SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2005 Supreme(Cal) 251

High Court Of Calcutta
V. S. Sirpurkar, Asok Kumar Ganguly
EAST BENGAL STEAM SERVICES LTD. - Appellant
Versus
EAST BENGAL STEAM SERVICE AND ENGG.WORKS WORKERS CO-OPERATIVE Industrial SOCIETY LTD. - Respondent
G. A. 600 Of 2005
Decided On : 04/13/2005

Advocates Appeared:
AMAL CHATTERJI, ANITAVA DAS, RANJAN BACHAWAT, SWAPNA PAUL, USHA DOSHI

A party cannot be allowed to remain in the state of hibernation for a period of 24 years merely because it is a civil litigation.

Headnote:

COMPANY - SUIT - DISMISSAL - NON-PROSECUTION - COMPANIES ACT, 1956 - SECTION 560 - ORIGINAL SIDE RULES - RULES 2A, 2B, 6, 7, 9, 35 - CPC - ORDER 9 RULES 2, 5 - LIMITATION ACT - SECTION 5 - LAWYER'S NEGLIGENCE - LITIGANT'S SUFFERING - TECHNICAL VIEW - INJUSTICE - HIGH PENDENCY.

Fact of the Case:

Suit filed by the appellant in 1983 was dismissed by the learned Single Judge for non-prosecution. The respondent's application for dismissal was allowed as the appellant failed to serve the summons on the respondent within the stipulated time and did not take any steps for extension of time.

Finding of the Court:

The Court held that the appellant was negligent in prosecuting the suit and had wrongly attributed negligence to his deceased lawyer. The Court further held that the appellant, being a company, could not be considered a 'lay person' who was entitled to rely solely on its lawyer and remain quiet for more than 20 years.

Issues: 1. Whether the suit was rightly dismissed for non-prosecution? 2. Whether the appellant was negligent in prosecuting the suit? 3. Whether the appellant's lawyer was negligent? 4. Whether the appellant was entitled to rely solely on its lawyer and remain quiet for more than 20 years?

Ratio Decidendi: 1. The Court held that the suit was rightly dismissed for non-prosecution as the appellant failed to comply with the Original Side Rules and the CPC provisions, and did not take any steps to get the time extended for service of summons or to place the suit before the Chamber Judge. 2. The Court held that the appellant was negligent in prosecuting the suit as it did not take any steps for more than 20 years and did not even inquire into the matter as to what had happened to the suit. 3. The Court held that there was no evidence to prove that the appellant's lawyer was negligent. 4. The Court held that the appellant, being a company, could not be considered a 'lay person' who was entitled to rely solely on its lawyer and remain quiet for more than 20 years.

Final Decision: The Court dismissed the appeal and confirmed the judgment of the learned Single Judge.

V. S. SIRPURKAR, CJ.

( 1 ) IN this appeal, the order by the learned Single Judge of this Court is in challenge. By that order, the learned Judge allowed the application filed by the respondent East Bengal River Steam Services and engineering Works Workers' Co-operative Industrial Society. By that application, the Society had sought dismissal of Suit No. 1 of 1983 filed by the present appellant against the respondent. In their application it was pointed out by the respondent that this suit was instituted in the year 1983 and yet the plaintiff- appellant herein did not serve the defendant No. 1 with the summons for the instant suit or any copy of the plaint. The learned Judge accepted this application and has dismissed the suit necessitating the present appeal.

( 2 ) FOLLOWING factual background would help in understanding the controversy. A civil suit came to be filed by the defendant No. 4 United Bank of india (hereinafter called 'the Bank') praying therein for a decree of Rs. 1,13,45,161. 75 and other reliefs as against the present appellant. This was a suit No. 133 of 1977. In this suit, by an order dated 1. 12. 1977, this Court appointed Joint Receivers over hypothecated goods of the plaintiff. On 25. 08. 1980, the present respondent filed an application in the said suit for obtaining lease of the factory and other assets of the plainiff company. On november 11,1980, that application was allowed. That order came to be modified by a subsequent order dated 24th November, 1980. An appeal was preferred against the two orders before the Division Bench. However, the Division Bench dismissed the said appeal. The respondent herein, therefore, deposited a sum of Rs. 23,71,247/- with the Joint Receivers as a consideration for purchase of the concerned assets. The amount was accepted by the Receivers and the money was kept in the fixed deposit account of the Receivers in the High Court Branch of the defendant No. 4 Bank. A special petition was also filed for leave to appeal against this order dated 24. 7. 1981. However, the Supreme Court confirmed the said order and dismissed the SLP. Thereafter, on September 22, 1981, the division Bench passed an order for completing the sale process and for delivery of possession of the concerned property. Therefore, another SLP was filed against the order of the Division Bench dated 22. 09. 1981. The original defendant No. 4 bank also filed SLP against these orders. By orders dated 30. 10. 1981 and 9. 11. 1981, the Supreme Court was pleased to pass interim orders directing the joint Receivers to hand over the possession of the factory to the present respondent to run the same under the overall supervision of the Joint Receivers. The Joint Receivers accordingly handed over the possession of the factory to the respondent, first respondent herein. The Supreme Court also passed the orders dated 18. 10. 1982 and 22. 10. 1982 in the SLP field by the appellant plaintiff company and the defendant No. 4 Bank. Thereafter, the defendant No. 4 Bank moved an application before the Court for an order directing the Joint Receivers to call a meeting of the parties. The said application was dismissed by an order dated 13th December, 1982. Again an appeal was preferred from the order dated 13th December, 1982 which appeal was also dismissed by the Division Bench by its order dated 17. 12. 1982. This is how the present respondent became entitled to the conveyance of the concerned assets and properties.

( 3 ) IT is then that Suit No. 1 of 1983 came to be instituted by the appellant plaintiff who was the defendant in the original suit field by the Bank. In that suit, the orders dated 11th November, 1980, 24th November, 1980, 22nd september, 1981 and 23rd September, 1981 and the orders dated 18th October, 1981, 18th October, 1982 and 22nd October, 1982 and all subsequent orders made in Suit No. 133 of 1977 were challenged and a declaration was sought that all these orders were null and void. Thereafter, the suit was















Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top