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SMT. DAYAWATI AND ANOTHER versus INDERJIT AND OTHERS

Citation: [1966] 3 S.C.R. 275 · Decided: 14-01-1966 · Supreme Court of India · Bench: K. SUBBA RAO · Disposal: Dismissed

Cited by 6 judgment(s) · see the full citation network in Lexace

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Judgment (excerpt)

A 
B 
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E 
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sm. DAYAWATI AND ANOTHER 
v. 
INDERJIT AND OTHERS 
I anuary 14, 1966 
[K. SUBBA RAO, M. HIDAYATULLAH AND R. S. BACH>.WAT, JJ.l, 
UsurloW1 Loans Act, 1918 (10 of 1918), s. 3, as amended bys. 5 of 
Punjab Rellej oj Indebtedness Act-Section 6 of latter Act making s. S 
applicable to "all suitJ pending or to be instituted after the COrnm<!lfC<-
ment of this Acf'-Appeal filed against judgment in suit-Whether suit 
'pending' within meaning of s. 6. 
Interest in excess of 7! per cent was awarded to the appellants by 
the trial court in a mortgage suit against the respondents. The respondents 
filed before the High Court, wbere an appeal by them against the decree 
of the trial court was pending an application under s. 3 of the Usurious 
Loans Act, 1918 as amended by s. S of the Punjab Relief of Indebtedness 
Act. 
They claimed, by virtue of the latter provision, that interest in 
excels of 7i per cent could not be awarded in the suit. 
The Hilh 
Court having accepted the contention, the appellants came to this Court 
by special leave and contended that an appeal having been filed against 
the trial court's judgment in the suit, the said suit could not be said to be 
pending' within tho meaning of s. 6 of the Punjab Act on the relevant 
date, and therefore s. S would not apply . 
HELD: (i) Tho word 'suit' includes an appeal from the judgment in 
the suit. 
The only difference between a suit and an appeal is that an appeal 
"only reviews and corrects the proceedin8" in a cause already constituted 
but dO<lS not create the cause." In the present Act the intention is to 
g;..., relief in respect of excessive interest in a suit which is pendina and a 
preliminary decree in a suit of this kind does not terminate the suit. The 
appeal is a part of the cause because the preliminary decree which 
emerges from the appeal will be the decree, which can become a final 
decree. 
(281 D-F) 
(ii) The words of s. 6 speak of a suit pending on the commencement 
of the Act and it means a live suit whether in tne court of first instance 
or an appeal court where the judgment of ·the court of first instance is 
being considered. It only excludes those suits in which nothina further 
needs to be done in relation to the rights and claim litigated, because 
an executable decree which may not be reopened is already in existence. 
The decision of the High Court was right in applying s. 3 of the Usurious 
Loans Act (as amended) to the case. (282 A, BJ 
(iii) Ordinarily a court of appeal cannot take into account a new 
law, brought into existence after the Judgment appealed from ha• been 
rendered, because the rights of the litigants in an appeal are determined 
under the law in force at the dste of the suit. Matters of procedure are 
however different and the law affecting procedure is always retr05~ive. 
But it does not mean that there is an absolute 
rule of inviolab11ity of 
mbstantive rights. 
If the new law speaks in language, which expressly 
or by clear lntendment, takes in even pending matters, the court of 
trial as well as the court of appeal may give effect to such a law even 
afler the judgment of the court of first instance, The distinction between laws 
affecting procedure and tlto•e affecting vested rights does not matter wbea 
the court is)nvited by law lo take away from a ~ 
plaintil!, what· 
he has obtal!led under a judgment. (280 B-Hl 
276 
SllPRHIF COURT REPORTS 
[ 1966] 3 S.C.R. 
Quilter v. Mapleson, (1882)9 Q.B.D. 672, Slavin v. Falrbrass (1919)88 
,.\ 
LJ. K.B. 1004 and Mukerjee (K.C.) v. Mst. Ramratan, 63 I.A. 47, refer· 
red to. 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 246 of 
1964. 
Appeal by special leave from the judgment and decree dated 
October 15, 1959 of the Punjab High Court (Circuit Bench) at 
Delhi in R.F.A. No. 1-D of 1954. 
S. T. Desai, D. R. Prem and Mohan Beharilal, for the appel· 
!ants. 
N. C. Chatterjee, and H. P. Wanchoo, for respondents Nos. 
to 5. 
Tiry11gi Narain, for respondent No. 6. 
The Judgment of the Court was delivered by 
B 
c 
Hidayalullah, J. In this appeal by special leave against the 
judgment and decree of the Punjab High Court dated October 15, 
D 
1959 the only question is whether, in the facts to be stated pre-
sently, the High Court was right in reducing interest m a preli· 
minary mortgage decree dated August 12, 1953 by applying ss. 5 
and 6 of the Punjab Relief of Indebtedness Act which were 
extended to Delhi on June 8, 1956. 
On January 17,

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