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2025 Supreme(Online)(Cal) 5520

CALCUTTA HIGH COURT
Hiranmay Bhattacharyya, J
Janardan Nirman Pvt. Limited – Appellant
Versus
Gannon Dunkerley and Co. Ltd. – Respondent
C.O. 1953 of 2025



Advocates:
For the Appellants/Petitioners: Mr. Sukanta Chakrabarty, Mr. Koushik Bhattacharyya, Mr. Biswajit Ghosh
For the Respondents: Mr. Partha Pratim Roy, Mr. Shubhojyoti Dutta, Ms. Anusuya Basu Dutta, Mr. Dyutiman Banerjee, Mr. Deb Kumar Deashi, Mr. Ronit Deyashi

Procedural due process requires all parties be notified of court hearings to ensure fair representation in proceedings.

Headnote:(A) Constitution of India - Article 227 - Civil Procedure Code - Order IX, Rule 6, 7 - Proceedings in the Commercial Court, where the counter claim was allowed to be contested despite previous ex parte proceedings - Court emphasized the importance of notifying parties of hearings and proper procedure to be followed mandating opportunity for all parties to appear - Procedural irregularity due to lack of notice to the defendant led to the court permitting the contestation of the counter claim. (Paras 6, 48, 59)

(B) Right to be Heard - The principle that no proceeding should be conducted in the absence of a party without due notification was upheld; the court allowed the opposite party to contest due to the procedural flaws that had occurred, stating that all parties must be informed of relevant dates to ensure fair proceedings. (Paras 18, 42, 46)

Facts of the case:
The defendant's counter claim was accepted, but proceedings went ex parte due to lack of notice. The Commercial Court restored the Money Suit for adjudication but failed to notify the opposite party of hearings thereafter.

Findings of Court:
The absence of notification constituted a violation of the procedural rights of the opposite party, justifying their contestation of the counter claim despite previous ex parte hearings.

Issues: Critical questions centered around whether the absence of notice allowed for the opposite party to contest the earlier ex parte proceedings and the standards for notifying parties in court procedures.

Ratio Decidendi: The court found that the lack of communication about hearing dates and neglect of producing an order for ex parte proceedings invalidated the prior proceedings, thus allowing the opposite party's contestation of the counter claim.

Result: The learned Judge, Commercial Court’s order allowing the opposite party to contest the counter claim was affirmed, and the hearing was directed to proceed in accordance with due process.

Table of Content
1. introduction of the case and procedural history. (Para 1 , 3 , 4)
2. arguments from both parties regarding procedural mishaps. (Para 8 , 9)
3. court's observations on notification failures and rights of parties. (Para 10 , 12 , 18)
4. final findings on procedural rights and affirmations. (Para 48 , 59)
5. final ruling and directions for further proceedings. (Para 60)

Hiranmay Bhattacharyya, J.:-

1. This application under Article 227 of the Constitution of India is at the instance of the defendant /counter claimant and is directed against an order being no. 41 dated April 5, 2025 passed by the learned Judge Commercial Court at Alipore, District 24 Parganas (S) in Money Suit no. 12 of 2022 which has been subsequently renumbered as M.S. (Com) no. 55 of 2022.

2. By the order impugned, the application filed by the opposite party herein praying for vacating the order of ex-parte hearing of the counter claim stood allowed.

3. The opposite party filed a suit being Money Suit no. 12 of 2022 before the learned Judge, Commercial Court at Alipore praying for a decree for recovery of money together with interest thereon. The petitioner appeared in the said suit and filed its written statement along with counter claim. The opposite party filed its written statement to the counter claim which was also accepted by the learned Trial Judge. The Money Suit no. 12 of 2022 was subsequently renumbered as M.S. (Com) 55 of 2022.

4. The Money Suit was dismissed by an order dated May 12, 2023.

5. Petitioner filed an application praying for fixing a date for adjudication of counter claim.

6. The learned Judge of the Commercial Court restored the Money Suit by an order dated 16th May, 2023. Thereafter, the evidence of the defendant’s witness was completed ex parte and the petitioner filed its notes of argument in respect of the counter claim on 20.11.2024. The learned Trial Judge fixed 22nd January 2025 for hearing the argument of the petitioner. On that date i.e., on 22nd January, 2025, the opposite party appeared before the Court and filed the application for vacating the order of ex-parte hearing of the counter claim against the plaintiff. Such application stood rejected by the impugned order.

7. Being aggrieved, by such order, the counter claimant has approached this Court.

8. Mr. Chakraborty learned advocate appearing for the petitioner contended that on 16.12.2022 the counter claim filed by the petitioner was accepted and on that very day the written statement to the counter claim filed by the opposite party was also accepted. He further contended that on and from 08.05.2023 and thereafter on consecutive dates till the final hearing of the argument of the counter claim on 22.01.2025 the opposite party did not take any steps either as a plaintiff in the Money Suit or as a defendant to the counter claim. He contended that since the Money Suit was dismissed due to non-appearance of the opposite party and nothing was mentioned about the counter claim in the said order, petitioner filed a put up petition for fixing a date for disposing of the counter claim and the learned Trial Judge restored the Money Suit on the case information system. He further contended that no valid explanation has been given in the vacating application as to why the opposite party did not appear on successive dates. He further contended that the hearing of the counter claim reached the final stage since the written notes of argument was already filed on November 20, 2024. He further contended that the application for vacating the ex-parte order was not maintainable as on the date of filing of the said application the suit had already crossed the stage of Order IX Rule 7. He placed reliance upon a decision in the case of Sangram Singh vs. Election Tribunal, Kotah and Another reported at AIR (1955) SC 425 in support of his contention that at the argument stage it would be improper to give an opportunity to the opposite party no. 1 to cross examine the witnesses of the petit

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