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Equivalent Citations
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Disposition
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Acts
  • Order 9 Rule 13 CPC, Indian Limitation Act 1908
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article 164 of the Indian Limitation Act, 1908
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Order 9 Rule 13 CPC, Indian Limitation Act 1908
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article 164 of the Indian Limitation Act, 1908
Smart Summary

Factual and Procedural Background

The respondent filed two suits in the Court of the First Civil Judge, Kanpur: Suit No. 25 of 1958 to recover Rs 50,000 on a mortgage and Suit No. 22 of 1958 to recover Rs 8,000 on a ruqqa. Both suits were decreed ex parte on 15 May 1958.

The appellant successfully moved to set aside the ex parte decree in Suit 22; on 16 August 1958 the Civil Judge allowed that application on conditions and, in open court, informed the appellant of the connected ex parte decree in Suit 25. An appeal against this conditional order was dismissed on 25 September 1958. A certified copy of the 16 August order was obtained on 5 February 1959, and a civil revision was filed on 24 February 1959.

On 16 April 1959 the appellant filed an application under Order 9 Rule 13 CPC to set aside the ex parte decree in Suit 25. Both the trial court and the High Court dismissed the application, holding that although summons had not been duly served, the application was time-barred under Article 164 of the Indian Limitation Act 1908 because more than 30 days had elapsed since the appellant’s knowledge of the decree. The appellant obtained special leave and appealed to the Supreme Court.

Legal Issues Presented

  1. How should the expression “knowledge of the decree” in Article 164 of the Indian Limitation Act 1908 be interpreted?
  2. Whether, on the facts, limitation began to run against the appellant from 16 August 1958, thereby rendering the Order 9 Rule 13 application filed on 16 April 1959 time-barred.

Arguments of the Parties

Appellant’s Arguments

  • He first learned of the ex parte decree in Suit 25 on 13 April 1959; therefore the 30-day limitation under Article 164 had not expired when he filed the application on 16 April 1959.
  • Summons in Suit 25 had not been duly served, entitling him ex debito justitiae to have the decree set aside.

Respondent’s Arguments

  • The appellant was personally informed by the Civil Judge on 16 August 1958 of the ex parte decree in Suit 25; limitation thus commenced on that date.
  • The application filed eight months later was therefore hopelessly out of time and liable to dismissal.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Pundlick Rowji v. Vasantrao Madhavrao, II BLR 1296 “Knowledge of the decree” means clear knowledge of the particular decree sought to be set aside, not vague awareness of some decree. Adopted as the primary interpretative standard for Article 164.
Kumud Nath Roy Chowdhury v. Jotindra Nath Chowdhury Followed Pundlick Rowji on the meaning of “knowledge”. Cited to reinforce the narrow construction of “knowledge”.
Bapurao Sitaram Karmarkar v. Sadbu Bhiva Gholap Knowledge requires awareness of the specific decree, court, parties and amount. Quoted approvingly; provided detailed rationale for strict standard.
Batulan v. S.K. Dwivedi, ILR 33 Pat 1025 Applied the Bapurao standard; knowledge must be specific. Cited as additional authority supporting the adopted interpretation.

Court's Reasoning and Analysis

The Court reaffirmed that under Order 9 Rule 13 CPC a defendant may have an ex parte decree set aside if (a) summons was not duly served, and (b) the application is filed within the prescribed limitation period. Article 164 sets that period at 30 days from either the date of the decree or, where summons was not duly served, from “when the applicant had knowledge of the decree.”

After reviewing the line of authorities beginning with Pundlick Rowji, the Court held that “knowledge of the decree” requires awareness of the specific decree, including the court, parties and relief granted, sufficient for the defendant to appreciate the injury and act to protect his rights.

On the facts, the appellant was present in court on 16 August 1958 when the Civil Judge explicitly informed him that an ex parte decree had been passed against him in the connected Suit 25 concerning the mortgage. Given his admitted dealings with the respondent on both the ruqqa and the mortgage, this information gave him clear knowledge of the particular decree now challenged. Therefore, limitation began on 16 August 1958. The application filed on 16 April 1959 exceeded the 30-day period, making it time-barred. The appellant’s contrary assertion that he learned of the decree only on 13 April 1959 was found to be false.

Holding and Implications

Appeal dismissed with costs.

The Supreme Court upheld the lower courts’ dismissal of the application as time-barred, confirming that specific, rather than vague, knowledge of an ex parte decree starts limitation under Article 164. The decision clarifies but does not materially extend existing precedent; its immediate effect is to deny the appellant relief while reaffirming the stringent standard for “knowledge” in limitation calculations.

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    Panna Lal v. Murari Lal (Dead) By His Legal Representatives. .

    Bachawat, J.— This appeal incidentally raises a question of interpretation of Article 164 of the Indian Limitation Act, 1908. The respondent instituted two suits against the appellant in the Court of the first Civil Judge, Kanpur. Suit No. 25 of 1958 was for the recovery of moneys due on a mortgage for Rs 50,000. Suit No. 22 of 1958 was to recover a sum of Rs 8000 due on a ruqqa. On May 15, 1958, both the suits were decreed ex parte. The appellant filed an application to set aside the ex parte decree passed in suit No. 22 of 1958. This application was numbered as miscellaneous case No. 104 of 1958. On August 16, 1958, the First Civil Judge, Kanpur, passed an order setting aside this ex parte decree on certain conditions. The order sheet in OS No. 22 of 1958, Misc. Case No. 104 of 1958 On August 16, 1958 stated:

    “Heard parties counsel accept the applicant's affidavit and hold that due to non service applicant was prevented from being present. Allowed on condition of payment of Rs 150 as costs within a month and on condition that allotment shall continue.
    Sd.
    K.N Goyal,
    16th August, 1958
    Applicant is hereby informed of connected decree of 25 of 1958 as well.
    Sd.
    K.N Goyal,
    16th August. 1958.”

    2. An appeal by the appellant from this order was dismissed on September 25, 1958. On February 5, 1959, an advocate employed by the appellant to file a civil revision petition against the appellate order, obtained a certified copy of the Order dated August 16, 1958. On February 24, 1959, a civil revision petition was filed by the appellant against the appellate order. On April 16, 1959, the appellant filed an application in the Court of the first Civil Judge, Kanpur, under Order 9 Rule 13 CPC, for the setting aside of the ex parte decree passed in Suit No. 25 of 1953. The Civil Judge dismissed the application. An appeal from this order filed by the appellant was dismissed by the High Court. Both the courts held that the summons in Suit No. 25 of 1958 was not duly served on the appellant but as more than 30 days had expired after the appellant had knowledge of the ex parte decree, the application was barred by limitation under Article 164 of the Indian Limitation Act 1908. The appellant now appeals to this Court by special leave.

    3. Under Order 9 Rule 13 CPC, a decree passed ex parte against a defendant is liable to be set aside if the summons was not duly served or if the defendant was prevented by any sufficient cause from appearing when the suit was called on for hearing. If the summons is not duly served, the defendant suffers an injury and he is entitled ex debito justitiae to an order setting aside the ex parte decree provided he applies to the court within the prescribed period of limitation. Under Article 164 of the Indian Limitation Act 1908, the period of limitation for an application by a defendant for an order to set aside a decree passed ex parte was 30 days from “the date of the decree or when the summons was not duly served, when the applicant had knowledge of the decree.” The onus is on the defendant to show that the application is within time and that he had knowledge of the decree within 30 days of the application. If the defendant produces some evidence to show that the application is within time, it is for the plaintiff to rebut this evidence and to establish satisfactorily that the defendant had knowledge of the decree more than 30 days before the date of the application.

    4. In Pundlick Rowji v. Vasantrao Madhavrao II BLR 1296, Davar, J, held that the expression “knowledge of the decree” in Article 164 means knowledge not of a decree but of the particular decree which is sought to be set aside, a certain and clear perception of the fact that the particular decree had been passed against him. On the facts of that case, Davar, J., held that a notice to the defendant that a decree had been passed against him in the High Court Suit No. 411 of 1909 in favour of one Pundlick Rowji with whom he had no dealings was not sufficient to impute to him clear knowledge of the decree in the absence of any information that the decree had been passed in favour of Pundlick Rowji as the assignee of a promissory note which he had executed in favour of another party. This case was followed by the Calcutta High Court in Kumud Nath Roy Chowdhury v. Jotindra Nath Chowdhury. In Bapurao Sitaram Karmarkar v. Sadbu Bhiva Gholap, the Bombay High Court held that the evidence of two persons who had been asked by the plaintiff to tell the defendant about the decree and to settle the matter was not sufficient to impose knowledge of the decree on the defendant within the meaning of Article 164. Macleod, C.J, said:

    “We think the words of the article mean something more that mere knowledge that a decree had been passed in some suit in some Court against the applicant. We think it means that the applicant must have knowledge not merely that a decree has been passed by some Court against him, but that a particular decree has been passed against him in a particular Court in favour of a particular person for a particular sum. A judgment-debtor is not in such a favourable position as he used to be when he had thirty days from the time when execution was levied against him. But we do not think that the Legislature meant to go to the other extreme by laying down that time began to run from the time the judgment-debtor might have received some vague information that a decree had been passed against him.”
    This decision was followed in Batulan v. S.K Dwivedi ILR 33 Patna 1025 and other cases. We agree that the expression “knowledge of the decree” in Article 164 means knowledge of the particular decree which is sought to be set aside. When the summons was not duly served, limitation under Article 164 does not start running against the defendant because he has received some vague information that some decree has been passed against him. It is a question of fact in each case whether the information conveyed to the defendant is sufficient to impute to him knowledge of the decree within the meaning of Article 164. The test of the sufficiency is not what the information would mean to a stranger, but what it meant to the defendant in the light of his previous dealings with the plaintiff and the facts and circumstances known to him. If from the information conveyed to him the defendant has knowledge of the decree sought to be set aside, time begins to run against him under Article 164. It is not necessary that a copy of the decree should be served on the defendant. It is sufficient that the defendant has knowledge of the material facts concerning the decree, so that he has a clear perception of the injury suffered by him and can take effective steps to set aside the decree.

    5. In this case, in his application for setting aside the ex parte decree, the appellant stated that he got the information of the passing of the ex parte decree in Suit No. 25 of 1958 for the fist time from the respondent on April 13, 1959. It has been shown conclusively that this statement is false. The respondent filed an affidavit stating that the appellant was directly informed of the passing of this ex parte decree by the first Civil Judge on August 16, 1958. This statement was not denied by the appellant. The courts below concurrently found that the appellant was personally present in the Court of the first Civil Judge on August 16, 1958 when the learned Judge informed him that an ex parte decree had been passed against him in Suit No. 25 of 1958. The appellant was informed that Suits Nos. 22 and 25 of 1958 were connected suits. The appellant knew that he had dealings with the respondent in respect of a ruqqa and a mortgage. He knew that the Suit No. 22 of 1958 was filed on the ruqqa, From the information conveyed to him by the Civil Judge on August 16, 1958, it must have been clear to the appellant that an ex parte decree had been passed against him in favour of the respondent in Suit No. 25 of 1958 on the basis of the mortgage. The appellant had thus on August 16, 1958 clear knowledge of the decree passed against him in Suit No. 25 of 1958 which he now seeks to set aside. Time began to run against him from August 16, 1958 under Article 164 of he Indian Limitation Act 1908. The application filed by him on April 15, 1959 was, therefore, clearly barred by limitation and was rightly dismissed by the courts below.

    6. In the result, the appeal is dismissed with costs.

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    Comments

    Panna Lal v. Murari Lal (Dead) By His Legal Representatives. .
    (Feb 27, 1967)