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CaseMinister › Judgments › Supreme Court › 1976 › Govindbhai Gordhanbhai Patel & Ors. v. Gulam Abbas Mulla All

Govindbhai Gordhanbhai Patel & Ors. v. Gulam Abbas Mulla Allibhai & Ors.

Supreme Court of India · 17 December 1976 · [1977] 2 S.C.R. 511

Court
Supreme Court of India
Decided
17 December 1976
Reported as
[1977] 2 S.C.R. 511
Result
Appeal(s) allowed
Bench
Singh, Jaswant
Length
11 pages
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PETITIONER:
GOVINDBHAI GORDHANBHAI PATEL & ORS.
Vs.
RESPONDENT:
GULAM ABBAS MULLA ALLIBHAI & ORS.
DATE OF JUDGMENT17/12/1976
BENCH:
SINGH, JASWANT
RAY, A.N. (CJ)
BEG, M. HAMEEDULLAH
CITATION:
1977 AIR 1019 1977 SCR (2) 511
1977 SCC (3) 179

ACT

Indian Contract Act, 1872, s. 56, doctrine of frustra-

tion, when applicable.

Bombay Tenancy and Agricultural Lands Act, 1948, s.

63(1), Permission for sale, whether administrative, judicial

or quasi-judicial act.

Civil Procedure Code, doctrine of res judicata, whether

applicable to proceeding dismissed for formal defect Wheth-

er debars authority exercising concurrent jurisdiction from

entertaining subsequent proceedings for same relief.

HEADNOTE

The respondents agreed to sell their agricultural land

to the appellants. The title deeds and possession of the

land were given to the appellants and both parties jointly

applied to the District Deputy Collector, Thana Prant, under

s. 63 of the Bombay Tenancy and Agricultural Lands Act,

1948, seeking permission for the sale. The permission was

refused on the ground that the intending purchaser had

failed to obtain a certificate from the Collector under Rule

36(f) of the Bombay Tenancy and Agricultural Lands Rules

1956, that he intended to take to the profession of agricul-

ture and was capable of cultivating land personally. The

appellants thereafter obtained the requisite sanction from

the Additional Collector, Thana, in spite of the respond-

ents’ non-cooperation. A suit by the respondents for de-

claring the agreement void in law was decreed by the Trial

Court. In appeal, the High Court opined that the Prant

Officer’s refusal to permit the sate had rendered the agree-

ment impossible of performance.

Allowing the appeal, the Court.

HELD: (1) The parties are governed by s. 56 of the

Contract Act according to which a contract becomes void only

if something supervenes after its execution which renders it

impracticable or impossible of performance. The order of

the Prant Officer was not of such a catastrophic character.

[519A-C]

Satyabrata Ghose v. Mugneeram Bangur & Co. & Anr. [1954]

SCR 310; Smt. Sushila Devi & Anr. v. Hari Singh & Ors.

[1971] 2 S.C.C. 288 and Tamplin Steamship Co. Lid v. Anglo-

Mexican Petroleum products Co. Ltd. [1916] 2 A.C. 397, 403,

applied.

Joseph Constantine Steamship Line Ltd. v. Imperial

Smelting Corporation Ltd. [1942] A.C. 154 at 168, referred

to.

(2) The function which the Collector or the authorised

officer discharges under the proviso to s. 63(1) of the

Bombay Tenancy and Agricultural Lands Act is an administra-

tive one and not judicial or quasi-judicial. [519G-H]

The State of Madras v. C.P. Sarathy & Anr. AIR 1953 S.C.

53; A.K. Bhaskar v. Advocate General AIR 1962 Kerala 90;

Shantanand v. Advocate General AIR 1955 All. 372; Shrimali

Lal v. Advocate General AIR 1955 Raj. 166 and Abdul Kasim v.

Md. Dawood AIR 1961 Mad. 242. similarity marked.

(3) The dismissal of a proceeding by an authority not on

merits but merely on account of a formal defect will not

attract the applicability of the general principles of res

judicata and will not debar the authority exercising concur-

rent jurisdiction from entertaining the subsequent proceed-

ings for the same relief and passing proper orders on

merits. [520 F-H]

Putali Mehati v. Tulia I.L.R. 3 Bom. 223 and Pethaparu-

mal v. Murugandi 18 Mad. 466, applied.

512

JUDGMENT

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1860 of 1968.

(Appeal by Special Leave from the Judgment and decree

dated the 29th January, 1968, of the Bombay High Court in

Appeal No. 472/ 60).

R.P. Bhatt, B.R. Agarwala and Janendra Lal, for the appel-

lants.

Sachin Chaudhary, Prakash Mehta, Ravinder Narain and

K.L. John of M/s. 1. B. Dadachanji & Co. for the respond-

ents.

The Judgment of the Court was delivered by--

JASWANT SINGH, J. This appeal by special leave which is

directed against the judgment and decree dated January 29,

1968, of the High Court of Judicature at Bombay involves a

question of the applicability or otherwise of the doctrine

of frustration embodied in section 56 of the Contract Act

which to use the words of Viscount Maugham in Joseph Con-

stantine Steamship Line Limited v. Imperial Smelting Corpo-

ration Ltd. (1) "is only a special case of the discharge of

contract by an impossibility of performance arising after

the contract was made" or to use the language of Mukherjea,

J. in Satyabrata Ghose v. Mugneeram Bangut & Co. & Anr.(2)

"is really an aspect or part of the law off discharge of

contract by reason of supervening impossibility or illegali-

ty of the act agreed to be done and hence becomes within the

purview of section 56 of the Indian Contract Act."

The facts giving rise to this appeal lie in a short

compass and may be briefly stated: The respondents who are

the owners of four plots of agricultural land admeasuring 7

acres and 13 gunthas and a bungalow standing thereon situate

in village Majwade, near Pokhran Talao Road, Thana, having

bought the same from Homi D. Dubash under a sale deed dated

September 9, 1953 agreed to sell the same to the appellants

in lieu of Rs. 25,000/- vide agreement dated May 16, 1957,

relevant clauses whereof provided as follows :--

"5. If the purchasers shall insist on

any requisitions or objections as to the

title, evidence of title, conveyance, posses-

sion, receipt of rent or any other matters on

the abstract of or this agreement or connected

with the sale which the Vendors shall be

unable or on any ground unwilling to remove or

comply with, the Vendors shall be at liberty

notwithstanding any negotiation or litigation

in respect of such requisition or objection,

to give to the Purchasers or their Solicitors

notice in writing of their intention to re-

scind the contract for sale unless such

requisition or objection be withdrawn and if

such notice be given and the requisition or

objection be not withdrawn within ten days

after the day on which the notice was sent,

the contract shall, without further notice be

rescinded. The Vendors shall thereupon return

to the purchasers the deposit but without any

interest,costs of investigating the title or

other compensation or payment whatever.

(1) [1942] A.C. 154, 168. (2)

[1954] S.C.R. 310.

513

6. if the title be not approved by the

Purchaser’s attorneys or if the purchase is

not completed within the said period of two

months owing to any default on the Vendors’

part, it shall be at the option of the Pur-

chaser to rescind this agreement and in that

event the Purchaser shall be entitled to

receive back the earnest money from the Ven-

dors, together with out of pocket costs

incurred in the preparation of this agree-

ment and investigation of title, advertise-

ment, Bataid, correspondence etc. But in

ease of the Vendors wilful default the Ven-

dors shall also pay to the Purchasers interest

at 6% per annum on the amount of earnest

money from the date hereof fill the date of

return of the earnest money and all costs of

the Purchasers.

7. If the sale is not completed within time

provided for completion owing to the fault of

the Purchaser, the Vendors shall be entitled

to put an end to this contract and to for-

feit the earnest money."

Pursuant to the aforesaid agreement, the respondents’

attorneys delivered the documents of title to the appellants

attorneys on May 17, 1957 for investigation of title and in

the third week of May, 1957 the respondents gave possession

of the aforesaid property to the appellants in part perform-

ance of the said agreement. On August 22, 1957, the re-

spondents and the appellants made a joint ,application to

the District Deputy Collector, Thana Prant, under section 63

of the Bombay Tenancy and Agricultural Lands Act, 1948

(hereinafter referred to as ’the Act’) seeking permission to

sell and purchase the aforesaid agricultural land. Section

63 of the Act reads:

"63. (1) Save as provided in this Act-

(a) no sale (including sales in execution

of a decree of a Civil Court or for recovery

of arrears of land revenue or for sums

recoverable as arrears of land revenue), gift,

exchange or lease of any land or interest

therein, or

(b) no mortgage of any land or interest

therein, in which the possession of the mort-

gaged property is delivered to the mortga-

gee,

shall be valid in favour of a person who is

not an agriculturist (or who being an agricul-

turist will after such sale, gift, exchange,

lease or mortgage, hold land exceeding two-

thirds of the ceiling area determined under

the Maharashtra Agricultural Lands (Ceiling on

Holdings) Act, 1961 or who is not an agri-

cultural labourer):

Provided that the Collector or an officer

authorised by the State Government in this

behalf may grant permission for such sale,

gift, exchange, lease or mortgage, on such

conditions as may be prescribed ........"

It may be mentioned that the conditions alluded to in

the proviso to the above quoted section 63 have been pre-

scribed by Rule 36

514

of the Bombay Tenancy and Agriculutral Lands Rules, 1956

(hereinafter referred to as ’the Rules’) the relevant por-

tion whereof is to the following effect:

"36. Conditions on which permission for

sale, etc., of land under section 63 may be

granted.--

(1) The Collector or other officer

authorised under the proviso to sub-section (1

) of section 63 shall not grant permission for

sale, gift, exchange, lease or mortgage of any

land in favour of a person who is not either

an agriculturist or agricultural labourer or

who, being an agriculturist, cultivates per-

sonally laud not less than the ceiling area

whether as owner or tenant or partly as owner

and partly as tenant unless any of the follow-

ing conditions are satisfied........

(f) the land is required for cultivating

it personally by a person, who, not being an

agriculturist, intends to take to the profes-

sion of agriculture and to whom the Collector

after having regard to the order of priority

mention in clause (c) of sub-section (2) of

section 32-P, has given a certificate that

such person intends to take to the profession

of agriculture and is capable of cultivating

land personally; ...... "

By means of communication No. TNC.48 dated December 8,

1958, the Prant Officer, Thana, informed the respondents

that their request to sell the aforesaid lands to appellant

No. 1 could not be granted as the intending purchaser had

not obtained the certificate from the Collector to the

effect that "he intends to take to the profession of agri-

culture and is capable of cultivating land personally." On

January 21, 1959, the respondents’ attorneys wrote to the

appellants informing them that no effect could be given to

the aforesaid agreement of sale dated May 17, 1957 as the

permission under the Act to sell the suit property had been

refused by the Prant Officer by his letter dated December 8,

1958 (supra) for appellant No. 1’s failure to obtain the

certificate to the effect that he intended to take to the

profession of agriculture and was capable of cultivating

land personally. The respondents’ attorneys also called

upon the appellants by means of the said communication to

return the tite deeds adding that on the return of the title

deeds, the earnest money paid by them at the time of execu-

tion of the aforesaid agreement would be returned to them.

On March 4, 1959, the appellants’ advocate wrote to the

respondents’ attorneys requesting them to authorise the

appellants to approach the higher authorities for securing

the necessary permission. On March 14, 1959, the respond-

ents’ attorneys wrote to the appellants’ attorneys evasively

replying that no useful purpose would be served by approach-

ing the higher authorities having regard to the provisions

of the Act. On the respondents’ refusal to cooperate with

the appellants in the matter of obtaining permission or

sanction under the Act, appellant No. 1 made an application

to the Collector, Thana District, Thana on April 8, 1959,

bringing the above mentioned facts to his notice and re-

questing him to grant him a certificate of an agriculturist

and the necessary permission to purchase the aforesaid plots

of land. Acceding to the request of appellant No. 1, the

Additional Collector. Thana

515

by his order dated June 6, 1959 granted to the former the

requisite certificate under Rule 36 of the Rules as also the

permission to purchase the aforesaid plots of land from the

respondents as required under section 63(1) of the Act read

with Rule 36 of the Rules. The said order ran as follows

:--

No.

CB/TNC, 1800

Collector’s

Office, Thana,

Thana, 6th

June, 1959.

Read: Application of the applicant Shri G.G.

Patel, dated the 8th April, 1959.

Read: Papers ending with Mamlatdar, Thana’s

No. TNC. SR. 400 dated the 11th May, 1959.

ORDER

A certificate is hereby granted to Shri

Govindbhai Gordhanbhai Patel residing at House

No. 404, Majiwade, Taluka Thana on his appli-

cation dated 8th April, 1959 under subclause

’C’ of clause 1 of Rule 36 that he intends to

take to the profession of Agriculture. After

having gone through the merits of the priority

list mentioned in clause (C) of section 2 of

section 32-P, through the Mamlatdar Thana,

permission is hereby granted to Shri Govindb-

hai Gordhanbhai Patel to purchase the land

mentioned below from Shri Ibrahim Ismail

Jetpurwala etc. under section 63(1) read with

Rule 36 under the Bombay Tenancy and Agricul-

tural Lands (Amendment) Act, 1955 on the

conditions as mentioned under :-

Village S. No. H. No.

Area

Majiwade 415 Part

6-51/4

289 2 (Part)

0-36 1/2

280 1 (Part)

0-7

280 4

0-5

7- 13

3/4

Conditions :--

Permission to purchase the land mentioned

above is granted subject to the condition

that if the applicant Shri G.G. Patel ceases

to cultivate the land personally or transfers

his interest in the said land by sale, gift,

exchange, lease or mortgage without the

previous sanction of the Collector, the

permission given under sub-section ( 1 ) of

section 63 shall be deemed to have been

cancelled.

Sd/ -

For Addition-

al Collector,

Tha na"

516

On June 25, 1959, the appellants’ attorneys addressed a

communication to the respondents’ attorneys forwarding

therewith a copy of the aforesaid order No. CB/TEC/1800

dated June 6,1959, made by the Additional Collector, Thana

granting permission to appellant No. 1 for the purchase of

the aforesaid plots of land and requesting the respondents

to let them know as to when their clients would desire to

complete the sale and further asking them whether they had

got the property transferred to their names in the records

of the Collector of Thana, whereupon the respondents’ advo-

cate by his letter dated June 30, 1959 addressed to the

appellants’ attorneys replied saying that his clients could

not take notice of the aforesaid permission. Thereafter the

respondents served a notice on the appellants on August 25,

1959 calling upon them to return the title deeds and to

restore possession of the aforesaid property. Thereupon,

the appellants’ advocate wrote to the respondents attorneys

on November 24, 1959 pointing out to them that appellant No.

1 having obtained the requisite sanction from the Collector,

the respondents were bound to complete the sale and to

execute the conveyance in favour of appellant No. 1 and that

the aforesaid agreement could not be put an end to in the

manner in which the respondents were attempting to do. Not

heeding the aforesaid communication of the appellants dated

November 24, 1959, the respondents filed a civil suit, being

suit No. 36 of 1959 on November 17, 1959 in the Court of the

Civil Judge, Senior Division, Thana, for declaration that

the aforesaid agreement dated May 16, 1957 was void in law

and of no legal effect and for possession of the aforesaid

property as also for compensation at the rate of Rs. 150/-

per mensem for wrongful retention of the property from June,

1957 till delivery of possession thereof. In spite of the

stout resistance put up by the appellants, the trial Court

decreed the suit in favour of the respondents subject to

their paying to the appellants or depositing in Court the

earnest money of Rs. 5,000/- and the compensation amount

of Rs. 882.25 holding inter alia that the aforesaid agree-

ment dated May 16, 1957 which was void ab initio being

violative of section 63 of the Act was discovered by the

respondents to be void in June, 1957 when they found that

the permission under section 63 of the Act was necessary.

Aggrieved by the judgment and decree of the trial Court,

the appellants took the matter in appeal to the High Court

of Bombay but their appeal remained unsuccessful. The High

Court held that the aforesaid agreement to sell was not void

ab initio as section 63 of the Act itself envisaged sale

etc. in favour of a nonagriculturist with the permission of

the Collector or an officer authorised by the State Govern-

ment in that behalf subject to the conditions which may be

prescribed and Rule 36 of he Rules prescribed only a certif-

icate by the relevant authority to the effect that the

intending purchaser intended to adopt the profession of an

agriculturist. The High Court, however, opined that the

aforesaid agreement became incapable of being performed on

December 8, 1959 when the Prant Officer declined permission

to the respondents to sell the property to the appellants.

Rejecting the contention advanced on behalf of the appel-

lants the effect that the aforesaid letter dated January 21,

1959 written by the respondents to the appellants did not

terminate or rescind the agreement, the High Court further

held that the said letter amounted to cancellation of the

agreement.

517

Appearing in support of the appeal, Mr. Bhatt, counsel

for the appellants, has vehemently urged that the aforesaid

order passed by the Prant Officer refusing permission to the

respondents to sell the lands did not make the contract

impossible of performance; that the said order was merely

administrative in character and did not bar the making of

the second application by the appellants under section 63 of

the Act; that the said agreement was subsisting on June 25,

1959 when the appellants obtained the requisite permission

and the certificate from the Additional Collector, Thana,

and that section 56 of the Indian Contract Act was not

attracted in the present case as the contract had not become

impossible of performance.

Mr. Sachin Chaudhary, counsel for the respondents, has,

on the other hand, contended that the agreement became

impossible of performance and as such void on December 8,

1958, when the Prant Officer refused to permit the respond-

ents to sell the suit property to the appellants, and that

the Prant Officer who had co-ordinate jurisdiction with the

Collector under section 63 of the Act having refused to

grant permission to the respondents to sell the suit proper-

ty by his order dated December 8, 1958, which was of quasi-

judicial character and had not been set aside either in

appeal or revision, it was not open to the Collector to

grant the permission to the appellants.

Two questions arise for determination in this case---(1)

whether the order of the Prant Officer dated December 8,

1958, rendered the aforesaid agreement dated May 16, 1957

impossible of performance and as such void under section 56

of the Indian Contract Act and (2) whether in view of the

aforesaid order of refusal by the Prant Officer, Thana dated

December 8, 1958, the Additional Collector, Thana, was not

competent to grant the sanction and the certificate under

section 63 of the Act and Rule 36 of the Rules. The answer

to the first question depends on the construction of the

expression ’impossible of performance’ occurring in section

56 of the Indian Contract Act which lays down:

"56. An agreement to do an act impossi-

ble in itself is void--A contract to do an act

which after the contract is made, becomes

impossible, or, by reason of some event which

the promisor could not prevent, unlawful,

becomes void when the act becomes impossible

or unlawful.

Where one person has promised to do

something which he knew, or, with reasonable

diligence, might have known, and which the

promisee did not know to be impossible or

unlawful, such promisor must make compensation

to such promisee for any loss which such

promise sustains through the non-performance

of the promise."

The meaning of the aforesaid expression ’impossible of

performance’ as used in the above quoted section would be

clear from the, following observation made by Lord Loreburn

in Tampfin Steamship

518

Co. Ltd. v.Anglo-Mexican Petroleum Products Co. Ltd(1)

403 which is generally considered to contain a classic and

terse exposition of the law relating to frustration:

"The parties shall be excused if sub-

stantially the whole contract becomes impossi-

ble of performance or in other words imprac-

ticable by some cause for which neither was

responsible."

We find ourselves in complete accord with this view

which also finds support from the decisions of this Court in

Satyabrata Ghose v. Mugneerarn Bangur and Co. and Anr.

(supra) and Smt. Sushila Devi and Anr. v. Hari Singh and

Ors.(2) where it was held that the performance of a contract

becomes impossible if it becomes impracticable from the

point of view of the object and the purpose which the par-

ties had in view and if an untoward event or change of

circumstances totally upsets the very foundation upon which

the parties rested their bargain, it can very well be said

that the promisor found it impossible to do the act which he

promised to do. It would be advantageous at this stage to

refer to the following observations made by Mukherjee, J.

Satyabrata Ghose v. Mugneerarn Bangur and Co. and Anr

(supra) which is a leading authority on the subject of

frustration:

"The first paragraph of the section lays

down the law in the same way as in England.

It speaks of something which is impossible

inherently or by its very nature, and no one

can obviously be directed to perform such an

act. The second paragraph enunciates the law

relating to discharge of contract by reason of

supervening impossibility or illegality of the

act agreed to be done. The wording of this

paragraph is quite general and though the

illustrations attached to it are not at

all happy, they cannot derogate from the

general words used in the enactment. This

much is clear that the word "impossible" has

not been used here in the sense of physical or

literal impossibility. The performance of an

act may not be literally impossible but it may

be impracticable and useless from the point of

view of the object and purpose which

the .parties had in view; and if an untoward

event or change of circumstances totally

upsets the very foundation upon which the

parties rested their bargain, R can very well

be said that the promisor found it impossible

to do the act which he promised to do.

Although various theories have been

propounded by the Judges and jurists in Eng-

land regarding the judicial basis of the

doctrine of frustration, yet the essential

idea upon which the doctrine is based is that

of impossibility of performance of the con-

tract: in fact impossibility and frustration

are often used as interchangeable expres-

sions. The changed circumstances, it is

said, make the performance of the contract

impossible and the parties are absolved from

the further

(1) [1916] 2 A.C. 397. (2) [1971] 2

S.C.C. 288.

519

performance of it as they did not promise.

to. perform an impossibility."

In the instant case, there is no term or condition in

the agreement in question which stipulates that the agree-

ment would be treated as having become impracticable on the

refusel of the Prant Officer to grant the permission under

section 63 of the Act. The parties are,’ therefore, gov-

erned purely by section 56 of the Contract Act according to

which a contract becomes void only if something supervenes

after its execution which renders it impracticable. On the

contention advanced on behalf of the respondents, the ques-

tion that arises is whether the above quoted order of the

Prant Officer, Thana Prant, dated December 8, 1958, rendered

the contract impracticable. The answer to this question is

obviously in the negative. The said order, it will be

noted, was not of such a catastrophic character as can be

said to have struck at the very root of the whole object and

purpose for which the parties had entered into the bargain

in question or to have rendered the contract impracticable

or impossible of performance. A careful perusal of the

order would show that it was neither conclusive nor was it

passed on the merits of the aforesaid application. The

permission was refused by the Prant Officer only on the

technical ground that the appellants had not obtained the

requisite certificate as contemplated by rule 36(f) of the

Rules. It did not in any way prohibit the appellants from

making a fresh application to the Collector, Thana Prant,

who in view of the Phraseology of section 63 of the Act read

with clause (f) of rule 35 of the Rules appears to be the

only authority competent to grant the requisite certificate.

The said order also did not put any fetter on the appellants

to apply to the Collector or the Additional Collector for

grant of the requisite permission for sale and purchase of

the land after obtaining the aforesaid certificate. We,

are, therefore, clearly of the opinion that no untoward

event or change of circumstances supervened to make the

agreement factually or legally impossible of performance so

as, to attract section 56 of the Contract Act.

The answer to the second question turns on the answer

to two subsidiary questions (i) whether in according or

declining to accord permission under the proviso to section

63 (1) of the Act, the Collector or the officer authorised

by the State Government in that behalf acts in an adminis-

trative capacity or a judicial or a quasi-judicial capaci-

ty and (ii) whether the aforesaid order dated December 8,

1958 passed by the Prant Officer, Thana was one on merits or

otherwise. Turning to the question (i), it has to be ob-

served that there is nothing in section 63 of the Act to

indicate that in exercising his jurisdiction under the

proviso to sub-section (1) of the section, the Collector or

the authorised officer has to act judicially or in conformi-

ty with the recognised judicial norms. There is also

nothing in the aforesaid Section of the Act requiring the

Collector or the authorised officer to determine any ques-

tion affecting the right of any party. The function which

the Collector or the authorised officer discharges under

the aforesaid proviso is, therefore, an administrative one

and not judicial or quasi-judicial. It will be apposite to

advert to a few decisions 17 --1546 SCI/76

520

bearing on the matter. In A.K. Bhaskar v. Advocate

General(1) a full Bench of the Kerala High Court held that

the decision of the Advocate General granting or refusing

to grant the sanction under section 92 of the Civil Proce-

dure Code was neither judicial nor quasijudicial notwith-

standing the fact that he has to form an opinion and come to

conclusion one way or the other. To the similar effect are

the decisions of Allahabad and Rajasthan High Courts in

Shantanand v. Advocate General(2) and Shrimali Lal v. Advo-

cate General(3). In Abdul Kasim v. Md. Dawood(4) it was held

that in granting or withholding sanction to file a suit

under section 55(2) of the Muslim Wakfs Act, 1954, the Wakf

Board does not act in, a judicial or quasijudicial capacity

but only in an administrative capacity. In The State of

Madras v.C.P. Sarathy and Anr.(5). It was held by this Court

that the act of the Government in making a reference under

section 10 of the Industrial Disputes Act was merely an

administrative act and the fact that the Government before

making a reference under section 10(1) of the Act had to

satisfy itself on the facts and circumstances brought to its

notice that an industrial dispute existed did not make the

act judicial or quasi-judicial.

In regard to question (ii), it may be stated that al-

though the Prant Officer may have been exercising concurrent

jurisdiction with the Collector, Thana Prant, he did not

pass any orders on the merits of the previous application

made by the respondents and endorsed by the appellants

seeking permission to sell and purchase the suit property.

The order, as already stated, was passed by him on the

ground that the intending purchaser had not obtained the

certificate required under rule 36(f) of the Rules. It is

well recognised that the dismissal of a proceeding by an

authority not on merits but merely on account of a formal

defect will not attract the applicability of the general

principles of Res judicata and will not debar the authority

exercising concurrent jurisdiction from entertaining the

subsequent proceedings for same relief and passing proper

orders on merits. (See Putali Meheti v. Tulja.(6) where the

rejection of a previous suit for the plaintiff’s omission to

produce a certificate of the Collector under section 6 of

the Pensions Act was held not to bar a second suit on the

same cause of action, and Pethaperumal v. Murugandi(7)

where rejection of the first suit for recovery of money for

plaintiff’s failure

(1) A.I.R. 1962 Ker. 90. (2) A..I.R. 1955 All. 372

(3) A.I.R. 1955 Raj. 166. (4) A..I.R. 1961 Mad. 244.

(5) A.I.R. 1953 S.C. 53 (6) I.LR. 3 Born. 223.

(7) 18 Mad. 466.

521

to produce succession certificate was held not to bar a

second proceeding for the same relief. We are, therefore,

of the opinion that the previous order passed by the Prant

Officer being merely an administrative order and not having

been passed on the merits of the case, it did not, in the

absence of a statutory prohibition, impair the power of the

Collector to pass the impugned order on the merits of the

matter under proviso to section 63 (1) of the Act on the

grant of the requisite certificate under rule 36(f) of the

Rules.

For the foregoing reasons, we allow the appeal, set

aside the judgments and decrees passed by the Courts below

and dismiss the respondents’ suit but in the circumstances

of the ease without any order as to costs.

M.P. Appeal allowed.

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