14. Discuss the problems regarding the exclusion of jurisdiction of civil court under Section 9 of C.P.C. with reference to the decision of the Supreme Court in the case of Dhulabhai v. State of Madhya Pradesh, AIR 1969 SC 78

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The jurisdiction of Civil Courts is governed by the principle of "Ubi jus ibi remedium" (Where there is a right, there is a remedy). Section 9 of the Code of Civil Procedure (CPC) grants Civil Courts the inherent power to try all suits of a civil nature, except those where their jurisdiction is expressly or impliedly barred.

However, the "exclusion" of this jurisdiction is a complex problem, as legislatures often create special tribunals and include "ouster clauses" to bypass regular courts. The landmark judgment in Dhulabhai v. State of Madhya Pradesh (1969) remains the definitive authority on when and how this exclusion applies.

The Problem: Express vs. Implied Bar

The primary challenge under Section 9 is determining whether a special statute successfully ousts the Civil Court’s jurisdiction.

  1. Express Bar: When a statute explicitly states that "no Civil Court shall have jurisdiction" (e.g., Sec 34 of the SARFAESI Act).

  2. Implied Bar: When a statute creates a specific right and provides a specific remedy/machinery for its enforcement, implying that the general civil remedy is excluded.

The Dhulabhai Principles (The 7-Point Test)

In Dhulabhai v. State of M.P., Chief Justice Hidayatullah laid down seven principles to resolve the conflict between special statutes and Section 9.

1. Adequacy of Remedy

If a statute provides for a special tribunal that can grant the same relief the Civil Court would normally grant (including the power to examine the legality of the act), the jurisdiction of the Civil Court is barred.

2. Finality of Orders

If the statute provides that the orders of the special tribunal are "final," the Civil Court’s jurisdiction is excluded. However, there is a critical exception: If the tribunal did not follow the fundamental principles of judicial procedure, the Civil Court can still intervene.

3. Challenge to the Constitutionality of a Statute

A special tribunal (created by a statute) cannot decide whether its own parent statute is Ultra Vires (unconstitutional). Only a Civil Court (or High Court/Supreme Court) has the jurisdiction to examine the validity of the law itself.

4. Failure to Follow Statutory Provisions

Even if a bar exists, a Civil Court can entertain a suit if the authority acted in blatant violation of the mandatory provisions of the Act or failed to act in conformity with the fundamental principles of judicial procedure.

5. Where No Adequate Remedy Exists

If a statute creates a liability but provides no machinery for a refund or relief, the Civil Court’s jurisdiction remains intact. An "implied bar" cannot be assumed if there is no alternative remedy.

6. Refund of Taxes and "Vires" of Provisions

If a particular provision of a Tax Act is declared unconstitutional, a suit for a refund of tax collected under that void provision is maintainable in a Civil Court.

7. Explicit Prohibition vs. Inherent Power

The exclusion of jurisdiction is not readily inferred. Unless the conditions above are strictly met, the Civil Court is presumed to have jurisdiction.

Practical Impact and Recent Interpretations

The problem with Section 9 today often arises in Service Law, Taxation, and Land Reforms.

  • Jurisdictional Errors: Even if a statute says "no suit shall lie," the Supreme Court has recently reiterated that if the authority's order is null and void or coram non judice (without jurisdiction), the Civil Court cannot be ousted.

  • The Burden of Proof: The burden lies heavily on the party claiming the exclusion to prove that the jurisdiction is barred.

Summary

The decision in Dhulabhai ensures that "ouster clauses" are not used to leave a citizen without a remedy. If a special tribunal acts arbitrarily, violates natural justice, or acts under an unconstitutional law, the Civil Court acts as a safety net under Section 9 to restore the rule of law.

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