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GANPAT RAI HIRALAL AND ANOTHER versus AGGARWAL CHAMBER OF COMMERCE LTD

Citation: [1953] 1 S.C.R. 752 · Decided: 24-10-1952 · Supreme Court of India · Bench: MEHR CHAND MAHAJAN · Disposal: Case Partly allowed

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Judgment (excerpt)

1952 
October 24 
752 
SUPREME COURT REPOR'l'S 
(1953] 
GANPAT RAI ll[RAI1AL AND ANOTHER 
v. 
AGGARWAL CHAMBER OF COMMERCE LTD. 
MURARI LAL HARI RAM 
v. 
MARWARI CHAMBEH OF COMMERCE LTD. 
[MEHR CHAND MAHAJAN, 0HANDRASEKHABA AIYAB 
and BHAGWATI JJ.] 
PepS1! Ordinance (X of 2006), ss.52, 116-Patiala States Judi-
cature Farman, 1999-Appeal frmn order of single J1ul.ge-Certifi-
cate of fitness-When necessary-Order made before Ordinance came 
into f01·ce-Petition for amendment th.,·eafter-Appeal from order 
dismissing petition-Necessity of certificate-Right of appeal--
Vested 1·ight--Effect of change of law. 
Section 116 of the Pepsu Ordinance X of 2005 (1948-1949) is 
a transitory regulation providing for Ri change over of proceedings 
from one set of courts in the covenanting State to others of like 
status in the Union, and for their continuance etc. in the latter 
courts. It does not mean that the proceedings must be treated as 
having freshly commenced. 
What is contemplated in the latter 
part of the section is a notional commencem0nt, and the section 
means that all rights which arose or are likely to arise in future 
shall remain intact notwithstanding the new set up and that they 
would be dealt with by the Union courts in place of the courts of 
the covenanting State. There is nothing in the section to justify 
the view that any taking away of a vested right of appeal retros-, 
pectively was intended. 
Under the Patiala States Judicature Farman of 1999 a certi-
ficate was necessary for an appea.l to a Division Bench from an 
order of a single Judge of the Patiala High Court only in. respect 
of judgments and orders made in the exercise of civil appellate 
jurisdiction. Under the Pepsu Ordinance X of 2005 (1948-49) a 
certificate was necessary in all cases. In Appeal No. 152 an 
application made on 2nd February, 1950, for amendment of an 
order made by a Liquidation Judge in 1946 was dismissed and an 
appeal from the order of dismissal to a Division Bench was dis· 
missed on 1st May, 1950, for want of a certificate. In appeals 
Nos. 167 and 167A, the paymenl; orders were made on the 18th 
January, 1949, and appeals from those orders were dismissed on 
3rd March, 1949, for want of a certificate: 
Held, (i) that as a petition for amendment was not a continu· 
ation of the" earlier proceedings but was in the nature of an 
' 
S.C.R. 
SUPREME COURT REPORTS 
753 
independent proooeding though connected with the order sought to 
be amended, it was governed by the law prevailing on its date, 
1952 
viz., the Pepsu Ordinance of 2005 under which a certificate was 
Ganpat Rai 
necessary, and in Appeal No. 152 the dismissal of the appeal to the 
Hira L 1 l 
Division Bench ior want of a certificate was right; 
and Another 
(ii) that with regard to Appeals Nos. 167 and 167.A, as the 
v. 
l 
law in force on the relevant dates was the Patiala States .Judi-
Agga;w• 
cature Farman of 1999 the appellants had a right to appeal from 
Oharn ";!. 
the payment order without a certificate; this vested right could Oommsrce t ' 
not be taken away by a subsequent change in the law unless the 
later enactment expressly or by necessary implication was retros-
pective in operation and· deprived them of such a right, that there 
was nothing in s.116 ol the Ordinance to show that it was intend-
ed to have retrospective effect and the order of the High 
Court dismissing the appeals as incompetent was, therefore, 
erroneous. 
Colonial Sugar Refining Company v. Irving [1905] A.O. 369 
referred to. 
CIVIL APPELLATE JURISDICTION: 
Civil Appeals 
Nos. 152, 167 and 167-A of 1951. Appeal from the 
Judgments dated April 25, and May 1, 1950, of the 
High Court of Judicature for P:ttiala and East Pun-
jab Suates Union at Patiala (Teja Singh C. J. and 
Chopra J.) in L. P.A. R. I. A. O. No. 34 of 1950 and 
Civil Appeals Nos. 493/494 of Samwat 2005. 
Rang Behari Lal (Ram Nivas Sanghi, with him) 
for the appellants in Civil Appeals Nos. 167 and 
167-A. 
Udai Bhan Chaudhuri for the appellant in Civil 
Appeal No. 152. 
Lachhrnan Das Kaushal for the respondent in Civil 
Appeals Nos. 167 and 167-A. 
Ram Nivas Sanghi for the respondent in Civil 
Appeal No. 152. 
1952. 
October 24. The Judgment of the Court 
was delivered by 
CHANDRASEKHARA AIYAR J.-These appeals are 
connected and raise a common question of law. They 
come before us on special leave granted by the Pepsu 
High Court at Patiala under sub-clause (c) of clause 
(1) of 11rticle 133 of the Constitution, 

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