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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • SECTION 5 LIMITATION ACT
  • Order IX Rule 9 of the Civil Procedure Code, 1908
  • Order XXI Rule 54, CPC
  • Order IX Rule 9, CPC
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • SECTION 5 LIMITATION ACT
  • Order IX Rule 9 of the Civil Procedure Code, 1908
  • Order XXI Rule 54, CPC
  • Order IX Rule 9, CPC
Smart Summary

Judgment Summary — Mukul Mudgal, J.

Factual and Procedural Background

This opinion concerns multiple interlocutory applications arising from Suit No. 2675/2000. The defendants had filed an application for leave to defend the suit under the provisions applicable to summary suits, but their counsel failed to appear on the relevant dates and, as a result, the leave to defend application was dismissed on 9th July, 2003. On 29th August, 2003 the court delivered a reasoned judgment decreeing the plaintiff's suit under Order XXXVII.

Execution proceedings were subsequently initiated and a notice under Order XXI Rule 54, CPC was found pasted on 19th May, 2004. The defendants became aware of the ex parte decree and filed IA No. 4203/2004 (under Order IX Rule 9, CPC) on 20th July, 2004 seeking to set aside the ex parte decree and to restore IA No. 11345/2001. An application under Section 5 of the Limitation Act (IA No. 4204/04) for condonation of delay in moving IA No. 4203/2004 was also filed. Additional applications for stay of execution (IA No. 4205/04) and for hearing of IA No. 4203/04 under Section 151, CPC (IA No. 5113/04) were pending.

Prior procedural history relevant to the dispute includes directions on 4th April, 2002 to the plaintiff to place a complete account, repeated time extensions (2nd May, 4th September, 4th October, 2002), an affidavit filed on 12th November, 2002 on behalf of the defendant by Devraj & Co., Advocates (but without the accounts ordered on 4th April, 2002), issuance of court notice after non-appearance on 28th March, 2003 (served by order dated 23rd May, 2003), and listings on 9th and 11th July, 2003 before the final hearing and order on 29th August, 2003.

Legal Issues Presented

  1. Whether the delay in moving IA No. 4203/2004 (seeking to set aside the ex parte decree) should be condoned under Section 5 of the Limitation Act (IA No. 4204/04).
  2. Whether the ex parte judgment and decree dated 29th August, 2003 should be set aside under Order IX Rule 9, CPC by restoration of the defendants' right to defend (IA No. 4203/2004).
  3. Whether the execution of the decree should be stayed (IA No. 4205/04).
  4. Whether IA No. 4203/04 should be heard under Section 151, CPC (IA No. 5113/04).

Arguments of the Parties

Defendant's Arguments

  • The defendant asserted diligent prosecution of its defence and had filed an application for leave to defend, but the defendant's counsel failed to communicate the court notice to the defendant and did not appear in court without informing the defendant.
  • The defendant relied on the absence of counsel and the fact that execution notice was found pasted on 19th May, 2004 as the occasion when they first came to know of the ex parte decree, thereby explaining the timing of IA No. 4203/2004 filed on 20th July, 2004.
  • The defendant contended it was contesting the case diligently and that no further delay had been caused by it; it referred to contact with its counsel "as and when required" as supporting its diligence.

Plaintiff's Arguments

The opinion does not contain a detailed account of the plaintiff's legal arguments in opposing the applications.

Table of Precedents Cited

The judgment does not cite any case law precedents. It relies on provisions of the Civil Procedure Code and the Limitation Act but no judicial precedents are referenced.

Statutory provisions referenced in the opinion (for context):

  • Section 5 of the Limitation Act (mentioned in the title of IA 4204/04 — application for condonation of delay)
  • Order IX Rule 9, Civil Procedure Code, 1908 (application to set aside ex parte judgment)
  • Order XXI Rule 54, Civil Procedure Code, 1908 (notice in execution proceedings)
  • Order XXXVII, Civil Procedure Code, 1908 (summary suit procedure)

Court's Reasoning and Analysis

The court's analysis addresses, in sequence, condonation of delay, the merits and procedural sufficiency of the application under Order IX Rule 9, and the consequences for the ancillary applications.

Condonation of delay (IA No. 4204/04): The court allowed the application for condonation of delay "subject to all just exceptions" and expressly stated that the delay in moving IA No. 4203/2004 for setting aside the order dated 9th July, 2003 and for restoration of IA No. 11345/2001 and for setting aside the decree of 29th August, 2003 stands condoned. The opinion does not elaborate on the detailed basis for allowing condonation beyond this operative statement.

On IA No. 4203/2004 (Order IX Rule 9, CPC) — whether to set aside the ex parte decree:

  • The court examined the factual backdrop: the defendants' counsel failed to appear on multiple occasions; the court had earlier directed production of complete accounts (order dated 4th April, 2002) which were not complied with despite further time being granted. An affidavit filed on 12th November, 2002 did not include the accounts as ordered.
  • The court noted procedural indulgence: although the matter was arguably ripe for hearing on 28th March, 2003, the court nonetheless issued a court notice to the defendants as a precaution. The judge stressed that issuance of a court notice out of indulgence did not give the defendant a right to claim absence from proceedings as excusing non-appearance.
  • On the merits the judge recorded that the judgment dated 29th August, 2003 was a reasoned judgment. The decree rested on (a) an acknowledgement of liability by the defendant dated 11th April, 1997, and (b) cheques issued by the defendants which were honoured or encashed. Notices quantifying amounts due were sent on 30th January, 1999 and 12th May, 1999 and were not complied with. Consequently, the court found that on merits the defendants did not have a "worthwhile defence" to the claim.
  • The court also criticized the application under Order IX Rule 9 as vague and lacking particulars, considering it a device to gain time. Specific deficiencies noted included the absence of explanation why the defendant did not contact its erstwhile counsel and the lack of averment or proof of diligence in pursuing the matter. The court found the assertion that the defendant had been contacting counsel "as and when required" insufficient to establish diligence.
  • The court observed that the defendant was invited to deposit approximately Rs. 7 lakhs in court to demonstrate bona fides, which the defendant declined to do — a factor weighed against granting relief.
  • Taken together — the admitted liability and evidence relied on by the plaintiff, the procedural non-compliance, the vagueness and lack of specific instances in the application, and the absence of demonstrated diligence — led the court to conclude that relief under Order IX Rule 9 could not be granted.

On related applications (IA Nos. 4205/04 and 5113/04): In view of the dismissal of IA No. 4203/04, the court held that the applications for stay of execution (IA No. 4205/04) and for hearing of IA No. 4203/04 under Section 151, CPC (IA No. 5113/04) had become infructuous and were dismissed on that basis. The next date fixed in IA No. 5113/04 was cancelled.

Holding and Implications

The court issued the following operative rulings:

  • IA No. 4204/04 allowed subject to all just exceptions; the delay in moving IA No. 4203/2004 stands condoned.
  • IA No. 4203/2004 is dismissed. The court concluded that the defendants failed to show necessary diligence, the application was vague and appeared to be a measure to gain time, and the defendants lacked a worthwhile defence on the merits given acknowledgements, encashed cheques and prior notices.
  • IA No. 4205/04 and IA No. 5113/04 are dismissed as having become infructuous in consequence of the dismissal of IA No. 4203/04.
  • The next date fixed in IA No. 5113/04 (10th January, 2005) was cancelled.

Implications: The direct effect of the decision is that the defendants' application to set aside the ex parte decree has been refused and the decree stands; attempts to obtain a stay of execution or a hearing under Section 151, CPC are rendered infructuous and dismissed. The court did condone the delay in filing the setting-aside application, but declined substantive relief on the merits and for procedural insufficiencies. The opinion does not announce or rely upon any new judicial precedent.

Application dismissed.

    Anil Sharma v. Wiezmani Consultants

    IA 4204/04 (under Section 5 of the Limitation Act for condonation of delay)

    Mukul Mudgal, J.— Allowed subject to all just exceptions. Delay in moving the application, IA.No 4203/2004 for setting aside the Order dated 9th July, 2003 and for restoration of the IA.No 11345/2001 and for setting aside the decree passed on 29th August, 2003 in the main Suit No. 2675/2000 stands condoned.

    IA.No 4203/2004:

    2. This is an application by the defendants under Order IX Rule 9 of the Civil Procedure Code, 1908 (in short the ‘CPC’) to set aside the ex parte judgment dated 29th August, 2003 decreeing the suit of the plaintiff against the defendants under Order XXXVII as the leave to defend application filed by the defendant went unrepresented as his Counsel did not attend Court and was accordingly dismissed on 9th July, 2003. As a notice under Order XXI Rule 54, CPC for execution of the decree was found pasted on 19th May, 2004, the defendant/applicant came to know about the ex-parte decree passed against it and moved the present application on 20th July, 2004.

    3. The crux of the applicants averments is that he was diligently defending the suit and filed the application for leave to defend but his Counsel did not communicate the Court notice to him nor appeared in Court without informing the defendant.

    4. On 7th December, 2001 notice on the leave to defend application filed by the defendants was issued to the plaintiff.

    5. Thereafter on 4th April, 2002 defendants were directed by this Court to place on record a complete copy of the account of the plaintiff and in particular the details of the sum of Rs. 11,23,464/- said to be debited to the plaintiffs' account. This order dated 4th April, 2002 was not complied with in spite of further time granted on 2nd May, 2002; 4th September, 2002; 4th October, 2002. Eventually an affidavit was filed by the defendant on 12th November, 2002 on behalf of the defendant by Devraj & Co., Advocates. However, no accounts as directed by this Court on 4th April, 2002 were filed. Thereafter as Counsel did not appear for the defendant on 28th March, 2003, this Court issued Court notice to the defendants though which was found served by the Order dated 23rd May, 2003. The Court did not decree the suit but listed the case on 9th July, 2003 on which date due to non-appearance of Counsel for defendants, application for leave to defend was dismissed and the case again listed on 11th July, 2003 when the case was listed for arguments on 25th August, 2003 when after hearing arguments the case was listed for orders on 29th August, 2003 when by a reasoned judgment the suit of the plaintiff was decreed.

    6. The judgment against the defendants dated 29th August, 2003 is a reasoned one and records that the defendants acknowledged his liability in writing on 11th April, 1997. Thereafter some cheques were issued towards liability issued by the defendants were honoured and some were encashed. Thus judgment leading to the decree is based upon an acknowledgement of the defendant and cannot be faulted. Significantly two notices quantifying the amount due and payable were sent and served on the defendant on 30th January, 1999 and 12th May, 1999 but there was no compliance or reply to these notices. Thus on merits also the defendants do not have any worthwhile defence. The defendant was asked in any event to deposit in Court the principal sum of about Rs. 7 lacs to show his bona fides but he declined to do so. Accordingly, no indulgence could be shown to the defendant/applicant.

    7. Apart from merits, this application under Order IX Rule 9, CPC is also vague in particulars and appears to be a measure to gain time. No reasons are given why the defendant did not contact his erstwhile and first Counsel.

    8. Furthermore no diligence is averred or proved in pursuing the case. In my view, even the matter was ripe for hearing as far back as on 28th March, 2003 and really speaking there was no need to issue Court notice to the defendants but the Court was indulgent and issued the Court notice by way of an abundant precaution though it does not give any right to defendant to lay a claim for being absent from the Court proceedings. The defendant has not shown how he was diligent in pursuing this matter and mere reference to the Counsel cannot absolve it of the blame. It has only been stated that the defendant has been contacting the Counsel as and when required by the Counsel. It is also stated that the defendant was contesting the case diligently and no further delay has been occasioned. These are not in my view averments which would suffice to permit the relief under Order IX Rule 9, CPC to be granted. Consequently the prayer made in the application cannot be granted as no specific instances have been given.

    9. Accordingly, there is no merit in this application which is dismissed.

    IA No. 4205/04 (stay of the execution of the decree passed in Suit No. 2675/2000) & IA No. 5113/04 (under Section 151, CPC for hearing of IA No. 4203/04)

    10. In view of the dismissal of the IA No. 4203/04, these applications have become infructuous and the same are accordingly dismissed as having become infructuous.

    11. Next date of 10th January, 2005 fixed in IA No. 5113/04 stands cancelled.

    Application dismissed.
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    Comments

    Anil Sharma v. Wiezmani Consultants
    (Oct 26, 2004)