Andhra Pradesh High Court
Judges : BASI REDDI, GOPALRAO EKBOLE
M.Gurunatha Rao - Appellant
Versus
B.Ramamurthy - Respondent
Decided On : 01-20-65
HYDERABAD SMALL CAUSE COURTS ACT - SECTION 12 - REVISION PETITION - DISMISSAL OF SUIT FOR DEFAULT - COURT'S POWER TO DECIDE CASE ON MERITS - ORDER 17, RULES 2 AND 3, C. P. C. - INTERPRETATION AND APPLICATION.
Fact of the Case:
Plaintiff filed a suit for recovery of rent, water, and electric charges. The trial court heard evidence and adjourned the case for arguments. On the date of arguments, the defendant and his advocate were absent. The plaintiff's advocate addressed arguments, and the court reserved judgment. Later, the court delivered judgment, deciding the case on the merits and decreeing the suit for a small amount, with costs to the defendant. The plaintiff filed a revision petition challenging the court's decision.
Finding of the Court:
The court held that the trial court erred in proceeding under Order 17, Rule 3, C. P. C., and should have acted under Rule 2 instead. Rule 2 applies to cases of absence of parties irrespective of their failure to perform an act necessary for the suit's progress, while Rule 3 applies when parties are present and prepared to proceed with the hearing. In this case, the parties were absent on the date of arguments, so the court should have dismissed the suit for default under Rule 2.
Issues: 1. Whether the trial court erred in proceeding under Order 17, Rule 3, C. P. C., instead of Rule 2. 2. Whether the court could decide the case on the merits in the absence of the parties.
Ratio Decidendi: The court interpreted Order 17, Rules 2 and 3, C. P. C., and held that they are distinct and mutually exclusive. Rule 2 applies to cases of absence of parties, while Rule 3 applies when parties are present and prepared to proceed with the hearing. In this case, the parties were absent, so the court should have dismissed the suit for default under Rule 2.
Final Decision: The court allowed the revision petition, set aside the trial court's judgment and decree, and directed the lower court to try the suit de novo.
( 1 ) THIS revision petition has been filed by the plaintiff under S. 12 of the Hyderabad Small Cause Courts Act. It is directed against the judgment and decree of the Court of Small Causes at Hyderabad in Small Cause Suit No. 298/61 decreeing the plaintiff s suit only in part for a sum of Rs. 25 and directing the plaintiff to pay the costs of the suit to the defendant, while dismissing the rest of the claim of the plaintiff. the suit was instituted by the plaintiff for the recovery of rent, water and electric charges amounting to Rs. np. The trial of the suit commenced on 1 2-7-61 when the witness of both parties were examined and some documents were marked. "the evidence was closed and the case was posted to 15-7-61 for arguments. On that date, however, the case was adjourned to 19-7-61. On. 19-7-61, the defendant and his advocate were absent. The defendants Advocate addressed arguments and judgment was reserved. Then, on 28-7-61, the learned Additional Judge delivered judgment deciding the case on the merits. After considering the evidence, , the learned Addl. Judge accepted the defendant s case and decreed the suit only for an amount of Rs. 25 and directed the plaintiff to pay the costs of the suits to the defendant.
( 2 ) THEREAFTER, the plaintiff filed an application (I. A. No. 298/5/61) requesting the Court to restore the suit. The learned Additional Judge held that there was no question of restoring the suit as it had been decreed on merits. Apparently, he was of the view that he had disposed of the suit acting under O. 17 R. 3, C. P. C. , which reads as follows:-"where any party to a suit to whom time has been granted fails to produce his evidence, or to cause the attendance of his witnesses, or to perform any other act necessary to the further progress of the suit for which time has been allowed. the Court may, notwithstanding such default, proceed to decide the suit forth with. "
( 3 ) THE plaintiff has preferred his revision against the judgment and decree of the lower Court and taken as a ground of revision that the lower Court was in error in the circumstances of this case, in proceeding under R. 3, of O. 17, but should have acted under R. 2 of O. 17, if it did not think fit to adjourn the suit. Rule 2 of O. 17 provides :"where on any day to which the hearing of the suit is adjourned, the parties or any of them fail to appear, the Court may proceed to dispose of the suit in one of the modes directed in that behalf by O. IX or make such other order as it thinks fit. "when this revision came up for hearing before our learned brother, Venkatesam, J. , he passed the following order referring the matter to a Bench :"the contention of Sri Ranga Chari, the learned counsel, is that even after the evidence is recorded , if a suit is posted only for hearing arguments, and the plaintiff s counsel is absent, the Court has no power to decide the case on merits, but must dismiss the suit for default, and that even though the order purports to be one on merits, it is nonetheless a dismissal for default. He also submits that there is no case which has expressly decided this question. Considering the importance of the contention, I refer the case to a Bench. "
( 4 ) IT may be mentioned that there are two Full Bench decisions, one of the Madras High Court and the other of our High Court Pichamma v. Shreeramulu, AIR 1918 Mad 143 (2) (FB) and Agaiah v. Mohd. Abdul Kareem, 1960 (2) Andh WR 416 : (AIR 1961 Andh Pra 201) , which have taken the view that R. 2 on the one side and R. 3 on the other are quite distinct and mutually exclusive. R. 2, it has been held applies to all cases of absence of parties irrespective of their failure to perform the act necessary to the further progress of the suit notwithstanding the fact that time was granted earlier for that purpose. On the other hand, R. 3 comes into operation only. . . . . parties are present and are prepared. . . . . with the further hearing of the case. . . . . of the
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