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Smt. Sushila Jain v. Rajasthan Financial Corporation, Jaipur

Rajasthan High Court
Feb 15, 1979
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Judgment Summary — K.S. Sidhu, J.

Factual and Procedural Background

This petition under section 115 of the Code of Civil Procedure was filed against an order dated 7 August 1978 of the learned Additional District Judge, Jaipur City, which forfeited the defendant's right to present a written statement of defence.

The Rajasthan Financial Corporation (plaintiff/respondent) sued Sushila Jain (defendant/petitioner) on 13 October 1976 for recovery of a monetary claim (recorded in the opinion as Rs. 600089.94). The defendant, resident in New Delhi, could not be served despite repeated attempts for nearly one year, leading the trial court to resort to substituted service by advertisement and to fix 27 October 1977 as the date for appearance.

The defendant appeared on 27 October 1977 but did not file a written statement, alleging she had no copy of the plaint. The court supplied a copy and permitted filing of the written statement on 12 January 1978. Multiple adjournments occurred between 12 January and 10 March 1978, but the defendant did not file the written statement. On 10 March 1978 the defendant filed an application under Sections 10 and 151 CPC for stay of the suit; that application was dismissed on 18 July 1978. The trial court, taking an indulgent view, then permitted the defendant further time to file the written statement on 7 August 1978.

On 7 August 1978, instead of filing the written statement, the defendant's counsel sought another adjournment on the ground that the defendant intended to file a petition of revision in the High Court challenging the dismissal of her stay application. The trial court refused the adjournment, observed that the case had been pending for the purpose of filing the written statement for a long time, and held that the proposed revision would not be prejudiced by filing the written statement. The trial court thereupon forfeited the defendant's right to present a written statement and directed the plaintiff to produce evidence in support of its claim.

Legal Issues Presented

  1. Whether the order of the learned Additional District Judge forfeiting the defendant's right to present a written statement of defence was susceptible to interference in revision under section 115 C.P.C.
  2. Whether the impugned order involved exercise of jurisdiction not vested in the trial court, a failure to exercise jurisdiction so vested, or action in the exercise of jurisdiction that was illegal or tainted by material irregularity within the meaning of section 115(1)(a)–(c) C.P.C.
  3. Whether the learned Additional District Judge acted within the scope of Order VIII (Rules 1(1), 5(2) and 10) C.P.C. in dealing with a defendant who had delayed and adopted dilatory tactics.

Arguments of the Parties

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

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
D.L.F. Housing and Construction Co. (P) Ltd. v. Sarup Singh The interpretation of clause (c) of section 115(1) C.P.C. — that the words "illegally" and "with material irregularity" do not cover errors of fact or law but refer to the manner in which a decision is reached; they contemplate breach of some provision of law or material procedural defects affecting the decision, not mere errors of fact or law after prescribed formalities have been complied with. The High Court relied on this authority to conclude that the impugned order did not fall within clause (c) of section 115(1); hence revision under section 115 was not warranted because there was no illegality or material procedural irregularity in the trial court's manner of dealing with the matter.

Court's Reasoning and Analysis

The High Court began by setting out the scope of its revisional jurisdiction under section 115(1) C.P.C., which allows interference only if a subordinate court (a) exercised jurisdiction not vested in it, (b) failed to exercise jurisdiction vested in it, or (c) acted illegally or with material irregularity.

The Court analyzed each clause:

  • Clauses (a) and (b): The Court held that it could not be contended that the Additional District Judge had exercised a jurisdiction not vested in him or had failed to exercise a jurisdiction vested in him. Accordingly, clauses (a) and (b) did not provide any basis for interference.
  • Clause (c): Citing D.L.F. Housing and Construction Co. v. Sarup Singh, the Court emphasised that clause (c) is limited to illegality or material irregularity in the manner in which the decision is reached and does not encompass mere errors of fact or law. On that basis the Court held the case did not fall within clause (c).

The Court then turned to the statutory framework governing written statements and the consequences of non‑compliance, namely Order VIII of the Code of Civil Procedure. It identified and quoted the relevant provisions relied upon by the trial judge: Rule 1(1) (time to present written statement), Rule 5(2) (power to pronounce judgment on the basis of facts in the plaint if the defendant has not filed a pleading, while retaining a discretion to require proof), and Rule 10 (where a party required to present a written statement fails to do so, the court may pronounce judgment or make such order as it thinks fit).

Applying these provisions to the facts, the Court noted:

  • The defendant had evaded service for nearly a year, prompting substituted service by advertisement. She first appeared on 27 October 1977 and thereafter failed to file a written statement despite opportunities.
  • Instead of filing the written statement, the defendant filed an application under Sections 10 and 151 C.P.C. for stay on 10 March 1978; that application was dismissed on 18 July 1978.
  • The trial court had taken an indulgent view by permitting the defendant further time until 7 August 1978 to file the written statement. On that date the defendant's counsel sought another adjournment on the ground that the defendant intended to file a petition of revision in the High Court — a plea the High Court described as insincere and "supercilious."
  • The trial court reasonably concluded that the purported intention to file revision would not prevent filing a written statement and that the defendant's true purpose was to stall and prolong proceedings. Allowing further adjournment would have amounted to permitting abuse of the court's process.

Given the statutory scheme and the defendant's conduct, the High Court found the trial court's decision to forfeit the defendant's right to file a written statement and to require the plaintiff to produce evidence to be within its discretion under Order VIII and not vitiated by illegality or material irregularity.

Holding and Implications

Holding: The petition under section 115 C.P.C. is dismissed. The High Court concluded there was no ground to interfere with the trial court's order forfeiting the defendant's right to present a written statement. The dismissal was made with costs; counsel fees were assessed at Rs. 200/-.

Implications:

  • The trial court's order forfeiting the defendant's right to present a written statement stands; the plaintiff was directed to produce evidence in support of its claim.
  • The High Court treated the trial court's action as a valid exercise of discretion under Order VIII (Rules 1(1), 5(2) and 10) C.P.C. and found no illegality or material irregularity that would justify revision under section 115. The opinion does not purport to establish any new legal precedent beyond application of settled principles.

Costs awarded by the High Court: counsel fees Rs. 200/-. (Order dismissing the petition dated as recorded in the opinion.)

Show all summary ...

K.S Sidhu, J.:— This petition under section 115 of the Code of Civil Procedure is directed against the order, dated, August 7, 1978, made by the learned Additional District Judge, Jaipur City, whereby the learned Judge forfeited, the defendant's right to present a written statement of her defence.

2. The facts material to the decision of this petition may be shortly stated. The Rajasthan Financial Corporation, the respondent herein, brought a suit against Sushila Jain, the petitioner herein, for recovery of Rs. 6,00089-94 p. on the basis of a contract of guarantee, on October 13, 1976. The defendant who is a resident of New Delhi could not be served with the summons of the court inspite of repeated efforts made by the process serving agency the court over a period of nearly one year. This led the court to believe that the respondent was keeping out of the way for the purpose of avoiding service. The court bad therefore to take resort to substituted service by advertisement in a daily news paper fixing October 27, 1977, as the date for the appearance of the defendant. The defendant entered appearance that day, but did not file her written statement of defence on the plea that no copy of the plaint was available to her for making the reply. The court arranged to supply her with a copy of the plaint, permitting her to present the written statement on January 12, 1978. The case had to be adjourned many a time between January 12, to March 10, 1978, but the defendant did not avail of these opportunities to present her written statement of defence. On March 10, 1978, she filed an application under Sections 10 and 151 C.P.C for stay of the suit. This application was dismissed by the court on July 18, 1978. Taking a somewhat indulgent view in the matter, the court granted further time permitting the defendant to file the written statement on August 7, 1978. It appears that the defendant was determined to prolong the proceedings further. Instead of filing the written statement, her counsel requested the court on August 7, 1978, for further adjournment on the plea that the defendant was desirous of filing a petition of revision in the High Court challenging the dismissal of her application for stay of the suit, ordered on July 18, 1978. The court refused to grant the adjournment, making the observations that the case had been pending for presenting her written statement for a long time and that the defendant's proposal to file a petition of revision in the High Court could not in any manner be hampered or prejudiced by her filing the written statement. It was in these circumstances that the court made the impugned order forfeiting the defendant's right to present the written statement and directing the plaintiff to produce evidence in support of her claim in the suit.

3. After hearing both sides and reading the relevant provisions of the Code of Civil Procedure, I am of opinion that the defendant-petitioner has failed to make out any ground warranting interference in the impugned order by this Court in the exercise of its revisional jurisdiction under section 115 C.P.C

4. Section 115(1) in so far as it is material for our present purpose reads as under:

“115. Revision (1) The High Court may call for the record of any case which has been decided by any court subordinate to such High Court and in which no appeal lies thereto, and if such subordinate court appears—

(a) to have exercised a jurisdiction not vested in it by law, or

(b) to have failed to exercise a jurisdiction so vested, or

(c) to have acted in the exercise of its jurisdiction illegally or with material irregularity,”

the High Court may make such order in the case as it thinks fit.

It cannot possibly be contended in this case that the learned Additional District Judge in passing the impugned order has exercised a jurisdiction not vested in him by law or had failed to exercise a jurisdiction so vested in him. That being so, this petition cannot be sustained under clauses (a) and (b) above. The case cannot possibly be covered by clause (c) either. The words “illegally” and “with material irregularity” appearing in clause (c) have been construed by the Supreme Court quite often. In D.L.F Housing and Construction Co. (P) Ltd. v. Sarup Singh (1) their Lordships reiterated the legal position in respect of this clause as follows:

“Clause (c) also does not seem to apply to the case in hand. The words “illegally” and “with material irregularity” as used in this clause do not cover either errors of fact or of law, they do not refer to the decision arrived at but merely to the manner in which it is reached. The errors contemplated by this clause may, in our view, relate either to breach of some provision of law or to material defects of procedure affecting the ultimate decision, and not to errors either of fact or of law, after the prescribed formalities have been complied with. The High Court does not seem to have adverted to the limitation imposed on its power under S. 115 of the Code. Merely because the High Court would have felt inclined, had it dealt with the matter initially, to come to a different conclusion on the question of continuing stay of the reference proceedings pending decision of the appeal, could hardly justify interference on revision under S. 115 of the Code when there was no illegality or material irregularity committed by the learned Additional District Judge in his manner of dealing with this question.”

5. It will be presently seen that the impugned order was made by the learned Additional District Judge perfectly in accordance with provisions of Order VIII of the Code of Civil Procedure. It cannot, therefore, be legitimately contended that the order was arrived at in breach of some provisions of law or by ignoring rule of procedure affecting its merits.

6. Reference may now be made to the relevant provisions of Order VIII of the Code of Civil Procedure, which deal with “written statement, set off and counter claim.” The relevant rules are sub-rule (1) of Rule 1, Sub-rule (2) of Rule 5 and Rule 10. It will be convenient to read them here;

1(1). “The defendant shall, at or before the first hearing or within such time as the court may permit, present a written statement of his defence.

5(2) Where the defendant has not filed a pleading, it shall be lawful for the Court to pronounce judgment on the basis of the facts contained in the plaint, except as against a person under a disability, but the Court may, in its discretion, require any such fact to be proved.

10. Where any party from whom a written statement is required under rule 1 or rule 9 fails to present the same within the time, permitted or fixed by the court, as the case may be, the court shall pronounce judgment against him, or make such order in relation to the suit as it thinks fit, and on the pronouncement of such judgment, a decree shall be drawn up.”

It will be seen that a defendant is required under rule 1 reproduced above to file the written statement of his defence at or before the first hearing or within such time as the court may permit. If he does not file the written statement as required by the said rule, the court is vested with a power under Rule 5(2) to - pronounce judgment on the basis of facts contained in the plaint, except as against the person under disability. It is also open to the court in the exercise of its discretion to require the plaintiff to prove the facts pleaded by him in the plaint, notwithstanding the fact that the defendant has not filed his written statement of defence. Rule 10 makes the position further clear in that it lays down that where any party from whom a written statement is required under rule 1, fails to present the same within the time permitted or fixed by the court, the court may pronounce judgment against him or make such order in relation to the suit as it thinks fit.

7. The court would obviously be faced with a ticklish situation in dealing with a defendant who is determined to prolong the proceedings and is adopting diletory tactics. If such a defendant requests the court for extension of time to file his written statement of defence his request should be dealt with on its merits with reference to the ground alleged for his inability to file the written statement at or before the first hearing. If the court is satisfied that the ground alleged is prima facie reasonable and bonafied, then, without making much fuss over it, it should extend the time and permit the defendant to file the written statement within the extended time. If, on the other hand the request is not bonafide and reasonable, the court would be justified, and may indeed be under a duty, to refuse such a request. No hard and fast rule can be laid down for determining whether a particular request is bonafide or not. Such a request has to be dealt with on its merits in the circumstances of each case.

8. Turning now to the facts of this case, it will be recalled that the suit was instituted by the plaintiff for recovery of Rs. 600089.94 P. as far back as on October 13, 1976. The defendant appears to have kept out of way for the purpose of avoiding service of summons on her for nearly one year. The court had therefore, to take resort to substituted service by advertisement in a daily news paper. It was in response to that advertisement that the defendant entered appearance in the court for the first time on October 27, 1977. She did not file any written statement till March 10, 1978. Even on March 10, 1978, she did not file the written statement. Instead, she came out with an application under Sections 10 and 151 C.P.C for stay of the suit. The said application was dismissed by the court on July 18, 1978. The court would have been justified in requiring the defendant to file the written statement on July 18, 1978 itself. Instead, it took an indulgent view and granted further time permitting the defendant to file her written statement on August 7, 1978. What transpired in the court on August 7, is contained in the impugned order made by the learned Additional District Judge. Instead, of filing the written statement, the defendant's counsel asked for further adjournment on the plea that the defendant was desirous of filing a petition of revision in the High Court against the order dated July 18, 1978, dismissing the defendant's application under Sections 10 and 151 C.P.C It is obvious that this was a wholly insincere plea which could not possibly carry conviction with any court. If I may say so, this was a supercilious plea which deserved to be, and was rightly, rejected by the learned Additional District Judge. The mere fact that the defendant proposed to file a petition of revision in the High Court could not have possibly prevented her from filling the written statement. Her real intention was to somehow stall and thus prolong the proceedings. The trial court was therefore, left with no option but to reject the request for further adjournment. Had it allowed this request, it would have been open to the charge of having permitted the defendant a flagrant abuse of its process.

9. For all these reasons, the trial court was justified in forfeiting the defendant's right to present a written statement of her defence and calling upon the plaintiff to produce evidence in support of its suit claim. As already indicated, the trial court would have been justified, in the circumstances, to pronounce judgment on the basis of the facts contained in the plaint. It appears to have preferred a more careful approach to the problem in requiring the plaintiff to prove the facts pleaded by it in support of its claim. The defendant cannot possibly have any legitimate grievance against the order made by the court below.

10. In conclusion this petition fails and is dismissed with costs. Counsel fees Rs. 200/-.