2011 Supreme(Del) 284
IN THE HIGH COURT OF DELHI
Mool Chand Garg, J.
Union of India (UOI) and Ors.
Vs.
Narula Udyog Pvt. Ltd.
FAO No. 187/2007
Decided On: 07.04.2011
For Appellant/Petitioner/Plaintiff: Preeti Dalal, Tanu Goswami, Jayashree Shukla and Maneesha Dhir, Advs.
For Respondents/Defendant: Sumit Bansal, Ateev Mathur and Vaibhav Arora, Advs.
Headnote:
Order 9 Rule 13 - Civil Procedure Code - 5, 80 - Summary of Acts and Sections: The court discussed the application filed under Order 9 Rule 13 of the Civil Procedure Code for setting aside the ex parte decree. The court referred to various judgments including Special Tehsildar, Land Acquisition, Kerala v. K.V. Ayisumma AIR 1996 SC 2750, Bank of India v. M/s Mehta Brothers and Ors. AIR 1991 DELHI 194, and Devendra Swamy v. Karnataka State Road Transport Corpn AIR 2002 SC 2545 to interpret the provisions of Section 5 of the Limitation Act and the concept of 'sufficient cause' for condonation of delay. The court emphasized the need for a liberal approach in interpreting sufficient cause and condoning delay, especially in cases involving government entities.
Fact of the Case:
The case involved an application filed under Order 9 Rule 13 of the Civil Procedure Code for setting aside an ex parte decree. The Appellants claimed they had no knowledge about the transfer of the case to the District Court and were not served with notices. The court had previously condoned the delay in filing the application under Section 5 of the Limitation Act.
Finding of the Court:
The court found that the Appellants had genuine and bonafide reasons for the delay and lack of appearance, and that the negligence of the counsel constituted sufficient cause for condoning the delay. The court also noted that the Appellants, being a government office, should not be penalized for the negligence of a clerk.
Issues: The main issue was whether the Appellants had sufficient cause for non-appearance and delay in filing the application under Order 9 Rule 13 of the Civil Procedure Code.
Ratio Decidendi: The court held that the concept of 'sufficient cause' for condonation of delay should be interpreted liberally, especially in cases involving government entities. The court emphasized the need to consider the impersonal approach in government departments and the bureaucratic methodology when assessing sufficient cause.
Final Decision: The court allowed the appeal, granted the application under Order 9 Rule 13 of the Civil Procedure Code, imposed heavy costs on the Appellants, and directed the amount already deposited to be kept intact for securing the decree in case the Appellants were not able to obtain a favorable order after contesting the suit on merits.
Mool Chand Garg, J.
1. The basic issue involved in this case is as to whether the Additional District Judge was justified in having dismissed the application filed by the Appellants under Order 9 Rule 13 Code of Civil Procedure for setting aside the expert decree dated 13.09.1996 passed against them despite having condoned the delay in filing of the said application vide order dated 11.11.1995 primarily by accepting the case of the Appellants that they had no knowledge about the transfer of civil suit which was originally filed by the Respondent against the Appellants in this Court to the District Court.
2. To appreciate the controversy between the parties it would be appropriate to take note of the order passed by the Additional District Judge dated 11.11.1995, whereby the Additional District Judge condoned the delay of about 8 years in filing the application under Order 9 Rule 13 Code of Civil Procedure. The reasons given by the Additional District Judge are as follows:
5. The Ld. Counsel for the Defendants/J Ds has argued that there was no knowledge of passing the judgment/decree against the Defendants since the Defendants were solely dependent upon their counsel and even no notice was issued to the Defendants after transfer of the case from the Hon. High Court of Delhi to the District Courts, Delhi. The Defendants have also filed copies of the letters and reminders written to the Government counsel on page No. 1 to 26 in support of their application. Ld. Counsel for the Defendants in support of his arguments has relied upon the judgment as reported in Special Tehsildar, Land Acquisition, Kerala, v. K.V. Ayisumma AIR 1996 SC 2750 it was held by the Hon. Supreme Court that 'it is now settled law that when the delay was occasioned at the behest of the Government, it would be very difficult to explain the day to day delay. The transaction of the business of the Government being done leisurely by officers who had no or evince no personal interest at different levels. No one takes personal responsibility in processing the matters expeditiously. As a fact at several stages, they take their own time to reach a decision. Even in spite of pointing at the delay, they do not take expeditious action for ultimate decision in filing the appeal. This case is one of such instances. It is true that Section 5 of the Limitation Act envisages explanation of the delay to the satisfaction of the court and in matters of Limitation Act made no distinction between the state and the citizen. Nonetheless adoption of strict standard of proof leads to grave miscarriage of public justice, it would result in public mischief by skillful management of delay in the process of filing the appeal. The approach of the Court would be pragmatic but not pedantic. Under those circumstance, the subordinate Judge had rightly adopted correct approach and had condoned the delay without insisting upon explaining every day's delay in filing the review application in the light of the law laid down by this Court. The High Court was not right in setting aside the order. Delay was rightly condoned'. In Bank of India v. M/s Mehta Brothers and Ors. AIR 1991 DELHI 194 In this case, ex parte decree was passed. Application was filed for setting aside ex parte decree stating reason that Defendant entrusted the case to a firm of solicitors-default of appearance once committed by lawyer continued on all subsequent dates - however Defendant, remaining under belief that its case was being conducted all along by its lawyers- Defendant, moment it was informed of passing of ex parte decree, taking immediate steps. It was held by the Hon'ble High Court of Delhi that so far as Defendant was concerned, there was sufficient cause for setting aside ex parte decree and condoning delay in filing application for setting aside decree'. In Devendra Swamy v. Karnataka State Road Transport Corpn AIR 2002 SC 2545, In this case, the lawyer engaged by the Respondent - Corporation was holding the p