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AMICUS AI
Citation Codes
Neutral Citations
2010 INSC 433
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 5 of the Limitation Act
  • Order 9 Rule 13 of the Civil Procedure Code
  • Section 151 of the Civil Procedure Code (hereinafter called “CPC”, for short)
  • Order 9 Rule 13 CPC, Order 9 Rule 13 application, Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article 123 of the Limitation Act
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Cites
Cited by
Citation Codes
Neutral Citations
2010 INSC 433
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 5 of the Limitation Act
  • Order 9 Rule 13 of the Civil Procedure Code
  • Section 151 of the Civil Procedure Code (hereinafter called “CPC”, for short)
  • Order 9 Rule 13 CPC, Order 9 Rule 13 application, Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article 123 of the Limitation Act
Smart Summary

Factual and Procedural Background

A civil suit (No. 321-A of 1984) was instituted by the present respondents against Kallu, father of the first petitioner, seeking a declaration of title, possession and a permanent injunction over a disputed house. After Kallu’s death, his legal heirs were substituted. Relying on an alleged compromise dated 10-12-1983—under which the plaintiff purportedly agreed to withdraw the suit—the defendants stopped appearing. The trial court proceeded ex parte and decreed the suit.

Upon initiation of execution proceedings, the defendants learned of the decree and, within 30 days of that knowledge, filed an application under Order 9 Rule 13 read with Section 151 of the Civil Procedure Code (CPC) to set aside the ex parte decree. The trial court dismissed the application as time-barred. The District Judge, in appeal, allowed the application, holding that the compromise and lack of knowledge justified both non-appearance and the timing of the Order 9 Rule 13 application.

The High Court, in revision under Section 115 CPC, reversed the appellate decision on the ground that no separate application for condonation of delay under Section 5 of the Limitation Act had been filed. The present appeal challenges that High Court order.

Legal Issues Presented

  1. Whether the defendants’ application under Order 9 Rule 13 CPC was within the period of limitation prescribed by Article 123 of the Limitation Act, 1963, or, alternatively, whether a separate application under Section 5 of that Act was indispensable.
  2. Whether the High Court, in revisional jurisdiction, erred in setting aside the well-reasoned appellate order that had restored the suit for hearing on merits.

Arguments of the Parties

Appellants' Arguments

  • A binding compromise dated 10-12-1983 required the plaintiff to withdraw the suit; trusting this, the defendants ceased attending court.
  • The Order 9 Rule 13 application was filed within 30 days of the first knowledge of the decree (obtained during execution), so no separate Section 5 application was necessary.
  • The appellate court had correctly evaluated oral and documentary evidence—including witness testimony proving the compromise—and therefore the High Court acted hyper-technically in interference.

Respondents' Arguments

  • Order-sheets after 10-12-1983 recorded “parties as before”, indicating defendants’ presence and knowledge of proceedings.
  • Under Article 123 Limitation Act, limitation runs from the date of decree; absent a Section 5 application, the Order 9 Rule 13 application was incompetent.
  • Reliance placed on the Supreme Court decision in Sneh Gupta v. Devi Sarup, (2009) 6 SCC 194, to contend that without condonation of delay the court lacked jurisdiction to entertain the application.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sneh Gupta v. Devi Sarup, (2009) 6 SCC 194 Requirement that delay in filing an Order 9 Rule 13 application must be condoned where the applicant had knowledge of the decree. The Court distinguished the precedent, noting that in Sneh Gupta the applicant was aware of the decree, whereas in the present case the defendants lacked such knowledge; hence Article 123’s second limb (date of knowledge) applied.

Court's Reasoning and Analysis

The Supreme Court held that the High Court adopted an unduly technical approach. Key elements of the Court’s analysis include:

  • Interlinking of Limitation and Merits: The justification for delay was inseparable from the merits—namely, the defendants’ lack of knowledge due to the compromise. The appellate court had appropriately assessed both aspects together.
  • Credibility of Compromise Evidence: The appellate court considered extensive witness testimony and the compromise deed (Exhibit A-1), finding it genuine. Order-sheet entries reading “parties as before” were discounted because they lacked parties’ signatures.
  • Applicability of Article 123 Limitation Act: Given that summons were not duly served and defendants had no notice of the decree, limitation commenced on 22-06-1988—the date of their first knowledge. The Order 9 Rule 13 application filed within 30 days was therefore timely.
  • Section 5 Application Not Essential: The Order 9 Rule 13 application itself contained a complete explanation for any apparent delay, satisfying the substantive requirements of Section 5. Procedural formalities should not defeat substantive justice.
  • Revisionary Overreach: The High Court exceeded its jurisdiction under Section 115 CPC by re-appreciating facts already meticulously evaluated by the appellate court.

Holding and Implications

Appeal Allowed; High Court judgment set aside; appellate court’s order restoring the suit is reinstated.

The suit is remitted to the trial court for expeditious hearing on merits. The decision underscores the judiciary’s preference for substantive justice over procedural technicalities, clarifying that where limitation is intrinsically tied to the merits and adequately explained in the primary application, a separate Section 5 petition is not mandatory. No new legal doctrine is created, but the ruling offers guidance on a pragmatic approach to Order 9 Rule 13 applications.

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    Bhagmal And Others v. Kunwar Lal And Others

    V.S Sirpurkar, J.— The order passed by the High Court allowing a civil revision and thereby restoring the order of the trial court is challenged herein.

    2. A civil suit bearing No. 321-A of 1984 came to be filed by the respondents against the father of Petitioner 1, namely, Kallu. Kallu died during the pendency of the suit and his legal heirs were brought on record. The suit was for declaration of title, possession and permanent injunction against the appellant-defendants in respect of the house in dispute. The court proceeded ex parte and the decree came to be passed. It is only when the execution proceeding started that the appellant-defendants allegedly came to know about the decree and moved an application under Order 9 Rule 13 read with Section 151 of the Civil Procedure Code (hereinafter called “CPC”, for short) for setting aside the ex parte decree.

    3. According to the appellant-defendants, this application was moved within 30 days from the date of their knowledge of the ex parte decree. The appellant-defendants had pointed out that there was a compromise effected on 10-12-1983, which was an out-of-court settlement, wherein it was agreed between the parties that Respondent 1-plaintiff would withdraw the suit on account of the understanding having been arrived at between the parties. The appellant-defendants further pleaded that since it was the understanding between the parties that Respondent 1-plaintiff would withdraw the suit or get it dismissed, they did not attend the further proceedings, which Respondent 1-plaintiff continued surreptitiously and hence they did not even know about the ex parte order and the decree passed against them. It was the stand of the appellant-defendants that since the application had been moved within 30 days from the knowledge, a separate application for condonation of delay was not required.

    4. The application under Order 9 Rule 13 was dismissed by the trial court, which held the said application to be barred by time. A miscellaneous civil appeal came to be filed in the Court of District Judge, Bhopal against that order. There was some delay in filing the said appeal and, therefore, the application under Section 5 of the Limitation Act for condonation of delay was also filed. The appellate court held that the application filed by the appellant-defendants under Order 9 Rule 13 deserved to be allowed and held that the trial court had erred in law in not allowing the application. The appeal came to be allowed and the appellate court directed the trial court to decide the case on merits after hearing the parties.

    5. A civil revision came to be filed under Section 115 CPC before the High Court. The High Court took the view that the application filed by the appellant-defendants under Order 9 Rule 13 was barred by time and the appellate court had not recorded any finding on the question as to whether the filing of the application under Section 5 of the Limitation Act was necessary or not and, therefore, the appellate court had exceeded its jurisdiction in allowing the application without condoning the delay. On that count, the impugned order of the appellate court was set aside and that of the trial court was restored.

    6. Ms June Chaudhari, learned Senior Counsel appearing on behalf of the appellants invited out attention to the order of the appellate court by which Order 9 Rule 13 application of the appellant-defendants was allowed. The learned Senior Counsel pointed out that the appellate court had, on merits, discussed all the issues and had come to the finding that there indeed was a compromise effected in between the parties, in which there was an understanding arrived at that Respondent 1-plaintiff would withdraw his suit in pursuance of the understanding between the parties. The learned Senior Counsel also pointed out that, therefore, the appellant-defendants never attended the court after 10-12-1983.

    7. This was tried to be countered with Shri M.P Acharya, the learned counsel appearing on behalf of the respondents that the order-sheet of the suit showed as if the appellant-defendants were present even after 10-12-1983. Our attention was invited to the order-sheets of the dates after 10-12-1983, wherein it was recorded “parties as before”. On that basis Shri Acharya contended that the appellant-defendants remained present in the court and they had the knowledge of the proceedings. However, our attention was also invited to the finding by the appellate court that those entries could not be relied upon because admittedly there were no signatures of the parties on any of those order-sheets. Therefore, one thing was certain that the appellate court was right in holding that due to the compromise effected, the appellant-defendants did not attend the suit and, therefore, were not knowing about the proceedings at all.

    8. The appellate court also has pointed out that the evidence was led before the trial court in support of the application under Order 9 Rule 13 and in that, the appellant-defendants had examined the witnesses like Rambharose (AW 1), Shanta Bai (AW 2), Jabia (AW 3), Babulal (AW 4), Bhagmal (AW 5), Genda Lal (AW 6), Dashrat Singh (AW 7), Bhurra alias Aziz (AW 8) and Nand Kishore (AW 9). The appellate court also recorded the finding that the compromise deed was also got proved by the appellant-defendants in those proceedings through the witnesses who asserted that the compromise deed bore their signatures. The witnesses went on to say that the compromise deed was also signed by the present respondents. The appellate court, therefore, rightly came to the conclusion that the appellant-defendants were justified in not attending the court and that they did not even know about the decree having been passed and, therefore, the delay in presenting the application was also justified.

    9. The appellate court also referred to the evidence of the respondent Kunwar Lal and came to the conclusion therefrom that indeed a compromise deed was executed between the parties. The appellate court also went on to express that the inference by the trial court that the compromise deed was doubtful, was also not correct. The appellate court has also dealt with the cross-objections raised before it by the present respondents to the effect that the compromise deed (Ext. A-1) was prepared fraudulently. The appellate court has rejected that contention in the cross-objections and in our opinion, rightly.

    10. This well-considered order of the appellate court came to be interfered with by the High Court solely on the ground that there was no application for condonation of delay made by the appellant-defendants before the trial court in support of their application under Order 9 Rule 13 CPC. The High Court observed that the appellate court had not recorded any finding on the question as to whether the filing of the application under Section 5 of the Limitation Act was necessary or not and went on to decide the application on merits and, therefore, it had exceeded its jurisdiction. The High Court also commented on the fact that the ex parte decree was decided on 19-4-1985, while the application for setting aside the ex parte decree was filed on 8-7-1988 and that no application for condonation of delay under Section 5 of the Limitation Act was filed. Relying on Article 123 of the Limitation Act, the High Court took the view that the application ought to have been filed within 30 days from the date of passing of the decree and since it was not so filed, at least a condonation of delay application should have been made under Section 5 of the Limitation Act and, therefore, in the absence of prayer for condonation of delay, the appellate court could not have allowed the application under Order 9 Rule 13.

    11. In our opinion, the High Court was not justified in taking a hypertechnical view. We have seen all the orders. It is quite clear from the trial court's order that the trial court entertained the application on merits. The trial court undoubtedly has referred to the reply of the respondents to the effect that the application for setting aside the ex parte decree was beyond the limitation. However, the view taken by the trial court was based more on the merits. In fact, it went on to record the finding that there was no compromise and the theory of compromise and delay on account of that was not acceptable. The trial court has more or less based its findings regarding delay on the basis of the order-sheets. That was not right as the order-sheets nowhere bore the signatures of the parties. They were mechanically written mentioning “parties as before”. Therefore, the trial court did not throw the application under Order 9 Rule 13 merely on the basis of the fact that no application for condonation of delay was made. It went on to consider the delay aspect as well as the merits and even allowed the parties to lead evidence.

    12. It is to be seen here that the question of delay was completely interlinked with the merits of the matter. The appellant-defendants had clearly pleaded that they did not earlier come to the court on account of the fact that they did not know about the order passed by the court proceeding ex parte and also the ex parte decree which was passed. It was further clearly pleaded that they came to know about the decree when they were served with the execution notice. This was nothing, but a justification made by the appellant-defendants for making Order 9 Rule 13 application at the time when it was actually made. This was also a valid explanation of the delay. The question of filing Order 9 Rule 13 application was, in our opinion, rightly considered by the appellate court on merits and the appellate court was absolutely right in coming to the conclusion that the appellant-defendants were fully justified in filing the application under Order 9 Rule 13 CPC at the time when they actually filed it and the delay in filing the application was also fully explained on account of the fact that they never knew about the decree and the orders starting the ex parte proceedings against them. If this was so, the Court had actually considered the reasons for the delay also. Under such circumstances, the High Court should not have taken the hypertechnical view that no separate application was filed under Section 5.

    13. The application under Order 9 Rule 13 CPC itself had all the ingredients of the application for condonation of delay in making that application. Procedure is after all handmaid of justice. Here was a party which bona fide believed the assurance given in the compromise panchnama that Respondent 1-plaintiff would get his suit withdrawn or dismissed. The said compromise panchnama was made before the elders of the village. Writing was also effected, displaying that compromise. The witnesses were also examined. Under such circumstances, the non-attendance of the appellant-defendants, which was proved in the further proceedings, was quite justifiable. The appellant-defendants, when ultimately came to know about the decree, had moved the application within 30 days. In our opinion that was sufficient.

    14. Shri Acharya, learned counsel appearing on behalf of the respondents tried to argue on the basis of Article 123 of the Limitation Act. However, in our opinion, Article 123 cannot, in the facts of this case persuade us to take the view that the limitation actually started from the date of knowledge, as the appellant-defendants had no notice of the decree or the proceedings which the respondents had promised to terminate.

    15. Shri Acharya then tried to persuade us by suggesting that unless the application was filed for condonation of delay, the court had no jurisdiction to entertain the application for setting aside the decree. He has based this contention on the basis of a reported decision of this Court in Sneh Gupta v. Devi Sarup (2009) 6 SCC 194 and more particularly, the observations made in para 70 therein. In our opinion, the facts of this case were entirely different, as it was held in that case that the appellant had knowledge of passing of the compromise decree and yet she had not filed the application for condonation of delay. That is not the situation here. Even in this case, there is a clear-cut observation in para 57, as follows: (Sneh Gupta case (2009) 6 SCC 194)

    “57. … However, in a case where the summons have not been served, the second part shall apply.”

    16. The Court was considering Article 123 of the Limitation Act. In our opinion, in this case, the limitation must be deemed to have started from the date when the appellant-defendants came to know about the decree on 22-6-1988. An application under Order 9 Rule 13 was filed within 30 days from that date and, therefore, it is clear that it was within time. At any rate, even if it is held that the limitation started from the date of decree, there was a satisfactory explanation of the delay, if any.

    17. We, therefore, allow this appeal, set aside the judgment of the High Court and restore that of the appellate court. The suit will now proceed before the trial court in pursuance of these orders. Under the circumstances, the proceedings of the suit shall be expedited. There shall be no costs.

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    Comments

    Bhagmal And Others v. Kunwar Lal And Others
    (Jul 27, 2010)