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2024 Supreme(Guj) 971

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
UMESH A. TRIVEDI, RAJENDRA M. SAREEN, JJ.
Arun Kumar Jagatramka – Petitioner
Versus
Ultrabulk A/S – Respondent
R/Special Civil Application No. 5890 of 2021 with R/Special Civil Application No. 21283 of 2023
Decided On : 13-03-2024

Advocates Appeared:
For the Petitioner: Mr. Percy Kavina, Sr. Adv., Ld. Counsel assisted by Mr. Vivek B. Gupta.
For the Respondent: Mr. Devang Nanavati, SR. Adv., Ld. Counsel assisted by Mr. Harsh N. Parekh.

The executing Court has jurisdiction to enforce a decree against a judgment debtor with business and assets within its limits, and failure to timely object to jurisdiction waives the right to contest.

Headnote:(A) Code of Civil Procedure, 1908 - Sections 39(4), 51, and Order XXI Rule 41 - Execution of foreign decree - Judgment debtor challenged the executing Court's jurisdiction and alleged violation of natural justice in the execution process - Court found that the executing Court had jurisdiction based on the judgment debtor's business and property within its limits - The judgment debtor failed to raise objections at the earliest opportunity, thus waiving his right to contest jurisdiction - The executing Court's findings on the judgment debtor's conduct were upheld. (Paras 7.1, 8.6, 9)

(B) Natural Justice - Right to be heard - The Court ruled that the judgment debtor was given adequate opportunity to respond to the decree holder's application and failed to do so, thus not violating principles of natural justice. (Paras 7.5, 7.9)

Facts of the case:
The judgment debtor challenged orders from the executing Court regarding the execution of a foreign decree, claiming lack of jurisdiction and violation of natural justice. The decree holder sought to execute a decree for over USD 5 million against the judgment debtor, who claimed to reside outside the executing Court's jurisdiction.

Findings of Court:
The Court found that the executing Court had jurisdiction as the judgment debtor had business and assets within its jurisdiction, and the judgment debtor's failure to raise timely objections constituted a waiver of his rights.

Issues: The main issues included the territorial jurisdiction of the executing Court and the alleged violation of natural justice in the execution proceedings.

Ratio Decidendi: The Court held that the executing Court had jurisdiction based on the judgment debtor's business and property within its limits, and the judgment debtor's failure to object at the earliest opportunity barred him from contesting jurisdiction later.

Result: Both petitions dismissed with costs of Rs. 25,000/- to be paid by the judgment debtor.

JUDGMENT :

(Umesh A. Trivedi, J.)

Since both these petitions arise out of orders passed by executing Court, between the same parties, and more or less involving the same issue, it is thought fit to determine the same by this common judgment and order.

SUBMISSIONS IN SCA NO. 5890 OF 2021

1. This petition is filed by the petitioner – judgment debtor challenging the order passed by Principal Senior Civil Judge, Jamnagar, dated 20.02.2021 below Exhibit-56 in Regular Execution Petition (Commercial) No. 161 of 2019 filed by the decree holder under Order XXI Rule 41(1) read with Section 151 of the Code of Civil Procedure, 1908 (hereinafter referred to as “the Code, 1908”) seeking an order directing the judgment debtor to examine by way of interrogatories in relation to his property or means of satisfying the decree and for production of documents by the judgment debtor, which came to be allowed.

The petitioner herein would be referred to as judgment debtor and respondent herein would be referred to as decree holder, as per their status before the executing Court.

2. The judgment debtor has challenged the impugned order dated 20.02.2021 passed below Exhibit-56, as it was passed, without allowing the judgment debtor to file his reply, in violation of principles of natural justice, and interalia challenging the territorial jurisdiction of the executing Court for executing the decree personally against the judgment debtor in view of Section 39(4) of “the Code, 1908”. However, since judgment debtor relies on submissions made, so far as it relates to territorial jurisdiction of executing Court in view of Section 39(4) of “the Code, 1908”, while decree executed against him personally, substantially raised in connected petition, the judgment debtor relies on the said submissions for the issue of territorial jurisdiction.

3. Learned Counsel for the judgment debtor, in his written submissions, vehemently submitted that judgment debtor was not served any notice and he was not allowed to file his reply to Exhibit-56 application filed by the decree holder in utter violation of principles of natural justice.

3.1 It is submitted that from a bare perusal of the impugned order, wherein para 29 says “application and relevant documents were served on the advocate on 19.10.2020”, while it is a matter of record that the application was reserved for orders on 19.10.2020 itself, without allowing the petitioner to file his reply or objections. Thus, it was on the same day that the application was served and it was reserved for orders on the same day. In support of the aforesaid submission, learned advocate appearing for the judgment debtor relied on a decision of the Supreme Court in the case of Johra & Ors. v. State of Haryana & Ors., rendered in Civil Appeal Nos. 11757 - 11758 of 2018, more particularly para 8 and 9 thereof, wherein it is held that ‘basic fundamental principle of law provides that no order can be passed by any Court in any judicial proceedings against any party to such proceedings without hearing and giving such party an opportunity of hearing’.

3.2 It is further submitted that the opportunity of being heard should be real, reasonable and effective. The same should not be for namesake. It should not be a paper opportunity. Where a decision is based upon a document in a proceeding, copy of the same should be provided to the affected party. Otherwise, it would violate the principles of natural justice as the opportunity of being heard should be an effective opportunity and not an empty formality. Denial of opportunity may make an order void. Limitation of time cannot stand in the way of not giving adequate opportunity.

3.3 It is further submitted that the application Exhibit-56 filed by decree holder is based on irrelevant, very old and misconceived facts, making wild and baseless allegations against the judgment debtor, which has been allowed by the executing Court without there being any basis to do so.

3.4 It is further submitted that fals

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