Gojer Bros. Pvt. Ltd. v. Ratan Lal Singh
CHANDRACHUD, J. In this appeal by special leave from the judg
ment of a learned single Judge of the High Court of Calcutl'a, two
questions are raised for our consideration on behalf of the appellants
who have obtained against the respondent a decree for eviction: ( 1)
whether the decree of the trial court has merged in the decree of the
High Court and (2) whether by reason of section 17 D of the West
Bengal Premises Tenancy Act, 1956 the decree for eviction is incapa
ble of execution .
Long, long back on May 19, 1953 Messrs. Hind State Private Ltd.,
the predecessors-in-title of the appellants, filed against the respondent
a suit for eviction on the ground of non-payment of rent. On Novem
ber 24, 1958 the learned Second Munsif, Alipore, passed a decree
for possession in favour of the plantiffs holding that by reason of de
faults in the payment of rent, the respondent was not entitled. to the
protection of the West Bengal Premises Rent Control (Temporary
Provisions) Act, 1950. That decree was confirmed in appeal by the
learned Subordinate Judge, 4th Court, Alipore, on April 12, 1967.
During the pendency of the appeal, the appellants had purchased the
right, title and interest of the plantiffs in the suit premises and they
had also abtained an assignment of the decretal rights in their favour.
They were therefore brought on the record of the appeal in place of
the origiml plantiffs. The respondent filed Second Appeal No. 1255
ot 1967 against the decree of the 1st appellate court and that appeal,
after a contested hearing, was dismised by a Division Bench of the High
Court of Calcutta on January 8, 1969. While dismising the appeal,
the High Court granted to the respondent time to vacate the suit pre
mises till the end of January, 1970 on the respondent giving a written
undertaking to the court that he will hand over quiet and peacefol
possession of the premises to the appellants on the expiry of the afore
said period.
The West Bengal Premises Rent Control (Temporary Provisions)
Act, 1950 was repealed by section 40 of the West Bengal Premises
Tenancy Act, XII of 1956. During the Proclamation of emergency
issued by the President of India on February 20, 1968, Act XII of
1956 was amended by the West Bengal Premises Tenancy (Amend
ment) Act, President's Act 4 of 1968, which was given retrospective &
effect from August 26, 1967. After the cessation of the emergency,
the West Bengal legislature passed the West Bengal Premises Tenancy
(Amendment) Act, 1969 with a view to re-enacting with modification.
President's Act 4 of 1968.
In between the decree for possession passed by the High Court in
the appellants' favour on January 8, 1969·and the expiry of the period E
allowed to the respondent to vacate the premises, several amendments
were made to the West Bengal Premises Tenancy Act, XII of 1956,
("The Act of 1956") by the West Bengal Premises Tenancy (Second
Amendment) Act, 1969 ("The Act of 1969") which came into force
on November 14, 1969. We are concerned in this appeal with the
Provisions of section 17 D which was introduced in the Act of' 1956
by the Act of 1969. That section, in so far as materral, reads thus: F
"17 D. Power of Court to set aside decrees passed on account of
aefault in the payment of rent.
(1) Where before the commencement of the West~Bengal
Premises Tenancy (Amendment) Act, 1968, a decree
for the recovery of possession of any premises was passed-
(a) •
(b) in a suit under the West Bengal Premises Rent
Control (Temporary Provisions) Act, 1950, by
reason only of chruse (i) of the proviso to sub
section ( 1) of section 12 of that Act,
but the possession of such premises had not been re- H
covered from the tenant by the execution of the decree,
the tenant may within a period of sixty days from the
date of commencement of the West Bengal Premises
• .r
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GOJER BROS v. R. L. SINGH.(Chandrachud, /.) 397
Ten~nc:i: (Second Amendment) Act, 1969, make an
al'.phcatton to the Court which passed the decree to set
aside tCe. c!ecre~ ..
· · · E.' lac.1tion:-Where the decree was passed ia
. the exeri:ise of ap~llate jurisdiction, an application
. ~~". this sub-section shall be made to . the Court of first mstance.
(2): Where an application has been made under sub-section
. <. l) for setting aside a decree, all proceedings in execti-
• ~on ~f t~e decree shall remain stayed until the applicauon IS d!Sposed of.''. ·
. ----~~
Suf?-section (3) of s«;tion 17 D provides that on receipt of an appli
cation under sub-secuon (1) the court shall cause a notice thereof
10 ~e served on the landlord and after hearing such evidence· as the
pames ma:r adduce, dete_rmine the questi?ns referred to .in clauses (a)
and ( b) ot that sub-section. The court IS then required to give to the
tenant further time not exceeding sixty days to deposit the amount
lcund due under clauses (a) and (b) of sub-section (3) together with
such costs as the court may allow. · If the tenant deposits the amount
wilhin the time granted under sub-section (3), the court under sub
section C 4 l. has to allow the application of the tenant, set aside.• the
decree• for the recovery of possession and dismiss the suiL . . ' .
: On January 12, 1970 which was a few days before.he had under-·
taKeri to vacate the premises, the respondent made ·.an application
under section 17 D°asking that the decree for possession passed agair!St
him be set aside. By a judgment dated July 15, 1970 the learooo
Munsif, Second Court, Alipore, dismissed tlrat application on· the
ground that the decree for possession pased by the trial court· on
November 24, 1958., had merged in the decree pased by the High
Court on January 8, 1969, that in truth and in substance the operativ~
decree was the one passed by the High Court and as that decree was
passed after August 26, 1967; being the date of the co=encement
of the West Bengal Prc;mises Tmancy (Amendment) ·Act, 1968, the
application filed by the respondent under section 17 D of the' act of
l ':156 was not maintainable.· ----=--"'-
. The responde~t filed a revision application in the High Court o!
Calcutta against the judgment of the learned Munsif. By ajudgment
dated May 31, 1971 a learned single Judge ·or the High Court allowed
the revision application, granted the application filed by the respon
dent under section 17 D and directed the dismissal of the suit .. : .The
learned Judge has taken the view that in case where an appellate court
dismisses the appeal; the principfo of merger of th~ de.cree of the lower
court with that of the appellite court has no applicat10n and therefore
trie effective decree- in the case was the one passed by the tfial court
on November, 24;·1958 which was before the co=encement o.f the
President Act 4 of· 1968. This Court has granted to the appetlants
special leave to appeal from the judgment of the High Court.
398 SUPREME COURT REPORTS ( 197 5] 1 S.C.R.
It is not in dispute that the decree dated November 24 1958 for .-\
l'ossession of the suit premises was passed by the trral cou;t in a suit
?Jed by the appellants' predecessors-in-interest under the West Bengal
Premises Rent Control (Temporary Provisions) Act, 1950, by reason
only of clause (1) of the proviso to sub-section (!) of section 12 of
t!lat. Act, that is to say, on the ground that the respondent had defaul-
ted m the payment of rent. Clause (b) of section 17 D(l) is there-
fore compiled with. B •.
The question which arises for consideration is. whether the decree
for the· recovery of possession can be said to have been passed against
the respondent "before the commencement of the West Bengal Premi- '
ses Tenancy ·(Amendment) Act, 1968", that is, before August 26,
1967. If it. was passed before that date, the respondent would be en-
htled to claim the benefit of section 17 D, in which event the decree C
passed in the suit has to be set aside and there would be then no out-
standing decree to execute.
It is indisputable that a decree for possession was in fact passed
in favour of the appellants predecessors-in-interest by the trial court
on November 24, 1958 which was before the commencement of the
Act of 1968. But that decree was taken in appejil first to the court I>
<>f the Subordinate Jµdge which confirmed, the decree and taken to the
High <;:ourt which, after a contested heariQg, di&ffiissed the defendap.ts'
appeal and confirmed the decree passed by the Subordinate Judge.
The decree of the High Court is dated January 5, 1969 and was passed
:after, not before, the commencement of the Act of 1968. The ques-
tion to be considered is whether the decree passed by the trial court
can be deemed to have merged in the decree passed by the High· F;
Court.
Lc•arned counsel for both the ·sides have cited before us a large
number of decisions bearing on the principle of merger but a few pre
liminary observations will facilitate a better understanding of those
decisions.
The juristic justification of the doctrine of merger may be sought
in the principle that there cannot be, at one and the same time, more
than one operative order governing the same subject-matter. There-
fore the judgment of an inferior court, if subjected to an examination
by the superior. court, ceases to have existence in the eye of. law and
is treated as bemg superseded by the 1udgment of the supenor court.
In other words, the judgment of the inferior ccurt loses its identity by
its merger with the judgment of the superior court.
Stated in this form the principle may appear to be unexceptionable
but the problem r:as many facets._ What, if the high~r court dismisses
the proceeding before it summanly without a speakmg order? Does
the judgment of the lower court still merge in the. unspeaking or~er
oi the higher court? What, if th~ powers of the higher c~:m~t ~re. m.
voked in the exercise of its rev1S1onal and not appellate iunsdictlon I
Docs a judgment or an order passed in .the exercise of a severaliy r.e~
tricted jurisd.iction like that under section 115 of the Code of Cm!
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GOJER BROS v. R. L. SINGH (Chandrachud, J.) 399
procedure wipe out of existence a decree or order passed in the exer
C!Se of .a wider jurisdiction ·as may be exercised by a court possessed
or a smt? Does it make any difference to the application of the
doctrme of merger that the higher court h,s not modified or reversed
tne judgment of the lower court but has merely affirmed it? These
nuances had once raised issues on which conflicting views were expres
sed by the courts. Over the years, the area of conflict has consider
ably narrowed down and most of the problems touched by us have
been resolved by this Court.
It is only proper that we keep ourselves within the bounds of the
issue arising in the case. We are not concerned to determine whether
a decree passed in a suit can merge with an order passed in the exer
cise of revisional jurisdiction because the decree of the trial court in
the instant case was challenged first by ·an appeal filed in the District
Court and than is a Second Appeal filed in the High Court. We are
also not concerned to determine whether the decree passed by a trial
court can merge in an unspeaking order passed by the higher court
while summarily dismissing the proceeding because the High Court
has given a considered judgment after a contested hearing. The
Principle, therefore, that there is no decree as such of the appellate
court if it dismisses the appeal for default of appearance or for want of
prosecution or on the ground that the appeal has abated or is with
drawn or that the appellant has failed to furnish security for costs as
provided in Order 41, Rule 10 of the Code of Civil Procedure, can
have no application to the instant case.·· Nor indeed are we concerned
with that class of cases in which the suit covers a horizon wider than
the appeal, which happens when only a part of the decree passed in
the suit is carried in appeal to the higher court. Here, the decree in
its entirety was challenged before the appellate courts.
Section 17 D of the Act of 1956 confers power on the court "to
set aside decrees" passed on account of the tenant's default in the pay
ment of rent. This power was conferred evidently in order to give
further relief to defaulting tenants, as stated in the Statement of Ob
jects and Reasons of the Bill (Calcutta Gazette Extra Ordinary, elated
August 2, 1969). An effective and meaningful exercise of the power
to set aside the decree for possession postulates a power to set aside
an operative decree; for, to set aside the decree of the court of first
instance •and to allow the decrees of the appellate courts to remain
outstanding would be but an .empty exercise of the beneficient power
given by the section. Therefore, the power to set aside the decree f()r
possession must be construed to mean a power to set aside the decree
which can be put into execution. The decree which affects the rights
of the de!andant is the decree which is capable of execution for it is
in that decree that the rights and obligations of the parties are crysta
llised.
Section 1 7 D in terms speaks of the power of the court to set aside
"a decree for the recovery of possession of any premises" if, "the pos
session of such premises had not been recovered from the tenant by
the execution of the decree". The decree to be set aside is thus that
..
400 SUPREME COURT REPORTS (1975] 1 s.c.R.
decree which is capable of execution and in execution of which the
landlord has not yet obmined possession of the premises. What _is
ln1portant for the purposes of section 170 is to find which is the dee·
ree capable of execution. The section enables the judgment-debtor
to "make an application to the Court which passed the decree to set
aside the decree", provided that where the decree is passed in the exer·
cise of appellate jurisdiction, an application for setting aside the decree
may be made to the Court of first instance. By sub-section (2) of
section 17 D, if an application is made for setting aside a decree, "all
proceedings in execution of the decree shall remain stayed until the
applic•ation is disposed of". This provision emphasis what is clear
from the other provisions of the section that the concern of the law is
to arm the court with the power to set aside the operative decree by
executing which alone the judgment-creditor could ol;>tain real and
e!f~ctivx r.~lief: - _. 1.~..._rl':"· ~! 1:t::. j .... _,_.__ •
in cases where the decree of the trial court is carried in appeal and
the appellate court disposes of the appeal after a contested hearing, the
decree to be executed is the decree of the appellate court and not o(
the trial court. In Jawad Hussain vs. Gendan Singh & Ors.,( 1) the
Privy Council while holding that the limitation of three years within
which an application for a final decree must be made runs from the
date of the decree of the appellate court,_ quoted with approval the
statement of law contained in the judgment of a: learned Judge of the
Allahabad High Court to the following effect : "When an appeal has
been prefe~red, it is the decree of the Appellate Court which is the
final decree in the cause". (2 ) The Privy Council also adopted the
statement contained in a judgment of Tudball J. to this effect : "When
the Munsif passed the decree it was open to the plain_tiff or the defen
dant to accept that decree or to appeal. If an appeal is preferred, the
final decree is the decree of the Appellate Court of final jurisdiction.
When that decree is passed, it is that decree and only that which can
be made final in the cause between the parties." Thus, when the decree
of the court of first instance is confirmed by the High Court and the
latter decree is confirmed by the Privy Council the decree capable of
execution is the decree of the Privy Council.(') In that case the decree
passed by a District Judge in 1887 awarded "future mesne profit" to
the plaintiff. That decree was reversed by the High Court but was
confirmed by the Privy Council on May 11, 1895. When the matter
came back in execution proceedings the Privy Council held that the
d"'°ree which the courts had to execute was the one passed by it in 1895
and since by that decree the District Judge's decree was confirmed, the
decree of 1895 clearly carried the mesne profits up to its own date.
An application of this very principle yields the result that if the
court of appeal confirms, varies or reverses the decree of the lower
court, the decree of the appellate court is the only decree that can be
ame11ded('), or that the limitation for executing a decree runs from
(I) 53 I.A. 197.
(2) Per Banerji J. in Ga'andhar Singh v. Kishan Jiwan Lal l.L.R. 39 All. 641.
0) Bhup Jnder v. Bijai, 27 I.A. 209. (4) Brij Narain v. Tejpal; 37 l.A. 70.
I)
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GOJER BROS v. R. L. SINGH (Chandraclmd, J.) 401
the date of the decree capable of execution and that is the decree of
the appella•e ·~art which supersedes that of the court of first ins·.
tance( 1}; or tuat if mesne profits are ordered ·from the date of suit
until the expiry of three years after the date of the decree, the decree
to be covsidered is the decree capable of execution so that if the
decree of the trial court is confirmed in. appeal, three years will begin
to run from the date of the appellate decree.(') ..
The decree, therefore, whtt.On section 17 D empowers the court to
set aside . is the decree which is capable of· execution which, in this
case, is the decree passed by the High Court on.January 8, 1969 .
. The fundamental reason of the rule that 'where there has . been an
•;:>peal, the decree to be execUted is. the decree of the appellate court
is tt:at in such cases the decree· of the trial court is merged in. the dec
ree of the appellate. court.. In course of time, this concept which was
onginally restricted to appellate decrees on the ground that an appeal
· is a continuation of. the suit, came to be. gradually extended. to other
proceedings like Revisions and even to proceedings before quasi judi-
cal and executive authorities; · . - . .
)t will now be appropriate to refer to the decisions bearing on the
principle of merger · ·
In Commissioner of Income-tax Bombay vs. M/s Amritlal
Bhogi/a/ & Co.,(') the question which arose for decision was whether.
tho order passed by the Income-tax Officer allowing the registration ·
of a firm merged in the. order passed by the Appellate Assisfant Com· ·
missioner. in the apl'eals filed by the firm against the order of .
assosment. If it did, the Commissioner of Income-tax could not in the
exercise of his revisional powers under section 33B (1) set aside the
order of registration passed by the Income-tax Officer. This Court held
on·the merits of the matter that though the appellate order of the·
Appellate Assistant Commissioner was the· only order which was valid
and enforceable in Jaw,· what merged in the appellate order was the
Income-tax Officer's order. under appeal and not his order of registra
tion .which was not and could not have become the subject-matter of
an appeal before the appellate authority. The position in regard to_' the
doctrine of merger was stated thus by Gajendragadkar J. who spoke
. for the· Court:
"There can be no doubt that, if an appeal is provided
.against an order passed by a tribunal;. the decision of the ap
pellate' a•1thority is the operative decision in law. If the ap
pellate authority. modifies or reverses the decision ·of the tri
bunal, it is obvious that it is the appellate. decision that is
effective and can be enforced. In law the position would
be.just the same even if the appellate decision merely confirms
(I) Jowad Hursain vs. Cendan Singh, 53 I.A. 197.
(2) Bfiup Jnder \'S. Bijal. 27 I.A. 209.
(3) [1959] S.C.R. 713.
I
·the decision of the tribunal. As a result of the confirmation A
or affirmance of the decision of the tribunal by the appellate
authority the original decision merges in the appellate deci-
sion and it is the appellate decision alone which subsists and
is operative and capable of enforcement."
Col/ctor of Customs, Calcutta vs. East India Commercial Co.
Ltd.,( 1) is a typical example of that class of cases in which prior to
the amendment of Article 226 of the Constitution by the insertion of
clause IA, the High Courts were faced with the question whether a
writ could issue against an authority whose seat was situated beyond
the territorial jurisdiction of the High Court. The respondent filed a
writ petition in the Calcutta High Courr against the decision of the
Central Board of Revenue which had dismissed his appeal. A Full
Bench of the High Court held that though it had no jurisdiction to
issue a writ against the Central Board of Revenue which was perma
nently located outside its territorial jurisdiction, the Board having
merely dismissed the respondent's- appeal against the order passed by
the Collector of Customs, the real effective order was that of the Col
lector whose seat was located within the jurisdiction of the High Court
and therefore a writ could issue as against him. After referring to the
decisions of the High Courts of Allahabad, Nagpur, PEPSU and Rajas-
. than whieh had t•aken the view that the order of the original authority
merges in the appellate order even when the appellate authority dis
misses the appeal without any modification of the order appealed
against, Wanchoo J. speaking for the Constitutional Bench observed
thus:
"The question therefore turns on whether the order of
th~ original •authority becomes merged in the order of the
appellate authority even where the appellate authority me
rely dismisses the appeal without any modification of the
order of the original authority. It is obvious that when an
appeal is made, the appellate authority can do one of three
things, namely, (i) it may reverse the order under appeal,
(ii) it may modify that order, and (iii) it may merely dis
miss the appeal and thus confirm the order without any
modification. It is not disputed that in the first two cases
where the order of the original authority is either reversed
or modified it is the order. of the appellate authority which is
the operative order and if the High Court has no jurisdiction
to issue a writ to the appellate authority it cannot issue a wnt
to the original authority. . . . . . . . . . It seems to us that on
principle it is difficult to draw a distinction between the first
two kinds of orders passed by the appellate authority and
the third kind of order passed by it. In all· these three cases
after the appellate authority has disposed of the appeal, the
operative order is the order of the appellate authority
whether it has reversed the original order or modified
it or confirmed it ......... .
(1) [1963] 2 S.C.R. 563.
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GOJER BROS v. R. L. SINGH ( Chandrachud, !. ) 4 0 3
It is this principle, viz., that the appellate order ·is the
operative order after the appeal is disposed of, which is in
our opinion the basis of the rule that the decree of the lower
court merges in the decree of the appellate court, and on the
same principle it would not be incorrect to say that the order
of the original authority is merged in the order of the appel
late authority whatsoever its decision-whether of reversal
or modification or mere confirmation."
The decision of the High Court was accordingly set aside by this
Court.
In Madan Gopal Rungta vs. Secretary to the Goven1111e11t of
Orissa( 1) which also involved a similar question relating to the terri
torial jurisdiction of the High Court, the appellant, Madan Gopat
Rungta, filed an application for review to the Central Government
against the order passed by the Government of Orissa rejecting his
application for grant of a mineral lease. The judgment of this Court
affirming the view of the High Court that it had no jurisdiction to issue
a writ against the Central Government undoubtedly based on the
terms of Rule 60 of the Mineral Concession Rules. 1949 under which
whenever a matter is brought to the Central Goverhment it is its order
which is effective and final; but it was observed that "where there is a
review petition. and the Central Government passes an order on such
petition one way or the other it is the Central Government's order
that prevails and the State Government's order must in those circum ..
stances merge in the order of the Central Government" (p. 914).
The principle that the decree of the trial court merges in the decree
of the appellate court was held to be applicable in U.J.S. Cho:Jra v.
State of Bombay(') to orders passed in criminal proceedings. In that
case the High Court dismissed summarily an appeal filed by an accu
sed against his conviction and sentence. Thereafter, the State of Bom
bay filed an application in the High Court for enhancement of the
sentence. While holding that the summary dismissal of the appeal
preferred by the accused did not preclude him from taking advantage
of the provisions of section 439(6) of the Code of Criminal Procedure
and showing cause against his conviction when he was subsequently
called upon to show cause why the sentence imposed on him should
not be enhanced, Bhagwati and Imam JJ. observed :"A Judgment
pronounced by the High Court in the exercise of its appell.ate or re
visional juridiction after issue of a notice and a full hearing m the
presence of both the parties ........ would replace the iudgmem of
the lower Court, thus constituting the iu.dgrnent of the High Court
the only final judgment to be executed m accordance with law by
the Court below." (pp. 133-134). Das J. agreed with the conclusion
of the majority as regards the right of the accused to challenge the
conviction under section 439(6) but he went a step further and said
that there is a merger or replacement of the judgment of the lo'."er
court whenever the High Court disposed of the appeal or rev1s10I1
(I) [19621 Supp. (3) S.C.R. 9~6. (21 [1955] 2 S.C.R. 94.
;md that "it makes no difference whether the dismissal is summary or
_otherwise". (p. 118). .
An interesting question arose in Shanker Ramchandra Abhyankar
v. Krishnaji Datiatryaya Bapat(l) where after a single Judge had dls
.jllissed a Civil Revision Application filed by the tenant under section
"115 of the Code of Civil Procedure, against a decree passed by the
District Court, a Division Bench of the Bombay High Court enter
tained the tenant's writ petition under Articles 226 and 227 of the
..constitution agains1t the same decree1 and allowed it. The Bombay High
Court had followed its earlier judgment in Sipahimalani's case(")
.which had taken the. view that an order passed by the lower court does
not merge in the order passed by the revisional court because where
. &s a right of appeal is a vested right and an appeal is a continuation
.or re-hearing of the suit, a revision is not continuation or re-hearing
of the suit and it is not obligatory upon the revisional court to inte1fore
.with the order even if itis improper or illegal. This Court disapproved
,of that view and held following a judgment of the Privy Council in
Nagendra Nath Dey v. Suresh Chandra Dey(") that the revisional
jurisdiction is a part and parcel of the appellate jurisdiction of the
High Court and therefore the principle of merger would apply to
,orders passed in the exercise of revisional jurisdiction also.
In Somnath Sahu v. The State of Orissa and others( 4 ) the principle
,of merger was extended to an executive order dismissing a Govern
ment servant. The appellant in that case was dismissed by an order
passed by respondent No. 4, the Indian Aluminium Company Ltd.,
Calcutta. The
1
appeal filed by the appellant to the State Government
was dismissed on January 2, 1962. The appellant thereafter moved
.the Orissa High Court under Article 226 of the Constitution asking
.that the orders passed by the State Govermnent and respondent No. 4
be quashed, on the ground that no notice was given to him for mis
.conduct and no inquiry was held by respondent No. 4 into the alleged
misconduct before passing the order of dismissal. This Court assumed
in favour of the appellant that the order passed by respondent No. 4
was illegal but it held that it tar.: merged in the appellate order of the
State Government dated Januar; :Z, 1962 and unless the order of the
State Govermnent was shown to be defective, the appellant would not
be antitled t9 any relief. Speaking on behalf of the Court Ramaswami
J. observed "There can no doubt that if an appeal is provided by a
statutory rnle against an order passed by a tribunal the decision of the
appellate authority is the operative decision in law ii the appellate
authority modifies or reverses it. In law the position would be ;us! the
same even if the appellate decision merely confirms the decision of the
Tribunal. As a result of the confirmation or affumance of the decision
of the Tribunal by the appellate authority the original decision merges
in the appellate decision and it is the appellate decision alone which
is subsisting and is operative and capable of enforcement."
The learned Judge of the High Court has referred to some of these
,decisions in his iudgment but he took the view : "I am of opinion that
(I) [1970] I S.C.R. 322. (2) 58 B.L.R. 344 .
. (3) 59!.A. 283, 287. (4) [1969] 3 S.C.C. 384.
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GOJER BROS v. R. L. SINGH (Chandrachud, J.) 405
in cases where the appellate court merely dismisses the appeal, the
principle of merger have no application in cases of execution of the
original decree except as to limitation and will not affect an executable
decree passed by an inferior court, in so far as its execution is concern
ed. The position would be otherwise if the decree is modified or vari
ed by such appellate authority as, in such event, the orginaJ decree
will be inexecutable,." This conclusion is clearly opposed the view
taken by this Court in the decisions referred to above and the learned
Judge was in error in making a distinction between an appellate jud~
ment whereby an appeal is dismissed and an appellate judgment modi
fying or reversing the decree of the lower court. This distinction is un
sound and is based on no discernible principle.
Two more judgments of this Court must -be noticed because the
learned Judge has derived sustenance to his view from t_hose judg
ments. Learned counsel for the respondent has also relied on them in
support of his submission that in this case there can be no merger of
the trial court's decree in that of the appellate court.
The first of these cases is : The State of Uttar Pradesh v. Moham
mad Nooh.(1) On April 20, 1948 the District Superintendent of Police
passed an order of dismissal against the respondent Mohammad Nooh
who was a head constable. The respondent filed an appeal to the
Deputy Inspector-General of Police which was dismis;cd on May 7,
1949. He then filed a revision application to the Inspector-General of
Police which W<J.s also dismissed on April 22, 1950. The respondent
then filed a writ petition in the High Court of Allahabad under Article
226 of the Constitution praying that the order of dismissal be set
aside. The High Court granted the writ on the ground that the viola
tion of the rules of natural justice and fair play rendered the order
of dismissal illegal. In an appeal by the State of U. P., this Court
held by a majority that Article 226 of the Constitution is not retros
pective and the High Court could not exercise its powers under that
Article 226 to quash the order of dismissal passed before the com
mencement of the Constitution.
It was contended before this Court on behalf of the respondent
Mohammad Nooh that the order of dismisal dated April 20, 1948
had merged in the order passed on 'appeal on June 7 1949 that both
these orders merged in the order passed by the Inspector-General of
Police on April 22, 1950 and since the order last mentioned was pass
ed after the Constitution had come into force, the High Court had
jurisdiction to issue the writ under Article 226. This cc:itcntion was
negatived by the court on two grounds : Firstly, that thou~h departmen
tal authorities holding an inquiry into charges made against an emp
loyee have the trappings of courts of law, they cannot be compared
with regular courts manned by persons trained in law and therefore
the order of dismissal, the order passed in appeal and the order passed
in revision "cap. hardlv be equated with any propriety with decrees
made in a civil suit under the Code of Ci·1il Procedme· secondly that
while it is . true that a decree of a court of first instan~e may be' said
to merge m the decree passed on appeal therefrom or even in the
(l) [19581 S.C.R. 595.
406 SUPREME COURT REPORTS (1975] l S.C.R.
order passed in revision, it does so only for certain purposes, namely. A
for the purposes of computing the period of limitation for execution of
the decree as in Batuk Nath v. Munni Dei, ( 1) or for computing Jhe
· period of limitation for an application for final decree in a mortgate
suit as in Jawad Hussain v. Gendan Smgh.( 2 )"
The observations last q,iv1ed from the Judgment of Das C. J. do
lend support to the contention of the respondent that the principle of
merger has, at b:>st, a limited application but we are of the view
that the observations are evidently made in the context of the pecnliar
facts of the case ')nd their application ought not to be extended
beyond those facts. After making the observations extracted above,
Das C.J. proceeded to say : "The filing of the appeal or revision
may put the decree or order in jeopardy but until it is reversed or
modified it remains effective. In that view of the matter the origi
nal order of dismissal passed on April 20, 1948, was not suspended
by the presentation of appeal by the respondent nor was its opera-
tion interrupted when the Deputy Inspector-General of Police simply
dismissed the aopeal from that order or the Inspector-General simply
dismissed the application for· revision. The originijl order of dis-
1nissal, if' there was no inherent infirmities in it, was operative on
its own strength and it did not gain any )!realer efficacy from the
subsequent orders of dismissal of the appeal or the revision except
for the specific purposes hereinbefore mentioned. That order of dis
missal having been passed before the Constitu:ion and rights having
&ccrued to the appellant State and liabilities having attached to the
respondent before the Constitution came into force, the subsequent
conferment of jurisdiction and powers on the High Court can have
no retrospective operation on such rights and liabilities." This passage
leaves no doubt that the judgment is based on the premise that the
original cwder of dismissal was operative on its own strength and that
since that order was passed prior to the Constitution, the High Court
had no jurisdiction to set it aside under Article 226. In Madan Gopal
Vs. Secretary to the Gavernment of Orissa(3 ) a Constitution Bench of
this Court held that "the facts in Mohammad Nooh's case were of a
special kind" and therefore the reasoning in that case would not apply
to the facts of the case befc~e the Constitution Bench to which we have
already made a reference. In Collector of Customs, Calcutta vs. East
India Commercial Co. Ltd.,( 4 ) the same Constitution Bench reiterated
that Mohammad Nooh's case was a special case which stands on its
own facts". As ctbserved in that decision, even if the principle of
merger were applicable the fact would still have remained that the dis
missal of Mohammad Noah was prior to the Constitution and ·here
fore he was not entitled to take advantage of the provisiqns of lite
Constitution.
The other decision on which the respondent relies is State of
Madras vs. Madurai Mills Co. Ltd. 15 ) It was Pfld in that case that
·the order of assessment dated Ncwember 23. 1952, had not merged in
(1) [1914] LR. 41J.A.104.
(3) Jl962] Supp. (3) S.C.R. 90f.
(5) [1967] l S.C.R. 732.
(2) [19261 L.~. 53 I.A. 197.
(4) [1963] 2 ~.C.R. 563.-
-..-
\--
•••
GOJER BROS v. R. L. SINGH (Chandrachud, J.) 407
the revisional order dated August 21, 1954 passed by the Deputy Com
missioner of Commercial Taxes "because the question of exemption on
the value of yarn purchased from outside the State ct Madras was not
the subject-matter of revision". The attention of the Court was drawn
to Amrutal Bhogilat's case('), to wmcn we ddVe alreaoy re,erreu, but
Ramaswami J. who spoke for the Court said : "But t.':te doctrine ct.
merger is not a doctrine of rigid and universal application and it can
not be said that wherever there are two orders, one by ,he mtcr.or Tri
bunal and the other by a superior Tribunal, passed in an appeal er
revision, there is a fusion or merger of two orders irrespective of the
subject-matter of the appellate or revis1onal urder and tne scope of the
appeal or revisiClll contemplated by the particular statute. In our
opinion, the application of the doctrine depends on the nature of the
appellate or revisional order in each case and the scope of the statutory
provisions ccinforring the appellate or revisional jurisdiction." These
observations cannot justify the view that in the instant case there can
be no merger of the decree passed by the trial court m t«c cklrec of
the High Court. The court, in fact, relied on Amritlal Bhogilal's case
while pointing out that if the subject-matter of the twc1 proceedings is
not identical, t11ere can be no merger. Just as in Amritlal Bhogilal's
case the question of registration of the assessee-firm was not before the
appellate authority and therefore there could b: no merger o, toe orller
of the Income-tax Officer in the appellate order, so in the case of
Madurai Mills there could be no merger of the assessment order in the
revisional order as the question regarding exclusiclll of the value of
yarn purchased from outside the State was not the subject-matter of
revision before the Deputy Commissioner of Commercial Taxes.
In the instant case the subject-matter of the suit and the subject
matter of the appeal were identical. The entire decree of the trial
ccllJ!t was taken in appeal to the first appellate court and then to the
High Court. The appellate order also shows that the appeal after be
ing heard on merits, was dismissed with the modification that the res
pondent should vacate the premises by the end of January, 1970. The
decree of the High Court dated January 8, 1969, reads thus :
"It is ordered and decreed that the decree of the cc1ut of
appeal below be and the same is hereby affirmed and this
appeal dismissed subject to this that the defendant appellant,
having duly filed the stipulated undertaking, through his
learned Advocate, is allowed time till the end of January,
1970, for vacating the disputed premises and delivering up
quiet and peaceable possession thereof to the decree-holder
respondent on condition that the said defendant appellant
depcBits in the trial court, to the credit of the decree-holder
respondent, within two months from this date, the outsand
ing arrears, i'f any, on account of rents or mesne profits, as
the case may be, and also goes on depositing, in the same
court to the same credit, mcnth by month, regularly, accord·
ing to the English calendar, within the 15th of the next suc
ceeding month according to the same calendar, a sum of
(!) [1959] S.C.R. 713,
8~177 Sup Cil75
-408 SUPREME COURT REPORTS [ 197 5] 1 s.c.R.
Rs. 175/- (Rupees one hundred and seventy five) per
month, on account of current rents or mesne profits.
And it is further ordered that in the event ct the said
defendant's failure to make any of the above deposits, this
decree shall become executable at once."
We are accordingly of the opinion that the decree of the trial
court dated November 24, 1958 merged in the decree of the High
Court dated January 8, 1969. Since the decree of the High Court was
passed after the commencement of the West Bengal Premises Tenancy
(Amendment) Act 1968, that is to say after August-26, 1967, section
17D of the Act of 1956 can have ,no application and therefore the
decree of the High Court which is the only decree to be executed can·
not be set aside under that section.
We therefc~e allow the appeal, set aside the judgment of the High
Court dated May 31, 1971 and restore that of the Munsif, Second
Court, Alipore dated July 15, 1970. The respondent shall pay to the
appellants the costs of this appeal and of the Revisi<m before the High
Court.
s.c. Appeal allowed. ,