IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATES OF TELANGANA AND ANDHRA PRADESH
D.V.S.S. SOMAYAJULU, J.
M.S. Naudine Pharma and Ors. - Appellant
Versus
Med Manor Organics Pvt. Ltd. - Respondent
CRP No. 3387 of 2015
Decided On : 31-12-2018
Civil Procedure Code, 1908 - Order V, R.20 - Substituted service - Permissibility - Even before summons were returned, application under Order V Rule 20 CPC was filed and same was ordered on very same day - Plaintiff was set ex parte based on substituted service - Petitioners were aware of judgment and decree only after receipt of notice in execution petition - Substituted service cannot be routinely ordered - Court should apply its mind to situation and provisions of Order V Rule 20 CPC before passing an order for substituted service - Sufficient cause has been made out for condoning the delay.
Limitation Act, 1963 - Article 123 - This article prescribes period of 30 days to set aside decree passed ex parte - 30-day period commences from date of decree or in case summons or notice is not duly served from date of knowledge of decree - Explanation of Article 123 of Limitation Act makes it clear that substituted service under Order V Rule 20 CPC shall not be deemed to be due service - Date of knowledge is critical factor.
Limitation Act, 1963 - Section 5 - Sufficient cause - Length of delay is not criteria but correctness of reasons or explanation for delay is important factor - Sufficient cause has to be liberally interpreted provided negligence, inaction, lack of bona fides etc. are not made out - Purpose of Courts is to render justice and therefore Court should take liberal pragmatic justice oriented approach - If there is no issue of lack of bona fides or any allegation of fraud etc., court should be liberal towards condoning delay - There is no hard and fast rule for condoning delay and each case should be dealt with on its own merits
Facts of the case:
Suit was filed for recovery of an amount with interest, costs etc. Court ordered notice to defendants in suit. Summons were not served, and substituted service of summons appear to have been ordered and defendants were set ex parte. Thereafter, an ex parte judgment and decree was passed. Plaintiff in suit took out execution and filed E.P. After receipt of notice, present application was filed to condone delay in filing application to set aside ex parte judgment and decree.
Findings of the court:
Sufficient cause is made out to condone delay. Reasons mentioned by revision petitioners are cogent and they offer reasonable explanation which is sufficient cause to condone delay. Service of notice under Order 5, filing of EP in executing court, notice served in said E.P and consequent knowledge of proceedings are sufficient explanation for delay. Actions of revision petitioners do not suffer from lack of bona fides etc.
ORDER :
D.V.S.S. Somayajulu, J.
1. This Civil Revision Petition is filed by the defendants questioning the order dated 24.07.2015 in IA No. 61 of 2015 in OS No. 540 of 2013 passed by the VII Senior Civil Judge, City Civil Court, Hyderabad.
2. The suit OS No. 540 of 2013 was filed for recovery of an amount of Rs. 7,96,443.78 paise with interest, costs etc. The Court ordered notice to the defendants in the suit. The summons were not served, and substituted service of summons appear to have been ordered and the defendants were set ex parte. Thereafter, an ex parte judgment and decree was passed on 08.11.2013.
3. The plaintiff in the suit who is the respondent herein thereafter took out execution and filed E.P. No. 537 of 2014 in Kerala. After receipt of notice in the said application, the present application was filed to condone the delay of 357 days in filing the application to set aside the ex parte judgment and decree dated 08.11.2013.
4. The respondent/plaintiff filed a counter opposing the application. Thereafter, the impugned order came to be passed by which the lower Court rejected the application stating that the delay of 357 days was abnormal. Questioning the same, the present revision is filed.
5. This Court has heard Sri M.R.K. Chakravarthy, learned counsel for the revision petitioners/defendants and Sri Palanki Rama Mohan, learned counsel for the respondent/plaintiff.
6. The learned counsel for the revision petitioners/defendants argued that the entire procedure adopted by the lower Court is incorrect and that the Court was in a hurry to set his clients ex parte. He pointed out that even before the summons were returned, an application under Order V Rule 20 CPC was filed and the same was ordered on the very same day. Thereafter, the plaintiff was set ex parte based on the substituted service. In addition, the learned counsel pointed out that they were aware of the judgment and decree only after a receipt of the notice in the execution petition filed in Kerala. They made their appearance in that Court and thereafter filed the present the application to set aside the ex parte decree and judgment after condoning the delay of 357 days.
7. The learned counsel for the revision petitioners argued that as a result of the above, sufficient cause is made out to condone the delay. He relied upon M. Narasimha Reddy v. Begari Samuel 2002 (6) ALD 473 and the explanation to Article 123 of the Limitation Act and submitted that when substituted service is ordered under Order V Rule 20 CPC, it shall not be deemed to be service for the purpose of deciding the limitation. In addition, the learned counsel also relied upon Neerja Realtors Private Limited v. Janglu (Dead) through LRs. (2018) 2 SCC 649 and argued that substituted service cannot be routinely ordered. The Court should apply its mind to the situation and the provisions of Order V Rule 20 CPC before passing an order for substituted service. The learned counsel also submitted that the more than sufficient cause has been made out for condoning the delay.
8. The learned counsel for the respondent/plaintiff, on the other hand, argued that the defendants are guilty of suppression of facts and that there is no clarity as to when they were aware of passing of the decree and judgment and the enquiries that are supposedly made in Hyderabad are not clearly established. The learned counsel also argued that every days delay should be explained. On the other hand, he submitted that even after appearing in the execution petition in Kerala, the petitioners did not take steps to file the application within time. Last but not least, the learned counsel submitted that even a written statement has not been filed till date. Therefore, it is his submission that the entire explanation given in the affidavit is not correct and that the application deserves to be rejected.
9. This Court after hearing both the learned counsel notices that the docket orders of the proceedings that are filed are not really disputed
K. Vasudevreddy v. B. Chandrakala 2003 (4) ALD 481
M. Narasimha Reddy v. Begari Samuel 2002 (6) ALD 473
Neerja Realtors Private Limited v. Janglu (Dead) through LRs. (2018) 2 SCC 649
SupremeToday
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.