2006 Supreme(Del) 2295
High Court Of Delhi
REVA KHETRAPAL
MOTILAL BANARASIDASS PUBLISHERS - Appellant
Versus
STANDARD CHARTERED BANK - Respondents
I. A 462 Of 2006
Decided On : 12/08/2006
Rajiv Tyagi, Sanjay Gupta, Varsha Kriplani
Headnote:
Delay in Entering Appearance - Code of Civil Procedure - Order XXXVII Rule 3(7) - Section 151 - [Summary of Acts and Sections: Order XXXVII Rule 3(7), Section 151 of the Code of Civil Procedure] - The court considered the defendant's application for entering appearance and condonation of delay under Order XXXVII Rule 3(7) and Section 151 of the Code of Civil Procedure. The court analyzed the delay, the defendant's reasons, and the plaintiff's objections. It referred to legal provisions and case law to determine the sufficiency of the defendant's cause for delay and ultimately condoned the delay.
Fact of the Case:
The plaintiff filed a suit for recovery of an amount against the defendant under Order XXXVII of the Code of Civil Procedure. The defendant filed applications for entering appearance, condonation of delay, and treating the suit as an ordinary suit. The plaintiff contested the applications, alleging deliberate lapses by the defendant.
Finding of the Court:
The court found that the delay in entering appearance was for a short period and was condoned. It rejected the defendant's plea to treat the suit as an ordinary suit, emphasizing substantial compliance with procedural provisions. The court noted that its observations in the present order should not influence the consideration of future applications by the defendant.
Issues: The main issues were the delay in entering appearance, sufficiency of cause for delay, and the request to treat the suit as an ordinary suit.
Ratio Decidendi: The court held that the delay in entering appearance was condoned due to the defendant's reasons and the short duration of the delay. It emphasized substantial compliance with procedural provisions and rejected the plea to treat the suit as an ordinary suit.
Final Decision: The court condoned the delay in entering appearance, dismissed the plea to treat the suit as an ordinary suit, and allowed the plaintiff to move an application for service of summons for judgment upon the defendant.
REVA KHETRAPAL, J.
( 1 ) BY this order I shall dispose of three applications filed by the defendant. The first application being I. A. No. 461/2006 is an application filed by the defendant for entering appearance. The second application being i. A. No. 462/2006 is an application under Order XXXVII Rule 3 (7) read with Section 151 of the Code of Civil Procedure for condonation of delay in entering appearance before this Court. The third application being I. A. No. 7884/05 is an application under Section 151 of the Code of Civil Procedure also filed by the defendant, praying that the present suit be treated as an ordinary suit and for permission to file its written statement after giving direction to the plaintiff to supply copies of documents annexed with the plaint.
( 2 ) THE backdrop in which these applications were filed is as follows.
( 3 ) A suit under Order XXXVII of the Code of Civil Procedure, 1908 for recovery of an amount of Rs. 20,53,134/- along with interest thereon and other reliefs was filed by the plaintiff against the defendant. The defendant was served with summons of the said suit on 05. 12. 2005. An application for entering appearance along with an application for condonation of delay was filed by the defendant on 2. 1. 2006. The defendant was again served with summons of the suit on 24. 01. 2006.
( 4 ) THE defendant avers that though summons of the present suit were served upon it, there was no proper service of summons since copy of the plaint was served without documents and annexures to the plaint. The defendant further avers that on receipt of summons the same were sent to the lawyers of the Bank, namely, M/s. S. N. Gupta and Co. for further action in the matter. In the first week of December, 2005, the office premises of counsel for the defendant-bank was in the process of shifting from A-67, Second Floor, Defence Colony, New delhi to R-26, Ground Floor, NDSE Part II, New Delhi-110 049, and thus all the files and books were being packed for shifting purposes. In the aforesaid process of shifting, the fact that the present suit was filed under the provisions of Order XXXVII of the Code of Civil Procedure could not be noticed and the counsel for the defendant-bank remained under the impression that the suit was an ordinary suit and that the same was listed for written statement on 25. 02. 2006. On 23. 12. 2005, however, counsel for the defendant-bank received written instructions by E. mail from the office of the defendant-bank at parliament Street, New Delhi, attaching the summons of the suit. The said summons were seen and it was revealed that the same were under the provisions of order XXXVII of the Code of Civil Procedure. Thereupon, the present application for entering appearance alongwith an application for condonation of delay was drafted and sought to be filed on 27. 12. 2005. Since, however, the High Court of delhi was closed for winter vacation from 21. 12. 05 to 1. 1. 06, the applications for entering appearance and condonation of delay could not be filed, and the same were eventually filed on 2. 1. 2006, on the re-opening of the courts after the winter vacation.
( 5 ) THE applications are strongly contested by counsel for the plaintiff who in reply asserted that in the event delay in entering appearance is condoned, the plaintiff would be put to grave prejudice. It is alleged by the plaintiff that the applications of the defendant are a bundle of lies, that the defendant has acted in a most callous and negligent manner in prosecuting the present suit and is not entitled to the discretionary relief of condonation of delay in entering appearance. Even assuming without admitting that the office of the counsel for the defendant was in the process of shifting and in consequence thereof, counsel for the defendant was under the impression that it was an ordinary suit, the defendant which is a scheduled bank having law officers and a battery of lawyers must have been fully aware of its duties and