IN THE HIGH COURT OF JUDICATURE AT MADRAS
S. SOUNTHAR, J.
UCAL Fuel Systems – Petitioner
Versus
Kintetsu Work Express (India) Pvt. Ltd. – Respondent
C.R.P. No. 34 of 2022, C.M.P. No. 215 of 2022
Decided On : 20-10-2022
Constitution of India,1950 - Article 227 - Civil Procedure Code,1908 - Order 37 Rule 4 - Seeking recovery - Chain management service - Respondent filed a summary suit under Order 37 of C.P.C., seeking recovery together with interest at the rate on said principal sum - Held, Mutual and running account and existence of agreement to avail a services of respondent as claimed in plaint averments etc. have to be gone into in a full fledged trial - Court comes to a definite conclusion that the petitioner is entitled to leave to defend the suit - Civil Revision Petition is allowed
ORDER :
Prayer: Civil Revision Petition filed under Article 227 of Constitution of India, pleased to pass an order setting aside the fair and decreetal order dated 02.12.2019 in I.A.No. 2 if 2019 in O.S.No. 4405 of 2019, on the file of the Court of learned XVI Additional City Civil Court, Chennai and consequently set aside the ex-parte decree dated 26.09.2019 in O.S.No. 4405 of 2019.
1. This Civil Revision Petition is filed challenging the order passed by the Court below dismissing the petition filed by the Civil Revision Petitioner under Order 37 Rule 4 of C.P.C seeking to set aside ex-parte decree passed against him on 26.09.2019 in a summary suit and also seeking leave to defend the suit.
2. The respondent herein filed a summary suit under Order 37 of C.P.C., seeking recovery of Rs.76,42,234.15/- together with interest at the rate of 18% p.a., on the said principal sum. According to the respondent/plaintiff it is a reputed freight forwarding logistics and supply chain management service provider in India and around the world. The petitioner/defendant is carrying on business, inter-alia, offering fuel management systems as well as manufacture of pumps, emission control parts and various components etc., for the automotive sector. It was averred in the plaint of the respondent that it agreed to deliver the petitioner's products to a “bonded warehouse” in El Paso, USA, to enable petitioner's customers (consignee) to collect the products from the bonded warehouse. As per the agreement, the consignment of the petitioner's products has to be shipped from Chennai Port to a bonded warehouse situated in a free trade zone in El Paso, U.S.A. from where the consignee namely, the petitioner's customers in U.S.A would collect the consignment. It was also agreed that all the charges including charges for use of bonded warehouse and handling charges for storage of petitioner's products quoted in U.S dollars have to be paid by the petitioners in rupee equivalent to the respondent in India. It was also agreed as per the agreement the products of the petitioner were shipped to and stored in bonded warehouse at El Paso, U.S.A. However, the petitioners products were not cleared from bonded warehouse by petitioner's customers (consignees). Hence, the consignment had been retained in bonded warehouse for some more time until the same was cleared by petitioner by making arrangement to bring the same to Chennai from U.S.A. The respondent averred in his plaint that from 08.08.2014 to 19.03.2018 as many as 32 invoices raised by the respondent remained unpaid for the services rendered by him under the agreement. The present summary suit was laid by respondent for recovery of the said amount. After service of summons in the suit, the petitioner failed to appear in response to the summons and hence it was set ex-parte on 07.08.2019. Subsequently, ex-parte decree was passed on 26.09.2019. Thereafter, the petitioner filed I.A.No. 2 of 2019 to set aside the ex-parte decree and also seeking leave of the Court to defend the suit on 15.10.2019. In support of the said petition petitioner had filed an affidavit wherein it was mentioned that after service of summons the suit came up for hearing for the first time on 07.08.2019. The counsel for the petitioner was unable to appear on 07.08.2019, as she misplaced the vakalat executed in her favour for appearance. Further it was stated that as the advocate who was engaged was suffering from some kind of illness, fresh vakalat could not be executed in her favour immediately. It was further averred on 12.09.2019 counsel appeared on behalf of the petitioner and made a request to the Court to adjourn the matter for a short time to enable the petitioner to file a petition to set aside ex-parte order passed against it on 07.08.2019. It was asserted that in pursuance of the request made by the counsel, the Court below pleased to adjourn the matter to 04.10.2019 under the caption ex-parte evidence. It was further averred that
Goyal MG Gases Ltd. vs. Premium International Finance Ltd. and Others
The need for a liberal construction of 'sufficient cause' under CPC Order IX Rule 7 to enable complete justice between the parties.
The main legal point established in the judgment is that leave to defend should not be refused unless the defendant's contentions are frivolous and do not raise any triable issue. The court emphasize....
Ex-parte judgment – Ex-parte judgment should show the application of minimum requirement of consideration of the pleadings, issues, evidence and the relief sought for rendering such judgment - Litiga....
The main legal point established in the judgment is that a party approaching the court must do so with clean hands and must not engage in forum shopping. Additionally, the judgment and decree passed ....
A party must show sufficient cause for delay in filing petitions, and lack of clean hands precludes relief.
Actual service of summons by registered post acknowledgment due is valid, even if defendants reside outside jurisdiction, and non-compliance with procedural rules does not equate to no service.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.