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IN THE HIGH COURT OF JUDICATURE AT MADRAS
M. NIRMAL KUMAR
Moonstar Lines Private Limited – Appellant
Versus
Barkath Exports, Rep. by its Prop: Mohamed Azharuddin – Respondent
ORDER :
M. NIRMAL KUMAR, J.
1.This Civil Revision Petition has been filed to set aside the order dated 01.02.2024 passed in E.A.No.1 of 2024 in E.P.No.9 of 2023 in C.O.S.No.373 of 2022 on the file of the Commercial Court.
2. The petitioners are the defendants in O.S. No. 7624 of 2019. They have suffered an exparte decree dated 09.01.2023. Thereafter, they filed an application to set aside the exparte decree on 31.01.2023 and the same is yet to be numbered. In the meanwhile, the respondent/plaintiff had initiated the execution proceedings in E.P.No.9 of 2023. In the Execution Petition also, the petitioners/defendants were set exparte by order dated 23.11.2023. Thereafter the petitioners filed E.A.No.1 of 2024 to set aside the exparte decree dated 23.11.2023 and the same was allowed on 01.02.2024 with condition that the petitioners shall make a fixed deposit of Rs.4,90,000/- on or before 15.03.2024. The said order could not be complied with within the stipulated time and hence the petitioners have filed the petition under Section 148 seeking extension of time till 30.03.2024 in E.A.No.1 of 2024. Finding that the condition has not been complied with in E.A. No.1 of 2024 the said applicat
Imposing onerous deposit conditions for setting aside exparte decrees is unwarranted and should be proportionate to ensure access to justice for the defendants.
Conditions for setting aside exparte decrees must be reasonable and facilitate participation in proceedings without imposing disproportionate deposit requirements.
Imposing costs as a condition to set aside an ex parte decree is unjust, especially when the preliminary decree is set aside, and the final decree does not render the revision infructuous.
The court has the power to impose conditions for setting aside an ex parte decree, but such conditions should be reasonable and not oppressive.
The court has discretion to set aside ex-parte decrees and impose conditions, but the conditions should not be onerous or excessive.
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