PLJ 2006 SC 1240
[Appellate Jurisdiction]

Present: Mian Shakirullah Jan, Ch. Ijaz Ahmad and
Syed Jamshed Ali, JJ.

KHAIR MUHAMMAD--Petitioner

versus

MUHAMMAD HUSSAIN and others--Respondents

Civil Petition No. 5-Q of 2005, decided on 19.4.2006.

(On appeal from the judgment dated 22.11.2004 passed by High Court of Balochistan, Quetta in C.R. No. 276 of 2002).

(i)  Civil Procedure Code, 1908 (V of 1908)--

----S. 11--Constitution of Pakistan, 1973, Art. 185(3)--Leave to appeal--Decision of two civil suits--One decree challenged but not the other--Effect of omission--Non-challenged decree will separate as res-judicata--Contention of--Validity--The issue as to the effect of omission to challenge the second decree followed by a single judgment has been subject matter of a serious debate before High Courts--Held: One appeal against the decree passed was sufficient to get rid of the adjudication made by the single judgment and the un-appealed decree did not operate as res-judicata.                [Pp. 1243 & 1249] B, C & D

(ii)  West Pakistan Urban Restriction Ordinance, 1959 (VI of 1959)--

----S. 13(6)--Constitution of Pakistan, 1973, Art. 185(3)--Landlord after eviction of tenant/petition filed suit for recovery--Petitioner also filed a suit of same nature--Both suits consolidated and disposed of--Held: Entitlement of--Despite passing of two decrees, appeal was filed against one decree only which was not maintainable because the decree was not challenged operated as res-judicata--Contention of--Validity--Main controversy was decided by the trial Court which was reversed by the First Appellate Court--Thus as against the decree of trial Court which was verbatim copy of the decree sheet the decree of First Appellate Court will prevail--It was a case in which there was one decision followed by separate decrees--Decree passed in appeal by First Appellate Court would have precedence over the decree passed by trial Court--No injustice had been done in view of the adjudication of the First Appellate Court and High Court that landlords were entitled to rent for the area of specified sq.ft--Petition was dismissed. [Pp. 1242, 1243 & 1249.] A, E, F & G

AIR 1927 Lahore 289; ILR 29 Madras 333; AIR 1946 Oudh 33; AIR 1953 SC 252; PLD 1957 (W.P.) Peshawar 129; 1992 SCMR 979 and PLD 1961 (W.P) Karachi 38, relied.

1992 MLD 771; PLD 1961 Dacca 344; 1993 CLC 1367 and 1989 MLD 3663.

Mr. M.W.N. Kohli, AOR for the Petitioner.

Respondent No. 1 in person.

Mr. Kamran Murtaza, ASC for Respondent No. 4.

Date of hearing: 19.4.2006.

Order

Syed Jamshed Ali, J.--Leave is sought against the judgment dated 22.11.2004 of the learned High Court of Baluchistan, Quetta. It arises out of the following circumstances.

2.  Vide a rent note dated 18.2.1993, Abdul Haleem, predecessor-in-interest of Respondents Nos. 1 and 2 and Malik Masud-ul-Hassan, Respondent No. 3 let out to the petitioner a hotel on a constructed area of 900 Sq. ft. and a plot of 1350 Sq. ft. at a monthly rent of Rs. 12,250/-. The petitioner, however, encroached upon another adjacent vacant site belonging to Quetta Development Authority (Q.D.A.) and raised illegal construction thereon when it came to the notice of the Q.D.A. it was demolished. On the default of the petitioner, the private respondents filed an ejectment petition. In pursuance of an order passed by the learned Rent Controller under Section 13(6) of the Rent Restriction Ordinance, 1959, the petitioner continued to deposit the rent and during the said proceedings the Rent Controller had passed a restraint order against payment of the deposited rent to the land-lords. The petitioner was eventually, ordered to be ejected on 8.3.1999. In pursuance of order under Section 13(6) an amount of Rs. 3,55,750/- was deposited in the Court by the petitioner which covered the period from November, 1996 to February, 1998. And, from March, 1998 upto 8th March, 1999, an amount of Rs. 83,300/- had also fallen due. The land-lords, accordingly, filed a suit for recovery of the aforesaid amount. The petitioner also filed a suit claiming an amount of Rs. 5,36,842/- which the plea that the area of 1350 Sq. ft was not owned by the land-lords and, therefore, they were not entitled to receive the rent for the said area for the period from February, 1993 to March, 1999. The petitioner also claimed a sum of Rs. 300,000/- by way of goodwill/Pagri and Rs. 200,000/- as expenses incurred on construction over the said area. The two suits were consolidated as recorded by the trial Court (although learned counsel for the petitioner disputes this). The parties led evidence in support of their respective pleas. Vide judgment dated 11.5.2002, both the suits were disposed of. It will be appropriate to reproduce the decree passed which is exactly the same in both the suits:--

"It is declared that the land-lord Babu Abdul Haleem was/is entitled to receive the only rent to the extent of 900 Sq. ft. belong to him while tenant Khair Muhammad is only to receive back rent paid and deposit to the extent of 1350 Sq. ft. of the adjacent area which belongs to Q.D.A. Department. However, the prayer of the decree regarding expenses incurred in construction and payment of PAGRI of the tenant Khair Muhammad is declined. The Civil Court has no power to fix the fair rent of an area falls under Rent Restriction Ordinance, therefore, both the parties at liberty to approach the Rent Controller for determination of the fair rent regarding 900 Sq. ft. covered area and 1350 Sq. ft. adjacent area and after decision of that application, they approach for execution of decree passed by this Court".

3.  The respondents filed an appeal against the judgment and decree passed in their suit. The learned First Appellate Court found that the area of 1350 Sq. ft. did not belong to the Q.D.A. and the area of the Q.D.A., on which illegal construction was raised by the petitioner, was not included in the area leased out to the petitioner. With this finding, the appeal was allowed and the respondents-land lords were held entitled to the rent claimed by them for 1350 Sq. ft. The revision petition filed by the petitioner was dismissed vide judgment dated 22.11.2004 which is impugned in this petition.

4.  The only contention of the learned counsel is that the suit of the petitioner was numbered as 55-A/2001, while that of the respondents was 54-A/2001, yet separate decrees were passed in both the suits but the decree passed in Suit No. 55-A was not challenged with the result that appeal against the decree passed in the Suit No. 54-A was not maintainable because the decree in the Suit No. 55-A/2001 operated as res judicata.

5.  The submission made has been considered. Apart from the fact that it was not pressed before the learned High Court at the time of hearing, it has otherwise no merit. In both the suits, the main controversy was whether the respondents were entitled to receive rent in respect of 1350 Sq. ft.  It  was  decided  by  the  trial  Court  in  favour of the petitioner in his suit which was reversed by the learned First Appellate Court. Thus, as against the decree of the learned trial Court in Suit No. 55-A which was verbatim, copy of the decree sheet in Suit No. 54-A, the decree of the learned First Appellate Court of appeal will prevail. Thus, in the circumstances of the case, it was not necessary for the respondents to challenge the decree passed in the suit of the petitioner to claim the same relief which they could obtain in the appeal against the decree passed in their suit. It was a case in which there was one decision followed by separate decrees. It was more a matter of form than of substance.

6.  The issue as to the effect of omission to challenge the second decree followed by a single judgment has been subject-matter of serious debate before the High Courts of Madras, Patna, Calcutta, Allahabad, Rangoon, Oudh, Lahore and of this Court. The first important case to be noted is a full bench judgment of the Lahore High Court in Mt. Lachhmi vs. Mt. Bhulli (AIR 1927 Lahore 289). This is an exhaustive survey of the precedent cases. In the said case, there were two cross suits about the same subject-matter between the same parties which were consolidated and one judgment delivered in both the cases but the decrees drawn were separate. An appeal was filed against only one of the decrees by one plaintiff in her suit. It was held by majority judgment that the un-appealed decree did not operate as res judicata. It will be appropriate to reproduce relevant extracts from the said judgments;

"It must, therefore, be settled at the very outset whether S. 11 applies to appeals or whether its operation is limited only to suits as meaning proceedings in an action in Courts of the first instance as distinguished from proceedings in appellate Courts. After a careful examination of the section, I have reached the conclusion that it applies to suits only and not to appeals."

"Let us see what are the fundamental principles of res judicata and how do they affect the present case. It has already been indicated that the foundation of the rule, as understood both by ancient and modern lawyers is that a question must be once fairly and finally tried by a competent Court and after this has been done all further litigation about it should be concluded for ever between the parties. The maxim is, as has been stated above, that "no one shall be vexed twice over the same matter". This, to my mind, presupposes that the issue has been once fairly and finally tried in a former litigation, which was independent of the proceedings in which the matter is again in dispute. The essence of the rule seems to me to be that the two proceedings should be so independent of each other that the trial of one cannot be confused with the trial of the other. Where two suits, having a common issue, are, by consent of parties or by order of the Court, tried together, the evidence being written in one record and both suits disposed of by a single judgment, can it be said that there have been two distinct and independent trials? There being but one finding and one judgment, on what principle can the hearing of the appeal in which this finding and this judgment are under consideration be barred merely because no appeal has been filed in the connected suit which was disposed of by that very judgment? There has been, in substance as well in form, but one trial and one verdict, and, I venture to think, it will be a travesty of justice to stifle the hearing of the appeal against such a judgment on the ground that the findings contained in it operate as res judicata. In such a case there can be no question of the successful party being "vexed twice" over the same matter, nor does the hearing of the appeal in any way militate against any rule of public policy, which requires that there must be an end of litigation. There is not only nothing here to attract the principles underlying the rule of resjudicata, but, on the other hand, it seems to me that the acceptance of such a plea in such circumstances would strike at the very root of the basic conception of the doctrine which requires that a party must have at least one fair trial of the issue resulting in a decision by the Court of ultimate appeal as allowed by the law for the time being in force."

"Another point remains to be noticed, viz., that even though the two suits were tried together, and may be taken to have been disposed of by one judgment, yet two decrees were actually passed, one in each suit, and as only one such decree has been appealed against, the other remains outstanding and has become final. It is suggested, that if the appeal is allowed to proceed and is successful, an anomalous and embarrassing situation of having two inconsistent and contradictory decrees on the record of the Court might be created. This argument, which at first sight appears to be unanswerable, is the basis of the leading Allahabad case reported as Zaharia v. Debia (1). It also found favour with my learned brother Addison in Sulaiman v. Partab (36) and has the high authority of the great Calcutta Judge, Sir Asutosh Mookerjee, in support of it: vide Isup Ali v. Gour Ghandra Deb (37). I have, therefore, given much careful and anxious thought to it, and it is with a great deal of hesitation and difference that I have found myself unable to accept it. It is necessary to emphasize here what has been stated already, that res judicata is either estoppel by verdict or estoppel by judgment (or record), and there is no such thing as estoppel by `decree'. As remarked by Caspersz in para, 575 of his book on Estoppel, "the decree itself is not the test of what is or is not res judicata, but the question in each case is what did the Court decide". The determining factor is not the decree but the decision of the matter in controversy".

"That the circumstance that a decree in a former suit is outstanding in favour of the defendant is in itself insufficient to support the plea of res judicata is further clear from the Privy Council decisions in Sheo Sagar Singh v. Sita Ram Singh (38) and Abdullah Asghar Ali v. Ganesh Das (39), in each of which, though the decree in the former suit was subsisting in favour of the defendant, the subsequent suit was allowed to proceed as the matter could not be said to have been finally decided therein. In determining, therefore, whether the plea has any force, attention must be concentrated, not upon the fact that there is a record of an outstanding decree in favour of a party, but upon the question whether there has been an independent decision upon which the record was based".

"Looking at the matter from another standpoint we arrive at the same conclusion. When the parties decide to have the two suits tried together, the strictly proper procedure would have been to pass a formal order of consolidation, and it that had been done only one decree would have been prepared and one appeal would have been sufficient. Where this formality has not, however, been gone through, but a virtual consolidation of the suits has been (as suggested above) brought about, I think the position of the parties should not be in any way made worse. As pointed out in Damodar Das v. Sheoram Das (11), which has been approved in Ghansham Singh v. Bhola Singh (9), there is in such a case in reality "but one decree, though written in duplicate" on two different pieces of the paper, one of which is attached to the record of each suit. Looking, therefore, to the substance of the matter, rather than to its form, one appeal should be considered to be sufficient. I am, therefore, of opinion that no "estoppel by record" is created by the omission to appeal against the second decree in such a case".

"For it is now well settled that, if two or more conflicting decrees happen to be passed regarding the same property in two different proceedings, it will be the last one which will prevail. In such cases the later decision should be taken as superseding the earlier, and is thenceforward the only effective adjudication"

7.  Based on the above reasoning the learned full Bench drew the following conclusions:--

"The result of the examination of the rulings of the various High Courts may be summed up as follows:

(a)           The Madras High Court is whole heartedly in favour of the right to proceed.

(b)           The Allahabad High Court has held different views at different times, but the tendency of the latest decisions is in favour of the right to proceed.

(c)           The opinion of the majority in Mariam Nissa Bibi v. Joynab Bibi (8) is in favour of the right to proceed. In the Calcutta Court subsequent decisions of Division Benches (none of which, it is significant, has found its way into the authorized Reports) have taken the contrary view, but I venture to think that the reasoning of these decisions in so far as it conflicts with the earlier case cannot be supported.

(d)           The High Courts of Patna and Rangoon have followed the earlier decisions of the Allahabad High Court but these latter are no longer considered to be authoritative in that Court itself.

(e)           In the Punjab the rulings are not uniform, but on the whole, it seems to me that though much of the reasoning of the Full Bench judgment in Jogul Kishore v. Chammo (2) cannot be supported the conclusion arrived at in that case is correct".

8.  The other important case to be noted in full bench judgment of the learned Madras High Court in Panchanda Velan vs. Vaithinatha Sastrial and others (ILR 29 Madras 333). The facts of the case were quite close to the facts of the instant case. There were two cross suits between the landlord and a tenant which were tried together. While the tenant's suit was dismissed, the suit of the landlord was decreed. The tenant went in single appeal against the dismissal of his suit. The District Judge dismissed the appeal as being hit by res judicata. The learned full bench of the Madras High Court interfered in the matter with the following observations:--

"Technically, no doubt, the tenant's appeal ought to have been in both suits and the proper course for the District Judge to have taken would have been to require the appellant to amend his memorandum of appeal so as to make it an appeal in both suits; but the fact that the tenant only appealed in his own suit and did not prefer an appeal in the landlord's suit did not preclude the District Judge from deciding upon the merits the question raised in the appeal which was before him. The subject matter of the litigation in the two suits was the same, the evidence was the same, and the two suits were tried together. The reasons for which the tenant's suit was dismissed were the reasons for which judgment was given in favour of the landlord in his (the landlord's) suit."

(Underlining is ours to supply emphasis)

9.  The next important case is Full Bench judgment of the learned Oudh High Court in B. Shankar Sahai vs. B. Bhagwat Sahai (AIR 1946 Oudh 33). In the said case, the following question was referred to the learned Full Bench:--

"(i)          Where two suits between the same parties involving common issues are disposed of by one judgment but two decrees, and an appeal is preferred against the decree in one but it is either not preferred in the other or is rejected as incompetent does the matter decided by the latter decree become res judicata, so that it cannot be re-opened in appeal against the former?

After examining the entire case-law, the learned Judges answered the question in the negative and stated:

"If the consolidated judgment in suits between the same parties wherein common issues are raised and disposed of, forms the foundation of two decrees and it is reopened so as to necessitate the re-examination of the grounds on which the decision rests, it can scarcely be said that it represents in any sense a final adjudication between the parties. The suggestion that the single judgment must a fiction be regarded as two independent separate judgments governing two separate decrees between the same parties appears to us to be more imaginary than real. If the grounds for decision are common and are attacked as erroneous, the finality cannot be invoked for supporting a plea of res judicata till it has in fact become final. In the case before us the subject-matter of the litigations as well as the evidence in both cases is the same. The trial is one trial and the reasons, which necessitated the dismissal of one case, are also the reasons which impelled the Court to pronounce in favour of the plaintiff in the other. If the object of the appeal is to get rid of this adjudication, it is only the technical consideration of form which can alone be restored to for the success of the plea of res judicata. The success of the plea of res judicata. The existence of two decrees is merely for the sake of complying with the barest formalities of law, and it will, in our judgment, be the negation of the principle to say that a matter, which is still res integra, should operate nevertheless as res judicata. The forceful objection of Sir Aushotosh Mukerji in 37 C.L.J. 184 that to permit one appeal in these circumstances was tantamount to allow the decision, from which no appeal was filed, to be "collaterally attacked or implicitly ignored" seems, if we may say so with very great respect, to over look the fundamental feature of the case, namely that there is only one trial, one evidence and one decision".

10.  The rule laid down by the learned full bench of the Lahore High Court in Mt. Lachhmi supra was approved in The State of Bombay and another vs. The United Motors (India) Ltd. and others (AIR 1953 SC 252).

11.  In the full bench judgment of the Peshawar High Court in Muhammad Zaman Khan vs. Inzar Gul and others (PLD 1957 (W.P.) Peshawar 129, the rule was explained as under:

"Where two or more suits have common issues, are consolidated by the order of the Court, are tried at one and the same time, only one record of issues and evidence is prepared in all of them and finally they are adjudicated upon ad disposed of by one single judgment, the Court applying its mind only once to all cases collectively treating them as one case, then in substance as well as in form there will most definitely by one trial and one verdict in all those suits. To hold otherwise would, if I may venture to say so strain credibility and would amount to flying in the face of the realities."

In this case the judgment in the case of Mst. Lachmi supra was followed.

12.  The question also came up for consideration before this Court in Siraj Din and 11 others vs. Rajada (1992 SCMR 979). The issue was disposed of with the following observation:

"After hearing the learned counsel for the parties sand going through the records, we find that in fact as the memo of appeal filed before the District Judge shows at the very first opportunity the judgment in both the suits had been challenged. It was not an appeal in one case and not in the other. Copy of the decree sheet of Civil Suit No. 6 had been filed but not of Civil Suit No. 7 of 1972. It at that stage by examining the memorandum of appeal corrective steps had been taken and appellants asked to file copy of the decree sheet ad judgment separately in Civil Suit No. 7 of 1972 in order to bifurcate the composite attack, no such anomaly would have resulted. The failure here and at this stage was partly of the Court and its functionary. The parties should have known better. All such technical failures could be remedied if properly attended to promptly. Even at the argument stage, the District Judge should have deferred the decision in order to achieve the same and after allowing the opportunity to the parties to file the same. There was no question of treating the appeal to be one confining to Civil Suit No. 67 of 1972 when in fact the substance of the appeal attacked the decisions in both the suits."

(Underlined to supply emphasis)

13.  The learned Karachi High Court in Allahdin and others vs. Jamshed Aderji Dubash (PLD 1961 (W.P.) Karachi 38) took the similar view.

14.  It would not be out of place to note the contrary view. The first is expressed in the judgment of the Karachi High Court in Ghiyasuddin and another vs. Muhammad Ismail (1992 MLD 771). This is based on Jamini Kanta Roy  Chowdhury  and  others  vs.  Aswini  Kumar  Haldar  and  others  (PLD 1961 Dacca 344). The other judgment of the Lahore High Court is Shukar Din and others vs. Nazir Ahmed and others (1993 CLC 1367). Similar view was also taken by the learned division bench of the Lahore High Court in Sh. Muhammad Riaz Diwana through his legal heirs vs. Sh. Muhammad Sharif and others (1989 MLD 3663).

15.  From perusal of the above precedent cases, it is clear that preponderance of opinion has been in favour of the view taken by the learned full bench of the Lahore High Court in Mt. Lachhmi's case. We are of the opinion that in the facts and circumstances of the case, one appeal against the decree passed in the suit of the respondents was sufficient to get rid of the adjudication made by the single judgment and the un-appealed decree did not operate as res judicata. It is also held that the decree passed in appeal by the learned first Court of appeal shall have precedence over the decree passed by the trial Court in Suit No. 55-A.

16.  Therefore, in the circumstances of the case, no injustice has been done in view of the adjudication of the first Court of appeal and the learned High Court that the respondents-landlords were entitled to the rent for the area of 1350 Sq. Ft. We therefore, do not find any merit in this petition which is dismissed and leave declined accordingly.

 (M. Ajmal Rana)  Petition dismissed.