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1960 Supreme(Cal) 16

HIGH COURT OF CALCUTTA
P. N. MUKHERJEE, NIYOGI
SURESH CHANDRA BANERJEE - Appellant
Versus
UNITED BANK OF INDIA LTD. - Respondent
A. F. O. O.  488  Of  1958
Decided On : JANUARY 21, 1960

Advocates Appeared:
Amal Chandra Roy, HARIPADA SAHA, RAJENDRA BHUSHAN BAKSHI, SAILENDRA BHUSAN BAKSHI, SALIL KUMAR DUTT

Headnote:

ORDER IX, RULE 13 - MORTGAGE SUIT - ORDER XXXIV, RULE 5 - FINAL MORTGAGE DECREE - NOTICE - SERVICE - NECESSITY - SUMMARY OF THE ACTS AND SECTIONS REFERENCED AND DISCUSSED BY THE COURT: Order IX, Rule 13 of the Code of Civil Procedure (CPC) provides for the setting aside of ex parte decrees. Order XXXIV, Rule 5 of the CPC deals with the procedure for making a preliminary mortgage decree final. The court discussed the necessity of serving notice on the mortgagor-judgment-debtors before making the preliminary mortgage decree final. KEY LEGAL PROVISIONS, THEIR INTERPRETATIONS, AND HOW THEY INFLUENCED THE COURT'S DECISION: The court held that, based on the principle of "audi alteram partem," service of notice in some form is necessary before making the preliminary decree final. The court relied on the Allahabad case, ILR 51 All 634 (AIR 1929 All 279), and ILR (1946) 1 Cal 333, which held that the defendant is entitled to have the final mortgage decree, made ex parte or in his absence, set aside by showing that he was prevented from appearing at the hearing of the plaintiff's application for the same because of his want of knowledge thereof in circumstances which would make it sufficient cause for such non-appearance within the meaning of Order IX, Rule 13 of the CPC. The court also considered the prescribed form for final mortgage decrees under Order XXXIV, Rule 5, which provides that the court would pass the final decree "after hearing the parties." The court interpreted this to mean that both parties must be aware of the final decree proceedings. RATIO DECIDENDI: The court held that the final mortgage decree, made ex parte without notice to the mortgagor-judgment-debtors, should be set aside as it violated the principle of "audi alteram partem." The court also held that, as the defendants had entered appearance in the suit and were represented by a lawyer, a copy of the decree-holder's application for making the preliminary decree final should have been served on their lawyer before the application was entertained or heard. FINAL DECISION: The court allowed the appeal, reversed the order of the lower court, and set aside the impugned final mortgage decree. The court directed that the proceedings for making the preliminary mortgage decree final should continue afresh in the presence of the defendants, judgment-debtors. MAIN LEGAL POINT: Service of notice on the mortgagor-judgment-debtors is necessary before making the preliminary mortgage decree final, as per the principle of "audi alteram partem." CATEGORY: Civil Procedure SUB-CATEGORY: Mortgage Suits

P. N. MOOKERJEE, J.

( 1 ) THIS is the mortgagor-judgment-debtors' appeal against an order of the learned Subordinate Judge, Second Court, 24 Parganas, rejecting their application under Order IX, Rule 13 of the Code of Civil Procedure for the setting aside of an ex parte final mortgage decree, passed against them. The suit in question was Title Suit No. 55 of 1950 of the Second Court of the Subordinate Judge, 24 Parganas, in which the respondent Bank, or, rather, its predecessor, was the plaintiff and the appellants were the defendants. The claim was on a mortgage to the tune of over Rs. 75,000/ -.

( 2 ) THE suit was preliminarily decreed on contest on April 26, 1955. Under the said preliminary decree, the period of grace extended up to June 26, 1955. No payment having been made within the aforesaid time allowed, the decree-holder, on October 13, 1955, applied for making the prelimnary mortgage decree final.

( 3 ) ON the aforesaid application, the learned Subordinate Judge, by his first order (No. 96, dated December 16, 1955), directed issue of notice "on filing requisites" by January 6, 1956. Later on, however, by his next order No. 97, dated January 5, 1956, he recalled the above direction for issue of notice and, having recorded in his said order that no notice need be served, he made the final decree, as prayed for by the decree-holder. The decree was "sealed and signed" on February 23, 1956.

( 4 ) THE present appellants, who were the judgment-debtors in the aforesaid final mortgage' decree, applied, on March 21, 1958, under Order IX, Rule 13 of the Code of Civil Procedure for the setting aside of the same. To that application, there was an objection, eventually filed by the decree-holder on May 9, 1958, and the said application came up for hearing before the Court on June 7, 1958. On that day, a preliminary objection was taken to the maintainability of the aforesaid application, presumably, upon the ground that Order IX, Rule 13 of the Code would not apply to such a case and, no notice being necessary to be served, upon the mortgagors judgment-debtors, of an application under Order XXXIV, Rule 5 of the Code for making the preliminary mortgage decree final, there was no case for setting aside the final mortgage decree made as aforesaid, under the said provision (Order IX, Rule 13), even on the admitted position that no notice of the said application was either issued or served upon the mortgagors-judgment-debtors,

( 5 ) THE above preliminary objection appears to have been accepted by the learned trial Judge upon the view that law does not require issue or Service of any notice of the application for making the preliminary decree final and, accordingly, the judgment-debtors could not make out any case under Order IX, Rule 13 of the Code of Civil Procedure, even if their other allegations be correct. As a matter of fact, it appears quite clear that, before the trial court, the parties fought only on the question as to the necessity or otherwise of notice in connection with the application for making the preliminary mortgage decree final. The learned trial Judge, accordingly, because of his aforesaid view of law, rejected the judgment-debtors' application and dismissed the Miscellaneous Case. Against this Order, the present appeal was filed by the judgment-debtors.

( 6 ) ON behalf of the appellants judgment-debtors, Mr. Bakshi drew our attention to two decisions of this Court, reported in Mahadeo Agarwala v. Jay Narayan Senehiram, 53 Cal WN 326 and Braja Kishore De v. Gour Chandra Ray, ILR (1946) 1 Cal 333. Those decisions were also referred to before the learned trial Judge. But they were distinguished by him upon the ground that 53 Cal WN 326 was a case of foreclosure and not for sale like the present and ILR (1946) 1 Cal 333 related to a suit to which the Bengal Money Lenders Act, 1940, applied, in which particular statute, Section 34 expressly provided that, in all cases under the said Act, notice in the prescribed fo









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