Supreme Court Allows Legal Representatives' Appeal in Provincial Small Cause Courts Act Case Due to Subsequent Deposit of Damages. Application Under Order IX Rule 13 CPC for Setting Aside Ex Parte Decree Maintainable After Full Compliance with Section 17 of Provincial Small Cause Courts Act, 1887 Regarding Deposit of Arrears, Costs, and Damages.

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Case Note & Summary

The appeal arose from a civil suit for recovery of arrears of rent and ejectment filed by the respondent as owner against the defendant, who was a tenant in a shop. The respondent claimed unpaid rent from February to May 2015 totaling Rs. 8,000/- plus municipal tax. The Trial Court, after deeming service sufficient, proceeded ex parte and decreed the suit on 09.03.2016, ordering recovery of Rs. 8,000/- arrears, eviction, and damages at Rs. 2,000/- per month until possession was delivered. The defendant, later substituted by his legal representatives (appellants), filed an application under Order IX Rule 13 CPC to set aside the ex parte decree, along with applications under Section 5 of the Limitation Act, 1963 and Section 17 of the Provincial Small Cause Courts Act, 1887. The defendant deposited Rs. 11,212/- covering arrears and costs but not the ongoing damages. The respondent objected, arguing non-compliance with Section 17. The Trial Court upheld the objection, noting the defendant failed to deposit the damages amount, and dismissed the application. The High Court affirmed, citing Kedarnath v. Mohan Lal Kesarwari, which held Section 17 compliance mandatory. The appellants approached the Supreme Court, where they deposited Rs. 1,90,000/- for damages from June 2015 to April 2023. The core legal issue was whether the application under Order IX Rule 13 CPC was maintainable without full deposit under Section 17. The appellants argued that the lower courts took a rigid view, as they had deposited the direct decretal amount. The Supreme Court, after hearing the parties, allowed the appeal, emphasizing the mandatory nature of Section 17 but considering the subsequent deposit. The decision favored the appellants, setting aside the lower courts' orders and permitting the application to be entertained.

Headnote

A) Civil Procedure - Ex Parte Decree Setting Aside - Order IX Rule 13 CPC - Code of Civil Procedure, 1908, Order IX Rule 13 - Application for setting aside ex parte decree filed by defendant's legal representatives after defendant's death - Trial Court and High Court dismissed application for non-compliance with Section 17 of Provincial Small Cause Courts Act, 1887 - Held that deposit of arrears of rent and costs alone insufficient; must include damages for use and occupation as per decree (Paras 5-8).

B) Small Cause Courts - Mandatory Deposit Requirement - Section 17 Provincial Small Cause Courts Act, 1887 - Provincial Small Cause Courts Act, 1887, Section 17 - Defendant deposited Rs. 11,212/- covering arrears of rent and costs but not damages for use and occupation - Trial Court and High Court found non-compliance mandatory under Kedarnath v. Mohan Lal Kesarwari - Supreme Court allowed appeal after appellants deposited Rs. 1,90,000/- for outstanding damages - Held that compliance with Section 17 is mandatory for entertaining application under Order IX Rule 13 CPC (Paras 6-8, 10-12).

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Issue of Consideration

Whether the application under Order IX Rule 13 CPC for setting aside ex parte decree was maintainable without full compliance of Section 17 of Provincial Small Cause Courts Act, 1887 regarding deposit of decretal amount

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Final Decision

Supreme Court allowed the appeal, set aside the orders of the High Court and Trial Court, and permitted the application under Order IX Rule 13 CPC to be entertained after appellants deposited Rs. 1,90,000/- for damages

Law Points

  • Mandatory compliance with Section 17 of Provincial Small Cause Courts Act
  • 1887 for setting aside ex parte decree
  • deposit of decretal amount includes arrears of rent
  • costs
  • and damages for use and occupation
  • ex parte decree setting aside under Order IX Rule 13 CPC
  • procedural requirements for applications under Section 17
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Case Details

2023 LawText (SC) (2) 85

CIVIL APPEAL NO.765 OF 2023 (ARISING OUT OF SLP(C) NO. 2542 OF 2023)

2023-02-02

Dinesh Maheshwari

Legal representatives of deceased defendant

Owner and proprietary right holder

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Nature of Litigation

Civil suit for recovery of arrears of rent and ejectment

Remedy Sought

Appellants sought setting aside of ex parte decree under Order IX Rule 13 CPC

Filing Reason

Appellants aggrieved by High Court order declining to interfere with Trial Court's rejection of application under Order IX Rule 13 CPC

Previous Decisions

Trial Court decreed suit ex parte on 09.03.2016; Trial Court rejected application under Order IX Rule 13 CPC on 01.09.2022; High Court dismissed petition under Article 227 on 21.09.2022

Issues

Whether the application under Order IX Rule 13 CPC for setting aside ex parte decree was maintainable without full compliance of Section 17 of Provincial Small Cause Courts Act, 1887 regarding deposit of decretal amount

Submissions/Arguments

Appellants submitted that defendant had not been served in civil suit and plaintiff obtained decree with concealment of facts, and that defendant complied with Section 17 requirements Respondent submitted that under decree, plaintiff entitled to arrears, costs, and damages until possession, and necessary deposit towards damages not made

Ratio Decidendi

Compliance with Section 17 of Provincial Small Cause Courts Act, 1887 is mandatory for entertaining an application under Order IX Rule 13 CPC to set aside an ex parte decree, requiring deposit of all amounts due under the decree including arrears, costs, and damages for use and occupation

Judgment Excerpts

The suit of the plaintiff is decreed ex-parte with cost against the defendant for recovery of the rent Rs. 8,000/- and for eviction of the shop in question The applicant after paying the total amount due under the ex-parte decree and judgment will file the application under Order 9 Rule 13 C.P.C. The Apex Court in the case of Kedar Nath(supra) has held the provisions of Section 17 of the Act, 1887 to be mandatory

Procedural History

Suit filed in Small Causes Court; ex parte decree passed on 09.03.2016; application under Order IX Rule 13 CPC filed on 20.08.2016; defendant died on 26.09.2017; appellants substituted on 12.03.2018; Trial Court rejected application on 01.09.2022; High Court dismissed petition on 21.09.2022; Supreme Court appeal filed and allowed on 02.02.2023 after deposit of Rs. 1,90,000/-

Acts & Sections

  • Code of Civil Procedure, 1908: Order IX Rule 13
  • Provincial Small Cause Courts Act, 1887: Section 17
  • Limitation Act, 1963: Section 5
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