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IN THE HIGH COURT OF DELHI
Rajiv Sahai Endlaw, Amit Bansal, JJ.
Grand Auto Capital - Appellant
Versus
Jindal Dyechem Industries Pvt. Ltd. - Respondent
FAO (COMM) 20 of 2021 and CM No. 11388 of 2021 (for recalling of the order dated 9 February, 2021)
Decided On : 20-05-2021




The court clarified that an ex-parte decree can only be set aside if necessary to enable the defendant to contest the claim, and the absence of a defense justifies upholding the decree.

Headnote:(A) Code of Civil Procedure, 1908 - Order IX Rule 13 - Ex parte decree - Dismissal of application for setting aside decree of ejectment and mesne profits - Appellants alleged non-service of summons; however, possession was confirmed and appeal dismissed in default. (Paras 1, 3, 10, 24)

(B) Judicial interpretation - An ex-parte decree is to be set aside only if a ground is made, and if necessary, to enable the defendant to contest the claim; here, the appellants had no valid defense. (Paras 26, 27)

(C) Mesne profits - Modification of ex-parte decree reducing rates of mesne profits from Rs.30,000/- to Rs.7,18,750/- per month for specified duration, to ensure justice. (Paras 27, 30)

Facts of the case:
Appeal arose from the dismissal of a defendants' application to set aside an ex-parte decree for ejectment and recovery of rent/mesne profits, where the appellants claimed non-receipt of summons for the suit.

Findings of Court:
The court validated the ex-parte decree regarding ejectment, while only modifying the rates of mesne profits.

Issues: Main questions included whether the appellants were served summons and the appropriateness of the decree for mesne profits.

Ratio Decidendi: The court concluded that appellants failed to meet the requisite grounds for setting aside the ex-parte decree as they possessed the premises when decree was enacted.

Result: Appeal dismissed with modification of the mesne profits.

Table of Content
1. background of appeal against ex parte decree. (Para 1 , 2)
2. procedural history of the appeal. (Para 3 , 4)
3. contentions of appellants regarding non-service of summons. (Para 11 , 12)
4. claims of appellants concerning access to premises. (Para 19 , 20 , 21)
5. court's reasoning on rent payment obligations. (Para 22 , 24 , 25)
6. modification of ex parte decree on mesne profits. (Para 27)
7. directive for modification in execution. (Para 30 , 31)

JUDGMENT

[VIA VIDEO CONFERENCING]

Rajiv Sahai Endlaw, J. This appeal was filed, impugning the order (dated 26th October, 2020 of the Commercial Court, North West District, Delhi, in Misc. D.J No. 223/2020 in CS (COMM) No. 77/2019) of dismissal of an application of the appellants/defendants under Order IX Rule 13 of the Code of Civil Procedure, 1908 (CPC) for setting aside of the ex parte decree dated 19th February, 2020 of ejectment of the appellants/defendants from immovable property (earlier in the tenancy of the appellants/defendants under the respondent/plaintiff on the terms and conditions contained in the registered lease deed between the parties) and for recovery from the appellants/defendants, of arrears of rent and mesne profits.

2. It was the case of the appellants/defendants, that they learnt of the ex-parte decree, only on receiving notice of the petition filed for execution thereof and were never served with the summons of the suit.

3. Notice of this appeal was ordered to be issued. However, finding (i) that none appeared for the appellants/defendants on 27th January, 2021 and on 1st February, 2021 and, (ii) that the appellants/defendants, when appeared, were not resisting delivery of possession and that the mesne profits decreed were only marginally above the agreed rent, when none appeared for the appellants/defendants on 9th February, 2021 also, the appeal was dismissed in default.

4. The appellants/defendants filed CM 11388/2021 for restoration of the appeal. The said application came up before us on 22nd March, 2021 but on which date the counsel for the appellants/defendants, when asked to argue on the appeal itself, sought adjournment. On 22nd March, 2021, inter alia the following order was passed:

    "5. We have already recorded our observations in the order dated 9th February, 2021, though dismissing the appeal in default.

    6. On enquiry, the counsel for the respondent states that possession has not been delivered, as yet.

    7. We have enquired from the counsel for the appellants, whether has any objection to delivery of possession of the premises to the respondent.

    8. The counsel for the appellants states that the appellants are not in possession. On enquiry, who else is in possession, the counsel has no answer. On further enquiry, whether there is any document of handing over of possession to the respondent, the counsel for the appellants states that though there is no such document, but there is an email.

    9. The counsel for the respondent states that premises where the appellants were earlier running a Skoda showroom, are lying locked and the Executing Court has issued warrants of possession, giving opportunity to the appellants to remove their goods inside the premises, by 25th March, 2021.

    10. The counsel for the appellants has no objection to the respondent breaking open the locks and doors on its own without waiting for the same to be done in execution and to enter into possession.

    11. The respondent may accordingly so enter into vacant, peaceful and physical possession of the premises today itself and would be deemed to have been put in possession of the premises today, without prejudice to the rights and contentions of the parties.

    12. Now, the counsel for the appellants states that the plant and machinery of the appellants are lying inside the premises and time be given to remove them.

    13. The same exposes the falsity of the claim earlier being made by the appellants of not being in possession of the premises. Had the appellants been not i

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