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  • provisions of O. 37, R. 1-B of the English Rules of the Supreme Court. R. 1 of O. 19 of the Civil Procedure Code
  • (Section 73 of the Contract Act or section 56 of the Sale of Goods Act).
  • O. 5, R. 19, O. 11 Rules 5 to 20, O. 32 R. 5, O. 38 rules 1 & 5. Order 39 Rules 1
  • Section 104 read with O. 43, R. 1(d), Civil Procedure Code.
  • Mysore House Rent and Accommodation Control Act.
  • Section 30(c), Civil Procedure Code,
  • SECTION 105 CIVIL PROCEDURE CODE
  • Rules of Civil Procedure Code,
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  • provisions of O. 37, R. 1-B of the English Rules of the Supreme Court. R. 1 of O. 19 of the Civil Procedure Code
  • (Section 73 of the Contract Act or section 56 of the Sale of Goods Act).
  • O. 5, R. 19, O. 11 Rules 5 to 20, O. 32 R. 5, O. 38 rules 1 & 5. Order 39 Rules 1
  • Section 104 read with O. 43, R. 1(d), Civil Procedure Code.
  • Mysore House Rent and Accommodation Control Act.
  • Section 30(c), Civil Procedure Code,
  • SECTION 105 CIVIL PROCEDURE CODE
  • Rules of Civil Procedure Code,
Smart Summary

Factual and Procedural Background

The respondent (original plaintiff) filed a suit in 1969 claiming damages for breach of contract, alleging that the defendant refused to take delivery of manganese ore sold under a contract dated 5 March 1968. The suit was fixed for evidence on 10 April 1978. Early that day, the plaintiff's representative, witnesses and counsel were present, but no one appeared for the defendant. The trial court proceeded ex parte against the defendant and directed the plaintiff to prove the claim by affidavits. The plaintiff filed an affidavit of its Chief Sales Officer (Shri Jagirdar) and the trial court immediately decreed the plaintiff's claim in full for Rs. 3,84,375 with future interest at 6% per annum and costs (judgment dated 21 September 1978). At 12:50 a.m. on the same day, the defendant's counsel filed an application to set aside the ex parte proceedings, which was rejected by the trial court on the ground that judgment had been delivered. Before this appeal, the defendant filed an application under Order 9, Rule 13, Civil Procedure Code to set aside the ex parte decree; this application was heard and dismissed by the trial court on 12 October 1979 (MJC No. 263 of 1978), and that order was not challenged. The present appeal was filed on 6 March (year as stated in the opinion) and the appellate court directed that the Order 9, Rule 13 application be disposed of by the trial court before proceeding; subsequently the trial court dismissed that application and the defendant did not challenge it.

Legal Issues Presented

  1. Whether a grievance about proceedings ex parte (and relatedly the correctness of an ex parte decree) can be raised in the present appeal when an application under Order 9, Rule 13 was earlier filed, decided against the defendant and the decision has become final (i.e., whether the point can be reopened in this appeal).
  2. Whether a court, in exercise of power under Order 19, Rule 1 of the Civil Procedure Code, has jurisdiction to order proof of the whole suit by affidavit irrespective of the nature of the suit and even when the suit is not contested (i.e., the scope of Order 19, Rule 1 and whether it permits proof of entire suit by affidavit).
  3. Whether there was sufficient material on the record to sustain the decree entered ex parte on the basis of a short affidavit, and if not, what relief should follow (i.e., whether evidence on record sufficed to support the decree and the appropriate remedy).

Arguments of the Parties

Appellant's Arguments

  • The appellant (original defendant) contended that the ex parte proceedings and resulting decree were not properly made and impliedly sought to reopen that grievance in the appeal.
  • The appellant argued (through Shri Manohar) reliance on the authority of Bhagwati, J. in Zabu Khima v. Amardas (AIR 1967 Guj. 214) — this authority was advanced to support the contention about the impropriety of deciding contested matters merely on affidavits or to challenge the trial court's procedure in relying on affidavits.
  • The appellant urged the broader proposition that no court exercising power under Order 19, Rule 1 has jurisdiction to order proof of the whole suit by affidavit regardless of suit nature or contest — in other words, that Order 19, Rule 1 cannot be used to dispose of entire suits by affidavits.

The opinion does not contain a detailed account of the respondent's legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Badvel Chinna Asethu v. Vettipalli Kesavayya, AIR 1920 Mad 962 Supports the view that a grievance already decided (and final) should not be reopened in another proceeding to avoid conflicting decisions; public policy against conflicting decisions. The court cited this case in support of answering the first point against the defendant — i.e., the court agreed with the proposition that the same question should not be reopened where another remedy has been availed of and the decision has become final.
Munassar Bin v. Fatima Begum, AIR 1975 A.P. 366 Same principle as above: endorses the view that re-opening a point after final decision and another remedy has been availed of is not permissible. The court relied on this authority alongside the Madras decision to support its conclusion on the first point, and expressed respectful concurrence with the view.
Zabu Khima v. Amardas, AIR 1967 Guj. 214 Holds that when a case is non-contentious, the judge hearing the application (e.g., for probate or letters of administration) can act on affidavits; the decision did not hold that trial by affidavits in contentious matters is necessarily vitiated. The court observed that this authority, relied upon by the appellant, in fact did not support the appellant's position; rather it indicates that affidavits can be acted upon in non-contentious matters.
B.N. Munibasappa v. Gurusiddaraja Desikendra Swamigal, AIR 1959 Mys. 139 Contains observations on Order 19, Rule 1 and its limits — the Mysore High Court commented that R.1 does not permit a court to direct that the whole of a party's case be proved by affidavits except where reasons justify proof of particular fact(s) by affidavit. The court considered these observations in context, noted that they were directed at a misapplication of Order 19, Rule 1, and read them narrowly; the present court expressed respectful disagreement with any overly wide reading of the Mysore decision and noted that in that case the matter ultimately was decided on affidavits by consent.

Court's Reasoning and Analysis

The court addressed the principal points in sequence and grounded its analysis in statutory provisions and procedural rules expressly cited in the opinion.

1. On the question whether a grievance about proceeding ex parte may be made again in the appeal when an application under Order 9, Rule 13 was previously filed and decided against the defendant: the court observed that an order rejecting an application under Order 9, Rule 13 is appealable under Section 104 read with Order 43, Rule 1(d) of the Civil Procedure Code. The court noted that Section 105 clarifies that in an appeal under Section 96 against a decree this grievance can be made. However, the central issue was whether the same question can be reopened where another remedy has been availed of and the decision went against the defendant and became final. The court answered this against the defendant, invoking public policy reasons to avoid conflicting decisions and citing two High Court decisions (Badvel Chinna Asethu and Munassar Bin) that took the same view, with which this court respectfully concurred.

2. On the scope of Order 19, Rule 1 and whether a court may order proof of the whole suit by affidavit: the court rejected the appellant's expansive proposition that no court has jurisdiction to order proof of the whole suit by affidavit irrespective of nature of the suit. The court analyzed the relevant procedural framework:

  • Order 18 deals with hearing and examination of witnesses and Rule 4 makes it mandatory to take evidence of a witness orally in open court.
  • The Evidence Act's exclusion of affidavits from its application (S.1) and its definition of "evidence" (S.3) were noted as relevant features.
  • Section 30(c) of the Civil Procedure Code provides for prescribing conditions and limitations enabling a court to order proof of any fact by affidavit in appropriate cases.
  • The court enumerated various orders and rules that expressly permit acting on affidavits in certain circumstances (e.g., Order 5, Rule 19; Order 11 Rules 5–20; Order 32 Rule 5; Order 38 Rules 1 & 5; Order 39 Rules 1 & 2). The court observed that Order 19 generally deals with "Affidavits" and the manner and circumstances in which departure from Order 18 Rule 4 can be made.

The court construed Order 19, Rule 1 as a general power (with Rule 2 being restricted to "any application") and stated its view that the term "any" should not be restricted. It examined the terminology "fact or facts" in Rule 1 and reasoned that if the result of the whole suit depends on proof of one fact, it would be illogical to disallow proof of that fact by affidavit merely because that proof may decide the whole suit. The court concluded that the use of the word "facts" indicates no numerical limitation and that, in an appropriate case, all facts upon which a suit is based can be proved by affidavits. The court cautioned that this does not mean that resort to the provision should be readily made where the nature of the controversy calls for oral evidence under Order 18 Rule 4, and it noted that ex parte matters stand on a different footing where the court's discretion under Order 19, Rule 1 may be more freely exercised. The practical conclusion was that there is no inherent lack of jurisdiction in ordering proof by affidavit; the viability of such an order depends on the facts and circumstances of each case.

3. On the precedents relied upon by the appellant (notably Zabu Khima and B.N. Munibasappa): the court reviewed these authorities. It observed that Zabu Khima arose from contentious probate/administration proceedings but held that when a case is non-contentious a judge can act on affidavits; the court concluded that Zabu Khima did not support the appellant's position and in fact indicated that affidavits may be acted on in non-contentious matters. Regarding B.N. Munibasappa, the court read the Mysore High Court's observations in context, noted that the Mysore court criticized an order that effectively required all facts to be proved by affidavits (calling that a misapplication of Rule 1 of Order 19), but the present court did not accept an overly broad reading of the Mysore decision and observed that ultimately that revision was decided on affidavits by consent.

4. On the factual sufficiency of evidence to sustain the decree: the court found the evidence wholly insufficient. The court recorded that damages were claimed based on a completed contract with breach alleged on 23 January 1969, with contentions as to rates (contracted rate Rs. 125/-, prevailing rate about Rs. 100/- per tonne on the date of breach) and agreed delivery dates (March/April 1968 and June/July 1968 for respective lots). The defendant denied these contentions and several issues were framed; the plaint ran to seven pages and several documents were on the record. Despite this, only a small affidavit of Shri Jahagirdar was filed and within minutes the learned trial Judge delivered a short judgment. The court found it apparent that the trial Judge had not applied his mind to the multiple facets and voluminous documents on the record; no documents were specifically referred to or explained by affidavit in context. Important matters not shown on record included prevailing rates on the dates of delivery, whether any extension of time for delivery had been granted and, if so, when and how, the status and effect of an alleged security deposit of Rs. 25,000/-, and subsequent developments after 21 May 1968. The court also referred to settled law stated in the opinion that damages are to be assessed on the basis of the difference between contracted price and rates prevailing on the day of breach (citing Section 73 of the Contract Act or Section 56 of the Sale of Goods Act as the relevant provision noted in the text). On these bases the court concluded evidence was insufficient to sustain the judgment and decree which appeared to have been passed only because the defendant was ex parte.

5. Remedy: The court concluded that dismissing the suit for want of evidence in appeal would be unfair under the circumstances, and thus the appropriate course was to remand the matter to the trial Judge for a fresh trial and fresh decision after full consideration of all relevant factors and opportunity for both parties to lead evidence.

Holding and Implications

Holding: The court set aside the judgment and decree passed by the trial court and remanded the suit for fresh trial. The opinion's dispositive order (as stated in the text) is:

The Judgment and decree passed by the Trial Court is set aside and the suit is remanded to the trial Court for fresh trial. No order as to costs.

Direct consequences and directions given by the court (as explicitly stated in the opinion):

  • The trial Court is directed to give both parties the opportunity to lead evidence and to decide the suit afresh on merits.
  • Parties are directed to appear before the trial Court on 14 February 1986, on which date the case shall be fixed for evidence of parties.
  • The trial Court is to give top priority to this old matter.
  • Record and proceedings received from the trial Court are to be sent back so as to reach the trial Court on or before 14 February 1986.

Broader implications: The opinion does not state that a new binding precedent is being created; rather, it (i) clarifies the court's view on the scope of Order 19, Rule 1 in the context of affidavits and ex parte proceedings, (ii) endorses the policy against permitting re-opening of points already finally decided in earlier proceedings to avoid conflicting decisions, and (iii) remands for fresh trial because of insufficient evidence to sustain an ex parte decree. If no broader legal implication is claimed in the text beyond these rulings, the direct effect is the setting aside of the trial court's decree and the remand for fresh trial; no new precedent is expressly declared in the opinion.

Order accordingly.

    Mangilalrungta v. Manganese Ore (India) Ltd., Nagpur

    V.A Mohta, J.:— Points of some interest arise in this appeal by the original defendant against an ex parte decree for Rs. 3,84,375/- with future interest at 6 per cent per annum passed by the Joint Civil Judge, Senior Division Nagpur, on 21st Sept. 1978. The respondent original plaintiff had filed a suit for damages for breach of contract in refusing to take delivery of the Manganese Ore purchased by the defendant from the plaintiff vide contract dated 5th March, 1968. This suit filed in 1969 was fixed for evidence on 10th April, 1978. In the early hours, it was called when the plaintiff's representative, witnesses and the counsel were present. None was present for the defendant. As a result, the following order came to be passed:—

    “Plaintiff and his witnesses present. Defendant and his counsel absent. Case is of 1969. It is very old case. Hence I proceed ex parte against defendant. Plaintiff to prove the claim by affidavits.”

    The plaintiff filed an affidavit of its Chief Sales Officer Sri Jagirdar and the following judgment came to be delivered immediately thereafter.

    “As directed plaintiff filed affidavit of Shri Anand Dinkar Jahagirdar at Exh. 104. Relying on the plaint allegation, which are supported by affidavit and various documents filed in record, I decree the plaintiffs' claim in full with costs and future interest.

    Plaintiff to recover Rs. 3,84,375/- with future interest at 6 per cent per annum from date of suit till realisation with costs from defendant. Decree be drawn.”

    At 12.50 a.m the defendant's counsel filed an application for setting aside order’ proceeding ex parte. Upon that application, the trial Court passed the following order.

    “As judgment is delivered, this application is rejected.”

    It is a common ground that before filing this appeal, an application under O. 9, R. 13, Civil Procedure Code, for setting aside ex parte decree was filed before the trial Court on 20th Oct. 1978. In this appeal filed on 6th March this Court directed disposal of the application before the trial Court within a period of two months. After hearing parties, the said application came to be dismissed on 12th October, 1979 (MJC No. 263 of 1978). The defendant did not challenge the said order.

    2. Can a grievance about proceeding ex parte be made again in this appeal is the first point. Now order rejecting an application under O. 9, R. 13 is appealable under Section 104 read with O. 43, R. 1(d), Civil Procedure Code. Undoubtedly in appeal under Section 96 against the decree this grievance can be made. Section 105, Civil Procedure Code, makes this position clear. Crux of the controversy is whether the same question can be allowed to be reopened in a case where other remedy has been availed of, the decision has gone against the defendant and the said decision has become final. In our view, this point must be answered against the defendant. Well recognised public policy of avoiding conflicting decisions on the same point is the reason behind this conclusion. Two High Courts (i) in the case of Badvel Chinna Asethu v. Vettipalli Kesavayya, AIR 1920 Mad 962 and (ii) Munassar Bin v. Fatima Begum, AIR 1975 A.P 366, have taken the same view and it has our respectful concurrence.

    3. Second point urged is that no court in exercise of power under O. 19, R. I, Civil Procedure Code, has jurisdiction to order proof of whole suit by affidavit irrespective of the nature of the suit and/or controversy and even when the suit is not contested. It seems to us that the proposition is too spacious to be accepted. Let us examine the salient features of our procedural laws on the subject. O. 18, Civil Procedure Code, deals with the subject of hearing of the suit and examination of witnesses and Rule 4 makes it mandatory to take the evidence of a witness orally in open court in the presence and under the personal superintendence of the Judge. Evidence Act does not apply to affidavit produced in any Court (S. 1) and defines the term “evidence” (S. 3). Now, these two basic features of our two procedural laws, are not without permissible exceptions. Section 30(c), Civil Procedure Code, itself provides for prescribing conditions and limitations for enabling Court to order proof of any fact by affidavit in appropriate cases. On scanning orders and Rules of Civil Procedure Code, instances of express permission to act merely, on affidavits can be sorted out e.g o. 5, r. 19, o. 11 rules 5 to 20, o. 32 r. 5, o. 38 rules 1 & 5. order 39 rules 1 and 2.19 generally deal with the subject of “Affidavits” and the manner and circumstances in which departure from O. 18 R. 4 can be made by any Court. O. 19, R. 1 is a general power and R. 2 is restricted to “any application”. The controversy as to what does the term “any application” mean need not detain us, as it does not directly arise in the present matter, though our view on the question is “any” means “any” and there is no scope to restrict the generality the word so unambiguously points out. Reverting to R. 1, the terminology “fact or facts” used therein may be noticed. Now in a given case result of the whole suit may depend upon proof of a fact only. If that be the position, does it sound logical that proof of such a fact by affidavit is impermissible only because thereby the whole suit can be decided, Would then the position in law change because plural facts are required to be proved to decide the controversy in a suit. Moreover, specific use of word “facts” in particular indicates that no restriction on the number of facts is to be read and in an appropriate case all fact or facts upon which suit is based can be proved by affidavit/affidavits. Holding otherwise would be too unrealistic and too technical a view of the law of procedure resulting into great waste of public time and money and would throw unnecessary burden on our already over burdened legal machinery. This is not to suggest even remotely that resort to this provision can be readily made even if nature of controversy appropriately calls for following the normal rule contained in O. 18, R. 4. Needless to mention that ex parte matters would stand on somewhat different pedestal and in relation to them discretion under O. 19, R. 1 can be more freely exercised. There is thus no lack of jurisdiction in ordering proof by affidavit. All really depends upon facts and circumstances of each case.

    4. Heavy reliance is placed by Shri Manohar for the appellant upon high authority of Bhagwati, J. (as he then was) in the case Zabu Khima v. Amardas, AIR 1967 Guj. 214. That case arose out of a contentious application for grant of letters of administration under the Succession Act which has to be tried as a regular suit in terms of Section 295 of the said Act. Though the practice of deciding such contentious cases merely on the basis of affidavits of both parties was deprecated, the trial by such method was not held to be vitiated by any illegality. That decision far from supporting the appellant lays down clearly that “there can be no doubt that when a case is non-contentious one, the Judge hearing an application for probate or letters of administration can act on affidavits.” Case of B.N Munibasappa v. Gurusiddaraja Desikendra Swamigal, AIR 1959 Mys. 139 arose out of a civil revision against an order passed in a contested application for setting aside ex parte order under the Mysore House Rent and Accommodation Control Act. The Munsif directed both the parties to produce evidence by affidavits and decided the matter merely on the affidavits of both parties. Parties had not consented to that course. It is in this background that the following observations on which reliance was placed have to be viewed. (Para 21).

    “The provisions of this Rule are analogous to the provisions of O. 37, R. 1-B of the English Rules of the Supreme Court. R. 1 of O. 19 of the Civil Procedure Code is not a provision under which the Court may direct that party may prove the whole of his case by the production of affidavits. What it provides is that a particular fact or facts may be proved by affidavit provided there were sufficient reasons for doing so.

    Now, what the learned Munsif did in this case was to make an order, the effect of which was that all the facts which had to be proved by the parties in the proceeding before him should be proved by affidavits instead of their being proved by evidence produced in the ordinary way. It is clear that an order like that could never be made except by a misapplication of R. 1 of O. 19”.

    Now these observations will have to be read in the context indicated above and not out of it. We do not feel that the Mysore High Court has stated the proposition as widely as is canvassed before us. If it does, we respectfully disagree. It is pertinent to note that ultimately the said revision came to be decided only on the basis of affidavits filed in the trial Court but by consent of both parties.

    5. Last point relates to the question of fact — whether sufficient material exists on record to sustain the decree. To that our answer is in the negative. Our final order is the remand to the trial Judge for fresh trial. Here are our reasons: Damages are claimed on the basis that there was a completed contract, breach of which was committed on 23rd Jan. 1969 when notice was given by the plaintiff and the rate prevailing on that day was about Rs. 100/- per tonne, contracted rate being Rs. 125/-. All these contentions were denied by the defendant and several issues were framed. Plaint runs into 7 pages and several documents are filed on record. Without specifically referring to any of them only a small affidavit of Shri Jahagirdar was filed and within minutes the learned Judge delivered a short judgment. It is apparent that he has not applied his mind to the several facets that ex facie arise and the voluminous documents on record (assuming they are proved). No documents are explained with reference to context by affidavit. Agreed dates of delivery were March/April 1968 for 7500 tonnes and June/July 1968 for the balance of 7500 tonnes. Rates prevailing on those dates are not on record. It is not explained whether there was any extension of time of delivery and if yes, when and how. Plaintiff seems to have insisted upon a security deposit of Rs. 25000/- before effecting delivery to which defendant seems to have agreed. What happened to that aspect is not on record. One letter dated 22nd May 1968 alleged to have been written by the defendant does refer to extension, but office notes of the plaintiff insist on security deposit before effecting delivery. Settled law is that damages have to be assessed on the basis of difference between contracted price and the rates prevailing on the day of breach (Section 73 of the Contract Act or section 56 of the Sale of Goods Act). Developments after 21st May, 1968 are not on the record and the picture is not clear at all.

    6. Evidence thus is wholly insufficient to sustain judgment and decree which seems to have been passed only because the defendant was ex parte. To dismiss the suit for want of evidence in appeal would be unfair under the circumstances and the only other course left is to remand the matter for fresh trial and fresh decision after application of mind to all relevant factors. Hence the following order:—

    The Judgment and decree passed by the Trial Court is set aside and the suit is remanded to the trial Court for fresh trial. No order as to costs.

    The trial Court will give opportunity to both parties to lead evidence and decide the suit afresh on merits. Parties are directed to appear before the trial Court on 14th Feb. 1986 on which date the case shall be fixed for evidence of parties.

    7. Needless to mention that the trial Court will give top priority to this old matter. Record and proceedings received from the trial Court be sent back so as to reach the trial Court on or before 14th February, 1986.

    Order accordingly.
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    Comments

    Mangilalrungta v. Manganese Ore (India) Ltd., Nagpur
    (Jan 30, 1986)