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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • sub-Rule 1 of Rule 106 of Order 21 CPC. Application under Section 151 CPC
  • provisions of Order XXI of the Code of Civil Procedure, 1908 (5 of 1908),
  • SECTION 5 LIMITATION ACT
  • sub-Rule 2 and sub-Rule 3 of Rule 105 of Order 21 CPC,
  • Section 151 of the Code of Civil Procedure, 1908 (CPC)
  • Rule 58.3. Sub-Rule 2 of Rule 105 of Order 21 CPC
  • sub-Rule 2 of Rule 105 of Order 21 CPC.
  • Sub-Rule 1 of Rule 106 of Order 21 CPC
  • sub-Rule 1. Rule 106 of Order 21 CPC
  • order.4. Sub-Rule 3 of Order 106
  • provisions of Order 21 CPC.8.
  • sub-Rule 1 of Rule 106 CPC.
  • sub-Rule 2 of Rule 105 CPC.
  • sub-Rule 3 of Rule 105 CPC.
  • Rule 105 of Order 21 CPC
  • sub-rule (3) of that rule
  • Sub-Rule 3 of Rule 106
  • sub-rule (2) of Rule 105
  • sub-rule (1) of Rule 23,
  • Order 21 Rule 105(1)
  • Rule 3 of Rule 105
  • Order 21 Rule 106
  • 21 Rule 105.
  • sub-rule (1)
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • sub-Rule 1 of Rule 106 of Order 21 CPC. Application under Section 151 CPC
  • provisions of Order XXI of the Code of Civil Procedure, 1908 (5 of 1908),
  • SECTION 5 LIMITATION ACT
  • sub-Rule 2 and sub-Rule 3 of Rule 105 of Order 21 CPC,
  • Section 151 of the Code of Civil Procedure, 1908 (CPC)
  • Rule 58.3. Sub-Rule 2 of Rule 105 of Order 21 CPC
  • sub-Rule 2 of Rule 105 of Order 21 CPC.
  • Sub-Rule 1 of Rule 106 of Order 21 CPC
  • sub-Rule 1. Rule 106 of Order 21 CPC
  • order.4. Sub-Rule 3 of Order 106
  • provisions of Order 21 CPC.8.
  • sub-Rule 1 of Rule 106 CPC.
  • sub-Rule 2 of Rule 105 CPC.
  • sub-Rule 3 of Rule 105 CPC.
  • Rule 105 of Order 21 CPC
  • sub-rule (3) of that rule
  • Sub-Rule 3 of Rule 106
  • sub-rule (2) of Rule 105
  • sub-rule (1) of Rule 23,
  • Order 21 Rule 105(1)
  • Rule 3 of Rule 105
  • Order 21 Rule 106
  • 21 Rule 105.
  • sub-rule (1)
Smart Summary

Factual and Procedural Background

An execution petition was dismissed in default on 31st March, 2011 because the decree holder remained unrepresented on that date. The decree holder filed two applications: E.A No. 438/2011 under Section 151 of the Code of Civil Procedure, 1908 (CPC) seeking restoration of the execution petition, and E.A No. 439/2011 under Section 5 of the Limitation Act read with Section 151 CPC, seeking condonation of a 112-day delay in filing the restoration application. The decree holder's counsel had mistakenly noted the next hearing date as 31 May 2011 instead of 31 March 2011, leading to non-appearance on the dismissal date. The counsel only became aware of the dismissal on 31 May 2011. The delay was also attributed to court closures in June.

Legal Issues Presented

  1. Whether an application for restoration of an execution petition dismissed in default can be entertained under Section 151 CPC when specific provisions under Order 21 CPC govern such restoration.
  2. Whether Section 5 of the Limitation Act is applicable for condoning delay in filing an application under Order 21 CPC.
  3. The applicability and limitation period prescribed under Rule 106 of Order 21 CPC for setting aside orders dismissing execution petitions in default.

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
Damodaran Pillai v. South Indian Bank Ltd. (2005) 7 SCC 300 Inherent power under Section 151 CPC cannot be invoked where specific provisions exist; limitation period for restoration under Rule 106 of Order 21 CPC starts from date of order. Applied to hold that application under Section 151 CPC was not maintainable since specific provisions under Order 21 CPC govern restoration; limitation period starts from date of dismissal order, not knowledge of it.
Deutsche Ranco GMBH v. Mohan Murti MANU/DE/1971/2009 Section 5 of the Limitation Act is not applicable to proceedings arising under Order 21 CPC. Noted to reinforce that Section 5 Limitation Act cannot be used to extend limitation for applications under Order 21 CPC.

Court's Reasoning and Analysis

The Court analyzed the dismissal of the execution petition under the framework of Order 21 CPC, which provides a comprehensive procedure for execution of decrees. Rule 105(2) of Order 21 CPC permits dismissal of applications if the applicant does not appear on the hearing date, which applied to the decree holder's default. Rule 106(1) allows setting aside such dismissal orders if sufficient cause for non-appearance is shown, but requires the application to be filed within 30 days from the date of the order.

The Court observed that Section 151 CPC's inherent powers cannot be exercised when specific statutory provisions (Order 21 CPC) govern the matter, as held in Damodaran Pillai. Furthermore, Section 5 of the Limitation Act does not apply to applications under Order 21 CPC, a position supported by prior decisions including Deutsche Ranco GMBH.

Since the application for restoration was filed approximately two and a half months after the 30-day limitation period expired, the Court found no discretion to condone the delay under Order 21 Rule 106. The delay caused by the counsel's inadvertence and court closures did not constitute sufficient cause to extend the limitation period.

Holding and Implications

The Court DISMISSED both applications for restoration and condonation of delay, holding them devoid of merit.

The direct effect is that the execution petition dismissed in default remains dismissed, and the decree holder cannot rely on Section 151 CPC or Section 5 of the Limitation Act to circumvent the strict limitation prescribed under Order 21 CPC. No new precedent was established; rather, the Court reaffirmed the primacy of the specific statutory provisions governing execution proceedings over inherent powers and general limitation provisions.

    M/S Formosa Plastics Corporation, U.S.A Decree Holder v. Ashok K. Chauhan & Ors. Judgment Debtors

    A.K PATHAK, J. (Oral)

    1. Execution Petition was dismissed in default on 31st March, 2011 since decree holder remained unrepresented on that day. Decree holder has filed E.A No. 438/2011 under Section 151 of the Code of Civil Procedure, 1908 (CPC) for restoration of the execution petition. By E.A No. 439/2011 filed under Section 5 of the Limitation Act read with Section 151 CPC, petitioner has prayed that the delay of 112 days in filing the application for restoration be condoned. It is alleged that on 15th December, 2010 the matter was adjourned to 31 March, 2011, however, counsel for the decree holder had inadvertently noted the next date of hearing as 31 May, 2011, consequently, he could not appear on 31 March, 2011 when the matter was taken up for hearing. Only on 31 May, 2011, counsel came to know that petition had been dismissed in default on 31 March, 2011. Thereafter, decree holder was informed and on receiving instructions, present application had been filed. It is further alleged that delay in filing the application was also for the reason that the Courts were closed in the month of June.

    2. It may be noted here that the decrees are executed by following the procedure as laid down in Order 21 of the CPC. Order 21 is a complete code in itself, providing mode and manner in which a decree has to be executed. Rule 105 of Order 21 CPC provides the manner in which an application under any of the rules of Order 21 has to be dealt with and the same reads as under :-

    “Order 21 Rule 105. Hearing of application

    105. Hearing of application.-(1) The Court, before which an application under any of the foregoing rules of this Order is pending, may fix a day for the hearing of the application.

    (2) Where on the day fixed or on any other day to which the hearing may be adjourned the applicant does not appear when the case is called on for hearing, the Court may make an order that the application be dismissed.

    (3) Where the applicant appears and the opposite party to whom the notice has been issued by the Court does not appear, the Court may hear the application ex parte and pass such order as it thinks fit.

    Explanation.-An application referred to in sub-rule (1) includes a claim or objection made under Rule 58.”

    3. Sub-Rule 2 of Rule 105 of Order 21 CPC vests power in the Court to dismiss an execution petition if the decree holder does not appear or remains unrepresented on the date fixed. Rule 3 of Rule 105 takes care of the situation when the applicant appears and the opposite party to whom the notice has been issued by the court does not appear. It provides that in such an eventuality Court may hear the applicant ex-parte and pass such order(s) as it deems fit. Sub-Rule 1 of Rule 106 of Order 21 CPC vests power in Court to set aside the order passed under sub-Rule 2 and sub-Rule 3 of Rule 105 of Order 21 CPC, if the applicant against whom such an order is passed, satisfies the Court that there was sufficient cause for his non-appearance when the application was called on for hearing. Sub-Rule 3 of Rule 106 prescribes period of limitation for filing such application under sub-Rule 1. Rule 106 of Order 21 CPC reads as under :-

    “106. Setting aside orders passed ex parte, etc.-

    (1) The applicant, against whom an order is made under sub-rule (2) of Rule 105 or the opposite party against whom an order is passed ex parte under sub-rule (3) of that rule or under sub-rule (1) of Rule 23, may apply to the Court to set aside the order, and if he satisfies the Court that there was sufficient cause for his non-appearance when the application was called on for hearing, the Court shall set aside the order on such terms as to costs or otherwise as it thinks fit, and shall appoint a day for the further hearing of the application.

    (2) No order shall be made on an application under sub-rule (1) unless notice of the application has been served on the other party.

    (3) An application under sub-rule (1) shall be made within thirty days from the date of the order, or where, in the case of an ex parte order, the notice was not duly served, within thirty days from the date when the applicant had knowledge of the order.”

    4. Sub-Rule 3 of Order 106 provides limitation for filing such application under sub-Rule 1 of Rule 106 CPC. It is in two parts. The first part deals with the orders passed under sub-Rule 2 of Rule 105 CPC. The second part refers to ex-parte orders passed under sub-Rule 3 of Rule 105 CPC. The period of limitation of 30 days has been provided in respect of order passed under sub-Rule 2 of Rule 105 CPC. This period commences from the date of dismissal of the execution petition. In case of recalling of ex-parte orders against the opposite party (judgment debtor), the limitation period of 30 days has to be reckoned from the date of knowledge of the order by the opposite party who has suffered ex-parte order.

    5. In this case, execution petition was dismissed in default on 31 March, 2011 since decree holder remained unrepresented on that date. Thus, the dismissal of execution petition in default on 31 March, 2011 falls within the ambit and scope of sub-Rule 2 of Rule 105 of Order 21 CPC. Accordingly, the present application under Section 151 CPC has to be treated under Sub-Rule 1 of Rule 106 of Order 21 CPC. Application under Section 151 CPC would not be maintainable in view of the specific provision governing the field. In Damodaran Pillai v. South Indian Bank Ltd.(2005) 7 SCC 300, in similar facts, Supreme Court has held that when a power is to be exercised by a civil court under express provision, the inherent power cannot be taken recourse to.

    6. Section 5 of the Limitation Act reads as under :-

    “5. Extension of prescribed period in certain cases.

    Any appeal or any application, other than an application under any of the provisions of Order XXI of the Code of Civil Procedure, 1908 (5 of 1908), may be admitted after the prescribed period if the appellant or the applicant satisfies the court that he had sufficient cause for not preferring the appeal or making the application within such period. Explanation.- The fact that the appellant or the applicant was misled by any order, practice or judgment of the High Court in ascertaining or computing the prescribed period may be sufficient cause within the meaning of this section.”

    7. A bare perusal of the above quoted provision makes it clear that Section 5 of the Limitation Act would not be applicable to the applications under any of the provisions of Order 21 CPC.

    8. In Deutsche Ranco GMBH v. Mohan Murti MANU/DE/1971/2009, a Single Judge of this Court has taken note of the fact that Section 5 of Limitation Act would not be applicable to the proceeding arising under Order 21 of the CPC.

    9. In Damodaran Pillai's case (supra), Supreme Court has held that period of limitation for filing the application under sub-Rule 1 of Rule 106 CPC would commence from the date of the order under Order 21 Rule 105(1) and not from the date on which decree holder acquires the knowledge of that order. In para 21 of the judgment it has also been held that hardship or injustice may be a relevant consideration in applying the principles of interpretation of the statue, but cannot be a ground for extending the period of limitation.

    10. In this case, execution petition was dismissed in default on 31 March, 2011. 30 days period expired on or before 30 April, 2011. Admittedly, application has not been filed within this period. Application has been filed on 22nd July 2011 i.e about two and a half months after expiry of 30 days period. Order 21 Rule 106 admits no discretion in regard to entertaining the application for restoration of execution petition, which had been dismissed in default, if presented beyond the period of limitation as prescribed by law.

    11. For the foregoing reasons, both the applications are dismissed being devoid of merits.

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    M/S Formosa Plastics Corporation, U.S.A Decree Holder v. Ashok K. Chauhan & Ors. Judgment Debtors
    (Aug 2, 2011)