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Deemed Decree: A Comprehensive Analysis Under The Code Of Civil Procedure, 1908

The Civil Procedure Code, 1908 is a significant piece of legislation that governs the procedure for the administration of justice in India. It contains various terminologies that are crucial for the proper functioning of the legal system. However, the interpretation of these terms can sometimes be complex and vary from case to case.[1]

The terms 'order' and 'decree' are two such important terminologies that are used in the CPC. An order is a decision or direction given by a court in a case. On the other hand, a decree is a final judgment of a court in a civil proceeding that determines the rights and obligations of the parties involved. A decree operates as a final judgment and has the effect of settling the rights of the parties in a case. Yet, in some cases, the courts have interpreted certain orders as decrees. This happens when the court considers that an order operates as a final judgment and settles the rights of the parties involved in a case. In such cases, the order is treated as a decree, and the legal implications that follow from a decree also apply to such an order[2].

The interpretation of an order as a decree varies from case to case and is based on the specific facts and circumstances of each case. The courts take into account the nature of the case, the provisions of the CPC, and the legislative intent behind the CPC while determining whether an order can be treated as a decree.

Hence, it is important to understand the meaning of 'order' and 'decree' under the CPC, as the distinction between these two terminologies has significant implications for the administration of justice in India. The courts' interpretation of these terms and the circumstances in which orders are treated as decrees highlights the importance of a thorough understanding of the CPC for legal professionals and the general public.

Research Problem
"An order cannot be a decree and a decree cannot be an order. But there are few orders which can be treated as a decree."

Research Questions:
  • What is the difference between an order and a decree?
  • What are the criteria that determine whether an order can be treated as a decree?
  • What are the legal implications of an order being treated as a decree?
  • How do courts distinguish between an order and a decree in a legal context?
  • What are the effects of an order being treated as a decree on the parties involved in a case?
  • How does the distinction between an order and a decree impact the enforcement of legal decisions?

Rationale Of The Study
The study of deemed decree under the Code of Civil Procedure (CPC) 1908 is important because it has a significant impact on the administration of justice in India. A decree is a final judgment of a court in a civil proceeding that determines the rights and obligations of the parties involved. The concept of deemed decree under CPC 1908 refers to those orders which are treated as a decree by the court because they operate as a final judgment.

The study of deemed decree under CPC 1908 is relevant because it helps to understand the legal principles underlying the distinction between an order and a decree, and the criteria for determining when an order can be treated as a decree. It also sheds light on the legal implications of an order being treated as a decree, such as its impact on the parties involved in a case and its enforcement.

In addition, the study of deemed decree under CPC 1908 is crucial in the context of administrative law, as it helps to understand the role of legislative intent in determining whether an order is a decree. The study also provides insights into the significance of the distinction between an order and a decree in the enforcement of legal decisions, and the application of the legal principles of stare decisis to the distinction between an order and a decree.

Overall, the study of deemed decree under CPC 1908 is essential in providing a comprehensive understanding of the legal principles and practical implications of the distinction between an order and a decree in the administration of justice in India.

Objectives Of The Study
The objectives of the study of deemed decree under the Code of Civil Procedure (CPC) 1908 are as follows:
  • To critically analyze the legal principles underlying the distinction between an order and a decree under CPC 1908.
  • To identify the criteria that determine when an order can be treated as a decree under CPC 1908.
  • To examine the legal implications of an order being treated as a decree, such as its impact on the parties involved in a case and its enforcement.
  • To understand the role of legislative intent in determining whether an order is a decree under CPC 1908.
  • To evaluate the impact of the distinction between an order and a decree on the enforcement of legal decisions.
The ultimate aim of the study is to gain a comprehensive understanding of the legal principles and practical implications of the concept of deemed decree under CPC 1908.

Research Design:

Nature of Study: The research project is descriptive and analytical in nature. Sources of Data: The project is largely based on secondary sources of data; however, tertiary and electronic sources of data have been referred to a great extent. Books, case laws, journals have been used as references. Method of Data Collection: The method of data collection is non-doctrinal.
Limitation Of Study
Although the project has been done with utmost sincerity and attention to detail, there are a few limitations present, without which the research project could not have been enhanced. The issue of the submission deadline has forced the researcher to limit the ambit of my research topic avail the immediate present sources only.

Meaning Of 'Order' And 'Decree'

The definition of the term 'Order' is given under Section 2(14) of CPC[3]. It has been defined as any judgement delivered by a civil court made formally and which does not amount to a decree. A 'decree' is defined as a formal expression of an adjudication which determines the rights and liabilities of the parties in a conclusive manner on any or every matter involved in the suit as per Section 2(2) of the CPC[4].

Section 2(2) explicitly indicates that the following are considered to be included in the scope of the provision:
  1. A plaint's rejection;
  2. A question's resolution under "Section 144 of the Code of Civil Procedure (1908)"[5]
The essentials of decree as- adjudication, suit, rights of party in a controversy, conclusive determination and formal expression.

Any adjudication by a court which cannot be called as a decree is considered as an order. It is important to note that a decree is mostly an order, despite the fact that an order is not a decree. It's because an order is always final in nature, whereas a decree might be preliminary, final, or partially both. But it's important to remember that in this context, "final" refers to an order's decisive capacity to execute. It implies that an order must be practically and legally carried out. The parties' procedural rights are established by an order. At any point throughout a civil lawsuit, the court may issue orders. In essence, an order or series of orders comes after a decree[6].

When Orders cannot be a Decree
Under following circumstances, orders cannot be considered as decrees:

When an order is passed to:
  • Reject an application for leave to sue.[7]
  • Dismiss the suit for default.[8]
  • In relation to water disputes Tribunal.[9]
  • Wind up a company.[10]


There are various other conditions held in various judgments where an order cannot be treated as a judgment.

Orders which are Decrees
According to this subsection, the following have been determined to constitute decrees:
  1. An order made in accordance with Section 24[11] of the Bombay Money Lenders Act of 1946 approving or disapproving the release of installment payments for the decretal amount.
  2. An order dismissing tenants' request for the revocation of an eviction judgment under Section 6[12] of the West Bengal Premises Rent Control (Amendment) Act, 1950.
  3. An order made according to Section 14[13] of the Religious and Charitable Endowments Act of 1863.
  4. An order sending a decree to the collector for execution in accordance with Section 19[14] of the UP Encumbered Estates Act with knowledge of the debt reduction.
  5. A decree is a decision that declares the defendant to be a debtor under Section 3(c) [15] of the Karnataka Obligation Relief Act, 1976, with the result that the debt that was advanced to him is forgiven under Section 4(a).
  6. A decree is a decree, even if it has been modified.
  7. Because of Section 26[16] of the Land Acquisition Act, a civil court's decision under Part III of that Act becomes a decree.
  8. An order issued during the Indian Companies Act, 1956, winding-up process.
  9. A plaintiff who has been wronged by an order that sets aside an ex-parte decree may appeal against such decree.[17]
  10. Although such a finding was not made in a lawsuit and was occasionally not issued in the form of a decree, it was specifically included in the definition of a decree.
  11. Due to the words "s 47 or" being deleted, this is no longer the case. Before the Amending Act of 1976, a party litigant had the right to appeal an order made under Section 47[18] due to a legal fiction that was added to the meaning of the word "decree," which was expanded to include any order made during the execution procedures. This privilege had been removed by an effective law, and it was no more in existence when the execution was carried out on January 4, 1979, since the Amending Act had already taken hold as of February 1, 1977. Any order made in accordance with Section 47 of the Code of Civil Procedure would not be subject to appeal.
  12. A decree's order amending a scheme in accordance with Section 92[19] of the Code of Civil Procedure of 1908 qualifies as a decree amendment subject to appeal.
  13. A decision that denies a request to change such a plan.[20]
  14. Although the proceedings under this section were started by an application, an adjudication under Section 5 (2) [21] of the Malabar Tenancy Amendment Act, 1956, is in essence the ultimate judgment of a subject in issue and is a decree.
  15. According to the High Courts of Gujarat and Punjab, decisions made under Sections 911 and 13[22] of the Hindu Marriage Act of 1955 are solely decrees for the purposes of those sections and are not decrees as defined by this Subsection since they are not made in a court proceeding.
  16. A decree that rejects a plaint is not subject to review under Section 115[23] of the Code but is subject to appeal under Section 96[24] of the CPC.
  17. The Lok Adalat's decision in a criminal matter that was reported by a criminal court cannot be enforced as a civil court's judgment. This opinion is supported by the fact that, when a matter is referred to Lok Adalat, that body is exercising the authority held by the reference court and is only capable of making decisions that the reference court was qualified to make.[25]

When Orders Are Considered As 'Deemed Decree'

While the term 'decree' has been defined under Section 2(2), importance must be given to the word 'deemed' over here. It creates a statutory fiction and hence, covers orders which are not covered in the definition. The Court has previously noted that the phrase "deemed" is typically employed to construct a legislative fiction for the intention of expanding the connotation which it does not specifically embrace.

There are certain orders like pronouncement under Order 21 Rule 58, Rule 98 and Rule 100[26] are considered as deemed decrees. Further, rejection of a plaint and determination of suit under Section 144[27] may also be considered the same.

It is important to understand this interpretation through a series of case laws. Firstly, in the case of CIT v. Bombay Trust Corporation[28], the Privy Council held that a person is considered as something which he is not in reality when operation of 'deemed' happens. Furthermore, it was claimed that when someone is "deemed to be" anything, the only interpretation that makes sense is that, despite the fact that he is not actually that thing, he must be handled as if he were because of a law or other requirement.

Further, the Supreme Court of India in Lucky Kochuvareed v. P Mariappa Gounder[29] held that in order to understand the intent behind the legislature's use of the word 'deemed', one must look at the fact that when a law is framed using a word deemed, it is to associate such object or individual that status after considering it properly.

Furthermore, 'Deemed Decrees' do not fall under the description of "decree" under Section 2(2), thereby failing to be subject to the provisions of Section 96 of the Civil Procedure Code. As a result, only a "Miscellaneous appeal" may be filed against such a "order", not a "Regular appeal".

In the Rajan Kakar v. Vijaya Bank[30], where the creditor confronted the Lok Adalat and an award was allowed to pass with the Bank's permission pursuant to the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002[31], no further intervention under the Act can be taken as the award is a deemed decree.

Section 144 of CPC, 1908
S.144 is concerned with restitution of rights. In the matter of S.M. Deshmukh v. Ganesh Krishnaji Khare[32], the honorable Bombay High Court held that Section 144 of the Code should be considered as a deemed decree. While Section 2(2) requires conclusive determination, Section 144 is about rectification of any error that could take place any error that could have been made by the court while passing a decree[33].

Order 21 Rule 58 of CPC, 1908
Rule 58 deals with adjudication claims related to attachment of property and execution of a decree. A cursory examination of this provision indicates that, as Clause 4 plainly states, the rocess of adjudication under this Rule will lead to a deemed decree rather than a decision under Section 2(2) of the Code. The order made pursuant to sub-rule (3) "will have the same effect and be subject to the same circumstances as to appeal or otherwise as if it were a decree," according to Order 21, Rule 58(4). As a result, the order is defined as a "deemed decree" rather than a "decree" in and of itself.

Order 21 Rule 98 of CPC, 1908
This provision is concerned with orders passed after pronouncement. In Zafu Javeed v. V Narasimha Reddy and Others[34], it was observe that Order 21 Rule 98 of the Code of Civil Procedure, 1908 provides that any problems referred to in Rule 101[35] of the Code that are to be decided may be adjudicated. The Court also ruled that an order cannot be regarded as a decree unless it amounts to adjudication, and as a result, no appeal may be brought against such an order. Therefore, even though it cannot be regarded as an edict, it may be understood as one.

Order 21 Rule 100 of CPC, 1908
Order 21 Rule 100 of the Code of Civil Procedure, 1908 deals with orders to be issued in response to an application for repossession. This Rule should be studied in conjunction with Rule 101, which deals with open inquiries. One can use a similar interpretation to that of Order 21 Rule 98 to make a claim that Rule 100 is also a deemed decree. Even though it does not come under the adjudication required under Section 2(2), however, it is a deemed decree by virtue of legal fiction.

Conclusion
The distinction between a decree and an order is a critical aspect of the administration of justice in India, and the concept of deemed decree is an important recognition of this distinction. Under the Code of Civil Procedure (CPC), a decree is a final judgment of a court that determines the rights and obligations of the parties involved in a case. On the other hand, an order is a decision or direction given by a court in a case. A decree operates as a final judgment and has the effect of settling the rights of the parties in a case, while an order may not necessarily have the same impact.

In certain circumstances, the courts have recognized the concept of deemed decree, wherein an order is treated as a decree. This occurs when the court considers that an order operates as a final judgment and settles the rights of the parties involved in a case. In such cases, the order is treated as a decree, and the legal implications that follow from a decree also apply to such an order[36].

This concept of deemed decree is not explicitly mentioned in the CPC, but it is an important recognition by the courts of the significance of the distinction between an order and a decree. The analysis of the case laws mentioned above clearly supports the statement that while an order cannot be a decree and a decree cannot be an order, there are few orders which can be treated as a decree in certain circumstances[37].

In conclusion, the distinction between a decree and an order, and the concept of deemed decree, are critical aspects of the administration of justice in India. The recognition of deemed decree by the courts highlights the importance of a thorough understanding of the CPC for legal professionals and the general public.

End-Notes:
  1. Chandrashekhar, A paper on Execution of Decrees 2022, <https://kjablr.kar.nic.in/assets/articles/Execution%20of%20Decrees.pdf> (accessed on 11 Februrary 2023).
  2. P Ahuja, Explainer : What Is Order 7 Rule 11 CPC? When Can Plaint Be Rejected? (Live Law May 29, 2022) (accessed February 14, 2023).
  3. Civil Procedure Code, 1908, § 2(14), No. 5, Acts of Parliament, 1908 (India).
  4. Civil Procedure Code, 1908, § 2(2), No. 5, Acts of Parliament, 1908 (India).
  5. Civil Procedure Code, 1908, § 144, No. 5, Acts of Parliament, 1908 (India).
  6. Summary/Gist of the Papers, MJA, http://mja.gov.in/Site/Upload/GR/Title%20NO.217(As%20Per%20Workshop%20List%20title%20no217%20pdf).pdf (accessed on 08 Februrary 2023).
  7. Secretary of State v. Jillo, MANU / UP / 0111 / 1898.
  8. Firdous Omer v. Bankim Chandra Daw, MANU/SC/3384/2006.
  9. State of Andhra Pradesh v. State of Karnataka, MANU/SC/0297/2000.
  10. Dundappa v. SG Motor Transport Co, MANU / KA / 0004 / 1966.
  11. Bombay Money Lenders Act, 1946, § 24, No. 31, Acts of Parliament, 1947 (India).
  12. West Bengal Premises Rent Control (Amendment) Act, 1950, § 6, No. 37, Acts of Parliament, 1950 (India).
  13. Religious and Charitable Endowments Act, 1863, § 14, No. 20, Acts of Parliament, 1836 (India).
  14. United Provinces Encumbered Estates Act, 1934, § 19, No. 31, Acts of Parliament, 1934 (India).
  15. Karnataka Obligation Relief Act, 1976, § 3(c) & 4(a), No. 13, Acts of Parliament, 1976 (India).
  16. Land Acquisition Act, 1894, § 26, No. 31, Acts of Parliament, 1894 (India).
  17. Laxmibai v. Bhim Rao, MANU/KA/0161/1966.
  18. Civil Procedure Code, 1977, § 47, No. 5, Acts of Parliament, 1977 (India).
  19. Civil Procedure Code, 1908, § 92, No. 5, Acts of Parliament, 1908 (India).
  20. Shree Kalimata v. R.C. Chatterjee, MANU/WB/0068/1970.
  21. Malabar Tenancy Amendment Act, 1956, § 5(2), No. 22, Acts of Parliament, 1956 (India).
  22. Hindu Marriage Act, 1955, § 911 & 13, No. 25, Acts of Parliament, 1934 (India).
  23. Civil Procedure Code, 1908, § 115, No. 5, Acts of Parliament, 1908 (India).
  24. Civil Procedure Code, 1908, § 96, No. 5, Acts of Parliament, 1908 (India).
  25. C.D. Shaji v. K.N. Govindan Kutty Menon, MANU/SC/1412/2011.
  26. Civil Procedure Code, 1908, O21 R58, 98, 100, No. 5, Acts of Parliament, 1908 (India).
  27. Civil Procedure Code, 1908, § 114, No. 5, Acts of Parliament, 1908 (India).
  28. CIT v. Bombay trust Corporation, MANU/PR/0024/1936.
  29. Lucky Kochuvareed v. P Mariappa Gounder, MANU/SC/0557/1979.
  30. Rajan Kakar v. Vijaya Bank, MANU/DE/8513/2007.
  31. Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002, No. 54, Acts of Parliament, 2002 (India).
  32. S.M. Deshmukh v. Ganesh Krishnaji Khare, MANU / MH / 0160 / 1975.
  33. Paras Miglani & Vanjul Gautam, Critical analysis on Restitution 1(2) BLJ 2020, https://burnishedlawjournal.in/wp-content/uploads/2020/05/Critical-analysis-on-Restitution-by-Paras-Miglani-Vanjul-Gautam.pdf.
  34. Zafu Javeed v. V Narasimha Reddy and Others, MANU / AP / 0897 / 1998.
  35. Civil Procedure Code, 1908, R101, No. 5, Acts of Parliament, 1908 (India).
  36. Executions, CJA GOV, http://cja.gov.in/data/Executions.pdf (accessed on 12 Februrary 2023).
  37. Hemant More, Deemed Decree: Meaning and List of Orders Which Are Decrees (The Fact Factor, October 9, 2020) (accessed February 10, 2023).

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