The Bank of Rajasthan Ltd. Vs. Shyam Sunder Taparia, Akai Impex Ltd. and ors. - Court Judgment

SooperKanoon Citationsooperkanoon.com/366974
SubjectBanking
CourtMumbai High Court
Decided OnJul-27-2006
Case NumberCri.W.P. Nos. 928 to 933 of 2006
JudgeD.B. Bhosale, J.
Reported inII(2007)BC706
ActsNegotiable Instruments Act, 1881 -Sections 138
AppellantThe Bank of Rajasthan Ltd.
RespondentShyam Sunder Taparia, Akai Impex Ltd. and ors.
Appellant AdvocateKartik Somsundaram, Adv., i/b., ;Paras Kuhad, Adv.;A.S. Shitole, A.P.P. in WP Nos. 928/06 and 933/06, ;M.M. Deshmukh, A.P.P. in WP No. 929/06, ;R.Y. Mirza, A.P.P. in WP No. 930/06, ;M.H. Mhatre, A.P.P
Respondent AdvocateM.P. Dalvi, Adv. for Respondent No. 1
Excerpt:
- section 34: [d.k. deshmukh, s.j. vazifdar & j.p. devadhar, jj] court fee on petition under section 34 of the act bombay court fees act (36 of 1959), schedule i, article 3, schedule ii, article 1(f)(iii) held, according to article 3 of schedule i, on any plaint, application or petition or memorandum of appeal for setting aside or modifying an award, same court fee is payable as is payable on a plaint or memorandum of appeal under article 1. thus, when an award is challenged by a plaint, application, petition or memorandum of appeal, court fee is payable on ad valorem basis. but from this requirement of payment of court fee on ad valorem basis, article 3 excludes an application or petition or memorandum of appeal filed in civil or revenue court challenging any award made under the arbitration act, 1940.thus, the provisions of article 3 of schedule 1 do not apply when an application is filed or appeal is filed challenging an award made under the arbitration act, 1940. thus the provisions of article 3 of schedule i do not apply when an application is filed challenging an award made under the arbitration act, 1940. the question, therefore, that arises for consideration is whether reference to the provisions of 1940 act found in article 3 of schedule i of the bombay court fees act can be said to include reference to the 1996 act. perusal of the provisions of section 8 of general clauses act shows that where by a central enactment any provision of a former enactment is repealed and re-enacted with or without modification then reference in any other enactment to the provisions so repealed shall, unless a different intention appears, be construed as references to the provisions so re-enacted. in the present case, it is common ground that the former enactment is the 1940 act, the new enactment is the 1996 act and any other enactment is the bombay court fees act, the only provision of the 1940 act referred to in article 3 of schedule 1 of the bombay court fees act is the provisions of section 33 of the 1940act and bare comparison of that provision with the provisions of sub-section (1) of section 34 of the 1996 act shows that the provision of section 33 of 1940 act is repealed and re-enacted in sub-section (1) of section 34 of the 1996 act with slight modification. therefore, reference to the provisions of section 33 of the 1940 act in article 3 of schedule-i of the bombay court fees act has to be construed, in view of the provisions of section 8 of the general clauses act, as reference to the provisions of section 34 of the 1996 act. so far as an appeal filed under section 37 of the 1996 act is concerned, perusal of section 37 shows that an appeal is provided to the appellate court against an order setting aside an arbitral award or refusing to set aside an arbitral award under section 34. thus, as the provisions of article 3 of schedule-i do not apply to an application or petition filed under section 34 of the 1996 act, they will also not apply to the memorandum of appeal filed to set aside or modify an award made by the arbitrator under the 1996 act. in other words nothing contained in article 3 of schedule-i of the bombay court fees act applies to an application, petition or memorandum of appeal to set aside or modify any award made under the 1996 act as it does not apply to an application or petition or memorandum of appeal to set aside or modify an award made under the arbitration act, 1940. perusal of the provisions of section 8 of the general clauses act shows that references in any other enactment to a provision in a former enactment is to be construed as reference to re-enacted provision in the new enactment unless a different intention appears. the different intention may appear either in the new enactment or in the other enactment. nothing was pointed out either in the 1996 act or in the bombay court fees act which can be construed as a different intention or which will show that it was not the intention of the maharashtra legislature to exclude an application or petition or memorandum of appeal filed in court to set aside or modify an award made under the 1996 act, from the provisions of article 3 of schedule-i of the bombay court fees act. it appears that the intention behind excluding an application made, challenging the award made under the 1940 act, from requirement of payment of ad valorem court fee which is required to be paid if the same litigant filed a suit on the same subject matter, was to encourage a litigant to go for arbitration instead of filing a suit. nothing has been pointed out to show that ther4e is any change in that legislative policy. on the contrary, from the preamble of the 1996 act it is clear that the policy of the legislature is to encourage people to adopt the mode of arbitration for resolving disputes. article 3 of schedule-i of the bombay court fees act does not apply to a petition, application or memorandum of appeal filed for challenging an award made under the 1996 act, and court fee on a petition filed under section 34 of the 1996 act challenging an award in high court is payable according to article 1(f)(iii) of schedule ii. section 37: [d.k. deshmukh, s.j. vazifdar & j.p. devadhar, jj] court fee on appeal under section 37 of the arbitration & conciliation act, 1996 - held, court fee is payable according to article 13 of schedule ii of the bombay court fees act. schedule i, article 3 & schedule ii, article 1(f)(iii): [d.k. deshmukh, s.j. vazifdar & j.p. devadhar, jj] court fee on petition under section 34 of the arbitration & conciliation act, 1996 - held, when a petition under section 34 is to be filed before a principal civil court of original jurisdiction which is not a high court, the question arises which article of either first schedule or second schedule would apply. in so far as the challenge to an award made under the 1940 act is concerned, an application under section 33 of that act could be made to a civil court and therefore, payment of court fee was governed by article 1(a) of schedule ii. this was so because the application was to be presented to the court of civil judge which was not a principal civil court of original jurisdiction. but now because of change of definition of term court in the 1996 act, a petition has to be presented, challenging an award made under the 1996 act in terms of the provisions of section 34 thereof, before the principal civil court of original jurisdiction. no entry either in the first schedule or in the second schedule was pointed out which applies to an application or petition to be made before the principal civil court of original jurisdiction, and therefore, when a litigant wants to file petition before a principal civil court having original jurisdiction which is not high court, challenging an award made under the 1996 act, no court fee under bombay court fees act is payable because of absence of a general or specific provision. therefore, it can be said that no court fee under the bombay court fees act is payable when a petition under section 34 challenging an award is filed before any principal civil court of original jurisdiction which is not high court. schedule ii, article 13: [d.k. deshmukh, s.j. vazifdar & j.p. devadhar, jj] court fee on appeal under section 37 of the arbitration & conciliation act, 1996 - held, court fee is payable according to article 13 of schedule ii of the bombay court fees act. - in the circumstances i am satisfied that the following order shall meet the ends of justice.d.b. bhosale, j. 1. heard learned counsel for the petitioner and respondent no. 1 and learned a.p.p. for the state.2. all these writ petitions are directed against cryptic order passed by the sessions court on 19.1.2006 by which all the complaints filed by the petitioner-bank have been dismissed. the order passed by the sessions court reads thus:ms. joshi app for state present. ms. pradhan advocate for applicant and ms. sagar advocate for the respondent are present.heard.in view of sms pharmaceuticals the case cannot be maintained against the present applicant. complaints against them dismissed.3. the courts are not expected to pass such cryptic orders. the learned judge, in the present case, ought to have record short reasons demonstrating as to how the case in hand was covered by the judgment of the apex court in s.m.s. pharmaceuticals pvt. ltd. v. neeta bhalla and anr. : 2005crilj4140 . the learned judge even did not feel it necessary to mention full title of the judgment of the apex court and the citation thereof while dismissing all the complaints relying upon the said judgment. his approach while passing drastic orders, dismissing the complaints under section 138 of the negotiable instruments act, 1881 filed by the bank involving huge amounts, was absolutely casual. the courts should exhibit from their conduct and their orders, concerned for the justice to be done in the cases and not casualness, as seen from the impugned order in the present case. the learned counsel for the parties have fairly agreed that i need not examine the merits of the case and record reasons for setting aside the impugned order and that all the matters be remanded to the sessions court for deciding the same on merits in accordance with law. in the circumstances i am satisfied that the following order shall meet the ends of justice.4. the orders impugned in all the writ petitions dated 19.1.2006 are quashed and set aside. all the revisions stand restored to file. the sessions court shall decide all the revisions on merits in accordance with law and by passing speaking order as expeditiously as possible and preferably within a period of three months from the date of receipt of this order.5. with these observations all the writ petitions stand disposed of.
Judgment:

D.B. Bhosale, J.

1. Heard learned Counsel for the petitioner and respondent No. 1 and learned A.P.P. for the State.

2. All these writ petitions are directed against cryptic order passed by the Sessions Court on 19.1.2006 by which all the complaints filed by the petitioner-Bank have been dismissed. The order passed by the Sessions Court reads thus:

Ms. Joshi APP for State present. Ms. Pradhan Advocate for applicant and Ms. Sagar Advocate for the Respondent are present.

Heard.

In view of SMS Pharmaceuticals the case cannot be maintained against the present applicant. Complaints against them dismissed.

3. The Courts are not expected to pass such cryptic orders. The learned Judge, in the present case, ought to have record short reasons demonstrating as to how the case in hand was covered by the judgment of the Apex Court in S.M.S. Pharmaceuticals Pvt. Ltd. v. Neeta Bhalla and Anr. : 2005CriLJ4140 . The learned Judge even did not feel it necessary to mention full title of the judgment of the Apex Court and the citation thereof while dismissing all the complaints relying upon the said judgment. His approach while passing drastic orders, dismissing the complaints under Section 138 of the Negotiable Instruments Act, 1881 filed by the Bank involving huge amounts, was absolutely casual. The Courts should exhibit from their conduct and their orders, concerned for the justice to be done in the cases and not casualness, as seen from the impugned order in the present case. The learned Counsel for the parties have fairly agreed that I need not examine the merits of the case and record reasons for setting aside the impugned order and that all the matters be remanded to the Sessions Court for deciding the same on merits in accordance with law. In the circumstances I am satisfied that the following order shall meet the ends of justice.

4. The orders impugned in all the writ petitions dated 19.1.2006 are quashed and set aside. All the revisions stand restored to file. The Sessions Court shall decide all the revisions on merits in accordance with law and by passing speaking order as expeditiously as possible and preferably within a period of three months from the date of receipt of this order.

5. With these observations all the writ petitions stand disposed of.