Supreme Court Allows Appellant in Civil Procedure Case Over Deposit Agreement. Court Set Aside Decree in Summary Suit Based on Parties' Agreement to Deposit Amount.

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Case Note & Summary

The dispute arose from Summary Suit No.1721 of 2001, where the respondent sought a decree against the appellants for failing to deposit Rupees thirty lakhs as ordered by the court. The appellants' appeal against the dismissal of their request for restoration of the earlier appeal and permission to deposit the amount was also dismissed by the Division Bench of the High Court. During the proceedings, the parties reached an agreement that the appellants would deposit Rupees seventy-two lakhs with the Prothonotary and Senior Master of the Bombay High Court within four weeks, which would lead to the setting aside of the decree. The court accepted this agreement and allowed the appeals, setting aside the decree, while also stipulating that failure to deposit the amount would result in the dismissal of the appeals. The judgment was delivered on December 17, 2008.

Headnote

A) Civil Procedure - Summary Suit - Decree Setting Aside - Code of Civil Procedure, 1908, Order XXXVII - The court allowed the appeal and set aside the decree in Summary Suit No.1721 of 2001 based on the parties' agreement to deposit a specified amount within a stipulated time. The court emphasized that failure to comply with the deposit condition would result in the order being recalled and the appeals being dismissed (Paras Not mentioned).

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Issue of Consideration

Whether the decree passed in Summary Suit No.1721 of 2001 should be set aside based on the agreed deposit by the appellants.

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Final Decision

The Supreme Court allowed the appeals, set aside the decree in Summary Suit No.1721 of 2001, and granted leave to the defendants to contest the suit, contingent upon the deposit of Rupees seventy-two lakhs within four weeks.

Law Points

  • Civil procedure
  • summary suit
  • decree setting aside
  • deposit conditions
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Case Details

2008 LawText (SC) (12) 208

Civil Appeal No.7365 of 2008

2008-12-17

B.N. Agrawal, G.S. Singhvi, Rajendra Mal Lodha

M/s. Venkatesh Chemi-Colour Co. and Ors.

Hatim Suterwalla and Ors.

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Nature of Litigation

Civil appeal concerning a summary suit and decree enforcement.

Remedy Sought

Appellants sought to set aside the decree in Summary Suit No.1721 of 2001.

Filing Reason

Failure to deposit the ordered amount led to the decree against the appellants.

Previous Decisions

The Division Bench of the High Court dismissed the appellants' appeal and extended the time for deposit.

Issues

Whether the decree should be set aside based on the deposit agreement.

Submissions/Arguments

Appellants agreed to deposit Rupees seventy-two lakhs to set aside the decree. Respondents consented to the withdrawal of the amount upon security provision.

Ratio Decidendi

The court emphasized the importance of compliance with agreed deposit conditions in civil proceedings, allowing for the setting aside of decrees based on mutual agreements.

Judgment Excerpts

The appeals are allowed, decree passed in Summary suit No.1721 of 2001 is set aside and leave is granted to the defendants to contest the suit. if the amount is not deposited within the time specified above, this order shall stand recalled and the appeals shall stand dismissed.

Procedural History

The case originated from Summary Suit No.1721 of 2001, with subsequent appeals and orders leading to the Supreme Court's decision.

Acts & Sections

  • Code of Civil Procedure, 1908: Order XXXVII
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