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1993 Supreme(SC) 108

SUPREME COURT OF INDIA
K. Jayachandra Reddy and B.P. Jeevan Reddy, JJ.
Civil Appeal No. 429 of 1993
Decided On: 05.02.1993
Salil Dutta Appellants
Vs.
T.M. and M.C. Private Ltd. Respondent
Counsels:
For Appellant/Petitioner/Plaintiff: A.K. Ganguli, Senior Adv. and H.K. Puri, Adv.
For Respondents/Defendant: N.S. Hegde, Senior Adv. and Anil Agrawala and L.P. Agrawala, Advs.

Advocates:
A.K.GANGULY, ANIL AGARWAL, H.K.PURI, L.P.AGRAWALA, N.S.HEGDE

Headnote:Code of Civil Procedure, Order IX R. 13-exparte decree passed in the suit on the failure of the defendant or his counsel to appear on the date fixed for hearing-petition for setting aside ex parte decree on the ground that the defendant acted on the basis of advise given by his counsel that he need not be present till the disposal of the two petitions filed on his behalf-petition rejected and in appeal the Division Bench first dismissed the appeal but re-heard the same and allowed when it was brought to the notice of the Bench that a decision of Supreme Court was not brought to the notice of the Bench-defendants educated businessmen and they would have known that non-participation at the final hearing would necessarily result in adverse inference-the record shows that application was filed for time to cross-examination of the witnesses-story set up was an after thought as no lawyer would give such advice-putting entire blame upon the Advocate and trying to make out as if they were totally unaware of the nature or significance of the proceedings can not be accepted-AIR 1981 SC 1400 ref. (Paras 3, 4, 7 & 8)

Judgement Key Points

Key Points: - The appeal concerns setting aside ex parte decree under Order 9 Rule 13 CPC and the effect of counsel’s advice on non-appearance (!) - The decision discusses Rafiq v. Munshilal and its applicability to situations where a party acted on counsel’s advice but is educated and not a rustic villager (!) - The Division Bench’s reopening of its judgment due to not being aware of a Supreme Court decision and the subsequent impact on the finality of judgments is considered, including the principle that technicalities should not obstruct justice (!) - The court analyzes whether a party may suffer for the inaction or default of its advocate and whether an innocent litigant is protected (!) - The judgment ultimately allows the appeal, restores the earlier July 8, 1991 order, and directs costs to the defendant-appellant (!)

What is the principle governing setting aside an ex parte decree under Order 9 Rule 13 CPC in the context of advice given by counsel?

What are the circumstances under which a Division Bench may reopen its judgment for consideration of a Supreme Court decision not brought to its notice?

What factors determine whether a party may be relieved from an ex parte decree when it is claimed that the advocate’s advice led to non-appearance?


JUDGMENT

B.P. Jeevan Reddy, J.

1. Heard the counsel for the parties. Leave granted.

2. The appeal is preferred by the plaintiff against the judgment and order of a Division Bench of the Calcutta High Court allowing the appeal preferred by the respondent/defendant. The appeal before the High Court was directed against an order of the city civil court, Calcutta dismissing an application filed by the defendant to set aside the ex parte decree passed against him, under Order 9 Rule 13 of the Civil Procedure Code. The relevant facts may be noticed briefly.

3. The plaintiff/appellant filed a suit for ejecting the defendant-tenant on the ground of default in paying rent and also on the ground that the such premises are required for his own use and occupation. The suit was posted for final hearing on June 9, 1988 -- seven years after its institution. On an earlier occasion, the defendant had filed two interlocutory applications, one under Order 14 Rule 5 and the other under Order 6 Rule 16 CPC. On May 19, 1988 the city civil court had passed an order on the said applications observing that the said applications shall be considered at the final hearing of the suit. According to the defendant (as per his statement made in the application filed by him for setting aside the ex parte decree) his advocate advised him that he need not be present at the hearing of the suit on June 9, 1988, and thereafter till the applications filed by him under Order 14 Rule 5 and Order 6 Rule 16 CPC are disposed of. Be that as it may, on June 9, ] 988, the advocate for the defendant prayed for an adjournment till the next day. It was adjourned accordingly. On June 10, neither the advocate for the defendant nor the defendant appeared, with the result the defendant was set ex parte. Hearing of the suit was commenced and concluded on June 11, 1988. The suit was posted for delivery of judgment to June 13, 1988. On June 11, 1988, an application was made on behalf of the defendant stating the circumstances in which his advocate had to retire from the case. This application, however, contained no prayer whatsoever. The suit was decreed ex parte on June 13, 1988. Thereafter the defendant filed the application to set aside the ex parte decree. In this application he referred to the fact of his filing two interlocutory applications as aforesaid, the order of the court thereon passed on May 19, 1988 and then stated "due to the advice of the learned advocate-on-record that your petitioner need not be present at the hearing of the suit on June 9, 1988 and thereafter till the disposal of the application filed under Order 6 Rule 16 and Order 14 Rule 5 read with Section 151 of the Code of Civil Procedure in the above suit," the defendant did not appear before the Court. It was stated that Mr Ravindran the Principal Officer of the defendant-company was out of town on that date. It was submitted that because the defendant had acted on the basis of the advice given by the advocate-on-record of the defendant, there was sufficient cause to set aside the ex parte decree within the meaning of Order 9 Rule 13 CPC. The trial court dismissed the said application against which an appeal was preferred by the defendant to the Calcutta High Court. The appeal was heard by a Division Bench and judgment pronounced in open court on July 8, 1991 dismissing the appeal. However, it appears, before the judgment was signed by the learned judges constituting the Division Bench, an application was moved by the defendant for alteration or modification and/or reconsideration of the said judgment mainly on the ground that the defendants counsel could not bring to the notice of the Division Bench the decision of this Court in Rafiq v. Munshilal, and that the said decision clearly supports the defendants case. The counsel for the plaintiff opposed the said request. He submitted that once the judgment was pronounced in open court, it was final and that matter cannot be reopened just because a relevant decisi








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