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Jagan Nath, Etc. v. Tek Chand, Etc.,
Structured Summary of the Opinion
Factual and Procedural Background
Tek Chand (plaintiff/ respondent) filed a suit for recovery of Rs. 7,590 on October 17, 1970 against Shri Jagan Nath (proprietor, Raj Kumar & Co.) (defendant No. 1) and M/s Raj Kumar & Co. through Shri Jagan Nath (defendant No. 2).
Procedural chronology derived from the record:
- 20 October 1970 — Suit registered; summons ordered to be issued for 10 November 1970 by registered post.
- 10 November 1970 — Acknowledgement not received; summons reissued for 4 December 1970.
- 4 December 1970 — Registered cover returned with endorsement that the defendant had refused to receive it; the trial Judge recorded he was satisfied the defendant had been served but was absent and proceeded ex parte; ex-parte evidence fixed for 29 December 1970.
- 29–30 December 1970 — Ex-parte evidence recorded and decree entered on 30 December 1970 against Jagan Nath (defendant No. 1) only.
- 27 January 1971 — Jagan Nath filed an application under Order IX, Rule 13 CPC seeking setting aside of the ex-parte decree, pleading non-service and lack of awareness; he alleged he learned of the decree on 24 January 1971 when a demand for payment was made.
- Trial Court (after framing issues and recording evidence) dismissed the application on 3 May 1972, holding the petitioner had been served (refusal to accept registered cover) and had knowledge of the suit (attempts at compromise in November 1970).
- District Judge, Chandigarh dismissed the appeal on 23 October 1972.
- Revision petition filed in the High Court against the appellate order.
Legal Issues Presented
- Whether the ex-parte decree should be set aside under Order IX, Rule 13 CPC because the defendant was not "duly served" with the summons (i.e., summons accompanied by a copy of the plaint) or was prevented by sufficient cause from appearing?
- Whether the courts below committed a material irregularity within the meaning of Section 115(c) CPC by treating mere service (or presumed service by refusal of registered post) as "due service" permitting ex-parte proceedings?
Arguments of the Parties
Petitioner's (Defendant's) Arguments
- The defendant (Jagan Nath) asserted he was not served for the hearing fixed for 30 December 1970 and was unaware of the suit.
- He pleaded he only came to know of the ex-parte decree on 24 January 1971 when a demand for payment was made.
- He asserted the application to set aside the ex-parte decree was within the statutory period of limitation.
Respondent's (Plaintiff's) Arguments / Trial Court's Position
- The plaintiff/respondent maintained that the defendant had been duly served for 4 December 1970 because the registered envelope was returned with endorsement that the defendant refused to receive it.
- The respondent asserted the defendant intentionally absented himself and therefore there was no sufficient cause to set aside the ex-parte decree.
- The trial Court also relied on evidence that compromise talks had occurred in November 1970 to show the defendant had knowledge of the suit.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The High Court considered the scope of revision under Section 115 CPC and concluded the case fell within clause (c) of Section 115 (action in the exercise of jurisdiction illegally or with material irregularity).
The Court then analysed Order IX, Rule 13 CPC which permits setting aside an ex-parte decree where the defendant satisfies the Court that either (a) the summons was not duly served, or (b) he was prevented by sufficient cause from appearing. The Court emphasised that this Rule requires "due service" for the trial Court to legitimately proceed ex parte.
The Court examined relevant service provisions in Order V CPC:
- Order V, Rule 1 — summons must be signed and bear the court seal and specify the day for appearance.
- Order V, Rule 2 — every summons shall be accompanied by a copy of the plaint (or concise statement where permitted).
- Order V, Rule 10 (and Rule 2A as amended) — service by registered post is permissible and the court may deem service when the postal employee returns the envelope endorsed "refused".
The legal distinction the Court emphasised: "mere service" of a summons (or deemed service by refusal of a registered envelope) is not coterminous with "due service" as contemplated by Order IX, Rule 13. "Due service" requires the summons to be accompanied by the copy of the plaint (Rule 2) so that the defendant is properly informed of the nature of the claim and can decide whether to defend.
Factually, the Court noted that neither the trial Court nor the District Judge had opened the returned registered envelope to verify its contents. The High Court itself opened the envelope and found that it contained only the summons and did not include a copy of the plaint.
On this factual basis the Court reasoned:
- Even if refusal to accept the registered envelope establishes prima facie service of the contents of that envelope, it can only establish service of the actual documents contained therein; it cannot establish service of documents that were not sent.
- Because the returned envelope did not contain a copy of the plaint, the defendant was not "duly served" for the purposes of Order IX, Rule 13.
- Accordingly, the trial Court had no jurisdiction to proceed ex parte on the basis that the defendant had been duly served.
The Court further noted that neither the trial Court nor the District Judge had made any finding that the summons had been "duly served" (i.e., accompanied by the copy of the plaint), and that the courts below did not appreciate the legal difference between mere service and due service.
Holding and Implications
Holding (core ruling): Revision allowed; the ex-parte proceedings and the orders of the trial Court and District Judge are set aside.
Immediate consequences and directions:
- The ex-parte proceedings taken against the petitioner are set aside.
- The learned trial Court is directed to restore the suit and proceed to decide it in accordance with law.
- The parties are directed to appear before the learned trial Court on April 8, 1974.
- Each party was left to bear its own costs.
Implications regarding precedent: The opinion does not purport to lay down a new broad rule of law beyond its application of the text of Order V and Order IX CPC; its direct effect is to correct the material irregularity in the administration of process in this case by restoring the suit. The opinion underlines the legal distinction between "mere service" and "due service" (summons accompanied by copy of the plaint) for the purpose of taking ex-parte proceedings.
B.R. Tuli, J. - Tek Chand respondent filed a suit for the recovery of Rs. 7590/- against Shri Jagan Nath, Proprietor, Raj Kumar and Co. (defendant No. 1) and M/s. Raj kumar and Co., Commission Agents through Shri Jagan Nath, Ropar (defendant No. 2), on October, 17, 1970. The learned Sub-Judge on October 20, 1970, passed the following orders :- "Present counsel for plaintiff. Suit be registered. Defendant be summoned for 10th November, 1970. Counsel for the plaintiff requests that summons be issued by registered post. This be done. Registered covers in three days." On November 10, 1970, the following order was passed :- "Present counsel for the plaintiff. Acknowledgement of registered cover not received back. Summonses of defendants be issued again for 4th December, 1970. P. fee in three days." On December 4, 1970, the following order was passed :- "Present counsel for plaintiff. Summons sent to the defendant by registered post has been received back with the report that he has refused to receive it. He is absent. I am satisfied that the defendant has been served but he is absent. Therefore ex-parte proceedings are taken against the defendant. To come up for ex-parte evidence on 29th December, 1970." On December 29, 1970, ex-parte evidence was recorded and the suit of the plaintiff was decreed against Jagan Nath (defendant No. 1) alone on December 30, 1970. Jagan Nath filed an application under Order 9, rule 13, Civil Procedure Code, for setting aside the ex-parte decree, on January 27, 1971, in which he pleaded that he was not served for December 30, 1970 and was not aware of the suit ; that he came to know of the ex-parte decree passed against him on January 24, 1971 when a demand for the payment of the decretal amount was made by the decree-holder. He further pleaded that since he was not served personally with the process of the Court, he could not be aware of the suit and that the application was being presented within the statutory period of limitation. Tek Chand respondent contested that application and stated that the defendant-petitioner - was duly served for December 4, 1970, and as he intentionally did not appear on that date, the ex-parte proceedings had been rightly taken and there was no sufficient cause for setting aside the ex-parte decree. The learned trial Court framed the following issues :- 1. Whether there is sufficient cause for setting aside the ex-parte decree ? 2. Relief. After recording evidence the learned trial Court held that the petitioner was served with the summons of the suit for December 4, 1970, because he refused to accept the registered envelope sent to him. It was also found that he had the knowledge of the suit because some talk about compromise was made in the month of November, 1970, but which did not succeed. On the evidence recorded the learned trial Court decided issue No. 1 against the petitioner and dismissed his application on May 3, 1972. Against that decree the petitioner filed an appeal which was dismissed by the learned District Judge, Chandigarh, on October 23, 1972. The present petition for revision has been directed against that order. 2. In revision, this Court can interfere only if the case falls within one of the clauses of section 115 of the Civil Procedure Code. This section reads as under ;- "S. 115. 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." Clauses (a) and (b) of this section are not applicable, but the case, in my opinion is covered by clause (c). Order IX, rule 13 of the Civil Procedure Code prescribes for the setting aside of ex-parte decrees, and is in the following terms :- "In any case in which a decree is passed ex-parte against a defendant, he may apply to the Court which the decree was passed for an order to set it aside, and if he satisfies the Court that the summons was not duly served, or that he was prevented by any sufficient cause from appearing when the suit was called on for hearing, the Court shall make an order setting aside the decree as against him upon such terms as to costs, payment into Court or otherwise as it thanks fit, and shall appoint a day for proceeding with the suit ; Provided that where the decree is of such a nature that it cannot be set aside as against such defendant only it may be set aside as against all or any of the other defendants also." This rule has two parts viz (1) if the defendant was not duly served with the summons and (ii) if he was duly served but he was prevented by any sufficient cause from appearing, when the suit was called on for hearing. If the defendant is able to make out any of the two conditions to the satisfaction of the Court the Court has no option but to set aside the ex-parte decree. It is, therefore, to be seen whether the petitioner as defendant to the suit was duly served with the summons of the suit. Order V. rule 1 of the Civil Procedure Code provides that when a suit has been duly instituted, a summons may be issued to the defendant to appear and answer the claim on a day to be therein specified. Every such summons has to be signed by the Judge or such officer as he appoints, and has to bear the seal of the Court. It follows that the summons is meant to inform the defendant that a suit has been instituted against him which has been fixed for his appearance on a certain date of which intimation is being given to him by the summons. Rule 2 of the Order V. Provides that every summons shall be accompanied by a copy of the plaint or, if so permitted, by a concise statement. The reading of these two rules together leads to the conclusion that a summons shall be deemed to have been duly served only if the summons along with the copy of the plaint or a concise statement thereof, if permitted, is served on the defendant or tendered to him. If only summons is tender to him or is served on him, it cannot be said that there has been `due service' of the summons on the defendant. The service of the summons, by registered post, on the defendant is permissible under Order V. rule 10 of the Civil Procedure Code, as amended by this Court and under Order V. rule 2A of the Code, the court is entitled to hold that the summons has been served if the defendant refuses to receive the postal envelope when tendered to him and the postal employee returns that envelope to the Court with the endorsement that it had been refused by the defendant when it was tendered to him. It is stated by the learned District Judge in his order that the learned counsel for the petitioners did not seek to challenge the findings of fact,recorded by the trial Court, that the registered cover sent to the defendant was, in fact, refused by him and that the petitioner knew that a suit had been filed against him by the plaintiff-respondent because he was approached by the plaintiff for compromise along with Shri Tirath Ram, who appeared as his witness before the learned trial Court. On the basis of these two facts,the learned trial Court as well as the learned District Judge have held that the petitioner had failed to make out any sufficient cause for setting aside the ex-parte decree passed against him. 3. It is really unfortunate that neither the learned trial Court nor the learned District Judge opened the registered envelope which had been sent to the petitioner for December 4, 1970, and which had been returned by the postman with the remark `refused'. I have opened that envelope in the presence of the counsel for the parties and found that only summons was sent to the petitioner in the envelope without a copy of the plaint. Even if it is presumed that the petitioner has been served with the summons because of his refusal to accept the registered envelope, all that can be deemed is that he was served with the summons of the suit under Order V. rule, Civil Procedure Code, but without a copy of the plaint, which was necessary to be sent to him along with the summons under rule 2 of the Order V. in order to constitute `due service'. Mere service of the summons is not synonymous with `due service' as used in Order IX, rule 13 of the Civil Procedure Code. Merely because the defendant had been served with a summons of the suit without a copy of the plaint, the learned trial Court had no jurisdiction to proceed to decide it ex-parte. That could be done only if the defendant had been "duly served, that is he had been served with the summons along with a copy of the plaint. Refusal to take delivery of the notice sent by registered post can be deemed to be prima facie proof of service of the document sent in that registered envelope, but not of any other document which was required under the law to accompany that document but did not. No such finding was recorded by the learned trial Court before ordering ex-parte proceedings. In the present case, it cannot be presumed or deemed that he was served with the copy of the plaint also along with the summons. In his order dated May 3, 1972, dismissing the application of the petitioner under Order 9, rule 13, Civil Procedure Code, the learned trial Court merely held that "the defendant has utterly failed to show that he was not served and that there is sufficient cause for setting aside the ex-parte decree." No finding has been recorded that the summons had been duly served on the petitioner. The learned District Judge has also not recorded any such finding in his appellate order. Evidently,the attention of the Courts below was not drawn to the fact that `mere service' is different from `due service', as contemplated by Order IX rule 13, Civil Procedure Code. The requirement of rule 2 of Order V of the Code that a copy of the plaint shall accompany the summons is meant to inform the defendant as to the nature of the suit filed against him so as to enable him to decide whether to defend the same or not. It is for this reason that `mere service' of the summons is not considered to be `due service' to empower a Court a take exparte proceedings against the defendant. 4. I accordingly accept this revision petition and set aside the orders of the learned trial Court and the learned District Judge. The ex parte proceedings taken against the petitioner are set aside and the learned trial Court is directed to restore the suit and decide it in accordance with law. In the circumstances of the case, I leave the parties to bear own costs. The parties through their counsel have been directed to appear before the learned trial Court on April 8, 1974.
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