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1986 Supreme(Cal) 303

High Court Of Calcutta
A. K. SEN, S. K. MUKHERJEE
LIFE INSURANCE CORPORATION OF INDIA - Appellant
Versus
ANJAN KUMAR ARORA - Respondent
Appeal Nil  Of  1986
Decided On : 07/18/1986

Conditions imposed for restoring a suit must be reasonable and justified, having regard to the attending circumstances.

Headnote:

CIVIL PROCEDURE CODE, 1908 - O. 9 R. 13 - RESTORATION OF SUIT - CONDITIONS - REASONABLE AND JUSTIFIED - DEPOSIT OF MAJOR PART OF CLAIM AND PAYMENT OF INTEREST TO PLAINTIFFS - NOT JUSTIFIED - DIRECTION TO PAY CHARITABLE INSTITUTION - NOT LEGAL OR WITHIN DISCRETION - SET ASIDE.

Fact of the Case:

The appellant, Life Insurance Corporation of India, challenged the conditions imposed by the trial court for restoring a suit that had been decreed ex parte against it. The conditions were to deposit a sum of Rs. 50,000/- with the Advocate on Record of the defendant and to pay a sum of Rs. 1020/- to "ram Krishna Mission and Ram Krishna Math, Belur".

Finding of the Court:

The court found that the conditions imposed by the trial court were not reasonable or justified. It held that the defendant had made out a strong defence and that its non-appearance resulting in the ex parte decree was accidental and due to circumstances not within its control. The court also held that the direction to pay a charitable institution was not legal or within the discretion of the trial court.

Issues: Whether the conditions imposed by the trial court for restoring the suit were reasonable and justified.

Ratio Decidendi: The court held that the conditions imposed by the trial court were not reasonable or justified. It held that the defendant had made out a strong defence and that its non-appearance resulting in the ex parte decree was accidental and due to circumstances not within its control. The court also held that the direction to pay a charitable institution was not legal or within the discretion of the trial court.

Final Decision: The appeal was allowed and the conditions imposed by the trial court were set aside. The suit was restored for retrial and the defendant was directed to pay a sum of Rs. 500/- towards costs to the plaintiff.

ANIL K. SEN, J.

( 1 ) THE respondents are not appearing to contest this appeal though they have been intimated that the appeal itself would be taken up for hearing dispensing with all other formalities. The appellant is the Life Insurance Corporation of India. The appeal is directed against an order dt. May 19, 1986, passed by a learned single Judge of this court in Suit No. 111 of 1974. By the order impugned the learned Judge has allowed an application for restoration of the suit by setting aside an ex parte decree subject, however, to some conditions. The defendant/appellant although they had succeeded in the application for restoration, feels aggrieved by the conditions imposed and as such has preferred the present appeal.

( 2 ) THE three respondents instituted the aforesaid suit for recovery of a sum of Rs. 65,000/- on declaration that a Policy of Insurance dt. Dec. 26, 1967, was subsisting and was in force at the time of the death of Sambhunath Arora on Jan. 29, 1969, and for consequential reliefs.

( 3 ) THIS suit was being contested by the defendant/appellant an the plea that the Policy in question having lapsed for nonpayment of premium other than the first premium, nothing was payable on the policy as claimed.

( 4 ) THIS suit after lapse of several years was placed for hearing before the learned trial Judge on Mar. 7, 1986. On that date on the prayer of the plaintiff the suit was adjourned for a week and was due to appear on Mar. 14, 1986.

( 5 ) ADMITTEDLY on the said date the suit did not appear on the Cause List of the learned Trial Judge. It, however, appeared on Mar. 17, 1986, but under a wrong heading and with a wrong number which totally misguided the Advocate on Record of the defendant/ appellant resulting in he being unable to keep track of the same. In that circumstance, the suit was taken up for ex parte hearing on Mar. 17, 1986 although, according to the defendant/appellant, even on that date their Assistant attended the Court and was informed by the Advocate on Record that the matter was not in the Cause List. That was the ground which was pleaded in support of the application for setting aside the ex parte decree passed on that date and directing restoration of the suit.

( 6 ) IT appears that the learned Judge was satisfied that the ground made out was good ground for non-appearance on the day when the suit was decreed ex parte against the defendant/appellant. He, therefore, allowed the prayer for restoration of the suit by setting aside the ex parte decree. But he imposed two conditions. The first condition was that the defendant/appellant was to deposit a sum of Rs. 50,000/- with the Advocate on Record of the defendant. On such deposit being made the Advocate on Record for the defendant was directed to invest the said sum in Short Term Fixed Deposit and to disburse from time to time the interest in favour of the plaintiffs. The second condition imposed was payment of a sum of Rs. 1020/- to "ram Krishna Mission and Ram Krishna Math, Belur" within a week.

( 7 ) COUNSEL appearing on behalf of the appellant has contended that neither of the conditions thus imposed by the learned Judge could have been validly imposed as a condition for allowing the defendant's application for restoration of the suit and setting aside the ex parte decree. According to the learned counsel the defendant had made out a strong defence that nothing whatsoever would be payable in respect of the claim put forward and though the suit had been decreed ex parte, it was so done due to no real fault on the part of the defendant and in circumstances entirely beyond their control. The ground for non-appearance as made out has been upheld as sufficient ground by the learned Judge when he allowed the application and in the facts and circumstances there was no justifiable reasons to impose a precondition that a sum of Rs. 50,000/- out of the claim of Rs. 65,000/- is to be deposited with the Advocate on Record even at this stage and that






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