Case Note & Summary
The dispute arose from a civil suit filed for recovery of Rs. 3,84,455.44 with future interest, where the defendants were not personally served with summons. The trial court deemed service sufficient based on newspaper publication and decreed the suit ex parte. Upon discovering the decree, the defendants petitioned under Order IX Rule 13 of the Code of Civil Procedure, which the trial court dismissed. The defendants then appealed to the High Court, which set aside the ex parte decree but imposed conditions requiring a deposit of Rs. 2,00,000 and a bank guarantee for the remaining amount. The appellants contended that these terms were onerous. The respondents supported the High Court's terms as justified. The Supreme Court analyzed the reasonableness of the conditions imposed, noting that while it is common to impose terms for setting aside an ex parte decree, such terms must not be excessively harsh. The court found the conditions imposed by the High Court to be unreasonable and modified them, allowing the appellants to deposit a further sum of Rs. 50,000 instead of the initially required Rs. 2,00,000. The appeal was disposed of with no costs.
Headnote
A) Civil Procedure - Ex Parte Decree - Reasonableness of Conditions - Code of Civil Procedure, 1908, Order IX Rule 13 - The court found the terms imposed by the High Court for setting aside the ex parte decree to be onerous and unreasonable, directing a modification to the deposit amount required from the appellants. The court emphasized that conditions for setting aside an ex parte decree must be reasonable and not excessively harsh (Paras 1-2).
Issue of Consideration
Whether the terms imposed by the High Court for setting aside the ex parte decree were reasonable.
Final Decision
The Supreme Court modified the terms imposed by the High Court, directing the appellants to deposit a further sum of Rs. 50,000 in the trial court within four weeks, while the other aspects of the impugned order remained undisturbed. No costs were awarded.
Law Points
- Ex parte decree
- Order IX Rule 13 CPC
- reasonable conditions for stay
- modification of terms
