2023 (3) TMI 1503 - SC - Indian Laws

Review petitions dismissed as overruling of precedent by larger bench doesn't constitute grounds under Order XLVII Rule 1 CPC

Govt. of NCT of Delhi Through the Secretary, Land and Building Department & Another Versus M/s. K.L. Rathi Steels Limited and others

Govt. of NCT of Delhi Through the Secretary, Land and Building Department & Another Versus M/s. K.L. Rathi Steels Limited and others - TMI Issues Involved:1. Delay in filing review/recall applications.2. Review of orders based on the overruling of the Pune Municipal Corporation judgment by the Indore Development Authority judgment.3. Applicability of the principle of res judicata and the Explanation to Order XLVII Rule 1 CPC.4. Maintainability of review petitions under Article 137 of the Constitution and Order XLVII Rule 1 CPC.5. Public interest and the impact on land acquisition proceedings.Detailed Analysis:1. Delay in Filing Review/Recall Applications:The Court condoned the delay in filing the respective review/recall applications, considering the facts and circumstances of the case.2. Review of Orders Based on Overruling of Pune Municipal Corporation Judgment:The applications were filed by the Government of NCT of Delhi and Delhi Development Authority to review and recall orders passed in respective Civil Appeals, which were dismissed based on the decision in Pune Municipal Corporation v. Harakchand Misirimal Solanki. The applicants contended that the Pune Municipal Corporation decision was overruled by the Constitution Bench in Indore Development Authority v. Manohar Lal & others, which held that all decisions following Pune Municipal Corporation were also overruled.3. Applicability of the Principle of Res Judicata and Explanation to Order XLVII Rule 1 CPC:The respondents argued that change in law due to a subsequent decision cannot be a ground for review and that the settled position inter-parties may not be affected. They emphasized that the Explanation to Order XLVII Rule 1 CPC bars review on the ground that a subsequent decision has reversed or modified the earlier decision. The Court noted that the Constitution Bench in Indore Development Authority specifically overruled Pune Municipal Corporation and all decisions following it, indicating that such decisions are open to review.4. Maintainability of Review Petitions under Article 137 of the Constitution and Order XLVII Rule 1 CPC:The Court discussed that under Article 137, the Supreme Court has the power to review its decisions, subject to any law made by Parliament or rules under Article 145. Order XLVII Rule 1 CPC allows review on grounds of new evidence, mistake or error apparent on the face of the record, or any other sufficient reason. The Court found that the overruling of Pune Municipal Corporation by Indore Development Authority constituted a sufficient reason for review, despite the Explanation to Order XLVII Rule 1 CPC.5. Public Interest and Impact on Land Acquisition Proceedings:The Court considered the larger public interest, noting that many lands acquired for public purposes were declared lapsed due to the erroneous interpretation in Pune Municipal Corporation. Allowing the review applications would enable the authorities to retain possession of lands already utilized for public purposes and avoid returning them to original landowners.Conclusion:The review applications were allowed, and the orders in the respective Civil Appeals were recalled. The Civil Appeals were restored to their original files for reconsideration in light of the Indore Development Authority judgment. The Court emphasized that this decision was made in the larger public interest and did not express any opinion on the merits of the cases. The Contempt Petition related to one of the Civil Appeals was disposed of accordingly.