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1974 Supreme(Del) 29

High Court Of Delhi
LAKSHMI OIL COMPANY G.T.ROAD,KARNAL - Appellant
Versus
AGGARWAL OIL CO, DELHI-5 - Respondent
Civil 350 of 1973
Decided On : 02/01/1974

Advocates Appeared:
G.N.AGGARWAL, J.P.Gupta

Deposit of decretal amount is not a condition precedent for stay of execution as a matter of law.

Headnote:

STAY OF EXECUTION - ORDER 9 RULE 13 CPC - SECTION 17 PROVINCIAL SMALL CAUSE COURTS ACT - SECTION 145 CPC - ORDER 21 RULE 26 CPC - Deposit of decretal amount as a condition precedent for stay of execution is not a rule of law.

Fact of the Case:

Petitioner challenged the order of the trial court declining stay of execution of an ex-parte money decree during pendency of an application under Order 9 Rule 13 read with section 151 of the Code of Civil Procedure, which application was filed on the ground that the defendants were never served in the suit wherein the ex-parte decree was passed.

Finding of the Court:

The court held that the trial court erred in relying on a judgment of the Andhra Pradesh High Court which had no application to stay application pending application for setting aside ex-parte decree. The court further held that the trial court never applied its mind independently as to whether it was a fit case to grant stay either conditionally or unconditionally.

Issues: Whether deposit of decretal amount is a condition precedent for stay of execution as a matter of law.

Ratio Decidendi: The court held that there is no rule of law making deposit of decretal amount as a condition precedent for stay of execution as a matter of law and that the trial court has the discretion to pass appropriate orders as it thinks fit under Order 21 Rule 26(1) CPC.

Final Decision: The court allowed the petition, set aside the order of the trial court, and directed that the application for stay be decided according to law and the observations made in the judgment.

Yogeshwar Dayal, J.

( 1 ) THE present petition is directed against the order dated the 10th April, 1973, passed by the learned trial court declining stay of execution of an ex-parte money decree during pendency of an application under Order Rule 13 read with section 151 of the Code of Civil Procedure, which application was filed on the ground that the defendants were never served in the suit wherein the ex-parte decree was passed.

( 2 ) THE suit was filed for the recovery of Rs. 3894. 43 P. against the petitioners and it is alleged by the petitioners that summons were directed to be issued to the defencants for 10th March, 1971. In the meanwhile on 2nd of February, 19/1, an application was filed for amendment of the plaint to give description of defendant No. 1 as a registered firm and of petitioners Nos. 2 and 3 as partners of defendant No. 1. On 10th March, 1971, it is further alleged that without service of the said application on the defendants, the amendment was allowed and none of the defendant has been served. The notice was again directed to be issued for 19th April, 1971. It is further alleged that on 19th April, 1971, a false report of refusal of service was made on behalf of defendants Nos. 1 and 3 and notices were directed to be issued to defendant No 2 only for 31st May, 1971, and thereafter for 28th July, 1971. On 28th July, 1971 the suit was dismissed for default of appearance. On an application of the plaintiff, it is alleged that the suit was restored on 5th August, 1971, and the Court directed the issued of notices for 9th September, 1971. It is alleged that on 9th September, 1971, defendant No. 2 was not served and no notice was issued to defendants 1 and 3 for the said date and the case was adjourned to 24th September, 1971 for service on defendant No. 7 only. It is further alleged that false report of refusal was made and on 24th September, 1971, the proceedings wire directed to be ex parte against all the defendants and the case was adjourned to 4th October, 1971, for ex parte evidence. On 4th October, 1971, ex-parte decree was passed. It is further alleged that the petitioner came to know about the suit when immovable property of defendent No. 1 at Karnal, was attached. On 29th May, 1971, an application was filed as stated above under Order 9 Rule 13 of the Code of Civil Procedure for setting aside the ex parte decree. Along with the application for setting aside the ex-parte decree, an application was also filed for ad interim stay of execution but during the disposal of the appli- cation for setting aside the exparte decree. The learned trial court, expressed no prima facie view one way or the other whether the service was at all effected; but it was contended by the counsel for the plaintiff respondent before the learned trial court that as a matter of law, the Court has no jurisdiction to entertain the stay application without deposit of the entire decretal amount and the reliance was placed on a judgment reported as Pamulapati Varadayya v. Kommareddi Chinnappareddi wherein it was held as under :

". . . . . . . . . . . . . . . IT is an established rule of practice that ordinarily stay of money decree will not be given unless there are special circumstances. "

( 3 ) MR. J. P. Gupta, learned counsel for the petitioner has argued that it cannot be said as a matter of law that before the stay is granted of the execution of the ex-parte of money decree, the decretal amount must be deposited in Court and without which stay cannot be granted by the court. It is also contended that even under Order 9 Rule 13, discretion is given to the trial court before setting aside the ex-parte decree to put the parties to terms such as payment into court or otherwise as it thinks fit of the decretal amount. It is submilted that this discretion has to be exercised by the Court in each case on the facts is and circumstances of that case to decide whether any condition and if so, what condition be put. There appears to be l






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