IN THE HIGH COURT OF JUDICATURE AT MADRAS
J. NISHA BANU, J.
L. Kuberan, S/o. Late Loganathan - Petitioner
Versus
M/s Kumbhat Financial Services Ltd., Rep. By its Director Uma Maheswari – Respondent
C.R.P. (PD) No.520 of 2019 and C.M.P.No.3372 of 2019
Decided On : 23-08-2022
Civil Revision Petition - Setting Aside Exparte Decree - The court allowed the Civil Revision Petition and set aside the exparte decree on the condition that the petitioner/defendant shall deposit a sum of Rs.12,00,000 to the credit of the suit within two weeks from the date of receipt of the order.
Fact of the Case:
The petitioner/defendant filed a Civil Revision Petition against the order of dismissal passed in I.A.No.5424/2017 in O.S.No.528/2014, seeking to set aside the exparte decree. The suit was filed by the respondent/plaintiff for recovery of money, and the exparte decree was passed against the petitioner/defendant as he did not receive the summons and was not aware of the decree until a later date.
Finding of the Court:
The court found that the petitioner/defendant had admitted to borrowing money and signing promissory notes, but claimed to have made payments which were not contested in the suit. The court, in the interest of justice, allowed the Civil Revision Petition and set aside the exparte decree on the condition of a deposit of Rs.12,00,000 to the credit of the suit.
Issues: The issues involved the failure of the petitioner/defendant to receive summons, the alleged fraudulent manner in which the exparte decree was obtained, and the repayment of the loan amount by the petitioner/defendant.
Ratio Decidendi: The court considered the admission of borrowing money and signing promissory notes by the petitioner/defendant, the lack of contestation in the suit, and the interest of justice in allowing the petitioner/defendant to defend the suit.
Final Decision: The Civil Revision Petition was allowed, and the exparte decree dated 18.07.2014 was set aside on the condition of a deposit of Rs.12,00,000 to the credit of the suit within two weeks, with the direction for the Trial Court to dispose of the suit within six months.
ORDER :
(Prayer : Civil Revision Petition filed under Section 115 Civil Procedure Code, against the order and decreetal order dated 03.08.2018 made in I.A.No.5424/2017 in O.S.No.528/2014 on the file of the VI Additional City Civil Court, Chennai.)
This Civil Revision Petition has been filed by the petitioner/defendant challenging the order of dismissal passed in I.A.No.5424/2017 in O.S.No.528/2014 dated 03.08.2018 passed by the learned VI Additional Judge, City Civil Court, Chennai, thereby dismissing the petition to set aside the exparte decree.
2. Facts leading to filing of the present Civil Revision Petition are as follows:-
The suit is of the year 2014 and it has been filed by the respondent/plaintiff for recovery of money. The petitioner/defendant has not received summons in the suit and as such he was set exparte. He came to know about the exparte decree only on 18.07.2014. Thereafter, the petitioner/defendant filed an application in I.A.No.15338 of 2015 in O.S.No.528 of 2014, to condone the delay of 417 days in filing the petition to restore the above suit. The learned Judge, considering the averments made in the petition, allowed the same on 06.04.2017 with cost of Rs.1,000/- payable by the petitioner/defendant to the District Legal Aid Fund, Chennai. Upon making payment of cost, the petitioner herein filed an application in I.A.No.5424 of 2017 to set aside the exparte decree dated 18.07.2014. The said petition was dismissed on 03.08.2018, by the learned Judge, on the ground that the petitioner/defendant has not shown sufficient cause to set aside exparte decree passed against him.
3. The learned counsel for the petitioner/defendant would submit that the petitioner is doing Real Estate business and other allied business. For developing the said business, he borrowed money from the respondent/plaintiff, by executing pro-note. While paying the loan amount, the respondent obtained signature in number of blank pro-notes from the petitioner and agreed to return the same, after repayment. On the strength of the same, the petitioner/defendant has signed the blank pro-notes. Thereafter, the petitioner/defendant made number of payments in cash towards repayment of loan, and the respondent/plaintiff refused to give necessary receipts for one reason or the other. On the other hand, with the help of such pro notes, the respondent/plaintiff has filed 5 suits against the petitioner/defendant, on the same cause of action. Since the petitioner/defendant is doing business outside Chennai limit, like Vandavasi, Cheyyar and Thiruvannamalai, he is not available at Chennai and he was not served with any summons in all the suits. He would further submit that the respondent/plaintiff in a fraudulent manner obtained the exparte decree and trying to sell the immovable property belongs to the petitioner/defendant through public auction. Therefore, he prayed to set aside the exparte decree.
4. The learned counsel for the respondent/plaintiff would submit that the suit has been filed for recovery of money. The suit was taken on file in O.S.No.528 of 2014 and the summons sent to the defendant were returned. Hence, paper publication was ordered. Even after, paper publication, the petitioner/defendant has not turned up and therefore, the Trial Court has passed the exparte decree on 18.07.2014. It is established that the petitioner/defendant had received the loan consideration by means of RTGS under UTR No.LAVBH10720000769 from A/c. No.0427351000008374 from the respondent/plaintiff, by executing promissory note. In respect of the said promissory note, the petitioner/defendant did not pay any money whatsoever either towards principal or towards interest. Further, the petitioner/defendant is not certain about the payments alleged to have been made to the respondent/plaintiff.
5. On perusal of records, it is seen that the suit is pending from the year 2014. The defendant admits the borrowal of money and the signature in the promissory notes. Though the defenda
The court has the discretion to set aside an exparte decree in the interest of justice, allowing the petitioner/defendant to defend the suit by imposing conditions such as a deposit to the credit of ....
The defendant's right to defend the litigation and the timely filing of the petition and written statement are valid reasons to set aside an exparte decree.
The importance of a valid and reasoned judgment in compliance with procedural requirements, considering the substantial rights of the parties and the hardship caused to the plaintiff due to the delay....
The main legal point established is the court's discretion to condone delay in filing a petition, considering the circumstances and the impact on subsequent purchasers.
The court upheld the dismissal of a condonation petition due to fabricated claims regarding knowledge of an ex-parte order and inordinate delay.
Conditions for setting aside an ex parte decree must be reasonable, and delays in filing applications must be adequately explained.
The court has the discretion to set aside an ex-parte decree based on the reasons provided by the petitioners and the principles of law, while also considering the inconvenience caused to the respond....
Court emphasized the liberal interpretation of 'sufficient cause' for delays and the importance of justice in setting aside ex-parte decrees.
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