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1981 Supreme(AP) 222

Andhra Pradesh High Court
Judges : K.A.SWAMI
Lakshmi Manohar Saraswathi - Appellant
Versus
Kantipudi Ramakrishna - Respondent
Decided On : 09-11-81

The court held that the lower court erred in imposing conditions on the defendant's leave to defend because there was a triable issue in the case and the defendant's defense was not frivolous or vexatious.

Headnote:

ORDER 37 RULE 5 - LEAVE TO DEFEND - CONDITIONS - IMPOSITION - JUSTIFICATION - ORDER 37 RULE 4 - DECREE - SETTING ASIDE - POWER OF APPELLATE OR REVISIONAL COURT - SCOPE - ORDER 37 RULE 5 - LEAVE TO DEFEND - CONDITIONS - IMPOSITION - JUSTIFICATION - ORDER 37 RULE 4 - DECREE - SETTING ASIDE - POWER OF APPELLATE OR REVISIONAL COURT - SCOPE

Fact of the Case:

Plaintiff filed a suit under Order 37 of the Civil Procedure Code for recovery of money on the basis of a promissory note. Defendant applied for leave to defend, which was granted on condition that she deposit half the suit costs. Defendant filed a petition for review of this order, which was dismissed. Defendant then filed a civil revision petition challenging the order of the lower court.

Finding of the Court:

The court held that the lower court erred in imposing conditions on the defendant's leave to defend. The court found that there was a triable issue in the case and that the defendant's defense was not frivolous or vexatious. The court also held that the lower court's finding that the defendant was trying to prolong the litigation was not supported by any evidence.

Issues: 1. Whether the lower court erred in imposing conditions on the defendant's leave to defend? 2. Whether the defendant's defense was frivolous or vexatious? 3. Whether the lower court's finding that the defendant was trying to prolong the litigation was supported by any evidence?

Ratio Decidendi: 1. The court held that the lower court erred in imposing conditions on the defendant's leave to defend because there was a triable issue in the case and the defendant's defense was not frivolous or vexatious. 2. The court found that the defendant's defense was not frivolous or vexatious because she had specifically pleaded that she did not execute the suit promissory note and that it was a forgery. 3. The court held that the lower court's finding that the defendant was trying to prolong the litigation was not supported by any evidence because the defendant had not yet filed her written statement and she could not say anything more than that at this stage.

Final Decision: The court allowed the civil revision petition, set aside the order of the lower court, and granted the defendant leave to defend the suit unconditionally. The court also declared the consequential decree passed on 17-2-1931 as of no effect.

K. AMARESWARI, J.

( 1 ) THIS civil Revision Petition is directad against the order of the subordinate Judge, Tanuku in la. No. 1244 of 1980 In S. S. O. S. No. 35 of 1980 dismissing a petition for review of the earlier order of the court dated 15-11-80.

( 2 ) THE defendant is the petitioner. The plaintiff filed O. S. No. 35 of 1980 for recovery of a sum of Rs. 10. 710/- towards principal and Interest on the foot of a promissory note alleged to have been executed by the petitioner, invoking the summary jurisdiction under Order 37 of the Civil procedure Code. The petitioner applied for leave to defend, in l. A. No. 833 of 1980 under Order 37 Rule 3 sub-rule 5 of the Civil Procedure Code on the ground that there is a triable issue. She denied the execution of the promissory note and contended that the same was a forgery. By order dated 15-12-1980 leave was granted on condition the petitioner deposits half the suit costs within 15 days therefrom. No reasons were given for imposing terms. The petitioner thereupon filed I. A. No 1244 of 1980 to review the order dated 15-12-80 on the ground that the court has no jurisdiction to impose terms when there is a triable issue in the absence of a finding that the plea raised by the defendant was not bona fide as held by the Supreme Court in Santosh Kumar Vs. Moo! Singh (1) A I. R 1958 Supreme Court, 321. She contended that the order was liable to be reviewed as there was an error apparent on the face of the record. While accepting the contention of the petitioner that the decision of the Supreme court was not noticed, the Court reconsidered the matter and came to the same conclusion that imposition of terms was justified. It was observed that the plea raised by the defendant "appears to be" not bona fide as the scribe and the attestors have given affidavits in support of the promissory note. The Court also observed that failure to disclose the entire facts and reserving her right to disclose them in the written statement shows that the defence raised was not bona fide and the object appears to be to prolong the litigation. On these findings, the petition for review was dismissed on 2-2-1981. It is the validity of this order that is assailed in the present Civil Revision Petition Subsequently on 17-2-1981 it appears that the suit was decreed on the basis of the allegations in the plaint.

( 3 ) MR. S. Parvatha Rao, the learned counsel for the petitioner, mainly submitted that the finding of the court that the plea raised by the defendant was not bona fide and with a view to prolong the suit is unjustified and based on no material. He also submitted that the subsequent decree being a consequential order is also liable to be set aside.

( 4 ) ON the other hand, Mr. M. Jagannadha Rao, the learned Counsel for the respondent submitted that the finding that the defence of the petitioner is not a bona fide one and the same was taken only for prolonging the matter were all pure findings of fact which cannot be canvassed in a revision under section 115 of the Civil Procedure Code. He also submitted that the Court based its finding on the affidvaits of the attestors and the scribe and it cannot be said that there was no material. He further submitted that in any event the present enquiry is unnecessary as a decree was passed subsequently and the same had become final as there was no appeal or revision against the said decree. Even if the order under revision were to be set aside the plaintiff would not be entitled to any relief as the decree stands.

( 5 ) THE main questions that arise for consideration are whether the revision is maintainable, in view of the fact that subsequently a decree was passed and whether imposition of terms is justified in the circumstances of the case,

( 6 ) I will first take up the contention regarding maintainability as it is unnecessary to go into the other questions if the said contention is to be accepted. It is contended by the learned counsel for the respondent that the p




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