Power of the Supreme Court to Transfer Suits, etc. under the Civil Procedure Code, 1908

The power of the Supreme Court of India to transfer cases – suits, appeals, or other proceedings – from one High Court to another, or from a civil court in one state to a civil court in another state, is a crucial aspect of the Indian legal system. This power, enshrined in Section 25 of the Code of Civil Procedure, 1908 (CPC), ensures fair and impartial justice, particularly when circumstances suggest a bias, threat, or the potential for injustice in the original jurisdiction. This article delves into the nuances of Section 25, examining its scope, conditions for exercise, relevant case laws, and procedural aspects.

Understanding Section 25 of the CPC

Section 25 of the Code of Civil Procedure, 1908, explicitly grants the Supreme Court the power to transfer suits, appeals, or other proceedings from one High Court to another or from a civil court in one State to a civil court in another State. The section states:

(1) The Supreme Court may, at any stage, if satisfied that an order under this section is expedient for the ends of justice, direct that any suit, appeal or other proceeding be transferred from a High Court or other civil court in one State to a High Court or other civil court in any other State.

(2) Every application for transfer under this section shall be made by a motion which shall be supported by an affidavit.

(3) The High Court may, on the application of any of the parties and after notice to the parties and after hearing such of them as desire to be heard, or of its own motion without such notice, transfer any suit, appeal or other proceeding pending before it for trial or disposal to any court subordinate to it and competent to try or dispose of the same.

(4) Where any application for transfer is made under this section, the Supreme Court may, if it is satisfied that such application is frivolous or vexatious, order the applicant to pay by way of compensation to any person who has opposed the application such sum, not exceeding two thousand rupees, as it considers appropriate in the circumstances of the case.

(5) The law applicable to any suit, appeal or other proceeding transferred under this section shall be the law which the court in which the suit, appeal or other proceeding was originally instituted ought to have applied to such suit, appeal or proceeding.

Conditions for Exercise of Power under Section 25

The Supreme Court's power to transfer cases under Section 25 is not unfettered. It is exercised judiciously and only when specific conditions are met. The key consideration is whether such a transfer is "expedient for the ends of justice." The following circumstances typically warrant a transfer:

• Apprehension of Bias: This is a primary ground. If a party reasonably apprehends that they will not receive a fair and impartial hearing in the original court due to bias or prejudice, the Supreme Court may order a transfer. This apprehension must be reasonable and not merely a figment of the party's imagination. The Supreme Court in Kulwinder Kaur v. Kandi Friends Education Trust (2008) 3 SCC 659 emphasized that the apprehension must be based on credible evidence and not mere surmise or conjecture.

• Threat to Safety and Security: If a party or their witnesses face a credible threat to their safety or security in the original jurisdiction, rendering it difficult or impossible to effectively present their case, a transfer may be granted. The court considers factors like the gravity of the threat, its source, and its potential impact on the proceedings.

• Inconvenience and Hardship: While inconvenience alone is generally not a sufficient ground for transfer, extreme hardship faced by a party, especially when coupled with other factors, can be considered. This is particularly relevant when dealing with matters like matrimonial disputes where one party may find it extremely difficult to travel to a distant location.

• Balance of Convenience: The Supreme Court takes into account the balance of convenience for all parties involved. It considers factors like the location of witnesses, availability of evidence, and the overall cost and burden of litigation. The convenience of one party should not be disproportionately favored over the other.

• Preponderance of Witnesses or Evidence in Another State: If the majority of witnesses or crucial evidence is located in a different state, it may be more efficient and convenient to transfer the case to a court in that state. This ensures that all relevant evidence can be readily presented and considered.

• Possibility of Injustice: The overarching consideration is whether a transfer is necessary to prevent a potential injustice. If the Supreme Court believes that a fair trial is unlikely in the original jurisdiction, it will exercise its power to transfer the case.

Procedure for Applying for Transfer under Section 25

An application for transfer under Section 25 of the CPC must adhere to a specific procedure:

1. Motion: The application must be made through a motion filed in the Supreme Court.

2. Affidavit: The motion must be supported by an affidavit sworn by the applicant, stating the grounds for seeking the transfer. The affidavit should contain specific and verifiable facts that support the apprehension of bias, threat, or other grounds relied upon.

3. Notice to Opposite Party: The Supreme Court will typically issue notice to the opposite party, allowing them to file a counter-affidavit and present their arguments against the transfer.

4. Hearing: The Supreme Court will hear both parties before deciding on the transfer application. The parties may be represented by lawyers who will present their arguments and cite relevant case laws.

5. Order: After considering the arguments and evidence, the Supreme Court will pass an order either granting or rejecting the transfer application. If the application is granted, the order will specify the court to which the case is transferred.

Important Considerations and Case Laws

Several important principles have emerged from judicial pronouncements concerning Section 25:

• Onus of Proof: The onus of proving that a transfer is necessary rests on the party seeking the transfer. They must demonstrate that the circumstances warrant the exercise of the Supreme Court's power.

• Reasonable Apprehension is Key: The apprehension of bias must be reasonable and based on credible evidence. Mere suspicion or unsubstantiated allegations are not sufficient. In Maneka Sanjay Gandhi v. Rani Jethmalani (1979) 4 SCC 167, the Supreme Court emphasized that the apprehension must be such as a reasonable person would entertain.

• Matrimonial Disputes: Transfers are frequently sought in matrimonial disputes, often due to the wife's inability to travel to the husband's location. The Supreme Court has generally been sympathetic to such requests, especially when the wife faces financial hardship or threats. However, each case is decided on its own merits.

• Commercial Disputes: Transfers are also sought in commercial disputes, particularly when one party alleges bias on the part of the local judiciary or administration. The Supreme Court carefully scrutinizes such allegations before ordering a transfer.

• Compensation for Frivolous Applications: Section 25(4) empowers the Supreme Court to impose a fine on applicants who file frivolous or vexatious transfer applications. This provision is intended to deter parties from abusing the process and wasting the court's time.

• Applicable Law: Section 25(5) clarifies that the law applicable to the transferred case remains the same as it would have been in the original court. The transfer does not alter the substantive law governing the case.

Landmark Judgments

Several landmark judgments have shaped the interpretation and application of Section 25:

• Guda Vijayalakshmi v. Guda Ramachandra Sekhara Sastry (1981) 2 SCC 647: This case highlighted the importance of considering the convenience of the wife in matrimonial disputes when deciding on transfer applications.

• Kulwinder Kaur v. Kandi Friends Education Trust (2008) 3 SCC 659: This judgment emphasized the need for credible evidence to support an apprehension of bias.

• Maneka Sanjay Gandhi v. Rani Jethmalani (1979) 4 SCC 167: This case established the principle that the apprehension of bias must be reasonable and such as a reasonable person would entertain.

Conclusion

Section 25 of the Code of Civil Procedure, 1908, is a powerful tool that empowers the Supreme Court to ensure fair and impartial justice by transferring cases when circumstances warrant. The power is exercised judiciously, considering factors like apprehension of bias, threats to safety, convenience of parties, and the overall interests of justice. While the onus lies on the applicant to demonstrate the need for a transfer, the Supreme Court's ultimate goal is to ensure that every litigant receives a fair trial and that justice is not only done but also seen to be done. The numerous case laws and the detailed procedure outlined in Section 25 and related judicial pronouncements provide a framework for the effective and equitable exercise of this crucial power.