Case: Bhargavi Constructions Vs. Kothakapu Muthyam Reddy

3) In order to appreciate the short legal controversy involved in the appeal, it may not be necessary to set out the factual controversy involved in the case in detail and only narration of few facts to appreciate the legal question arising in the case would suffice for the disposal of thisOn 07.05.2007, T. Jagat Singh (respondent No. 5 herein) filed a civil suit being O.S. No. 481 of 2007 against respondent Nos. 1 to 34 herein (defendant Nos. 1 to 33) in the Court of District Judge, Ranga Reddy DistrictThe suit was for specific performance of agreement of sale dated 28.12.1995 said to have been entered into between the parties in respect of agricultural land totally admeasuring AC. 51.29 guntas in (Sy.Nos.situated at Pappalguda village of Rajendranagar Mandal, Ranga Reddy District (hereinafter referred to as the "suitOriginally, the plaintiff had filed suit only against defendant Nos. 1 to 9 but later on defendant Nos. 10 to 33 made an application for being joined as defendant Nos. 10 to 33 in the civil suit as according to them, they had an interest in the subject matter of the civil suit and also in its decision and, therefore, they were necessary parties to the suit. Their prayer was allowed. The defendants then contested theDuring the pendency of civil suit, on 22.08.2007, the parties (plaintiff and defendants) settled the matter in relation to the suit land and accordingly entered into writtenA joint compromise petition signed by all the parties to the suit was accordingly filed before the Lok Adalat, which held its Lok Adalat sitting in the Court onThe members of the Lok Adalat before whom the suit was posted for its disposal in terms of the compromise petition filed by the parties perused the compromise petition and accepted the compromise petition finding it to be in order. An Award was accordingly passed on 22.08.2007 under Section 21 of the Legal Services Authorities Act, 1987 (hereinafter referred to as ?the Act?) in terms of the compromise petition, which, in turn, disposed of the suit as having been compromised. (AnnexureOn 14.11.2009, respondent Nos. 1 to 4 herein (who were original defendant Nos. 22 to 25 in Suit No. 481 of 2007) filed Civil Suit No. 107 of 2010 against the plaintiff and the remaining defendants of Civil Suit No. 481 of 2007. This suit was filed in the Court of II Additional District Judge, Ranga Reddy District atThis suit was for a declaration that the award dated 22.08.2007 passed by the Lok Adalat in Civil Suit No. 481 of 2007 was obtained by the defendants of this suit by playing fraud/misrepresentation on the plaintiffs and hence the Award dated 22.08.2007 be declared illegal, null and void and not binding on theAccording to the plaintiffs, though they were parties to the award along with defendants in Civil Suit No. 481/2007 but since the award dated 22.08.2007 was obtained by the parties by misrepresenting the facts to the plaintiffs which was nothing short of fraud played by the defendants on them to grab their more land without their knowledge and taking advantage of their illiteracy, the same is not a legal award and hence not binding on the plaintiffs. On these averments, the plaintiffs prayed that the award dated 22.08.2007 be declared illegal, void,and not binding on theThe defendants, on being served with the notice of the suit, filed an application under Order 7 Rule 11 (d) of the Code of Civil Procedure, 1908 (hereinafter referred to as "the Code") and prayed for rejection of the plaint. According to the defendants, since the suit seeks to challenge the Award of Lok Adalat, it is not maintainable being barred by virtue of rigour contained in Order 7 Rule 11(d) of Code. It was contended that the remedy of the plaintiff was in filing writ petition under Article 226 or/and 227 of the Constitution of India to challenge the award dated 22.08.2007 as held by this Court in State of Punjab & Anr. Vs. Jalour Singh & Ors., (2008) 2 SCC 660  The Trial Court, by order dated 24.07.2013 allowed the application filed by the defendants and rejected the plaint by invoking powers under clause (d) of Rule 11. It was held that the filing of the civil suit to challenge the award of Lok Adalat is impliedly barred and the remedy of the plaintiffs is to challenge the award by filing writ petition under Article 226 or/and 227 of the Constitution in the High Court as held by this Court in the case of State of PunjabThe plaintiffs, felt aggrieved, filed an appeal before the High Court. The High Court, by impugned order, allowed the appeal, set aside the order of the Trial Court and restored the suit on its file for its disposal on merits in accordance with law. The High Court held that since the suit is founded on the allegations of misrepresentation and fraud, it is capable of being tried on its merits by the CivilAgainst this order, the defendants have felt aggrieved and filed this appeal by way of special leave before this Court.

Court's reasoning:
24) Having heard the learned counsel for the parties and on perusal of the record of the case, we find force in the submissions of the learned counsel for theIn our considered view, the aforesaid law laid down by this Court is binding on all the Courts in the country by virtue of mandate of Article 141 of the Constitution. This Court, in no uncertain terms, has laid down that challenge to the award of Lok Adalat can be done only by filing a writ petition under Article 226 and/or Article 227 of the Constitution of India in the High Court and that too on very limitedIn the light of clear pronouncement of the law by this Court, we are of the opinion that the only remedy available to the aggrieved person(respondents herein/plaintiffs) was to file a writ petition under Article 226 and/or 227 of the Constitution of India in the High Court for challenging the award dated 22.08.2007 passed by the Lok Adalat. It was then for the writ Court to decide as to whether any ground was made out by the writ petitioners for quashing the award and, if so, whether those grounds are sufficient for itsThe High Court was, therefore, not right in by passing the law laid down by this Court on the ground that the suit can be filed to challenge the award, if the challenge is founded on the allegations of fraud. In our opinion, it was not correct approach of the High Court to deal with the issue in question to which we do notWe also do not agree with the submissions of Mr. Adinarayana Rao, learned senior counsel for the respondents when he urged that firstly, the expression "law" occurring in clause(d) of Rule 11 Order 7 does not include the "judicial decisions" and clause (d) applies only to bar which is contained in ?the Act? enacted by the Legislature; and Secondly, even if it is held to include the ?judicial decisions?, yet the law laid down in the case of State of Punjab (supra) cannot be read to hold that the suit is barred. Both these submissions, in our view, have noWe are in agreement with the view taken by Allahabad, Gujarat, Bombay and Jharkhand High Courts in the aforementioned four decisions which, in our opinion, is the proper interpretation of the expression "law" occurring in clause (d) of Rule 11 of Order 7 of the Code. This answers the first submission of the learned counsel for the respondents against theSo far as the second submission of learned counsel for the respondents is concerned, it also has no merit. In our view, the decision rendered in the case of State of Punjab (supra) is by the larger Bench (Three Judge) and is, therefore, binding on us. No efforts were made and rightly to contend that the said decision needs reconsideration on the issue in question. That apart, when this Court has laid down a particular remedy to follow for challenging the award of Lok Adalat then in our view, the same is required to be followed by the litigant in letter and spirit as provided therein for adjudication of his grievance in the first instance. The reason being that it is a law of the land under Article 141 of the Constitution of India (seeM. Nagaraj & Ors. Vs. U.O.I. & Ors. 2006 ( 8 ) SCC 212). It is then for the writ court to decide as to what orders need to be passed on the facts arising in the case.