SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2016 Supreme(Ori) 192

IN THE HIGH COURT OF ORISSA, CUTTACK
K.R. MOHAPATRA, J.
M/s. The Utkal Oil & Chemicals Industries, Jagatpurand another - Appellants
Versus
The Syndicate Bank, Choudhury Bazar - Respondent
FAO NO. 179 OF 2004
Decided on : 29-04-2016

Advocates Appeared:
For the Appellants :M/s. B.K. Mohanty, U.K. Samal, B.R. Barik, N.P. Ray & B. Patnaik. For the Respondent: M/s. B.N. Udgata & S. Mohanty.

The jurisdiction of the Civil Court to entertain a petition under Order 9 Rule 13 C.P.C. is ousted when the amount due to the bank is not less than Rs.10.00 lakh, and the proper procedure is to present the petition before the Tribunal.

Headnote:

C.P.C. - Jurisdiction of Civil Court - Sections 18 and 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 - Summary

Fact of the Case:

The appeal challenges the rejection of an application under Order 9 Rule 13 read with Section 151 of the C.P.C. by the learned Civil Judge. The respondent-Bank filed a suit for realization of Rs.6,37,393.75 together with pendente lite and future interest. The suit was decreed ex parte, and the defendants filed a petition under Order 9 Rule 13 C.P.C. after receiving intimation of the ex parte judgment and decree.

Finding of the Court:

The court found that there was no effective service of summons on the defendants under Order 5 Rule 20 C.P.C. However, the court held that the petition under Order 9 Rule 13 C.P.C. cannot be disposed of in favor of the defendants due to the provisions under Sections 18 and 19 of the Act, 1993.

Issues: The main issue was whether the Civil Court had jurisdiction to entertain a petition under Order 9 Rule 13 C.P.C. in view of the provisions under Sections 18 and 19 of the Act, 1993.

Ratio Decidendi: The court held that when the amount due to the bank is not less than Rs.10.00 lakh, the jurisdiction of the Civil Court is ousted to entertain an application under Order 9 Rule 13 C.P.C. The proper procedure, if the decree is for an amount not less than Rs.10.00 lakh, would have been to return the petition to be presented before the Tribunal.

Final Decision: The impugned order was set aside, and the matter was remitted back to the learned Civil Judge to reconsider the application in the light of the discussions made, by giving an opportunity of hearing to the parties concerned. The appeal was allowed, but there was no order as to costs.

JUDGMENT :

K.R. Mohapatra, J.

Order dated 25.3.2004 passed by the learned Civil Judge (Senior Division), Titilagarh in MJC No. 4 of 2001 rejecting an application under Order 9 Rule 13 read with Section 151 of the C.P.C. is under challenge in this appeal.

2. The factual matrix which gives rise to this appeal is that T.S. No. 29 of 1988 was filed by the respondent-Bank in the court of learned Civil Judge (Senior Division), Titilagarh for realization of Rs.6,37,393.75 together with pendente lite and future interest. The suit was decreed ex parte on 5.01.1995 and the defendants appellants were directed to pay a sum of Rs.6,37,393.75 together with pendente lite and future interest at the contractual rate with cost. By Letter No. 338/20/9597/REC/AG/2001 dated 22.02.2001, the Asst. General Manager, Zonal Office of the respondent-Bank intimated the defendant-appellant no. 2 about the ex parte judgment and decree passed in T.S. No. 29 of 1988. Thereafter, a petition under Order 9 Rule 13 read with Section 151 of the C.P.C. (MJC No. 4 of 2001) was filed by the defendants-appellants stating, inter alia, that the defendant-appellant no. 2 was the proprietor of M/s. The Utkal Oil and Chemical Industries, Jagatpur, Cuttack (appellant no. 1). Due to the alleged non-payment of loan dues, T.M.S. No. 376 of 1978 was filed by the respondent in the court of learned Civil Judge (Senior Division), Cuttack for realization of the loan dues along with other reliefs. The said suit was dismissed for default on different occasions. Lastly, after restoration of the suit on 3.4.1984, the respondent filed a petition for return of the plaint, which was allowed by order dated 16.3.1988. Thereafter, T.S. No. 29 of 1988 was filed in the court of learned Civil Judge (Senior Division), Titilagarh for the aforesaid relief. The summons issued to the defendants (appellants herein) returned un-served with a report of the Process Server that the defendant-appellant no. 1 was not in existence and defendant-appellant no. 2 was not residing in the given address. Thus, learned Civil Judge directed to take out notice with correct address. The respondent without complying with the same prayed for taking out substituted notice under Order 5 Rule 20 C.P.C. which was mechanically allowed by order dated 3.9.1994. Consequently, there was publication of notice in Odia daily News Paper, “Dharitri” dated 27.9.1994. Considering the same, the defendant-appellants were set ex parte on 16.11.1994. It would be relevant to mention here that the suit against defendant no. 3, who was the sole guarantor, had already been abated due to non-substitution. Subsequently, ex parte judgment was passed on 23.12.1994 against the defendants-appellants and they were directed to pay a sum of Rs.6,37,393.75 with cost together with pendente lite and future interest at the contractual rate. As no notice was ever served on the defendants-appellants, they could not know about the ex parte judgment and decree. The appellant no. 1-Industry had been closed down since last 20 years and three years before the Industry was closed, the appellant no. 2 had started staying in Calcutta with his wife, as he was incapacitated in an accident. After a lapse of seven years of the ex parte judgment and decree dated 23.12.1994/5.1.1995, the Asst. General Manager, Zonal Office of respondent-Bank vide Letter No. 338/20/9597/REC/AG/2001 dated 22.2.2001 intimated the appellant no. 2 about the ex parte judgment and decree in his Calcutta (now Kolkata) address. Thus, the appellant No.2 came to know about the same and after making a detailed enquiry and inspection of the case record, the appellants filed the petition under Order 9 Rule 13 C.P.C.

3. The respondent as opposite party filed objection denying the assertion made in the petition under Order 9 Rule 13 C.P.C. It was contended that notice was duly served on the defendants-appellants in their address at Cuttack and Titilagarh. Further, a substituted notice under Order 5 Rule 20





























Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top