1990 (10) TMI 41 - HC - Income Tax

Court rules against withdrawal of suit for filing fresh suit, emphasizing rights of prevailing party. Revision petition accepted.

The High Court held that the Additional District Judge's decision to permit the withdrawal of the suit with liberty to file a fresh suit was illegal and ... Civil Suit Issues:- Locus standi of plaintiffs to file suit- Valid notice under section 125 of Delhi Municipal Corporation Act- Suit barred by sections 477 and 478 of Delhi Municipal Corporation Act- Suit barred by sections 169 and 179 of Delhi Municipal Corporation Act- Legality of demand made by defendant- Relief soughtAnalysis:The case involved a suit filed by the respondents against the Municipal Corporation of Delhi seeking a perpetual injunction against the Corporation's actions related to house tax collection. The trial court dismissed the suit, ruling that the plaintiffs were not entitled to the relief sought. The respondents then appealed the decision, and the Additional District Judge allowed them to withdraw the suit with permission to file a fresh suit on the same cause of action. However, the petitioner challenged this decision, arguing that the trial court had already decided the suit on its merits, and allowing a fresh suit would be improper. The petitioner contended that the appellate stage was not the appropriate time to grant such permission, as it would essentially allow the plaintiffs to re-agitate the matter after being non-suited.The High Court held that the Additional District Judge's decision to permit the withdrawal of the suit with liberty to file a fresh suit was illegal and without jurisdiction. The court emphasized that once a suit is dismissed on merits, certain rights accrue to the prevailing party, and allowing a fresh suit would contradict the trial court's decision. The court noted that the Additional District Judge failed to consider if there was any formal defect in the plaint or the mala fide intentions behind the plaintiffs' request to withdraw the suit. The High Court stressed that granting permission for a fresh suit at the appellate stage, especially after a decision on merits, would give the plaintiff an unfair advantage to re-litigate the same issues.The High Court cited case law to support its decision and highlighted that the lower appellate court's order effectively set aside the trial court's well-considered judgment without proper scrutiny of its findings. Consequently, the High Court accepted the revision petition, set aside the Additional District Judge's order, and remanded the case for further proceedings in accordance with the law. The High Court also noted that since the respondents were not represented during the hearing, no costs were awarded.