1. Appeal proceeding — Inability to serve respondent due to closure of business unit and sale of its land. (Para 1 )
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1997 Supreme(SC) 374
SUPREME COURT OF INDIA
A.M Ahmadi, C.J.I., S.P.Kurdukar, J.
Collector Of Central Excise, Hyderabad
Versus
Electrolytic Foils Limited
Case No. : 3980 of 1987
Date of Decision : 2/27/97
An appeal may be disposed of for want of prosecution if the respondent cannot be served because the respondent entity has completely closed down and its assets have been disposed of.
Headnote:(A) Civil Procedure - Service of Notice - Respondent unit closed down and assets sold - Service not possible - Appeal disposed of for want of prosecution.
Facts of the case:
The respondent unit had completely closed down, and the land on which the unit was situated had been sold to another entity. Consequently, service of notice on the respondent could not be effected.
Findings of Court:
The court observed that since the respondent unit was completely closed and the parcel of land owned by it had been disposed of, service on the respondent was not possible, and there was no reason to permit the appellant to pursue the appeal.
Issues: Whether an appeal can be pursued when the respondent cannot be served due to the total closure of the respondent unit and the sale of its assets.
Ratio Decidendi: An appeal may be disposed of for want of prosecution if the respondent cannot be served because the entity has ceased to exist and its assets have been disposed of.
Result: Appeal disposed of for want of prosecution.
Legal Category Hierarchy
Table of Contents
2. The respondent unit is completely closed and its land has been disposed of, rendering service impossible and the appeal pointless. (Para 1 )
3. An appeal may be disposed of for want of prosecution when the respondent cannot be served due to the total closure and disposal of assets of the respondent entity. (Para 1 )
4. Appeal disposed of for want of prosecution; no order as to costs. (Para 1 )
5. Can an appeal be disposed of for want of prosecution if the respondent cannot be served due to the closure of their business?
Yes, if the respondent unit is completely closed and its assets, such as land, have been disposed of, making service impossible, the court may dispose of the appeal for want of prosecution. (Para 1 )
(1) THE service on the respondent has not been possible because the Unit has closed down and the information supplied by the Deputy Con missioner (Legal) is that even land on which the Unit stood has since been sol to M/s. Nagarjuna Palma (India) Ltd. which is constructing its own factory of the land purchased by it. It is, therefore, obvious that the respondent Unit he completely closed down and even the parcel of land owned by it has be disposed of and, therefore, we see no reason in permitting the appellant 1 pursue this appeal. We dispose of the appeal for want of prosecution since the respondent cannot be served. There will be no order as to costs.
