes  

to  the  root  of  jurisdiction.   Mr.  Sibal,  relied  upon a  three  

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Judges  Bench  decision  of  this  Court  in  Official  Trustee  

W.B.  vs.  Sachindra  (1969)  SC 823,  National  Thermal  

Power  Corporation  Ltd.   vs.   Siemens  

Atkeingesellschaft, (2007) 4 SCC 451.

17. Dr. A.M. Singhvi submitted that insertion of Section 9A  

by Maharashtra Amendment is a legislative policy decision of  

the State to entertain objection to jurisdiction at the initial  

stage and to decide it as preliminary issue.  According to the  

learned counsel, the question of limitation is the question of  

jurisdiction and it has to be decided as a preliminary issue.  

Learned counsel  put  reliance on  ITW Signode India Ltd  

vs.  Collector of Central Excise, (2004) 3 SCC 48; Manick  

Chandra Nandy  vs.  Debdas Nandy and Others,  (1986)  

1 SCC 512;  Kamlesh Babu and Others  vs.  Lajpat Rai   

Sharma and Others, (2008) 12 SCC 577.

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18. We  have  also  heard  Mr.  Salman  Khurshid  and  Mr.  

Ashwani Kumar, learned senior advocates appearing for the  

respondents.   The  submissions  of  learned  counsel  are  as  

under:-

The  juridical  and  jurisprudential  meaning  of  the  

term “jurisdiction” as used inter-alia  in  Section 9A of  

the CPC (as amended in 1977), and by virtue of Order  

XIV  Rule  2  (b)  initially  interpreted  in  a  catena  of  

judgments, cannot be limited in its sweep to exclude a  

case where the suit/any part  of  the alleged cause of  

action is barred by limitation.   Section 9A provides a  

self  contained  scheme  and  given  its  non-obstante  

clause, must prevail.

A plea pertaining to the bar of limitation has been  

consistently held by the Supreme Court and followed by  

High  Courts,  as  one  giving  rise  to  the  issue  of  

jurisdiction.  An issue of limitation refers to a statutory  

bar to the exercise of jurisdiction.

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19. Learned  counsel  further  submitted  that  upon  a  

harmonious  construction  of  the  two  provisions  and  

considering the consistent judicial dicta whereby an issue of  

limitation is treated as a jurisdictional issue, Clauses (a) and  

(b) of Rule 2(2), Order XIV of the CPC ought to be read as  

jurisdictional issues although arising under different pleas.

20. Learned counsel further submitted that even otherwise  

the  non-obstante  clause  inserted  by  the  Maharashtra  

Amendment of 1977 in Section 9A of CPC and the express  

mandate of Section which is a self-contained scheme and a  

later expression of legislative intent, the policy and intention  

of the law is to decide an issue relating to jurisdiction of the  

court, on whatever grounds raised, as a preliminary issue,  

notwithstanding of any other provision in the CPC.  Such an  

issue is to be decided at the hearing under Section 9A when  

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the court is not precluded from considering the facts either  

on prima facie basis or otherwise.

21. Learned counsel also referred a catena of decisions for  

the  proposition  that  question  of  limitation  concerns  the  

jurisdiction  of  court  and  such  issue  goes  to  the  root  of  

jurisdiction and may oust the jurisdiction of the court.

22. Similar argument have been advanced by Mr.  Shyam  

Divan and other  learned senior  counsel  appearing for  the  

respondents.

23. Section 9 of the Code of Civil Procedure confers power  

and  jurisdiction  to  Courts  to  try  all  suits  of  civil  nature  

excepting suits of which their cognizance is either expressly  

or impliedly barred.  For better clarification, Explanations (I)  

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and (II) have been added.  Section 9 with explanations reads  

as under:-  

“9.  Courts  to  try  all  civil  suits  unless  barred:- The  Courts  shall  (subject  to  the  provisions  herein  contained)  have  jurisdiction  to try all Suits of a civil nature excepting suits  of which their cognizance is either expressly or  impliedly barred.

Explanation  I.—As  suit  in  which  the  right  to  property or to an office is contested is a suit of  a civil nature, notwithstanding that such right  may  depend  entirely  on  the  decision  of  questions as to religious rites or ceremonies.

Explanation II—For the purposes of this section,  it  is  immaterial  whether  or  not  any fees  are  attached to the office referred to in Explanation  I or whether or not such office is attached to a  particular place.”

24. A bare reading of the aforesaid provision would show  

that  all  suits  of  civil  nature  can  be  entertained  by  civil  

Courts.  However, Explanation (I) clarifies as to what a suit of  

a civil nature is.

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25.  Immediately, after Section 9, Section 9A was inserted  

by Code of Civil  Procedure (Maharashtra Amendment) Act,  

1970.  Section 9A as inserted in the Code of Civil Procedure  

(Maharashtra Amendment) Act of 1970 reads as follows:-

“9A.   Where by an application for interim relief is  sought or is sought to be set aside in any suit and  objection to jurisdiction is taken, such issue to be  decided  by  the  Court  as  preliminary  issue   at  hearing of the application.

(1)  If,  at  the  hearing   of  any  application  for  granting  or  setting  aside  an  order  granting  any  interim  relief,  whether  by  way  of  injunction,  appointment of  a  receiver  or  otherwise,  made in  any  suit,  an  objection  for  the  jurisdiction  of  the  Court to entertain such suit is taken by any of the  parties  to  the  suit,  the  Court  shall  proceed  to  determine  at  the  hearing  of  such application  the  issue as to the jurisdiction as a preliminary issue  before granting or setting aside the order granting  the interim relief.   Any such application shall  be  heard and disposed of by the Court as expeditiously  as possible and shall not in any  case be adjourned  to the hearing of the suit.

(2)  Notwithstanding  anything  contained  in  sub- section (1), at the hearing of any such application,  the Court may grant such interim relief as it may  consider necessary, pending determination by it of  the preliminary issue as to the jurisdiction.”

26. In the year 1976, the Code of Civil Procedure 1908 was  

extensively  amended  by  the  Code  of  Civil  Procedure  

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(Amendment) Act, 1976.  Section 97 of the Amendment Act  

of 1976 inter alia provided that any amendment made in the  

Code by the State Legislature before commencement of the  

Amendment Act  of  1976 shall,  except insofar  as they are  

consistent  with the Code as amended by the Amendment  

Act,  1976  shall  stand  repealed.   As  a  result,  those  

amendments made in the CPC by the State Legislature which  

were  inconsistent  with  the  amendments  brought  in  1976  

stood repealed.  

27. After  the  aforesaid  Section  9A  of  Maharashtra  

Amendment stood repealed, the State Legislature felt  that  

certain  amendments  made  by  the  Maharashtra  State  

Amendment Act were useful and required to be continued.  

Hence,  the  State  Legislature  of  Maharashtra  re-enacted  

Section  9A  with  the  assent  of  the  President  of  India  as  

required under Article 254(2) of the Constitution of India, so  

that the same may continue to prevail.  Hence, by Section 3  

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of Maharashtra (Amendment) Act of 1976, it again inserted  

Section 9A in the Code of Civil Procedure.  Section 9A which  

has been inserted in the 1977 by the State Legislature reads  

as under:-

“9-A.  Where  at  the  hearing  of  application  relating to interim relief in a suit, objection to  jurisdiction is taken, such issue to be decided  by  the  Court  as  a  preliminary  issue.-  (1)  Notwithstanding  anything  contained  in  this  Code or  any other  law for  the time being in  force, if,  at the hearing of any application for  granting or setting aside an order granting any  interim  relief,  whether  by  way  of  stay,  injunction,  appointment  of  a  receiver  or  otherwise, made in any suit, an objection to the  jurisdiction of the Court to entertain such a suit  is taken by any of the parties to the suit, the  Court  shall  proceed  to  determine  at  the  hearing of such application the issue as to the  jurisdiction  as  a  preliminary  issue  before  granting or setting aside the order granting the  interim  relief.  Any  such  application  shall  be  heard  and  disposed  of  by  the  Court  as  expeditiously as possible and shall not in any  case he adjourned to the hearing of the suit.

(2) Notwithstanding anything contained in Sub- section  (1),  at  the  hearing  of  any  such  application, the Court may grant such interim  relief  as  it  may  consider  necessary,  pending  determination by it of the preliminary issue as  to be jurisdiction.”

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28. As  noticed  above,  Section  9A  was  for  the  first  time  

inserted  by  Amendment  Act  of  1970.   The  statement  of  

objects  and  reasons  for  such  amendment  is  quoted  

hereunder:-

“The effect of the judgment of the High Court  in Institute Indo-Portuguese vs. Borges (1958)  60 Bom. L.R. 660 is that the Bombay City Civil  Court for the purposes of granting interim relief  cannot  or  need  not  go  into  the  question  of  jurisdiction.   Sometimes declaratory  suits  are  filed  in  the  City  Court  without  a  valid  notice  under  section  80  of  the  Code  of  Civil  Procedure,  1908.   Relying  upon  another  judgment of the High Court recorded on the 7th  September, 1961 in Appeal No.191 of 1960, it  has  been  the  practice  of  the  City  Court  to  adjourn a notice of motion for injunction in a  suit filed without such valid notice, which gives  time to the plaintiff  to give the notice.  After  expiry  of  the period of  notice,  the plaintiff  is  allowed to withdraw the suit with liberty to file  a  fresh  one.   In  the  intervening  period,  the  Court  grants  an  ad  interim  injunction  and  continues the same.  The practice of granting  injunctions, without going into the question of  jurisdiction  even  though  raised,  has  led  to  grave  abuse.   It  is  therefore,  proposed  to  provide  that  if  a   question  of  jurisdiction  is  raised  at  the  hearing  of  any  application  for  granting or setting aside an order granting an  interim  relief,  the  Court  shall  determine  that  question first.”

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29. For the purpose of re-inserting Section 9A in 1977, after  

Section 9A stood repealed by 1976 CPC Amendment Act, the  

statement of objects and reasons of the  relevant portion of  

said Bill is extracted hereinbelow:-

“2.  The  Code  has  now  been  extensively  amended  by  the  Code  of  Civil  Procedure  (Amendment) Act, 1976 (CIV of 1976) enacted  by Parliament.  Section 97 of the Amendment  Act  provides  inter  alia  that  any  amendment  made in the Code by a State Legislature before  the commencement of the Act shall except in  so far as they are consistent with the Code as  amended  by  the  Amendment  Act,  stand  repealed.   Unless  there  is  an  authoritative  judicial  pronouncement,  it  is  difficult  to  say  which  of  the  State  Amendments  are  inconsistent with the Code as amended by the  Central  Amendment  Act  of  1976  and  which  consequently  stand  repealed.   All  the  amendments  made in  the Code by the State  Acts,  except  the  amendment  made  in  the  proviso  to  section  60(1)  by  the  State  Act  of  1948,  have been found to be useful  and are  required  to  be  continued.   The  amendment  made  by  the  State  Act  of  1948  is  no  more  required  because  it  is  now  covered  by  the  amendment  made  in  clause  (g)  of  the  said  proviso  by  the  Central  Amendment  Act  of  1976.   But  to  leave  no  room  for  any  doubt  whether  the  remaining  State  amendments  continue to be in force or stand repealed, it is  proposed that the old amendments should be  repealed  formally  and  in  their  places  similar  amendments  may  be  re-enacted,  with  the  assent of the president under article 254(2) of  the Constitution, so that they may continue to  

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prevail and be available in this State as before.  The Bill is intended to achieve these objects.

3.  The following notes on clauses explain the  purposes of these clauses:-

Preamble – it gives the background and main  reasons for the proposed legislation.

Clauses 2 and 3—Clause 2 formally repeals the  State  Act  of  1970  and  the  new  section  9A  inserted by it, to make way for re-enacting by  clause  3  of  the  same  section  in  a  slightly  revised form.”

30. The question that  arises for  consideration before this  

Court  is  as  to  whether  the  phrase  “an  objection  to  the  

jurisdiction of the Court to entertain such a suit” as used in  

Section  9A  of  the  Maharashtra  Manual  would  include  an  

objection with regard to limitation. In other words, whether  

an  issue  relating  to  a  bar  to  the  suit  created  by  law  of  

limitation can be tried as preliminary issue under Section 9A  

of the Code.  

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31.  For better appreciation of the object and interpretation  

of Section 9A, it would be proper to have a comparison with  

the provision contained in Order XIV Rule 2 of the Code of  

Civil Procedure.  Rule 2 of Order XIV reads as under:-

“2.  Court  to  pronounce  judgment  on  all  issues.- (1)  Notwithstanding  that  a  case  may  be disposed of on a preliminary issue, the court  shall,  subject to the provisions of sub-rule (2),  pronounce judgment on all issues.

(2) Where issues both of law and of fact arise in  the same suit, and the court is of opinion that  the case or any part thereof may be disposed of  on an issue of  law only,  it  may try that issue  first if that issue relates to—

(a) the jurisdiction of the court, or

(b) a bar to the suit created by any law for the  time being in force, and for that purpose may, if  it  thinks  fit,  postpone  the  settlement  of  the  other  issues  until  after  that  issue  has  been  determined,  and  may  deal  with  the  suit  in  accordance with the decision on that issue.”

 

32. Order XIV Rule 2 of the Code of Civil Procedure, confers  

power  upon  the  Court  to  pronounce  judgment  on  all  the  

issues.  But there is an exception to that general Rule i.e.,  

where issues both of law and fact arise in the same suit and  

the Court is of the opinion that the case or any part thereof  

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may be disposed of on the issue of law, it may try that issue  

first if that issue relates to the jurisdiction of the Court or a  

bar to the suit created by any law.

33. Order XIV Rule 2 of the Code of Civil  Procedure as it  

existed earlier reads as under:-

“Issues of law and of fact:   

Whether issues both of law and of fact arise in  the same suit, and the Court is of opinion that  the case or any part thereof may be “disposed  of on the issues of law only, it shall try those  issues  first  and  for  that  purpose  may,  if  it  thinks  fit,  postpone  the  settlement  of  the  issues of fact until after the issues of law have  been determined”.

34. A  comparative  reading  of  the  said  provision  as  it  

existed  earlier  to  the  amendment  and  the  one  after  

amendment would clearly indicate that the consideration of  

an issue and its disposal as preliminary issue has now been  

made permissible only in limited cases. In the un-amended  

Code, the categorization was only between issues of law and  

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of fact and it was mandatory for the Court to try the issues of  

law in the first instance and to postpone the settlement of  

issues  of  fact  until  after  the  issues  of  law  had  been  

determined. On the other hand,  in the amended provision  

there is a mandate to the Court that notwithstanding that a  

case may be disposed of on a preliminary issue, the Court  

has  to  pronounce  judgment  on  all  the  issues.  The  only  

exception to this is contained in sub-rule (2).   This sub-rule  

relaxes  the  mandate  to  a  limited  extent  by  conferring  

discretion upon the Court that if the Court is of opinion that  

the case or any part thereof may be disposed of "on an issue  

of law only", it may try that issue first. The exercise of this  

discretion is further limited to the contingency that the issue  

to be so tried must relate to the jurisdiction of the Court or a  

bar to the suit created by a law in force.

35.  The moot question, therefore, that falls for consideration  

is as to whether courts shall be guided by the provisions of  

Order XIV Rule 2 of the Code of Civil Procedure or Section 9A  

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of the Code as amended by Maharashtra Amendment Act, in  

the  matter  of  deciding  the  objection  with  regard  to  

jurisdiction of the court which concerns the bar of limitation  

as a preliminary issue.

36. Indisputably, the subject of Civil Procedure, including all  

matters included in the Code of Civil  Procedure,  is  placed  

under Entry 13 in  the Concurrent  List  of  the VII  Schedule  

appended to the Constitution of India.  After Section 9A of  

Maharashtra Amendment Act stood repealed by Section 97  

of the CPC Amendment Act of 1976 being inconsistent with  

the  Code,  the  State  Legislature  of  Maharashtra  felt  that  

certain amendments made by the earlier State Amendment  

Acts were useful and required to be continued.  To leave no  

room for  confusion  as  to  whether  the  State  Amendments  

continued to be in force or repealed, Section 9A was again  

re-enacted with the assent of the President of India under  

Article 254 (2) of the Constitution of India.

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37.  As  noticed  above,  Section  9A of  the  Maharashtra  

Amendment Act is a complete departure from the procedure  

provided  under  Order  XIV  Rule 2 of  the  Code  of  Civil  

Procedure.  Notwithstanding the inconsistency contained in  

the Act of the Parliament viz., the Code of Civil  Procedure  

and the provisions contained in Section 9A of the State Act,  

having regard to the fact that the assent of the President  

was received, the provisions of the said Section has to be  

complied with and can be held to be a valid legislation.

38.   In  the  case  of Meher Singh vs.  Deepak Sawhny,  

reported in 1998 (3) MhLJ 940 = 1999 (1) Bom CR 107, the  

question  that  referred  to  the  Division  Bench  for  its  

consideration  was  whether  while  deciding  the  preliminary  

issue  of  jurisdiction  as  contemplated  under  Section 9-A of  

the  Code  Civil  Procedure  (Maharashtra  Amendment)  Act,  

1977 the parties are required to be given opportunity to lead  

evidence?. The Division Bench noticed that Section 9-A was  

added to the Civil Procedure Code by Code of Civil Procedure  

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(Maharashtra Amendment) Act, 1977. As per the amended  

provision if in a suit, an objection to the jurisdiction of the  

Court to entertain such suit is taken by any of the parties to  

the suit, the Court shall proceed to determine at the hearing  

of  such  application  the  issue  as  to  the  jurisdiction  as  a  

preliminary issue before granting or setting aside the order  

granting the interim relief. Before the learned Single Judge, it  

was  contended  that  when  the  said  issue  is  raised  for  

determination, the Court is required to permit the parties to  

lead evidence. The Division Bench considered the amended  

provision  as  contained  in  Section 9-A vis-a-vis  Order  XIV  

Rule 2 of the Code of Civil Procedure and observed:-

“13. In the result we hold that if  Section 9-A is  not added, then at interim stage, the Court is  not required to decide the issue of jurisdiction  finally  and  the  Court  by  referring  to  the  averments made in the plaint, would ordinarily  determine  whether  or  not  the  Court  has  jurisdiction  to  try  the  suit.  However,  it  is  apparent  that  section 9-A is  added  with  a  specific object to see that objection with regard  to  jurisdiction  of  the  Court  is  decided  as  a  preliminary issue. According to the Legislature,  the  practice  of  granting  injunctions  without  going  into  the  question  of  jurisdiction  even  though raised, has led to grave abuse. Hence  the said section is added to see that issue of  

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jurisdiction  is  decided  as  a  preliminary  issue  notwithstanding anything contained in the Civil  Procedure  Code,  including  Order  XIV,  Rule 2.  Once the issue is to be decided by raising it as  a  preliminary  issue,  it  is  required  to  be  determined  after  proper  adjudication.  Adjudication  would  require  giving  of  opportunity to the parties to lead evidence, if  required.”

39. From the statement of objects and reasons it is evident  

that the practice followed in the City Civil Court in filing the  

suits  against  the  Government  without  giving notice  under  

Section 80 of the CPC and after the interim relief continued  

the plaintiff takes permission to withdraw the suit and to file  

a fresh suit.  As a matter of fact, the legislature intended to  

stop this abuse of process by introducing Section 9A in the  

CPC by Maharashtra  amendment  Act.   By reason of  such  

amendment the Court is now required to decide the issue of  

jurisdiction at the time of granting the relief or considering  

the application for vacating the interim relief.

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40. From reading of the aims and object of the Bill whereby  

Section 9A was inserted, the term ‘jurisdiction’ is used in a  

wider  sense  and  is  not  restricted  to  the  conventional  

definition  either  pecuniary  jurisdiction  or  territorial  

jurisdiction  as  submitted  by  Mr.  Nariman,  learned  senior  

counsel appearing for the appellant.

41. The  term  ‘jurisdiction’  is  a  term  of  art;  it  is  an  

expression used in a variety of senses and draws colour from  

its context.  Therefore, to confine the term ‘jurisdiction’ to its  

conventional and narrow meaning would be contrary to the  

well  settled  interpretation  of  the  term.   The  expression  

‘jurisdiction’,  as  stated  in  Halsbury’s  Laws  of  England,  

Volume 10, paragraph 314, is as follows:

“314.  Meaning  of  ‘jurisdiction’:  By  ‘jurisdiction’  is  meant  the  authority  which  a  court has to decide matters that are litigated  before  it  or  to  take  cognisance  of  matters  presented in a formal way for its decision.  The  limits  of  this  authority  are  imposed  by  the  statute, charter or commission under which the  court is constituted, and may be extended or  restricted by similar means.   

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If  no  restriction  or  limit  is  imposed  the  jurisdiction is said to be unlimited.  A limitation  may be either as to the kind and nature of the  claims  and  matters  of  which  the  particular  court  has cognisance, or  as to the area over  which  the  jurisdiction  extends,  or  it  may  partake of both these characteristics.”

42. In American Jurisprudence, Volume 32A, paragraph 581,  

it is said that

“Jurisdiction is the authority to decide a given  case  one  way  or  the  other.   Without  jurisdiction,  a  court  cannot  proceed  at  all  in  any case; jurisdiction is the power to declare  law,  and  when  it  ceases  to  exist,  the  only  function  remaining  to  a  court  is  that  of  announcing the fact and dismissing the cause.”

Further,  in  paragraph  588,  it  is  said  that  lack  of  

jurisdiction cannot be waived, consented to, or overcome by  

agreement of the parties.

43. It  is well  settled that essentially the jurisdiction is an  

authority  to  decide  a  given  case  one  way  or  the  other.  

Further,  even  though  no  party  has  raised  objection  with  

regard to jurisdiction of the court,  the court has power to  

determine its  own jurisdiction.   In  other  words,  in  a  case  

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where the Court has no jurisdiction; it cannot confer upon it  

by consent or waiver of the parties.

44.  Section 3 of the Limitation Act,  1963 clearly provides  

that every suit instituted, appeal preferred and application  

made after the prescribed period of limitation, subject to the  

provisions contained in Sections 4 to 24, shall be dismissed  

although the limitation has not been set up as a defence.

45. A Constitution Bench of five Judges of this Court  in the  

case  of  Pandurang Dhondi  Chougule vs.  Maruti  Hari   

Jadhav,  1966 SC 153,  while dealing with the question  of  

jurisdiction, observed that a plea of limitation or plea of res  

judicata   is a plea of law which concerns the jurisdiction of  

the court which tries the proceeding.  The Bench held:-

“10. The provisions of Section 115 of the Code  have been examined by judicial  decisions  on  several  occasions.  While  exercising  its  jurisdiction  under  Section  115,  it  is  not  competent to the High Court to correct errors  

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of fact however gross they may, or even errors  of law, unless the said errors have relation to  the jurisdiction of the court to try the dispute  itself. As clauses (a), (b) and (e) of Section 115  indicate,  it  is  only  in  cases  where  the  subordinate court  has exercised a jurisdiction  not vested in it by law, or has failed to exercise  a  jurisdiction  so  vested,  or  has  acted  in  the  exercise  of  its  jurisdiction  illegally  or  with  material  irregularity  that  the  revisional  jurisdiction of the High Court can be properly  invoked.  It  is  conceivable  that  points  of  law  may  arise  in  proceedings  instituted  before  subordinate  courts  which  are  related  to  questions of jurisdiction. It is well settled that a  plea of limitation or a plea of res judicata is a  plea of law which concerns the jurisdiction of  the court which tries the proceedings. A finding  on these pleas  in  favour  of  the party  raising  them would oust the jurisdiction of the court,  and so, an erroneous decision on these pleas  can be said to be concerned with questions of  jurisdiction  which  fall  within  the  purview  of  Section  115  of  the  Code.  But  an  erroneous  decision on a question of law reached by the  subordinate  court  which  has  no  relation  to  questions of  jurisdiction of  that court,  cannot  be corrected by the High Court under Section  115.”

(Emphasis given)

46.  In the case of  Manick Chandra Nandy vs. Debdas  

Nandy, (1986) 1 SCC 512, this Court, while considering the  

the nature and scope of High Court’s revisional jurisdiction in  

a case where a plea was raised that the application under  

Order IX Rule 13 was barred by limitation, held that a plea of  

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limitation concerns the jurisdiction of the court which tries a  

proceeding for a finding on this plea in favour of the party  

raising it would oust the jurisdiction of the court.  In the case  

of  National  Thermal  Power  Corpn.  Ltd.  vs.  Siemens  

Atkeingesellschaft, 2007  (4)  SCC  451,  this  Court  

considering the similar  question under the Arbitration and  

Conciliation Act held as under:-

“17. In the larger sense, any refusal to go into  the merits of a claim may be in the realm of  jurisdiction. Even the dismissal of the claim as  barred by limitation may in a sense touch on  the jurisdiction of the court or tribunal. When a  claim is  dismissed on the ground of  it  being  barred by limitation,  it  will  be,  in  a  sense,  a  case  of  the  court  or  tribunal  refusing  to  exercise jurisdiction to go into the merits of the  claim. In  Pandurang Dhoni Chougule v.  Maruti  Hari  Jadhav this  Court  observed that:  (AIR p.  155, para 10)

“It is well settled that a plea of limitation  or a plea of res judicata is a plea of law  which  concerns  the  jurisdiction  of  the  court  which  tries  the  proceedings.  A  finding  on  these pleas  in  favour  of  the  party  raising  them  would  oust  the  jurisdiction  of  the  court,  and  so,  an  erroneous decision on these pleas can be  said  to  be  concerned  with  questions  of  jurisdiction which fall within the purview  of Section 115 of the Code.”

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47. In the case of  Official Trustee vs. Sachindra Nath  

Chatterjee, AIR 1969 SC 823, a three Judges Bench of this  

Court while deciding the question of jurisdiction of the Court  

under the Trust Act observed:-

“15. From the above discussion it is clear that  before a Court can be held to have jurisdiction  to decide a particular matter it must not only  have  jurisdiction  to  try  the  suit  brought  but  must also have the authority to pass the orders  sought for. It is not sufficient that it has some  jurisdiction in relation to the subject-matter of  the suit. Its jurisdiction must include the power  to hear and decide the questions at issue, the  authority  to  hear  and  decide  the  particular  controversy  that  has  arisen  between  the  parties.”

48.  In the case of ITW Signode India Ltd. vs. CCE, (2004)  

3  SCC 48,  a  similar  question came before a three Judges  

Bench of this Court under the Central Excise Act, 1944, when  

this Court opined as under:-

“69.  The  question  of  limitation  involves  a  question of jurisdiction. The finding of fact on  the  question  of  jurisdiction  would  be  a  jurisdictional fact. Such a jurisdictional question  is to be determined having regard to both fact  and law involved therein. The Tribunal, in our  opinion,  committed  a  manifest  error  in  not  determining  the  said  question,  particularly,  when in the absence of any finding of fact that  

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such short-levy of  excise duty related to any  positive act on the part of the appellant by way  of  fraud,  collusion,  wilful  misstatement  or  suppression  of  facts,  the  extended  period  of  limitation could not have been invoked and in  that view of the matter no show-cause notice in  terms of Rule 10 could have been issued.”

49. In the case of Kamlesh Babu vs. Lajpat Rai Sharma,  

(2008) 12 SCC 577, the matter came to this Court when the  

trial court dismissed the suit on issues other than the issue  

of limitation.  The Bench held:-

“23. The reasoning behind the said proposition  is  that  certain  questions  relating  to  the  jurisdiction of a court, including limitation, goes  to  the very root  of  the court’s  jurisdiction  to  entertain  and decide  a  matter,  as  otherwise,  the decision rendered without  jurisdiction will  be a nullity.  However, we are not required to  elaborate on the said proposition, inasmuch as  in the instant case such a plea had been raised  and  decided  by  the  trial  court  but  was  not  reversed  by  the  first  appellate  court  or  the  High Court while reversing the decision of the  trial court on the issues framed in the suit. We,  therefore,  have no hesitation in  setting aside  the judgment and decree of the High Court and  to remand the suit to the first appellate court  to  decide the limited question  as to whether  the suit was barred by limitation as found by  the trial  court.  Needless to say,  if  the suit  is  found  to  be  so  barred,  the  appeal  is  to  be  dismissed. If the suit is not found to be time-

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barred, the decision of the first appellate court  on the other issues shall not be disturbed.”

50. Mr. Shekhar Naphade, learned senior counsel appearing  

for the respondent relied upon a recent decision of a Division  

Bench  of  this  Court  in  Civil  Appeal  No.  1085  of  2015  

(Kamalakar  Eknath  Salunkhe  vs.  Baburav  Vishnu  

Javalkar & Ors.) where this Court while considering  Section  

9A of the Maharashtra Amendments of CPC observed that  

the expression ‘jurisdiction” in Section 9A is used in a narrow  

sense  i.e.  territorial  and  pecuniary  jurisdiction  and  not  

question of limitation.  The Court observed:-

“17. The expression “jurisdiction” in Section 9A is  used  in  a  narrow  sense,  that  is,  the  Court's  authority  to  entertain  the  suit  at  the  threshold.  The  limits  of  this  authority  are  imposed  by  a  statute, charter or commission. If no restriction is  imposed, the jurisdiction is said to be unlimited.  The question of jurisdiction,  sensu stricto, has to  be considered with reference to the value, place  and  nature  of  the  subject  matter.  The  classification into territorial jurisdiction, pecuniary  jurisdiction  and  jurisdiction  over  the  subject- matter  is  of  a  fundamental  character.  Undoubtedly, the jurisdiction of a Court may get  restricted by a variety of circumstances expressly  mentioned  in  a  statute,  charter  or  commission.  This inherent jurisdiction of a Court depends upon  the pecuniary and territorial  limits  laid down by  

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law and  also  on  the  subject-matter  of  the  suit.  While  the  suit  might  be  barred  due  to  non- compliance  of  certain  provisions  of  law,  it  does  not follow that the non-compliance with the said  provisions  is  a  defect  which  takes  away  the  inherent jurisdiction of the Court to try a suit or  pass a decree. The law of limitation operates on  the bar on a party to agitate a case before a Court  in a suit, or other proceedings on which the Court  has  inherent  jurisdiction  to  entertain  but  by  operation  of  the  law  of  limitation  it  would  not  warrant adjudication.

19. Thus, with the intention to put the aforesaid  practice to rest, the State Legislature introduced  Section  9A  by  the  amendment  Act  of  1969  requiring  the  Court  to  decide  the  issue  of  jurisdiction at the time of granting or vacating the  interim  relief.  In  other  words,  the  legislature  inserted section 9A to ensure that a suit which is  not  maintainable  for  want  of  jurisdiction  of  the  concerned  Court,  ought  not  be  tried  on  merits  without  first  determining  the  question  of  maintainability of the suit as to jurisdiction of the  Court,  approached  by  the  plaintiff,  as  a  preliminary issue.

20.  The  provision  contemplates  that  when  an  issue of jurisdiction is raised, the said issue should  be decided at  first  as  expeditiously  as  possible,  and not be adjourned to a later date. The primary reason is that if the Court comes to  finding that it does not have jurisdiction vested in  it  in law, then no further enquiry is needed and  saves a lot of valuable judicial time.

21.  A  perusal  of  the  Statement  of  Object  and  Reasons of the Amendment Act would clarify that  Section  9A  talks  of  maintainability  only  on  the  question  of  inherent  jurisdiction  and  does  not  contemplate issues of  limitation.  Section 9A has  been inserted in the Code to prevent the abuse of  the  Court  process  where  a  plaintiff  drags  a  

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defendant to the trial of the suit on merits when  the jurisdiction of the Court itself is doubtful.

22.  In  the  instant  case,  the  preliminary  issue  framed by the Trial  Court  is  with  regard to  the  question of limitation. Such issue would not be an  issue  on  the  jurisdiction  of  the  Court  and,  therefore,  in  our  considered  opinion,  the  Trial  Court  was  not  justified  in  framing  the  issue  of  limitation  as  a  preliminary  issue by  invoking its  power  under  Section  9A  of  the  Code.  The High  Court has erred in not considering the statutory  ambit  of  Section  9A  while  approving  the  preliminary  issue framed by the Trial  Court  and  thus,  rejecting  the  writ  petition  filed  by  the  appellant.”

51. With great respect, we are of the view that the decision  

rendered by the Division Bench in the case of  Kamalakar  

Eknath Salunkhe vs. Baburav Vishnu Javalkar & Ors. is  

contrary to the law settled by the Constitution Bench and  

three Judges Bench of this Court, followed by other Division  

Bench in  Pandurang Dhondi Chougule vs. Maruti Hari   

Jadhav, AIR 1966 SC 153, (Five Judges Bench) in  Manick  

Chandra Nandy vs. Debdas Nandy,  (1986) 1 SCC 512,  

National  Thermal  Power  Corpn.  Ltd.  vs.  Siemens  

Atkeingesellschaft,  (2007) 4 SCC 451,  Official  Trustee  

vs.  Sachindra Nath Chatterjee AIR  1969 SC  823,  ITW  

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Signode  India  Ltd.  vs.  CCE,  (2004)  3  SCC  48  and  

Kamlesh Babu vs.  Lajpat  Rai  Sharma, (2008)  12 SCC  

577.  The  Constitution  Bench  decision  and  other  decisions  

given by larger Bench are binding on us.  It  appears that  

those decisions have not been brought to the notice of the  

Division Bench taking a contrary view.

52. Discussing  the  principle  of  binding  precedents  in  the  

case of State of U.P. vs. Synthetics and Chemicals Ltd.  

1991(4) SCC 139, this Court in paragraph 40 and 41 held as  

under:-

 “40. ‘Incuria’ literally means ‘carelessness’. In  practice  per  incuriam appears  to  mean  per  ignoratium. English courts have developed this  principle  in  relaxation  of  the  rule  of  stare  decisis.  The  ‘quotable  in  law’  is  avoided  and  ignored  if  it  is  rendered,  ‘in  ignoratium of  a  statute or  other binding  authority’.  (Young v.  Bristol  Aeroplane  Co.  Ltd.).  Same has  been   accepted, approved and adopted by this Court  while  interpreting  Article  141  of  the  Constitution  which  embodies  the  doctrine  of  precedents as a matter of law. In Jaisri Sahu v.  Rajdewan Dubey this Court while pointing out  the procedure to be followed when conflicting  decisions are placed before a bench extracted  a  passage  from  Halsbury’s  Laws  of  England  

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incorporating one of the exceptions when the  decision of an appellate court is not binding. 41. Does this principle extend and apply to a  conclusion of law, which was neither raised nor  preceded by any consideration. In other words  can  such  conclusions  be  considered  as  declaration  of  law?  Here  again  the  English  courts and jurists have carved out an exception  to the rule of precedents. It has been explained  as rule of sub-silentio. “A decision passes sub- silentio, in the technical sense that has come  to  be  attached  to  that  phrase,  when  the  particular point of law involved in the decision  is not perceived by the court or present to its  mind.” (Salmond on Jurisprudence 12th Edn., p.  153).  In  Lancaster  Motor  Company  (London)  Ltd. v.  Bremith  Ltd. the  Court  did  not  feel  bound by earlier  decision as it  was rendered  ‘without  any  argument,  without  reference  to  the crucial words of the rule and without any  citation of  the authority’.  It  was approved by  this Court in  Municipal Corporation of Delhi v.  Gurnam Kaur. The bench held that, ‘precedents  sub-silentio  and  without  argument  are  of  no  moment’. The courts thus have taken recourse  to  this  principle  for  relieving  from  injustice  perpetrated  by  unjust  precedents.  A  decision  which  is  not  express  and  is  not  founded  on  reasons  nor  it  proceeds  on  consideration  of  issue cannot be deemed to be a law declared  to have a binding effect as is contemplated by  Article  141.  Uniformity  and  consistency  are  core  of  judicial  discipline.  But  that  which  escapes in the judgment without any occasion  is  not  ratio  decidendi.  In  B.  Shama  Rao v.  Union Territory of Pondicherry it was observed,  ‘it is trite to say that a decision is binding not  because of its conclusions but in regard to its  ratio and the principles, laid down therein’. Any  declaration  or  conclusion  arrived  without  application  of  mind  or  preceded  without  any  reason cannot be deemed to be declaration of  law or authority of a general nature binding as  

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a  precedent.  Restraint  in  dissenting  or  overruling is for sake of stability and uniformity  but rigidity beyond reasonable limits is inimical  to the growth of law.”

53. The doctrine of binding precedents has been settled by  

several  pronouncements  of  this  Court.   The  Constitution  

Bench  of  this  Court  in  the  case  of  Union  of  India  vs.  

Raghubir Singh, (1989) 2 SCC 754, observed as under:-

“8. Taking note of the hierarchical character of  the judicial system in India, it is of paramount  importance that the law declared by this Court  should  be  certain,  clear  and  consistent.  It  is  commonly  known  that  most  decisions  of  the  courts are of significance not merely because  they constitute an adjudication on the rights of  the  parties  and  resolve  the  dispute  between  them,  but  also  because  in  doing  so  they  embody  a  declaration  of  law  operating  as  a  binding principle in future cases. In this latter  aspect lies their particular value in developing  the jurisprudence of the law.

9.  The doctrine  of  binding precedent has the  merit of promoting a certainty and consistency  in  judicial  decisions,  and  enables  an  organic  development  of  the  law,  besides  providing  assurance  to  the  individual  as  to  the  consequence  of  transactions  forming  part  of  his daily affairs. And, therefore, the need for a  clear  and  consistent  enunciation  of  legal  principle in the decisions of a court.”

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54. In  the  case  of  Bharat  Petroleum Corpn.  Ltd.  vs.  

Mumbai  Shramik  Sangha,  (2001)  4  SCC  448, a  

Constitution  Bench  of  this  Court  reiterated  the  same  

principle and held that:-   

“2.  We are  of  the  view  that  a  decision  of  a  Constitution Bench of this Court binds a Bench  of  two learned Judges  of  this  Court  and that  judicial  discipline  obliges  them  to  follow  it,  regardless  of  their  doubts  about  its  correctness.  At  the  most,  they  could  have  ordered that the matter be heard by a Bench of  three learned Judges.”

55.  This Court in the case of Central Board of Dawoodi  

Bohra Community vs. State of Maharashtra,  (2005) 2  

SCC 673, held as under:-  

“8. In Raghubir Singh case, Chief Justice Pathak  pointed  out  that  in  order  to  promote  consistency and certainty in the law laid down  by the superior court the ideal condition would  be that the entire court should sit in all cases  to decide questions of law, as is done by the  Supreme Court of  the United States.  Yet,  His  Lordship  noticed,  that  having  regard  to  the  volume of work demanding the attention of the  Supreme  Court  of  India,  it  has  been  found  necessary  as  a  general  rule  of  practice  and  convenience  that  the  Court  should  sit  in  divisions  consisting  of  judges  whose  number  may  be  determined  by  the  exigencies  of  judicial  need,  by  the  nature  of  the  case  

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including  any  statutory  mandate  relating  thereto and by such other considerations which  the  Chief  Justice,  in  whom  such  authority  devolves  by  convention,  may  find  most  appropriate. The Constitution Bench reaffirmed  the doctrine of binding precedents as it has the  merit of promoting certainty and consistency in  judicial  decisions,  and  enables  an  organic  development  of  the  law,  besides  providing  assurance  to  the  individual  as  to  the  consequence  of  transactions  forming  part  of  his daily affairs.”

56. Mr. Nariman, learned senior counsel appearing for the  

appellant put heavy reliance on the decision in the case of  

Ramesh B. Desai vs. Bipin Vadilal Mehta, (2006) 5 SCC  

638, for the proposition that a plea of limitation cannot be  

decided as an abstract principle of law divorced from facts  

as in every case the starting point of limitation has to be  

ascertained which is entirely a question of fact.  A plea of  

limitation  is  a  mixed  question  of  law  and  fact.   In  our  

considered opinion, in the aforesaid decision this Court was  

considering the provision of Order XIV Rule 2, CPC.  While  

interpreting the provision of Order XIV Rule 2, this Court was  

of  the  view  that  the  issue  on  limitation,  being  a  mixed  

question of law and fact is to be decided along with other  

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issues as contemplated under Order XIV, Rule 2, CPC.  As  

discussed above, Section 9A of Maharashtra Amendment Act  

makes a complete departure from the procedure provided  

under Order 14, Rule 2, CPC.  Section 9A mandates the Court  

to decide the jurisdiction of the Court before proceeding with  

the suit and granting interim relief by way of injunction.

57. At the cost of repetition, we observe that Section 9A  

provides a self-contained scheme with a non-obstante clause  

which mandates the court  to  follow the provision.   It  is  a  

complete departure from the provisions contained in Order  

XIV Rule 2 CPC.   In  other  words,  the non-obstante clause  

inserted by Maharashtra Amendment Act of 1977 in Section  

9A and the express mandate of the Section, the intention of  

the law is to decide the issue relating to jurisdiction of the  

court  as a preliminary issue notwithstanding the provision  

contained in  Order  XIV Rule  2 CPC.   However,  it  is  made  

clear that in other cases where the suits are governed by the  

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provisions of Order XIV Rule 2 CPC, it is the discretion of the  

court to decide the issue based on law as preliminary issue.

58. We, therefore, after giving our anxious consideration to  

the provisions of Code of Civil Procedure together with the  

amendments introduced by the State Legislature, hold that  

the  provision  of  Section  9A as  introduced by  (Maharahtra  

Amendment)  Act  is  mandatory in  nature.  It  is  a  complete  

departure from the provisions of Order XIV,  Rule 2,  C.P.C.  

Hence, the reasons given by the High Court in the impugned  

orders  are fully  justified.   We affirm the impugned orders  

passed by the High Court.

59. For the reasons aforesaid, we do not find any merit in  

these  appeals,  which  are  accordingly  dismissed  with  no  

order as to costs.

…………………………….J. (M.Y. Eqbal)

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…………………………….J. (Kurian Joseph)

New Delhi, April 08, 2015.

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