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2018 Supreme(Bom) 1365

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
MRIDULA BHATKAR, J.
Dr. Madhav Vishwanath Dawalbhakta (Dead) and Others – Petitioners
Versus
M/s. Bendale Brothers – Respondent
Writ Petition No. 4217 of 2018
Decided On : 07-08-2018

Advocates Appeared:
For the Petitioner: Mr. Nikhil Sakhardande, Mr. Pralhad D. Paranjape, Shubhra Paranjape.
For the Respondent: Mr. Ashok B. Tajane.

Headnote:

Code of Civil Procedure, 1908 - Rule 20 - Order 5 - Order for want of proper service – Condo nation of delay - Petitioners are original plaintiffs who have filed suit for specific performance against respondent defendant on basis of Agreement - In Special Civil Suit Court issued summons on defendant - However defendant did not appear though summons were duly served - Trial Court decreed suit ex parte on November after considering affidavit in chief of plaintiff and documents on record - Nearly two years after respondent filed an Application for setting aside said ex parte order along with Application for condo nation of delay – Held, Service is neither an empty formality nor procedural ritual but soul of service is to have knowledge proceedings to defendant contesting party - Therefore there may be service laid down as per procedure however still there is no communication of proceedings to other party and therefore knowledge is absent - Thus satisfaction based on instances of compliance of proceedings as mere formality cannot be correct approach to interpret principle behind service - Deeming fiction is created in law to fill up gap where procedural law falls short - By accepting that substituted service is deemed to be good service then passing ex parte decree is correct legal step taken by Court as per procedure - However moment defendant acquires knowledge proceedings and he approaches Court and fact is brought before Court that he really never had actual real knowledge then even though there is procedural compliance by plaintiff Court has to take realistic and just view and not to limit itself in procedural wrangles - In present caretaking into account fact that he was beyond communication and unapproachable by either service Order Rule or Order ex parte decree needs to be set aside - No doubt defendant respondent should have intimated correct address or changed address in criminal proceedings however Court needs to set aside said ex parte order with cost – Petition dismissed

Judgement Key Points
  • Petitioners (original plaintiffs) filed suit for specific performance based on agreement dated 4th April, 1996; summons issued to respondent (defendant) who did not appear despite alleged service, leading to ex-parte decree on 8th November, 2011. [4000576570002]
  • Respondent filed application under Order 9 Rule 13 CPC to set aside ex-parte decree nearly two years later, with delay condonation application allowed; trial court rejected it finding service proper, but District Judge allowed appeal, set aside decree with costs, and restored suit. [4000576570002]
  • For setting aside ex-parte decree under Order 9 Rule 13 CPC, court must be satisfied that summons not duly served or defendant prevented by sufficient cause from appearing. [4000576570005][4000576570017][4000576570018]
  • Order 5 Rule 17 CPC covers procedure when defendant refuses service or cannot be found, requiring bailiff to affix summons on outer door or conspicuous part of house if not served with diligence. [4000576570006][4000576570015]
  • Order 5 Rule 20 CPC allows substituted service where court satisfied defendant avoiding service or summons cannot be served ordinarily: by affixing copy at courthouse and conspicuous part of defendant's last known residence/business place, or in other manner court deems fit (including newspaper publication in locality of last residence/business). [4000576570007][4000576570008][4000576570009][4000576570010][4000576570011]
  • Substituted service ordered by court is effectual as personal service (deeming fiction under Order 5 Rule 20(2) CPC), but court must record satisfaction and not grant mechanically; publication in newspaper does not require additional affixing of newspaper copy. [4000576570007][4000576570011][4000576570015]
  • "Duly served" under Order 9 Rule 13 CPC requires proper legal service per Order 5, but court must consider if service effectively brought proceedings to defendant's knowledge; procedural compliance alone insufficient if defendant proves no actual knowledge due to factual circumstances. [4000576570021]
  • Service is not empty formality or ritual; its soul is defendant's knowledge of proceedings; even with procedural compliance (including substituted service), if defendant shows actual lack of knowledge and approaches court, court must take realistic, just view beyond procedural wrangles and set aside ex-parte decree. [4000576570022]
  • In this case, bailiff reported defendant "left premises" twice at given address; no actual knowledge to defendant who was unapproachable; ex-parte decree set aside despite procedural steps, with costs of Rs. 30,000/- on respondent; suit restored for trial by 31st December, 2018. [4000576570003][4000576570004][4000576570022][4000576570023]
  • Ex-parte decree after considering plaintiff's evidence/documents is decree on merits, not routinely set aside, but subject to proper service challenge under Order 9 Rule 13 CPC. [4000576570013]

JUDGMENT :

MRIDULA BHATKAR, J.

1. Rule. Rule made returnable forthwith. By consent of both the parties, the Writ Petition is heard finally at the stage of admission.

2. This Writ Petition is directed against the order dated 13th November, 2017 passed by the District Judge-7, Pune for setting aside the ex-parte order for want of proper service on the defendant in the suit. For the sake of convenience, in order to avoid confusion, the parties are referred to by their original status.

3. The petitioners are the original plaintiffs, who have filed the suit for specific performance against the respondent/defendant on the basis of the Agreement dated 4th April, 1996. In Special Civil Suit No. 1491 of 2009, the Court issued summons on the defendant. However, the defendant did not appear though summons were duly served. The trial Court decreed the suit ex-parte on 8th November, 2011 after considering the affidavit-in-chief of the plaintiff and the documents on record. Nearly two years after, the respondent filed an Application for setting aside the said ex-parte order along with the Application for condonation of delay. The delay was condoned by the trial Court and the Application was numbered as M.A. No. 684 of 2013 which was contested by the plaintiffs and the trial Court accepted the case of the plaintiff that the summons though was served on the defendant, he failed to appear and as it was good service, the Application was rejected by order dated 16th February, 2015. Appeal No. 340 of 2015 was preferred by the respondent/defendant and after hearing both the sides, the Appellate Court allowed the said Appeal with cost and quashed and set aside the order of Small Causes Court, Pune and directed the respondent to file the written statement. The plaintiffs have challenged the said order in Appeal.

4. The learned counsel for the petitioners has submitted that the order of the trial Court is well reasoned in which the trial Court has held that the defendant was duly served by the summons issued by the Court, however, he failed to appear before the Court and therefore, the Application to set aside the ex-parte decree was rejected. The learned counsel pointed out the affidavit of the case and submitted that the Court bailiff has served the summons twice on the address given by the defendant himself. He submitted that the learned District Judge gave wrong finding on fact and as well as on law. The learned Judge has stated that the bailiff has reported that the respondent/defendant was not residing on the given address which is factually wrong, as the bailiff remark on both the occasion was “he had left the premises.” He further pointed out that the learned District Judge gave wrong reasoning that the plaintiffs did not prove that the newspaper was affixed like summons under Order 5 Rule 20 of the Code of Civil Procedure on the conspicuous place of the last known address, it cannot be construed to be a valid service. The learned counsel submitted that this erroneous reasoning and the order of the learned District Judge should go and the order passed by the learned trial Judge is to be restored. He has submitted that so far as service of summons is concerned, there was satisfactory compliance of Order 5 Rule 20 of the Code of Civil Procedure. The learned counsel has further submitted that the order passing ex-parte decree not necessarily to be set aside, as a routine. When after considering the evidence of the plaintiffs and the documents on record, the judgment is delivered, then it is as good as a judgment on merits. In support of his submissions, the learned counsel relied on the following judgments of the Hon'ble Supreme Court:

(i) International Woollen Mills vs. Standard Wool (U.K.) Ltd. (2001) 5 SCC 265

(ii) Commissioner of Income-tax, Punjab vs. Daulat Ram Khanna, AIR 1967 SC 1552

(iii) Neerja Realtors Pvt. Ltd. vs. Janglu (dead) through LRs. (2018) 2 SCC 649

5. The learned counsel for the respondent, while supporting the order passed by the l










































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