Allahbad High Court
N.N.MITHAL
Gulab Bai - Appellant
Versus
Moti Lal - Respondent
Decided On : 10/22/1982
O.17 R.3, C.P.C. - Absence of Defendant - Adjournment - Ex Parte Decree - Jurisdiction of Court - U.P. Regulations of Money Lending Act, S.26(4) - Certificate of Money Lending - Statement of Loan - Necessity.
Fact of the Case:
Plaintiff filed a suit for recovery of money based on two promissory notes. Defendant raised several pleas, including lack of jurisdiction and bar under the U.P. Regulations of Money Lending Act. The trial court rejected the defendant's application for adjournment and proceeded to decide the suit on merit, resulting in an ex parte decree.
Finding of the Court:
The court held that the trial court erred in proceeding under O.17 R.3, C.P.C. when the defendant was absent. The court also held that the trial court was not justified in passing the decree without considering the bar created by the U.P. Regulations of Money Lending Act, S.26(4), which requires the plaintiff to show that the loan amount was duly shown in the statement submitted to the prescribed authority.
Issues: 1. Whether the trial court had jurisdiction to proceed under O.17 R.3, C.P.C. when the defendant was absent? 2. Whether the trial court was justified in passing the decree without considering the bar created by the U.P. Regulations of Money Lending Act, S.26(4)?
Ratio Decidendi: 1. O.17 R.3, C.P.C. cannot be resorted to when the defendant is absent, even if the hearing was adjourned on the previous date to allow the defendant time to produce evidence or perform any other act necessary for the further progress of the suit. 2. Under S.26(4) of the U.P. Regulations of Money Lending Act, apart from the certificate of money lending, the plaintiff must also show that the amount of loan in suit was duly shown in the statement submitted by him before the prescribed authority.
Final Decision: The appeal was allowed. The judgment and decree of the trial court were set aside, and the matter was remanded for a fresh trial.
One of the pleas raised was that the document was not executed at Lalitpur as contended by the plaintiff but had been executed at Bhopal and the Court had no jurisdiction to try the suit. A legal plea was taken regarding the bar of U.P. Regulations of Money Lending Act.
2. After the issues had been framed in the case on 7-9-1977 the first date of hearing was fixed for 8-10-1977. On that date the defendant applied for adjournment on account of illness and the Court fixed 16-11-77. On that date the defendant moved an application 41-A by which the defendant prayed for filing handwriting experts report about the signature of the plaintiff on the receipt filed, by her. Another application was moved for directing the plaintiff to give specimen signature so that the same may be sent for examination by an expert. Both these applications were directed to be put up on 22-12-1977, as the court had no time that day. On that date the Presiding Officer was on leave and, therefore, the suit was directed to be put up on 21-1-1978. Prior to this also the defendant had moved an application 35-C as early as on 7-9-1977 for examination of the receipt signed by the plaintiff by an handwriting expert and for comparing the signature of the plaintiff thereon. No objection to this was filed and, ultimately, on 21-1-1978 when the case was taken up the plaintiff prayed for time to file necessary objection against this application on 28-1-1978 the plaintiff filed a reply which came up for orders on 4-2-1978. Again plaintiffs counsel wanted time, the Court fixed 18-2-1978 for disposal of the application. On that date also the case was adjourned. On 15-7-78 application 35-C was heard and the same was rejected. On the next date i.e. 19-4-1978 the defendant could not come and sought adjournment of the case and the same was allowed on payment of Rs. 75/as Costs. On the next date i.e. 3-5-78 the defendants counsel made an application for adjournment on the ground that defendant have not come up for some reasons and telegram had been received from the defendant that she was ill but this application was rejected on the ground that the defendant was adopting opting dilatory tactics. The court proceeded to decide the suit on merit and decreed the same. It is against this decree that the defendant has come up in First Appeal.
3. Learned counsel for the appellant has urged that in the circumstances of the present case the court had no jurisdiction to proceed under O.17, R.3, C.P.C. and the only made available to the court was to proceed under R.2 of O.17 by either passing an ex parte decree or to adjourn the suit. It is also submitted that the court has wrongly observed that the defendant had been adopting dilatory tactics and from a perusal of the record it would be apparent that she had not done any such thing. It was she who was being harassed by the plaintiff as she had to come from Bhopal to contest the case. She could not produce her evidence on the date fixed as she was ill on that date and this was a good reason to adjourn the hearing. Both the counsel have relied upon the Full Bench decision of this court in M.S. Khalsa v. Chiranji Lal (AIR 1976 Allahabad 290). Majority, view in this five Judges decision was delivered by Hon. K.B. Asthana, Chief Justice, Hon. Satish Chandra, 3. (as he then was) and Hon. H.N. Seth J. while the minority view was of Hon. R.L. Gulati and Hon. C.S.P. Singh JJ. The relevant portion of that decision which is applicable to the facts of the present case is as under:-
"So long as Rules 2 and 3 stand as they are, defectively though, I venture to suggest that -
(1) Rule 3 cannot be resorted to wh
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