SC: Court during restitution is bound to restore parties to same position

The Hon’ble Supreme Court, on 5th November 2019, in the matter of Bansidhar Sharma(Since Deceased) Rep By His Legal Representative v. The State Of Rajasthan & Ors. pronounced that Court in making restitution is bound to restore the parties, so far as they can be restored, to the same position as they were in at the time when the Court by its action had displaced them.

The Hon’ble Supreme Court observed that:

It clearly transpires that Section 144 applies to a situation where a decree or order is varied or reversed in appeal, revision or any other proceeding or is set aside or modified in any suit instituted for the purpose. (Para 17)

The principle of doctrine of restitution is that on the reversal of a decree, the law imposes an obligation on the party to the suit who received the benefit of the decree to make restitution to the other party for what he has lost. This obligation arises automatically on the reversal or modification of the decree and necessarily carries with it the right to restitution of all that has been done under the decree which has been set aside or an order is varied or reversed and the Court in making restitution is bound to restore the parties, so far as they can be restored, to the same position as they were in at the time when the Court by its action had displaced them. (Para 17)

Copy of judgement: Judgement_05-Nov-2019

-Adv. Tushar Kaushik

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