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DELHI HIGH COURT
C. Hari Shankar, J.
(Video-Conferencing)
Tajunissa and Anr. – Plaintiffs
versus
Mr. Vishal Sharma and Ors. – Defendants
I.A. 7168 of 2019 in CS (OS) 262 of 2019
Decided on 23.7.2021

Counsel for the Parties:
For the Plaintiffs:Mr. Anupam Lal Das, Sr. Advocate with Mr. Abhey Narula, Advocate
For the Defendant:Mr. Ravi Gupta, Sr. Advocate with Mr. Mahip Datta Parashar, Mr. Sachin Jain and Ms. Sanya Lamba, Advocates
For the Defendant No.3: (Kotak Mahindra Bank Ltd.)

IMPORTANT POINT
It is open to a Court to examine, even before issuing summons, whether suit is required to be returned under Order VII Rule 10 or rejected for any of grounds contained in Order VII Rule 11 of CPC.

Headnote:

Civil Procedure Code, 1908 – Order VII Rules 10 and 11(d) – Return/Rejection of suit – It is open to a Court to examine, even before issuing summons, whether suit is required to be returned under Order VII Rule 10 or rejected for any of grounds contained in Order VII Rule 11 – It is open to Court to examine, even at this stage, whether suit is barred by Order VII Rule 10 or Order VII Rule 11 – Section 148A of CPC deals with right to lodge a caveat – This provision cannot, expressly or by necessary implication, deny defendant right of audience, to urge objections under Order VII Rule 11 even prior to issuance of summons in a suit – Order VII Rule 11 enumerates grounds on which maintainability of a suit can be questioned and its rejection sought – It is open to defendant to raise such an objection after summons are issued in a matter – However, when Court has in categorical terms held that even prior to issuing summons, suit may be rejected on the grounds envisaged in Order VII Rule 11, there cannot be any bar to Court hearing defendant in that regard, ifthe defendant is present.

Held: The first issue, in my considered opinion, stands squarely answered by paras 18 to 20 of Bright Enterprises1, on which Mr. Das himself places reliance. These paragraphs clearly hold that summons are required to be issued in every suit duly instituted except where the suit is returned under Order VII Rule 10 or rejected under Order VII Rule 11. Clearly, therefore, it is open to a Court to examine, even before issuing summons, whether the suit is required to be returned under Order VII Rule 10 or rejected for any of the grounds contained in Order VII Rule 11. The submission, of Mr. Das, that summons have to be issued in every suit which is “duly instituted” is, therefore, without substance and is accordingly rejected. It is open to the Court to examine, even at this stage, whether the suit is barred by Order VII Rule 10 or Order VII Rule 11.

Section 148A of the CPC deals with the right to lodge a caveat. The provision opens with the words “where an application is expected to be made, or has been made, in a suit or proceeding instituted, or about to be instituted”. The provision goes on to say that before any such application, in a suit which stands instituted or is about to be instituted, is heard, a person affected by the outcome of the application may claim a right of hearing in a caveat. We are not concerned with any such application. Even otherwise, this provision, in my view, cannot, expressly or by necessary implication, deny the defendant a right of audience, to urge objections under Order VII Rule 11 even prior to the issuance of summons in a suit.

Given this position, it appears a trifle incongruous to deny the Court the opportunity of hearing the defendant in that regard, even if the defendant is present. This appears, to me, to be straining the CPC to breaking point, and far beyond its legitimate limits. Order VII Rule 11 enumerates grounds on which the maintainability of a suit can be questioned and its rejection sought. No doubt, it is open to a defendant to raise such an objection after summons are issued in a matter. However, when the Court has in categorical terms held that, even prior to issuing summons, a suit may be rejected on the grounds envisaged in Order VII Rule 11 (which position Mr. Das, too, acknowledges), there cannot, in my view, be any bar to the Court hearing the defendant in that regard, if the defendant is present. If the submission of Mr. Das were to be accepted, it would mean that, despite the presence of the defendant, the Court has to decide the maintainability of the suit under Order VII Rule 11 without hearing the defendant and only by hearing the plaintiff. This, in my view, is not a position which flows from any provision of the CPC to which Mr. Das has invited my attention. Even more empirically, it would also deny the right of the Court to competent legal assistance, despite its availability, which is fundamental to administration of justice. (Paras 7, 10 and 13)

Result: Directions issued.

ORDER (ORAL)

C. Hari Shankar, J.—Mr. Ravi Gputa, learned Senior Counsel for the Defendant No.3 submitted, at the outset of these proceedings, that this suit was liable to be rejected under Order VII Rule 11(d) of the Code of Civil Procedure, 1908 (CPC) and that, therefore, summons were not required to be issued.

2. Mr. Anupam Lal Das, learned Senior Counsel for the plaintiff advances two submissions, reacting to the submission of Mr. Gupta. His first submission is that Mr. Gupta does not have any right of audience at this stage, as the defendant, under the CPC, cannot be heard unless summons are issued to the defendant or the defendant has filed a caveat. As Mr. Das’s submission was that this position flows from a reading of the CPC, the Court queried, to Mr. Das, regarding the provisions of the CPC on which he sought to place reliance to support the submission that the Court could not grant an audience to Mr. Ravi Gupta at this stage. Mr. Das cites, in his support, Sections 26, 27, 148A and Order V Rule 1 of the CPC. These provisions, for ready reference, may be reproduced thus:

“26. Institution of suits. —

(1) Every suit shall be instituted by the presentation of a plaint or in such other manner as may be prescribed.

(2) In every plaint, facts shall be proved by affidavit.

Provided that such an affidavit shall be in the form and manner as prescribed under Order VI of Rule 15A.

27. Summons to defendants.—Where a suit has been duly instituted, a summons may be issued to the defendant to appear and answer the claim and may be served in manner prescribed on such day not beyond thirty days from date of the institution of the suit.

148A. Right to lodge a caveat.—

(1) Where an application is expected to be made, or has been made, in a suit or proceeding instituted, or about to be instituted, in a Court, any person claiming a right to appear before the Court on the hearing of such application may lodge a caveat in respect thereof.

(2) Where a caveat has been lodged under sub-section (1), the person by whom the caveat has been lodged (hereinafter referred to as the caveator) shall serve a notice of the caveat by registered post, acknowledgement due, on the person by whom the application has been, or is expected to be, made, under sub-section (1).

(3) Where, after a caveat has been lodged under sub-section (1), any application is filed in any suit or proceeding, the Court, shall serve a notice of the application on the caveator.

(4) Where a notice of any caveat has been served on the applicant, he shall forthwith furnish the caveator at the caveator’s expense, with a copy of the application made by him and also with copies of any paper or document which has been, or may be, filed by him in support of the application.

(5) Where a caveat has been lodged under sub-section (1), such caveat shall not remain in force after the expiry of ninety days from the date on which it was lodged unless the application referred to in sub-section (1) has been made before the expiry of the said period.

Order V - Issue and service of summons

Issue of Summons

1. Summons

(1) When a suit has been duly instituted, a summons may be issued to the defendant to appear and answer the claim and to file the written statement of his defence, if any, within thirty days from the date of service of summons on that defendant:

Provided that no such summons shall be issued when a defendant has appeared at the presentation of plaint and admitted the plaintiff’s claim:

Provided further that where the defendant fails to file the written statement within the said period of thirty days, he shall be allowed to file the same on such other day as may be specified by the Court, for reasons to be recorded in writing, but which shall not be later than ninety days from the date of service of summons.

Provided further that where the defendant fails to file the written statement within the said period of thirty days, he shall be allowed to file the written statem

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