Appeal No 1575 of 1969
Appeal by special leave from the judgment and order dated March 18 1969 and May 8 1969 of the Punjab and Haryana High Court in Civil Revision No 1014 of 1968 and CM No 1863 of 1969
SV Gupte and Ravinder Narain for the appellant
KR Chaudhuri for the respondents
The Judgment of the Court was delivered by Dua J
By means of an agreement dated August 9 1963 the appellant company agreed to purchase from the respondents land measuring 264 kanals and 12 marlas
A sum of Rs 187000 was
paid as earnest money
The sale deed was to be registered by April 30 1964
As it was not so registered both parties blamed each other for the breach
In May 1966 the Government issued a notification under section 4 of the Land Acquisition Act which was followed by a notification under section 6 in September 1966 acquiring 104 kanals and 18 marlas of land out of the land agreed to be sold
The Collector made an award of the compensation for the acquired land against which a reference 370 was made to the Court of the District Judge
In May 1968 the compensation was enhanced to a sum over Rs 2 lakhs
In the mean time on April 15 1967 the appellantcompany instituted a suit for specific performance of the agreement dated August 9 1968
This suit was dismissed by the Court of the Senior Subordinate Judge Gurgaon on August 13 1968
A Regular First Appeal No 216 of 1968 against the dismissal of the suit is pending in the Punjab and Haryana High Court
It appears that the dispute as to apportionment of compensation under section 30 of the Land Acquisition Act was also referred to the Court
In view of the institution of the suit for specific performance an application was apparently made in the Court of the learned Additional District Judge dealing with the reference under the Land Acquisition Act to stay those proceedings pending the decision of the suit by the learned Senior Subordinate Judge
On February 28 1968 the learned Additional District Judge took the view that the entire matter in his Court was covered by the civil suit it being further observed in the order that even the question of the jurisdiction of the Senior Subordinate Judge to determine the amount of compensation was to be first decided by the civil court
On this view the reference proceedings were stayed pending the decision of the civil court
After the dismissal of the suit the respondents applied to the Court of the learned Additional District Judge for continuing the proceedings and for making an order of payment of compensation in their favour
This prayer was Contested by the appellant company on the ground that an appeal against the decree dismissing the suit had already been presented in the High Court and that the proceedings for payment of compensation should continue to remain stayed pending the disposal of the appeal
The learned Additional District Judge after hearing both sides decided on August 30 1969 to continue the order of stay pending the decision of the appeal by the High Court
According to him the question whether the original agreement had become frustrated or was alive and deserved to be specifically enforced would have an important bearing on the question of apportionment of compensation
The respondents preferred a revision to the High Court against this order and a learned Single Judge on March 18 1969 reversed the order continuing stay of the proceedings under section 30 and further directed payment of Rs 178000 to the respondents
The order of payment of this amount was framed in the following words  I do feel that in view of the fact that the suit filed by the respondent company has been dismissed prima facie it is reasonable that the proceedings under section 30 of the Act should continue but the petitioners may 371 not be allowed actual payment of more than Rs 178000
The balance of the amount due in respect of the land of the petitioners shall be kept with the Government to be disbursed in accordance with the decision in the regular first appeal
This will however be subject to the further condition that the petitioners will file an undertaking in this Court that they shall not dispose of or otherwise transfer any interest by creating any encumbrance over the balance of the land which was the subject matter of the agreement dated the 9th of August 1963 without the permission of the Court
Learned counsel for the petitioners appearing before me have agreed to this condition being imposed
 The concluding portion of that order may also be reproduced    
I accept this revision petition and direct that the proceedings under section 30 of the Act be continued but the petitioners will not be paid more than Rs 178000 and the balance will remain undisbursed till the decision of the regular first appeal If the appeal is accepted this amount shall be treated as part of the consideration that has to be paid by the respondent company
Till the decision of the appeal or till further orders of this Court the petitioners will not dispose of the balance of the land which is the subject matter of the agreement without the permission of the Court
 Before the learned Additional District Judge the question arose as to whether under the order of the High Court dated March 18 1969 the sum of Rs 178000 was to be paid immediately or after the decision of the reference under section 30
The parties apparently desired the learned Additional Judge to decide this question judicially on a consideration of the circumstances of the case
Both parties were accordingly heard and the learned Additional District Judge in a detailed order dated April 19 1969 expressed his conclusion thus  To my mind it seems that the decision of the reference under section 30 is to take place first and it is thereafter that the applicants shall be paid amount upto Rs 178000
In these circumstances it is ordered that the proceedings us 30 be restored and should continue
The cheque will be given only after the decision of the reference us 30
The revision before the Hon ble Judge was only against the order staying the proceedings and there was no revision regarding the non payment of the amount as that was not the question before this court and no orders were passed by this court in that connec 372 tion
As such the intention of the Hon ble Judge in passing the orders Seems to be that the amount may not be paid to any of the parties now but after the decision of the reference us 30
I order accordingly
 The learned Additional District Judge
also fixed May 21 1969 for the evidence of the parties
It appears that instead of challenging on merits the order dated April 19 1969 in the High Court by way of revision the respondents filed in that Court on May 6 1969 an application under sections 151141 CPC for clarification of its order dated March 18 1969
This application was placed before the High Court for preliminary hearing on May 8 1969 and the learned Single Judge recorded the following order without giving notice to the appellant  My orders are clear that the amount of Rs 178000 may be paid to the petitioners
The order further directs the petitioners not tO dispose any part of the land which was the subject matter of the agreement
With these observations this petition is filed
 It is against these two orders that the present appeal by special leave has been presented and the short argument pressed by Shri Gupte was that the order of the High Court dated March 18 1969 is unsustainable because there was no jurisdictional infirmity made out in the order of the learned Additional District Judge dated August 30 1968 which would justify interference on revision under section 115 CPC
In regard to the order dated May 8 1969 it was further complained that this order was made ex parte without notice to the appellant
It was contended by Shri Gupte that in face of the judicial order dated April 19 1969 made by the learned Additional District Judge after hearing both sides at length it was not open to the High Court to record the ex parte order dated May 18 1969 without affording to the appellant an opportunity for supporting the view
taken by the learned Additional District Judge
The submissions made by Shri Gupte in our opinion possess merit
The revisional jurisdiction has been conferred on the High Court by section 115 CPC in these terms  115
The High Court may call for the record of any case which has been decided by any Court subordinate to such High Court and in which no appeal lies thereto and if such Subordinate Court appears a to have exercised a jurisdiction not
vested in it by law or b to have failed to exercise a jurisdiction so vested
or 373 c to have acted in the exercise of its jurisdiction illegally or with material irregularity the High Court may make such order in the case as it thinks fit
 The mass or reported cases only serve to show that the High Courts do not always appreciate the limits of their jurisdiction under this section
The legal position was authoritatively laid down by the Privy Council as far back as 1894 in Rajah Amir Hassan Khan vs Sheo Baksh Singh1
The Privy Council again pointed out in Balakrishna Udayar vs Vasudeva Aiyar2 that this section is not directed against the conclusions of law or fact in which the question of jurisdiction is not involved
This view was approved by this Court in Keshav Deo vs Radha Kissan3 and has since been reaffirmed in numerous decisions
The position thus seems to
be firmly established that while exercising the jurisdiction under section 115 it is not competent to the High Court to correct errors of fact however gross or even errors of law unless the said errors have relation to the jurisdiction of the Court to try the dispute itself
Clauses a and b of this section on their plain reading quite clearly do not cover the present case
was not contended as indeed it was not possible to contend that the learned Additional District Judge had either exercised a jurisdiction not vested in him by law or had failed to exercise a jurisdiction so vested in him in recording the order that the proceedings under reference be stayed till the decision of the appeal by the High Court in the proceedings for specific performance of the agreement in question
Clause c also does not seem to apply to the case in hand
The words illegally and with material irregularity as used in this clause do not cover either errors of fact or of law they do not refer to the decision arrived at but merely to the manner in which it is reached
The errors contemplated by this clause may in our view relate either to breach of some provision of law or to material defects of procedure affecting the ultimate decision and not to
errors either of fact or of law after the prescribed formalities have been complied with
The High Court does not seem to have adverted to the limitation imposed on its power under section 115 of the Code
Merely because the High Court would have felt inclined had it dealt with the matter initially to come to a different conclusion on the question of continuing stay of the reference proceedings pending decision of the appeal could hardly justify interference on revision under section 115 of the Code when there
was no illegality or material irregularity committed by the learned Additional District Judge in his manner of dealing with this question
It seems to us that in this matter the High Court treated the revision virtually as if it was an appeal
1 11 Indian Appeals 237
2 44 Indian Appeals 261
L2 Sup
CI70 12 3  374 The respondents submission that the order made by the High Court on March 18 1969 was a consent order is unsustainable
The agreement mentioned in that order is obviously the agreement by the respondents petitioners in the High Court to the condition imposed on them to file an undertaking in that Court not to
dispose of or otherwise transfer any interest by creating encumbrance over the remaining land which was the subject matter of the agreement dated August 9 1968 without the previous permission of the Court
There is nothing in the order of the High Court or on the record to which our attention was drawn showing or even suggesting that the appellant had agreed to the revision being allowed
The order of the High Court dated March 18 1969 must therefore be set aside
The ex parte order dated May 8 1969 is equally difficult to sustain
In para 5 of the respondents application dated May 6 1969 under section 151141 Civil PC presented in the High Court a reference was clearly made to the order passed by the learned Additional District Judge on April 19 1969
It was averred in this paragraph  That the learned District Judge by his order dated 19 4 69 has interpreted the High Court s order wrongly and has held that the intention of the Hon ble Judge in passing the order dated 18 3 69 seemed to be that the amount may not be paid to any of the parties now but only after the decision of the reference under Section 30 of the Land Acquisition Act
Thus he has fixed the case under Section 30 of the Act for evidence on 21 5 69
 It seems that at the stage of preliminary hearing the attention of the High Court was not drawn to this fact and that Court proceeded to make an order virtually and in effect reversing the judicial order made by the learned Additional District Judge in favour of the appellant
This could more appropriately be done only on appeal or revision from the order dated April 19 1969 after notice to the party affected and not on an application under sections 151141 Civil PC Such an application in the circumstances was misconceived
The ex parte order is thus unsustainable and must be set aside
This appeal accordingly succeeds and the impugned orders are set aside with costs
We would like to make it clear that it will be open to the parties if so advised to approach the High Court by appropriate proceedings for the speedy disposal of the appeal
RKPS Appeal allowed


Summary:
The appellant company filed a suit against the respondents in the court of the Senior Subordinate Judge Gurgaon for the specific performance of an agreement for the purchase of  certain land by the company from the respondents
Part of the land in question became the subject of proceedings under the Land Acquisition Act 1894 and dispute relating to compensation was referred to the Court of the District Judge
The court fixed the compensation at over Rs 2 Iakhs
A dispute as to apportionment of the compensation was also
referred under section  30 of the Land Acquisition Act to the court but the proceedings were stayed by the Additional District Judge pending decision of the suit for specific performance by the Senior Subordinate Judge
The suit was dismissed and thereupon the respondents applied to the Additional District Judge for continuation of proceedings under section 30 and for payment of compensation to them
The appellant company resisted the application on the ground that it had filed an appeal in the High Court against the decree of the Senior Subordinate Judge
The Additional District Judge after hearing both parties stayed the proceedings under section 30 pending disposal of the company s appeal by the High Court
On a revision application under section 115 CPC filed by the respondents the High Court ordered on March 18 1969 that a sum of not more than Rs 178000 out of the compensation for the acquired land be paid to the respondents who must undertake not to sell the rest of the land during the pendency of the appeal
The Additional District Judge after hearing the parties judicially interpreted the order to
mean that Rs 178000 were to be paid to the respondents after the conclusion of the proceedings under  section 30
The respondents again moved the High Court with an application under section 151141 CPC for a clarification of its earlier order whereupon by order dated May 8 1969 the High Court ordered immediate payment
The company challenged the High Court s orders dated March 18 1969 and May 8 1969 in an appeal before this Court
It was contended on its behalf that in making its first order the High Court exceeded its jurisdiction us 115 CPC and in making the clarificatory order ex parte it violated the rules of natural justice
HELD i The position is firmly established that while exercising its jurisdiction under section 115 it is not competent to the High Court to correct errors of fact however gross or even errors of law unless the errors have relation to the jurisdiction of the Court to try the dispute itself
Clauses a and b of this section on their plain reading quite clearly did not cover the present case because it had not been shown that the learned Additional Sessions Judge had either exercised a jurisdiction not vested in him by law or had failed to exercise a jurisdiction so vested in him in recording the order that the proceedings under reference be stayed till the decision of the appeal by the High Court in the proceedings for specific performance of the agreement in question
Clause c of the section also did not apply 369 to the present case
The words illegally and with material irregularity as used in this clause do not cover either errors of fact or of law they do not refer to the decision arrived at but merely to the manner in which it is reached
The errors contemplated by this clause may relate either to breach of some provision of law of to material defects of procedure
affecting the ultimate decision and not to errors of either fact or of law after the prescribed procedure has been complied with
375 D G The High Court had not adverted to the limitation imposed on its power under section 115 of the Code and had treated the revision as if it was an appeal
Merely because the High Court would have felt inclined had it dealt with the matter initially to come to a different conclusion on the question of continuing stay of the reference proceedings pending decision of the appeal could hardly justify interference on revision under section 115 of the Code when there was no illegality or material irregularity committed by the Additional Sessions Judge in his manner of dealing with the question
The order of the High Court dated March 18 1964 had therefore to be set aside
375 F H Rajah Amir Hassan Khan vs Sheo Baksh Singh I I Indian Appeals 237 Balakrishna Udayar vs Vasudeva Aiyar 44 Indian Appeals 261 Keshav Deo vs Radha Kissan  applied
ii The ex parte order dated May 8 1969 was equally difficult to sustain
The High Court had proceeded to make an order virtually and in effect reversing the judicial order made by the learned Additional Judge in favour of the appellant
This could more appropriately be done only on appeal or revision after notice to the party affected and not on an application under sections 151141 CPC Such an application in the
circumstances was misconceifed
376 C F