Procedural Order by Single Judge Deemed Non-Substantive, Appeal Found Not Maintainable
In a recent decision, the Kerala High Court dismissed an intra-court appeal filed by Cholamandalam Investment and Finance Company Limited against an interim procedural order of a Single Judge. The Division Bench, comprising Justices Anil K. Narendran and Muralee Krishna S., ruled that the appeal was not maintainable as the order in question did not substantially affect the parties' rights or liabilities.
The case revolved around a writ petition filed by Azhar K.M., who had obtained a vehicle loan from Cholamandalam Investment and Finance Company. Azhar challenged a pre-sale letter issued by the company, claiming possession of his vehicle was wrongfully taken due to a default under the loan agreement. The Single Judge had directed a responsible officer of the finance company to file a detailed counter affidavit, which prompted the company to file an appeal under Section 5(i) of the Kerala High Court Act.
The Division Bench clarified that an intra-court appeal under Section 5(i) is only permissible against orders that significantly affect the parties' substantive rights or cause substantial prejudice. The procedural directive by the Single Judge did not meet these criteria. The court emphasized that orders of a purely procedural nature, such as the one directing the submission of a counter affidavit, do not warrant an appeal.
The judgment reinforces the principle that intra-court appeals are reserved for orders with substantial impact, aligning with precedents set in cases such as K.S. Das v. State of Kerala and M/s. Grids Engineers and Contractors v. Union Bank of India.
The appeal was dismissed, leaving the question of the writ petition's maintainability open for the Single Judge's consideration.
Bottom line:-
An intra-court appeal under Section 5(i) of the Kerala High Court Act is not maintainable against a procedural or non-substantive order by a Single Judge that does not substantially affect or touch upon the substantial rights or liabilities of the parties.
Statutory provision(s):
Kerala High Court Act, 1958 Section 5(i), Article 226 of the Constitution of India, Arbitration and Conciliation Act, 1996
