Caveat Petition in India

A ‘Caveat Petition’ is basically a preventive measure taken by an individual to inform the court when they feel someone might file a lawsuit against them. It aims to notify the court and request the Court to give the Caveator (individual filing the Caveat) a fair opportunity to put forward their side of the story before any order is given or legal action is taken against them.

Although the term ‘Caveat’ is not defined in the Civil Procedure Code (CPC), 1908, all laws related to caveat petitions have been covered in Section 148A of the CPC.

The ability to notify the court beforehand gives the Caveator an equal opportunity to explain their side of the story before the court passes any order against them with respect to the said case.

Legal Provisions for Caveat Petitions

• Section 148A (CPC, 1908) is relevant for all cases related to caveat petitions.
• It basically enables an individual to claim the right to appear before the Court, where a lawsuit has been made or is expected to be made or a proceeding has been instituted or is expected to be instituted against them to share their side of the story before the court.
• The term ‘any person claiming a right to appear before the Court’ mentioned in Section 148A encapsulates not only a ‘necessary party’ (people who are necessary for the Court to effectively pass an order) but a ‘proper party’ (petitioner and respondent) as well.
• It is the Caveator’s (individual filing the Caveat) legal obligation to serve the Caveat on the Caveatee (individual that is expected to file a lawsuit/proceeding).
• After a caveat is lodged and the service has been conducted by the Caveator, the Court is obligated to send any application filed by the Caveatee to the Caveator.
• The Caveatee is obligated to serve the applications / documents filed in the Court to the Caveator as well.

Note:

• A caveat petition remains in force for a period of 90 days from the date it is filed in the Court.
• If the apprehension continues post 90 days, a new Caveat must be filed in the Court

 

Caveat Petition Format

No specific format has been specified under the CPC for Caveat petitions. However, the details that must be included in a Caveat petition are:

• Name of the Caveator.
• Name of the Court where the Caveat has been filed.
• Address of the Caveator where notice of the case is to be served to them.
• Name and Address of the Caveatee.
• A statement according to which no orders shall be passed without a notice and a brief description of the proceedings filed by the Caveatee are sent to the Caveator.

 

Objective and Scope of Caveat Petitions

• The primary objective of introducing Section 148A was to grant a chance to hear the person against whom a proceeding / lawsuit may be filed. This ensures that before any order is passed against an individual, they shall be given an opportunity to be heard by the Court. This will obviously help in avoiding multiplicity of proceedings.
• It further makes sure to give the individual, against whom a case has been filed in the Court, an opportunity so that no injustice is done to them. It ensures that an order is not passed based on partially hidden facts, which may prove to significantly affect the decision taken by the Court.
• The practical implications of filing a Caveat Petition in civil matters provide protection to the party filing the Caveat from suffering due to any uninformed order that may be passed on the first day of hearing. Once a Caveat has been filed with respect to any fresh lawsuit / proceeding, no order shall be passed in the matter without informing and hearing the Caveator. This is in conformity with the established rule of natural justice ‘audi alterem partem’, which basically translates as, ‘let the other side be heard as well.’
• A Caveat Petition may be filed in a higher court if there is an expectation that an appeal may be filed against any order by a lower court.

For example, in case a recovery suit has been filed by A against B before a District Judge and the same is also accompanied with an application seeking temporary injunction against B’s assets. If the District Judge allows this application and orders for freezing B’s assets, the same would give B a right to appeal before a higher court. Since it will be A’s apprehension that an appeal for setting aside the order can be filed by B, A ought to file a Caveat Petition under Section 148A of CPC before the concerned higher court so that no adverse orders may be passed in the appeal, which is likely to be filed by B without affording a hearing to A. Upon the filing of such caveat and after due compliance of the conditions of Section 148A of CPC, the higher court ought to call upon A to present its side of the case before any orders are passed on the appeal that may be preferred by B.

Note: Section 148A does not exclusively mention that no orders can be passed without giving the caveator a chance to put forward their side of the story.

The High Court of Andhra Pradesh High Court in the matter of Reserve Bank of India Employees Association vs. Reserve Bank of India [AIR 1981 AP 246] was faced with a case, in which the Court failed to send a notice to the Caveator informing them about the hearing date and passed an order even though a Caveat had been filed. The High Court stated that simply filing a Caveat does not stop a Court from using their power to pass an order, irrespective of whether the Caveator was informed or not.

Since CrPC does not have any provisions for it, Caveat petitions are not maintainable and shall be dismissed if filed in criminal matters.

Caveat under Indian Succession Act, 1925

• Although caveats are also mentioned in the Indian Succession Act, they are limited to proceedings related to probate and letters of administration.
• When someone files a petition to get a Will probated, specific citations of Section 283(1)(c) are issued to call those who are interested in the assets stated in the Will. Such individuals are issued citations and informed of the proceedings before the probate of the Will is granted. This gives anyone interested in opposing the move a chance to do so.
• A caveat can be filed by individuals who have received such citations. As per Section 285 of the Indian Succession Act, once a caveat has been filed, no proceedings shall be taken on such petition until the Caveator has been notified.
• Schedule V of the Indian Succession Act, 1925 defines a certain caveat format.

 

Conclusion

Filing caveat petitions is considered to be a wise approach when it comes to ensuring you are informed about any and all cases filed against you. In case of the slightest doubt, that a case may be filed against you, it is strongly advised to file a caveat petition to ensure that you are informed about the same and do not have to bear with uninformed decisions taken by the Court.


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