022-SLLR-SLLR-2007-V-2-MANOHARAN-v.-PAYOE-AND-OTHERS.pdf
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MANOHARAN
v
PAYOE AND OTHERS
COURT OF APPEALCHANDRA EKANAYAKE, J.
SARATH DE ABREW, J.
CA (REV.) 2256/2002DC HATTON 258/1JULY 7, 2006
Civil Procedure Code. Section 664, Section 665, Section 753, Section754(2) – Interim injunction granted – Vacation ot same under Section 666 -Revisionary jurisdiction invoked – Alternative remedy not availed of – DoesRevision lie? – Exceptional circumstances – Prima facie case not made out
Is it necessary to examine the other ingredients? – If injunction is grantedafter inter partes inquiry – Can an application under Section 666 he sought?
Land acquired by State?
The plaintiff-respondent sought and obtained an interim injunction afterinquiry restraining the defendant from using the land – the defendant wasengaged in the business of a metal crusher in the subject matter.
The defendant thereafter moved under Section 666 seeking to dissolve/setaside the interim injunction by which he was compelled to stop the businessof a metal crusher carried on in the subject matter and thereby he and hisemployees suffered irreparable and irremediable loss and damage. The trialJudge after inquiry dismissed the application. The defendant-petitionermoved in Revision.
Held:
The State has already acquired the subject matter. In suchcircumstances, it cannot be said that, the plaintiff has made out aprima facie case. As the plaintiff has not made out a prima faciecase the existence of other requirements to grant the interiminjunction need not be examined.
The trend of authority amply indicates that when revisionary poweris invoked same will be exercised only it exceptional circumstancesare urged which necessitate the indulgence of Court to exerciserevisionary powers. The existence of exceptional circumstances is
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the process by which the Court selects the cases in respect of whichthis extraordinary method of rectification should be adopted.
The order granting the injunction has occasioned miscarriage ofjustice, and this Court is compelled to invoke the powers of revision.
Held further:
As regards the 2nd order refusing the application made underSection 666, the trial Judge has erred in stating that when aninjunction is granted interparies an aggrieved party cannot seekrelief under Section 666.
AN APPLICATION in Revision from an order of the District Court of Hatton.
Cases referred to:
Rustom v Hapangama and Co. (1978-79-80) 1 Sri LR 352.
Jinadasa v Weerasinghe 31 NLR 33.
Preston v Luck 1884 27 Ch. D497. (CA)
F.D. Bandaranayake v State Film Corporation 1981 2 Sri LR 287.
Gulam Hussain v Cohen 1995 2 Sri LR 370.
Mariam Beebee v S. Mohamed 1965 68 NLR 36.
Caderamanpulle v Ceylon Paper Sacks Ltd. 2001 3 Sri LR 112.
Dharmaratne and another v Palm Paradise Cabanas Ltd. andOthers 2003 3 Sri LR 25.
J.C. Weliamuna with Shantha Jayawardane for defendant-petitioner-
petitioner.
S. Mandaleshwaran with P. Peramunagama for plaintiff-respondent-
respondent.
Cur.adv.vult.
May 30, 2007
CHANDRA EKANAYAKE, J.
The defendant-petitioner-petitioner (hereinafter sometimesreferred to as the defendant) by petition dated 18.12.2002 hassought an order reversing/setting aside the order of the learnedDistrict Judge of Hatton dated 08.11.2002 and to set aside theorders dated 13.12.2001 and 08.11.2002. The plaintiff-
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respondent-respondent (hereinafter sometimes referred to asthe plaintiff) had instituted the above styled action in the DistrictCourt of Hatton seeking a declaration of title to the land morefullydescribed in the 2nd schedule to the plaint, ejectment of thedefendant and all those holding under him from the same and apermanent injunction restraining the defendant from using thesame and interim injunction and an enjoining order against thedefendant to the same effect as prayed in subparagraphs (<rt)and (9) of the prayer to the plaint (X1). The Court having issuednotice of interim injunction in the first instance, the defendant hadopposed the said application and had moved for a dismissal ofthe same. After an inquiry into the said application the learnedtrial Judge by his order dated 13.12.2001 (X5) had issued aninterim injunction as prayed for in the prayer to the plaint. It iscommon ground that the defendant was engaged in the businessof a metal crusher in the subject matter.
The defendant thereafter had filed a petition dated
(supported by an affidavit) in the District Courtseeking to dissolve and / or to set aside the said interiminjunction in terms of Section 666 of the Civil Procedure Code.The main basis of the said application had been that as a resultof the said interim injunction he was compelled to stop thebusiness of a metal crusher carried on in the subject matter andthereby he and his employees suffered irreparable andirremediable loss and damages. The above application wasobjected to by the plaintiff by his statement of objections dated
and had moved inter alia to dismiss and/or reject theapplication of the defendant and to restore the interim injunctionissued in the case against the defendant. The learned trial Judgeafter an inquiry by the 2nd impugned order dated 08.11.2002 haddismissed the same. This is the 2nd order the defendant hasmoved to set aside by this revision application.
The main grounds on which the defendant is now seeking toinvoke the revisionary jurisdiction of this Court (vide paragraph14 of the present petition) are that –
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The learned District Judge has failed to consider thesubmission made on behalf of the defendant and thematerial placed by way of an application dated07.06.2002.
The learned District Judge has erred in law in failing toapply Section 666 of the Civil Procedure Code.
The learned District Judge has erred in law and in fact bynot considering the important factors that compelled thedefendant to make the application to set aside or vary theInterim Injunction.
In any event the learned district Judge has failed toconsider the grave hardships and injustice caused to thedefendant and the exceptional circumstances that existedin the case.
It is to be observed that the defendant having failed to availhimself of the alternative remedy to appeal in terms of Section754(2) of the Civil Procedure Code as amended by Act No. 78 of1988, has invoked the revisionary jurisdiction of this Court. Whenan applicant has failed to avail himself of the alternative remedyavailable, it is settled law that revisionary powers would beinvoked only if the existence of exceptional circumstances areurged necessitating the indulgence of this Court to exercise itspowers of revision. In this regard necessity would arise toconsider the decision of the Supreme Court in the case ofRustom v Happangama & Co/1) Per Ismail, J. at p 356: "thepowers of revision vested in the Supreme Court is discretionaryas is quite apparent when one considers the working of Section753. Numerous authorities have indicated that this power wifionly be exercised when there is no other remedy available to aparty and such remedy has not been availed of by such authority.It is only in very rare instances where exceptional circumstancesare present that the Courts would exercise powers of revision incases where an alternative remedy has been availed to theapplicant“.
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Further it was held in that case to the following effect “thetrend of authority clearly indicates that where the revisionarypowers of the Court of Appeal are invoked the practice has beenthat these powers wilt be exercised if there is an alternativeremedy available, only if the existence of special circumstancesare urged necessitating the indulgence of this Court to exerciseits powers in revision.m
It appears that though an alternative remedy was available tothe defendant with regard to the first impugned order – (underSection 754(2) of the Civil Procedure Code) as he has notavailed himself of that remedy, necessity has arisen to examinewhether he has established the existence of exceptionalcircumstances that would warrant the invocation of therevisionary jurisdiction of this Court.
The learned trial Judge's basis to issue the interim injunctionsthat a prime facie case has been made out by the plaintiff by hisplaint and the balance of evidence also favours the granting ofinterim injunction. It is to be noted that in the course of the saidorder the learned Judge having analysed the facts andcircumstances of the case had arrived upon the finding thatthere is a serious question to be tried at the hearing and thusplaintiff had ben successful in making out a prima facie case, inthe case of Jinadasa v Weerasinghei2) Dalton J. too adopted thelanguage of Cotton L.J. in Preston v LucM3) when he laid downthe requirements for an interim injunction in the following wordsat page 34:
the Court must be satisfied that there is a seriousquestion to be tried at the hearing and that on the factsbefore it there is a probability that plaintiff is entitled torelief."
By the 1st impugned order the learned Judge had arrivedupon the finding that the plaintiff had established a prima faciecase. At page 6 of the said order he has stated as follows:
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It appears that the above finding had been arrived uponafter considering the following:
that the defendant who does not have any lawful rights inthe subject matter continues to blast the rock causingdamage to the plantation thereon.
there by the defendant has violated the plaintiff rights
the documents submitted by the defendant marked V2,and the licenses obtained by him for the said businessmarked Vs and V4.
the merits of the relief sought by sub paragraph fa) of theprayer to the plaint to wit – a declaration of title inpossession of the plaintiff to the property morefullydescribed in the 2nd schedule to the plaint.
It has to be noted that it is common ground that the defendanthad come into possession of the subject matter on a formal leaseagreement dated 16.10.1990 (V1) entered into between thedefendant and the plaintiffs father M.P. Nallatamby for the periodof 24 calendar months from the date of taking possession of themetal quarry site. This had been for the lease of metal quarry siteand not for the lease of the property and the said lease havingended with the death of the plaintiff's father on 04.10.1991, thedefendant had continued to be in possession thereof as alicensee of the plaintiff (who subsequently became the owner ofthe subject matter by deed bearing No. 1054 dated 19.11.1998(P1) marked with the plaint.
Further vide sub paragraph 5(c) of the present petition thedefendant has contended that as the plaintiff also has admittedthat the land in question has been gazetted for the purpose of
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acquisition by the State, the plaintiff has no legal right to thesame. This position has been conceded in the writtensubmissions filed on behalf of the plaintiff. What needconsideration now is when the State has already acquired thesubject matter, in such circumstances whether it would becorrect to say that the plaintiff has made out a prima facie case.The main reliefs sought by sub paragraphs (a) and (b) of theprayer to the plaint (X1) are for declaration of title to the subjectmatter and for ejectment of the defendant therefrom. Thisposition is further established by the document of the plaintiffhimself marked as P3 (gazette notification bearing No. 1117/21dated 3rd February 2000). The government has already takensteps to acquire a portion of land inclusive of the subject matterin suit morefully described in the 2nd schedule to the plaint. Byparagraph 9 of the plaint it has been contended that theDivisional Secretary of Ambagamuwa by letter dated 06.04 2000(annexed to the plaint marked as P4) had informed the brother-in-law of the plaintiff to hand over quiet possession of the subjectmatter to the Divisional Secretary on 20.04.2000. Both the abovedocuments (P3 & P4) are not denied by the defendant. Thisaction has been instituted on 14.06.2001 after the aforesaidacquisition by the State.
Examination of the 1st impugned order reveals that thelearned Judge has failed to consider the aspect of acquisition ofthe subject matter by the State. Further he has taken the viewthat the defendant is a licensee causing damages to the land insuit and therefore the plaintiff is entitled to an interim injunctionnotwithstanding the acquisition by the State . Since the mainrelief sought by the action is the relief of declaration of title whathas to be considered now is whether the plaintiff could seekdeclaration of title to a State land in this manner by way of a rel-vindicatio action. Neither the State not its representatives/theAttorney-General have been made parties to the action. In thecircumstances enumerated as above the plaintiff is not entitled toobtain any relief sought in the plaint in respect of a land whichhas been acquired by State. In other words there is nothing toshow that any legal right of the plaintiff has been or likely to be
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violated by the acts of the defendant. In this regard it would bepertinent to consider the decision in F.D. Bandaranaike v StateFilm Corporation<4> whereby the principle of law was offered withregard to the sequential tests that should be applied in decidingwhether or not to grant an interim injunction, namely:
'has the plaintiff made out a strong prima facie case ofinfringement or imminent infringement of a legal right towhich he has title, that is, that there is a question to betried in relation to his legal rights and thatthe probabilitiesare that he will win1.
in whose favour is the balance of convenience,
as the injunction is an equitable relief granted in thediscretion of the Court do the conduct and dealings of theparties justify grant of the injunction.'
If the applicant passes the test of a prima facie case then onlybalance of convenience has to be considered. In the said caseper Soza, J., at 303:
"If a prima facie case has been made out, we go on andconsider where the balance of convenience lies."
Further in the case of Guiam Hussain v Coheni5) per S.N.Silva J. (P.CA), (as then he was) at 370,
"The matters to be considered in granting an interim,injunction have been crystallized in several judgments ofthis Court and or Supreme Court. In the case ofBandaranaike v State Film Corporation Soza J., sum-marized these matters as follows:
“in Sri Lanka we start off with a prima facie case that is, theapplicant for an interim injunction must show that there is aserious matter in relation to his legal rights, to be tried at thehearing and that he has a good chance of winning. It is notnecessary that the plaintiff should be certain to win. It issufficient of the probabilities are he will win. “
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When the circumstances of this case are considered it has tobe concluded that the plaintiff has failed to establish a primafacie case. Therefore I am inclined to hold the view that thelearned Judge has grossly erred at page 6 of the 1st impugnedorder when he stated that plaintiff's rights are violated due to thecontinuance of business of a metal crusher by the defendant.
For the above reasons I have already concluded that theplaintiff had failed to establish a prima facie case. Therefore inview of the above decisions the existence of other requirementsto grant interim injunction need not be examined. In the light ofthe above it has to be concluded that the 1st impugned order(dated 13.12.2001) is erroneous and thus a miscarriage ofjustice has been occasioned by the same.
Now what needs consideration is whether the 1st impugnedorder could be allowed to stand. This Court has to be mindful ofthe fact that the present application of the defendant is anapplication by which revisionary jurisdiction has been invoked.When it has been already concluded that miscarriage of justicehas been occasioned by the 1st impugned order would thisbecome a fit instance to invoke revisionary jurisdiction of thisCourt.
Assistance could be derived in this regard from the decisionof Sansoni C.J., in Mariam Beebee v S. Mohamed6>.
PerSansoni C.J. at 38.
"The power of revision is an extraordinary power which isquite independent of and distinct from the averagejurisdiction of this Court, its object is the due administrationof justice and the correction of errors sometimes committedby this Court itself, in order to avoid miscarriage of justice.It is exercised in some cases by a Judge of his own motion,when an aggrieved person who may not be a party to theaction brings to his notice the fact that, unless the power isexercised injustice will result
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When applying the above principle of law an aggrievedperson who may not even be a party to the action brings to thenotice of Court that unless the revisionary power is exercisedinjustice would result, that becomes a fit instance for the Court toinvoke revisionary jurisdiction. In the present case the defendantwho was a party right along has made the present application forrevision.
The trend of authority amply indicates that when revisionarypowers of the Court of Appeal are invoked, same will beexercised only if exceptional circumstances are urged whichnecessitate the indulgence of the Court to exercise itsrevisionary powers. This principle was further strengthened bythe decision in Caderamanpulle v Ceylon Paper Sacks Ltd.W. Inthe above case this Court held as follows:
“The existence of exceptional circumstance is a pre-condition for the exercise of the powers of revision.*
Per Nanayakkara, J. at 116.
when the decided cases cited before us are carefullyexamined, it becomes evident in almost all the cases cited thatpowers of revision had been exercised only in a limitedcategory of situations. The existence of exceptionalcircumstances is a pre-condition for the exercise of the powersof revision and absence of exceptional circumstances in anygiven situation results in refusal of remedies.M
In this regard further assistance could be derived from thedecision of this Court in Dharmaratne and another v PalmParadise Cabanas Ltd. and others<8>. In the above case perAmaratunga, J. at 30,
'Thus the existence of exceptional circumstances is theprocess by which the Court selects the cases in respect ofwhich this extra-ordinary method of rectification should beadopted."
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For the reasons stated above when the 1 st impugned orderlas occasioned miscarriage of justice, this Court is compelled tonvoke the powers of revision and thus I hold the view that said>rder should be set aside.
By the present petition 2nd relief sought is to set aside thejrder of the learned Trial Judge dated 08.11.2002. What hasjiven rise to this order was the application made by theiefendant to set aside the interim injunction already issued byhe 1st order dated 13.12.2001. By the 2nd impugned order theearned Trial Judge has dismissed the application of thedefendant. Perusal of the 2nd order reveals that the maincontention of the defendant submitted in this regard to wit – oncean interim injunction has been granted inter-parte an aggrievedparty cannot seek the reliefs under Section 666 of the CivilProcedure Code, has been rejected. This conclusion of thelearned Trial Judge is also not correct.
When the 1st impugned order has been already set aside nonecessity arises to consider the merits of the 2nd impugnedorder since the application of the defendant which had given riseto the making of the 2nd order is to set aside or vary the 1st orderto wit: granting of the interim injunction.
Viewed in the above context I conclude that the defendant inthis case has been successful in establishing the existence ofexceptional circumstances that would warrant the invocation ofrevisionary jurisdiction of this Court. Accordingly both the aboveimpugned orders are hereby set aside. This application isallowed with costs fixed at Rs. 15,000/-.
SARATH DE ABREW, J. – 1 agree.
Application allowed.