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1950 Supreme(All) 216

IN THE HIGH COURT OF ALLAHABAD
Agarwala and P. L. Bhargava, JJ.
BIPTI - Appellant
Versus
KALI DIN - Respondents
Civil Revn. 558 Of 1949
Decided On : 08/07/1950

Advocates Appeared:
M.N.Raina, S.C.KHARE

Headnote:

SMALL CAUSE COURTS ACT - SECTION 17 - EX PARTE DECREE - SETTING ASIDE - CONDITIONS - SUBSTANTIAL COMPLIANCE - INTERPRETATION.

Fact of the Case:

An ex parte decree was passed against the applicant on 20-1-1949. On 4-2-1949, the applicant made an application for setting aside the ex parte decree and for permission to furnish security in respect of the decretal amount. The Court passed an order allowing the applicant to file a security bond and asked for the plaintiff's objection, if any. The plaintiff objected to the security bond and the application for setting aside the ex parte decree on the ground that permission to furnish security had not been obtained prior to the application and the security bond had not been filed along with the application, as required by Section 17 of the Provincial Small Cause Courts Act. The lower Court dismissed the application on the sole ground that it was not maintainable.

Finding of the Court:

The Court held that the application for setting aside the ex parte decree was maintainable as the applicant had substantially complied with the requirements of Section 17 of the Provincial Small Cause Courts Act. The Court interpreted Section 17 to mean that the direction of the Court as to the security to be furnished and the actual furnishing of security must be done within the period of limitation, but the application for setting aside the ex parte decree could be made before the direction of the Court is obtained or the security is actually furnished, provided that the security bond is filed or the cash is deposited within the period of limitation.

Issues: Whether the application for setting aside the ex parte decree was maintainable despite the applicant's failure to obtain permission to furnish security and file the security bond along with the application, as required by Section 17 of the Provincial Small Cause Courts Act.

Ratio Decidendi: The Court held that the provisions of Section 17 of the Provincial Small Cause Courts Act were substantially complied with in the present case because the direction of the Court as to the security to be furnished was taken, the security was furnished, and the application for setting aside the ex parte decree was made within the period of limitation. The Court interpreted Section 17 to mean that the direction of the Court and the furnishing of security must be done within the period of limitation, but the application for setting aside the ex parte decree could be made before these requirements were met, provided that they were fulfilled within the limitation period.

Final Decision: The Court allowed the revision petition, set aside the order of the lower Court, and held that the application for setting aside the ex parte decree was maintainable. The Court directed the lower Court to proceed to decide the application on the merits.

AGARWALA, J.

( 1 ) THIS is an application against an order of the Judge, Small Cause Court, Allahabad, rejecting an application for the setting aside of an ex parte decree,

( 2 ) AN ex parte decree was passed against the applicant on 20-1-1949. On 4-2-1949 the applicant made an application in which the prayer was as follows: "it is, therefore, prayed that the Court be pleased, after directing the applicant if it approves of the security bond regarding its sufficiency or otherwise, to restore the case to its original number so that the defendant may contest the claim which is entirely incorrect. "

( 3 ) ALONG with the application the draft of a security bond was filed. On the same date the Court passed the following order: "allowed to file security. Ask for plaintiffs objection if any. " accordingly, on 19-2-1949, the applicant filed a security bond in terms of the draft submitted by him. Notice was then issued upon the application for the setting aside of the ex parte decree to the plaintiff. When the plaintiff appeared he objected to the security bond as also to the application for the setting aside of the ex parte decree on the ground that permission to furnish security in respect of the decretal amount had not been obtained prior to the making of the application for the setting aside of the ex parte decree, and the security bond also had not been filed along with the application for the setting aside of the ex parte decree, as required by Section 17, Provincial Small Cause Courts Act. The lower Court gave effect to the plaintiffs objection and dismissed the application on the sole ground that it was not maintainable. Against this order the applicant has come up in revision to this Court.

( 4 ) THE contention raised on behalf of the applicant is that although his application for the setting aside of the ex parte decree and for permission to furnish security in respect of the decretal amount was written on one piece of paper, in fact, they were two applications and since he had asked for the permission of the Court to allow him to furnish security as the first prayer in his application and had asked the Court to set aside the ex parte decree only after his first prayer were granted, it should be deemed that he had made the application for direction to furnish security prior to his application for the setting aside of the ex parte decree. His submission further is that although he furnished the security bond on 9-2-1949 it should be deemed that he had substantially complied with the provisions of Section 17, and, that, therefore, his application for the setting aside of the ex parte decree should have been allowed.

( 5 ) SECTION 17, Provincial Small Cause Courts Act was amended by Act IX [9] of 1935. Before the amendment it stood as follows :

"the procedure prescribed in the Code of Civil Procedure, 1908, shall, save in so far as is otherwise provided by that Code or by this Act, be the procedure followed in a Court of Small causes in all suits cognizable by it and in all proceedings arising out of such suit. Provided that an applicant for an order to set aside a decree passed ex parte or for a review of judgment shall, at the time of presenting his application, either deposit in Court the amount due from him under the decree of in "pursuance of the judgment, or give security to the satisfaction of the Court for the performance of the decree or compliance with the judgment as the Court may direct. " after the amendment the words underlined (here italicised) above have been deleted and in their place the following words have been substituted : "give such security for the performance of the decree or compliance with the judgment as the court may, on a previous application made by him in this behalf, have directed. "

( 6 ) BOTH before the amendment as well as after it, the section required one or two things to be done in order that an application for the setting aside of an ex parte decree may be competently made. He must, at the tim





















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