Marwari Relief Society v. Amulya Kumar Singh

Civil Appeal · 2019 INSC 370Decided 14 Mar 2019
Civil Appeal No. 3048 of 2019
Justice R. Banumathi · Justice R. Subhash Reddy

Background

Marwari Relief Society, a charitable institution running a health resort in Ranchi, had filed an eviction suit in 1991 against a licensee who allegedly failed to pay maintenance charges for his cottage. During the long pendency of the suit (which was restored after an earlier ex-parte decree was set aside, and shuffled between courts), certain documents originally filed with the plaint, including a notice and a power of attorney, went missing. The Society later applied to the trial court to be allowed to re-file these documents, and the trial court permitted this. The defendant challenged those orders in the Jharkhand High Court, which ruled in his favour and set them aside, holding that the plaint did not sufficiently refer to these documents or to the power-of-attorney holder's authority.

Decision Breakdown

The Supreme Court disagreed with the High Court's reading of the pleadings. It found that the plaint did contain clear references to the agreement and the eviction notice in question, and that although the cause-title did not mention the attorney-holder, the verification clause of the plaint clearly described him as the Society's "constituted agent and attorney," which was sufficient authorisation. The Court held the High Court erred in finding no basis in the plaint for allowing these documents to be filed, set aside the High Court's order, and restored the trial court's orders permitting the additional documents. Since the underlying suit dated back to 1992, the Court directed the trial court to proceed with it and dispose of it expeditiously.

Lesson Learnt

Courts will look at the substance of a pleading as a whole, including the verification clause, rather than technicalities of the cause-title, when deciding whether a party's representative had the authority claimed; and long-pending old suits should be disposed of expeditiously once procedural hurdles are cleared.

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