1
IN THE HIGH COURT OF KARNATAKA
DHARWAD BENCH
DATED THIS THE 29TH DAY OF MARCH, 2022
PRESENT
THE HON’BLE MR.JUSTICE S. SUNIL DUTT YADAV
AND
THE HON’BLE MRS.JUSTICE K.S. HEMALEKHA
COM.AP No.100008/2021
BETWEEN:
M/s.S.S.Muchandi Engineers & Contractors
A Partnership Firm having its registered office
at Anand Vijay Apartment, 1930, ‘E’ Ward,
13th Lane, Rajarampuri, Dist: Kolhhapur,
State: Maharashtra – 416 008.
Rep. by its Partner Sri. Shrijeet S. Muchandi
Age: 46 years, Occ: Business,
R/o Anand Vijay Apartment,
1930, ‘E’ Ward, 13th Lane,
Rajarampuri, Dist: Kolhhapur,
State : Maharashtra – 416 008. …. Defendant/Appellant
(By Sri. K.L.Patil, Advocate)
AND:
M/s. South West Mining Limited
A Company incorporated
under the Companies Act,1956
And having its registered office
near Talur Cross,P.O. Vidyanagar,
2
Ballari – 583 275.
Rep. by its Authorised Signatory ... Plaintiff/Respondent
(By Sri Prashant F Goudar, Advocate)
THIS APPEAL IS FILED UNDER SECTION 13 (1A) OF
THE COMMERCIAL COURTS ACT, 2015 PRAYING TO SET
ASIDE THE JUDGMENT AND DECREE DATED 19.03.2021
PASSED BY THE LEANRED IV Addl. DISTRICT AND SESSIONS
JUDGE (COMMERCIAL COURT) AT BALLARI, IN COMMERCIAL
O.S.NO.3/2021 AND REMIT THE MATTER BACK TO THE TRIAL
COURT ETC.
THIS APPEAL COMING ON FOR ORDERS THIS DAY,
S.SUNIL DUTT YADAV J., DELIVERED THE FOLLOWING:
The appellant who is the defendant before the trial
court has assailed the judgment and decree passed in
Commercial O.S.No.3/2021 dated 19.03.2021 whereby the
suit of the plaintiff came to be decreed in part with costs.
It was declared that the defendant was liable to pay a sum
of Rs.9,09,67,869/- along with interest at 18% per annum
from 31.03.2018 till the date of realization.
2.
The parties are referred to by their ranks
before the trial court for the purpose of convenience.
3
3.
The suit for recovery came to be decreed as
above stated. The admitted facts being that the defendant
was placed exparte in the proceedings before the trial
court.
4.
The plaintiff is stated to be a Company
registered under the Companies Act and the defendant is a
Partnership Firm. The defendant is stated to have been
awarded contract by Mysore Minerals Limited (now
renamed as Karnataka State Minerals Corporation Limited)
for excavation of Iron Ore at Subbarayanahalli Iron Ore
Mines. The defendant vide work order dated 09.12.2014
awarded the sub-contract of deployment of Heavy Earth
Moving Machinery on hire basis for different periods of
time in favour of the plaintiff company. It is submitted
that disputes arose relating to the said contract and for the
present purpose, no other details regarding facts would be
of relevance as the only relief sought for in the appeal is to
set aside the exparte judgment and decree while affording
an opportunity to the defendant to appear before the trial
court and file their written statement and contest the suit.
4
5.
It is not in dispute that summons sent to the
defendant through RPAD was duly served and as the
defendant has remained exparte without putting any
representation, the trial court after placing the defendant
exparte has decreed the suit.
6.
The present appeal has been filed seeking for
an opportunity of re-opening of the proceedings and in the
appeal memorandum, it is submitted that reasons for the
defendant not having filed the written statement was as a
result of difficulties associated with Covid-19 Pandemic.
7.
It is submitted that the defendant was carrying
on its business at Kolhapur and in light of Second Wave
Covid-19 Pandemic, there were several travel restrictions
placed by the State of Karnataka and State of Maharashtra
on Inter-District and Inter-State travel.
8.
Reliance is placed on the judgment of the Apex
Court in the case of Prakash Corporates v. Dee Vee
Projects Limited reported in AIR 2022 SC 946 and it is
contended that in light of the observation made by the
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Apex court, period of limitation to file the written
statement would also start from the expiry of the order
passed by the Apex Court in Suo Motu Writ Petition (C)
No.3/2020.
9.
The learned counsel for respondent however
submits that the judgment of the Apex Court was a case
wherein defendants had put in appearance and had sought
extension of time to file the written statement and
accordingly, such facts if taken note of, the judgment of
the Apex Court could be distinguished.
10.
Heard both sides.
11.
The point for consideration is as follows:
Whether
case
is
made
out
by
the
appellant/defendants to set aside the exparte judgment
and decree in light of the inconvenience arising due
Covid-19 Pandemic which would be sufficient cause for
reopening the proceedings and to permit the defendant to
participate in the trial ?
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12.
It is not in dispute that the defendant having
been served with the notice has failed to put in
appearance. Accordingly, the trial court having placed the
defendant exparte has concluded the proceedings. What
also ought to be noticed is that the suit was instituted on
30.01.2021 and the date of evidence was fixed on
08.03.2021 and the judgment was passed on 19.03.2021.
13.
It is the contention of the defendant that even
though the defendant was placed exparte, if the trial court
had deferred the proceedings till the time available under
law to file the written statement unde
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