Khoday Distilleries Ltd. Vs Mahadeshwara Sahakara Sakkare Karkhane Ltd. (Supreme Court of India)
The Supreme Court considered whether a review petition is maintainable before a High Court when a special leave petition (SLP) against the same judgment has already been dismissed by the Supreme Court. The dispute arose from a money suit dismissed by the trial court as time-barred, later decreed by the High Court with interest. The appellant’s SLP against the High Court’s decree was dismissed in limine by a non-speaking order. Thereafter, the appellant filed a review petition before the High Court, which was dismissed on the ground that the Supreme Court had already dismissed the SLP and hence review was impermissible.
The Supreme Court examined conflicting precedents, particularly Abbai Maligai and Kunhayammed, and reaffirmed the principles laid down in Kunhayammed. It held that dismissal of an SLP at the threshold, whether by speaking or non-speaking order, does not attract the doctrine of merger, and the High Court’s judgment does not merge with the Supreme Court’s order unless leave to appeal is granted and appellate jurisdiction is exercised.
The Court clarified that Article 136 jurisdiction has two stages: consideration of leave and hearing of appeal. If leave is refused, even with reasons, merger does not occur. Only when leave is granted and the appeal is decided does the doctrine of merger apply. The Court rejected the need for reference to a larger Bench and held that Kunhayammed correctly states the law.
