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2025 Supreme(Mad) 4377

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.S. SUNDAR, P. DHANABAL, JJ.
M/s.Benz Vaccations Club Public Limited - Appellant 
Versus 
M/s.Rayala Corporation Pvt. Ltd. - Respondent 
O.S.A.Nos.91 & 92 of 2024
Decided on : 29-01-2025
Advocate Appeared : 
For the Appellants : Mr.P.Valliyappan Senior Counsel for M/s.P.V.Law Associates
For the Respondent : Mr.K.P.Ashok

Advocates:
Advocate Appeared:
For the Appellants : Mr.P.Valliyappan Senior Counsel for M/s.P.V.Law Associates
For the Respondent: Mr.K.P.Ashok

Defendants' failure to pay rent and lack of valid reasons for delay in filing written statement justified dismissal of applications to set aside ex parte decree.

Headnote:(A) Civil Procedure Code, 1908 - Order IX Rule 13 - Dismissal of applications to set aside ex parte decree and condone delay - Defendants failed to appear and were set ex parte; plaintiffs sought possession and arrears of rent - Court found defendants' applications vague and lacking merit. (Paras 2, 6, 10)

(B) Ex parte Decree - Legal principles - Defendants must demonstrate bona fides and valid reasons for delay in filing written statement; failure to pay rent undermines their position. (Paras 8, 10)

Facts of the case:
The plaintiffs, private limited companies, filed a suit for possession and recovery of arrears of rent against the defendants, who failed to respond to summons and were set ex parte. The trial court decreed the suit ex parte, leading to the defendants' applications to set aside the decree and condone delay in filing their written statement.

Findings of Court:
The learned Judge dismissed the defendants' applications, noting their failure to pay rent and the lack of a valid explanation for the delay.

Issues: The main issues were whether the defendants could set aside the ex parte decree and whether the delay in filing the written statement could be condoned.

Ratio Decidendi: The court held that the defendants' continuous default in rent payments and vague reasons for delay did not warrant setting aside the ex parte decree. The conduct of the appellants was deemed relevant in exercising discretionary power.

Result: Appeals dismissed.

JUDGMENT :

S.S. SUNDAR, J.

The above Original Side Appeals have been preferred by the defendants in the suit in C.S.No.113 of 2022 aggrieved by the dismissal of applications filed by them in A.Nos.4254 and 4255 of 2023 to set aside the ex parte decree dated 19.10.2022 in the suit in C.S.No.113 of 2022 and to condone the delay of 188 days in filing the written statement in the suit in C.S.No.113 of 2022.

2. Brief facts that are necessary for the disposal of these Appeals are as follows :

The respondents 1 and 2 are Private Limited Companies. The respondents filed the suit in C.S.No.113 of 2022 against the appellants for the following reliefs :

(a) directing the defendants to deliver and hand over vacant possession of the suit schedule mentioned premises i.e. The 2nd floor premises (measuring a built up area of 11,195 sq.ft. With 11 car parkings (six covered and 5 open car parkings and common amenities) of the premises called “Rayala Towers” bearing No.158 (781-785), Anna Salai, Chennai – 2.

(b) directing the defendants to pay the sum of Rs.1,93,30,946/- being arrears of rent, licence fee, maintenance charges and EB charges due till April 2022 (after deducting security deposit)

(c) directing the defendants to pay the future damages for use and occupation at the same rate of Rs.10,00,000/- per month; from 1.5.2022 till the date of vacating and handing over vacant possession”

The suit property is a building in 2nd floor of the premises with a built up area of 11,195 sq.ft. with 11 Car Parkings (6 covered and 5 open Car Parkings along with common amenities) in the premises called “Rayala Towers”, Anna Salai, Chennai – 2. It is the case of the plaintiffs that the suit property was given to the appellants on lease and the appellants agreed to pay monthly rent of Rs.3,63,838/- for the period from 10.10.2013 to 30.09.2016 and then at Rs.4,18,469/- from 01.10.2016 and thereafter, at Rs.4,81,161/- with effect from 01.10.2019. The rent payable are excluding GST, Electricity Charges and other Utility Charges like Maintenance Charges, etc., payable by the defendants. Even though the plaint contains several allegations, this Court, for the present, need not go into those allegations as the suit is for ejectment alleging that the defendants have indulged in misusing the premises for illegal purposes and on the ground that the defendants have committed default in payment of regular monthly rent. After issuing notice of termination, the suit came to be filed for directing the defendants to deliver vacant possession of the schedule premises and for consequential reliefs.

3. It is not in dispute that the appellants, despite issuance of summons, did not appear. After taking note of the fact that defendants 1 and 2 had been served on 13.07.2022 but had not filed any written statement, the defendants were set ex parte on 09.09.2022. After the defendants were set ex parte, the plaintiffs in the suit were directed to tender evidence. The plaintiffs examined Mr.Gulab Dastagir, the Director of 2nd plaintiff, as P.W.1 and marked Exs.P1 to P17. After closing the evidence, the trial Court decreed the suit ex parte by judgment dated 19.10.2022, after elaborately discussing the case of plaintiffs and considering the evidence of the plaintiffs.

4. It is seen from the judgment dated 19.10.2022 that the findings of the trial Court are based on the evidence of P.W.1 and the documents filed through P.W.1. The trial Court, therefore, decreed the suit by issuing directions to the defendants to vacate the premises and hand over vacant possession of the suit property by granting three months’ time. The defendants were directed to pay a sum of Rs.1,10,54,489/- till the date of filing of the suit and thereafter, at the rate of Rs.6,69,969/- per month till the actual possession is taken over by the plaintiffs.

5. Thereafter, the Decree Holders filed Execution Petition in E.P.No.13 of 2023 in February, 2023. It was after the filing of the Execution Petition, the defendants 1 and 2

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