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Smart Summary

Factual and Procedural Background

The plaintiff-respondent filed Original Suit No. 72 of 1986 against the defendant-appellant seeking recovery of Rs. 72,250/-. The defendants filed a written statement on 20-8-86. On 22-10-86, the suit was dismissed under Order 9, Rule 3 of the Code of Civil Procedure (CPC) due to non-appearance of both parties. On the same day, the plaintiff filed an application under Order 9, Rule 4 CPC for restoration of the suit, which the Civil Judge allowed without issuing notice to the defendants. The suit was restored on 22-12-86 and fixed for hearing on 13-1-87. The defendants had no notice of this hearing and were absent, leading to an ex parte decree in favor of the plaintiff on 13-1-87 based on ex parte evidence. The defendants only became aware of the restoration and ex parte decree on 22-4-87 and immediately filed an application on 23-4-87 to set aside the ex parte decree, which was rejected by the Civil Judge on 12-5-87. The defendants appealed against this rejection.

Legal Issues Presented

  1. Whether the learned Civil Judge was correct in holding that it was not necessary to serve notice on the defendants of the date fixed for hearing after the suit was restored under Order 9, Rule 4 CPC.
  2. Whether the application filed by the defendants to set aside the ex parte decree was properly maintainable as a First Appeal From Order.

Arguments of the Parties

Appellant's Arguments

  • The defendants were not given any notice of the restoration application or the hearing date fixed after restoration.
  • They had no knowledge of the ex parte decree until 22-4-87 and promptly moved to set it aside.
  • It is inequitable and against principles of natural justice to pass an ex parte decree without notice after restoration.
  • The application to set aside the decree was properly filed under Order 9, Rule 13 CPC, despite being headed under Section 151 CPC.

Respondent's Arguments

  • Reliance on Babu v. L. Dewan Singh, AIR 1952 All 749, to argue that no notice is required before restoration or for the date fixed for recording ex parte evidence.
  • The application by defendants was under Section 151 CPC, and hence no appeal lies against the order rejecting it.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mool Chand v. Ganga Sahai, AIR 1933 All 522 Defendant is entitled to notice of hearing after restoration of suit under Order 9, Rule 4 CPC The court agreed that it is inequitable to deny notice to defendants after restoration and relied on this precedent to hold defendants should have been given notice.
Ramchandra Ramaji Khatik v. Sahadeo, AIR 1945 Nag 185 Equity requires notice be given to defendants after restoration and fixing of hearing date The court concurred with this equitable principle and applied it to find the defendants were entitled to notice.
Babu v. L. Dewan Singh, AIR 1952 All 749 No requirement to give notice to defendant before restoration or for date fixed for recording ex parte evidence after restoration The court distinguished this precedent as too technical and contrary to principles of natural justice in the present circumstances.

Court's Reasoning and Analysis

The court analyzed the procedural history and found that the suit was dismissed under Order 9, Rule 3 CPC due to non-appearance. The plaintiff's application for restoration under Order 9, Rule 4 CPC was allowed without notice to the defendants. Although the Rule does not explicitly mandate notice before restoration, the court reasoned that once the suit is restored and a fresh hearing date fixed, it is inequitable and against principles of natural justice not to serve notice on the defendants. Without notice, defendants had no means to know the hearing date and thus could not appear, resulting in an ex parte decree passed without their knowledge.

The court respectfully disagreed with the precedent cited by the respondent (Babu v. L. Dewan Singh) as overly technical and potentially resulting in injustice by allowing decrees behind defendants' backs. The court held that the defendants had sufficient cause for non-appearance and were entitled to have the ex parte decree set aside.

Regarding the procedural aspect of the application to set aside the decree, the court held that despite the application being headed under Section 151 CPC, it was in substance under Order 9, Rule 13 CPC, and a First Appeal From Order was maintainable against the rejection of such application.

Holding and Implications

The appeal is allowed.

The order of the Civil Judge dated 12th May 1987 rejecting the application to set aside the ex parte decree is set aside.

The ex parte decree dated 13th January 1987 is set aside. The suit shall proceed further after proper notice of the next hearing date is served on the parties in accordance with law.

No order as to costs was made.

This decision directly affects the parties by restoring their opportunity to be heard and does not establish any new precedent beyond applying established principles of natural justice and procedural fairness.

    Long Life Carpet Industries, Gaharpur And Others v. Smt. Kesar Jahan .

    R.P Singh, J.:— This First Appeal From Order is against an order dated 12th May, 1987 passed by the Civil Judge, Gyanpur, Varanasi, rejecting the application moved by the appellant for setting aside the ex parte decree dated 13th January, 1987.

    2. The brief facts of the case are that the plaintiff-respondent filed Original Suit No. 72 of 1986 against the defendant-appellant for recovery of Rs. 72,250/-. A written statement was filed by the appellants on 20-8-86. On 22-10-86, however, the suit was dismissed under O. 9, R. 3, CPC as neither party appeared when the suit was called for hearing. The same day, however, the plaintiff-respondent filed an application under O. 9, R. 4, CPC and the Civil Judge without issue of any notice to the appellants and relying on the affidavit filed by the plaintiff-respondent restored the suit to file on 22-12-86 and fixed 13-1-87 for hearing. On this date, i.e 13-1-87, the I defendants had no notice. The Court passed an ex parte decree decreeing the suit after accepting the ex parte evidence of the plaintiff. The grievance of the defendant-appellants is that after the dismissal of the suit of 22-10-86 under O. 9, R. 3 the defendants came to know the same day that the suit had been dismissed for default and thereafter they were not aware of any application for restoration being filed by the respondent or that any date having fixed for appearance of the parties for final disposal of the case. On 22nd April, 1987 the appellants made inquiries about the case when they came to know that the suit had been restored to its original number without any notice to them and also an ex parte decree was passed on 13th January, 1987 in favour of the respondent without issue of any notice to the appellants. Then, the appellants, the very next day i.e, on 23rd April, 1987 moved an application for setting aside the ex parte decree dated 13th January, 1987 explaining the reasons for the non-appearance on 13-1-87. The appellants had filed an affidavit saying that they had no knowledge whatsoever of the case until 22-4-87. The learned Civil Judge, however, holding that it was not necessary to send notices to the defendants of the date fixed for hearing i.e 13-1-87 after the application was allowed under O. 9, R. 4, CPC restoring the suit to its original number and hence the ex parte decree passed on 13-1-87 without any notice of the date to the appellants was validly passed and consequently dismissed the application filed by the appellants for setting aside the ex parte decree. The defendants feeling aggrieved, have come up in appeal against the said order dated 12-5-87 passed by the learned Civil Judge refusing to set aside the ex parte decree. The sole point for consideration in this case is whether the learned Civil Judge was right in holding that it was not necessary to serve notices on the defendants of the date of hearing of the case after restoration. The dismissal under O. 9, R. 3, CPC was in absence of both the parties. Thereafter when the application for restoration was made by the plaintiff under O. 9, R. 4, CPC, at that stage the defendants may not claim issue of notice to them as of right but when the Court restored the suit to file on 22-12-86 on the application filed by the plaintiff and fixed another date of hearing of the case, it does not stand to reason that the defendants should not be given the notices of the date of hearing of the date fixed in the suit. In fact, in absence of any notice being issued to the defendants of the date fixed in the case after restoration, they could have no means of knowledge about the date fixed in the case or that even the application for restoration had been allowed. When the defendant-appellants came to know on inquiry on 22-10-86 that the suit had been dismissed under O. 9, R. 3 for default, they could not anticipate when an application for restoration would be made and allowed. If such an application has been moved and allowed, it appears to be very inequitable that the defendants should not have notice of the date fixed for hearing. It has been held in the case of Mool Chand v. Ganga Sahai, AIR 1933 All 522 that when the plaintiff is allowed second chance by having the application for restoration granted, it appears to be very inequitable that the defendants should not have any notice of the date fixed for hearing and that the defendant is, as of right entitled to notice of hearing of the suit. The same view has been taken in Ramchandra Ramaji Khatik v. Sahadeo, AIR 1945 Nag 185 that it is but equitable to hold that the Court should fix the case for hearing the parties and give notice of hearing to the other side and that it does not stand to reason that even after the court restores a suit to its original number and fixes another date of hearing, the defendant should not be given notice of the hearing of the suit. We are in respectful agreement with the view taken in the cases referred to above.

    3. The learned counsel for the respondent has placed reliance on a case Babu v. L. Dewan Singh, AIR 1952 All 749 where it has been held that where a suit is dismissed under O. 9, R. 3 and is restored under R. 4, the latter Rule does not lay down that before the suit is restored a notice should be given to the defendant and the Court commits no illegality in giving no notice to the defendant of the date fixed for recording ex parte evidence. With great respect, we feel that the view taken in Babu v. L. Dewan Singh (supra) is too technical view as this view in some cases may result in passing a decree against the defendant behind his back without being afforded any opportunity of hearing to him. It is not conceivable that after the application for restoration moved by the plaintiff was allowed under O. 9, R. 4 CPC and the Court fixed another date for hearing the defendant could not possibly come to know of the date fixed by the Court for hearing unless he was given notice of the date fixed in the case. This would practically amount to passing of a decree against a party without giving him any opportunity of hearing which is against all Canons of justice and equity.

    4. The learned counsel for the respondent has also urged that the application given by the defendant-appellants on 23-4-87 was headed to be under S. 151 CPC and hence no appeal lay against such an order. It is clear that the prayer made in the application moved by the defendants on 23-4-87 was for setting aside the ex parte decree dated 13-1-87 and for moving such an application the proper procedure provided in the CPC is given under O. 9, R. 13 CPC and if by mistake the appellants have given the heading as S. 151 CPC, that would not change the nature of the application which is clearly in the nature of an application under O. 9, R. 13 CPC for setting aside the ex parte decree. A First Appeal From Order lies in this Court against an order refusing to set aside an ex parte decree, and hence the present appeal has been competently filed before this Court.

    5. A perusal of the order passed by the learned Civil Judge shows that even though he has found that no notice of the date fixed for hearing was given to the appellants but since no such provision was shown to him under which the defendant was entitled to a notice of the date fixed in the case and hence on this ground the application for setting aside the ex parte decree has been rejected. In the circumstances when the fact is admitted that no notice of the date of hearing was given to the appellants after the suit was restored to its original number in our opinion, the defendants had shown sufficient cause for their being prevented from appearing when the suit was called for hearing on 13-1-87. As we have said above, when the application for restoration was allowed, it was but equitable to hold that the Court should have fixed the case for hearing after giving notice of hearing to the defendant-appellants. We, therefore, hold that the defendants did not have knowledge of the proceedings on 13th January, 1987 when the ex parte decree was passed against them.

    6. In the result, we allow the appeal and set aside the order of the learned Civil Judge dated 12th May, 1987.

    7. The ex parte decree dated 13-1-87 is accordingly set aside and the suit shall proceed after serving a proper notice of the next date fixed in the case to the parties in accordance with law.

    8. In the circumstances of the case, however, we make no order as to costs.

    9. Appeal allowed.

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    Long Life Carpet Industries, Gaharpur And Others v. Smt. Kesar Jahan .
    (Oct 16, 1987)