Supreme Court Partially Allows Appeal in Civil Case by Modifying Costs Imposed by High Court. Costs Reduced to Rs. 3 Lakh with Direction for Payment Within Three Weeks, Failing Which Application for Condonation of Delay Would Be Dismissed.

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Case Note & Summary

The Supreme Court heard a civil appeal arising from special leave petitions filed by Surya Educational and Charitable Trust against M/s Setia Builders Engineers and Contractors. The appeal concerned costs imposed by the Division Bench of the High Court in previous proceedings. With consent of both parties, the Supreme Court took up the special leave petitions for hearing and granted leave. Senior Advocate Manoj Swarup, appearing for the respondent, requested modification of the costs imposed by the High Court. The Court examined the facts and circumstances of the case and decided to modify the costs, reducing them to Rs. 3 Lakh. The Court directed that the reduced costs must be paid within three weeks from the date of the order, with the stipulation that failure to pay would result in the application for condonation of delay being treated as dismissed. The appeals were partly allowed by modifying the impugned order of the High Court. The Court also noted that it would be open to the parties to request the High Court to take up the matter expeditiously, and any pending applications were disposed of accordingly.

Headnote

A) Civil Procedure - Costs - Modification of Costs - Code of Civil Procedure, 1908 - The Supreme Court considered an appeal against costs imposed by the High Court - With consent of parties, the Court modified the costs from the original amount to Rs. 3 Lakh, payable within three weeks - Held that failure to pay would result in dismissal of the application for condonation of delay (Paras 1-2).

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Issue of Consideration

Whether the costs imposed by the Division Bench of the High Court should be modified

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Final Decision

The appeals are partly allowed by modifying the impugned order. Costs are reduced to Rs. 3 Lakh, payable within three weeks from today, failing which the application for condonation of delay would be treated as dismissed. Parties may request the High Court to take up the matter expeditiously. Pending applications stand disposed of.

Law Points

  • Modification of costs
  • Exercise of appellate jurisdiction
  • Consent of parties for hearing
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Case Details

2021 LawText (SC) (9) 8

Civil Appeal No(s).5781-5783/2021 (@SLP(C) No(s). 2020-2022/2019)

2021-09-20

Sanjiv Khanna, Bela M. Trivedi

Manoj Swarup, Sr. Adv.

Surya Educational and Charitable Trust

M/s Setia Builders Engineers and Contractors

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Nature of Litigation

Civil appeal against costs imposed by the High Court

Remedy Sought

Appellant sought modification of costs imposed by the Division Bench of the High Court

Filing Reason

Appeal against the impugned order of the High Court regarding costs

Previous Decisions

Division Bench of the High Court had imposed costs which were challenged in this appeal

Issues

Whether the costs imposed by the Division Bench of the High Court should be modified

Submissions/Arguments

Respondent's counsel requested modification of costs imposed by the High Court

Ratio Decidendi

The Supreme Court may modify costs imposed by lower courts based on facts and circumstances of the case, with consent of parties

Judgment Excerpts

With the consent of the parties we have taken up the special leave petition for hearing. Keeping in view the facts and circumstances of the case, we modify the costs, which are reduced to Rs. 3 Lakh. The costs as reduced will be paid within three weeks from today, failing which the application for condonation of delay would be treated as dismissed. The appeals are partly allowed in the aforesaid terms, by modifying the impugned order.

Procedural History

Special leave petitions were filed and taken up for hearing with consent of parties. Leave was granted. The Supreme Court heard arguments on modification of costs imposed by the Division Bench of the High Court.

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Supreme Court Supreme Court Partially Allows Appeal in Civil Case by Modifying Costs Imposed by High Court. Costs Reduced to Rs. 3 Lakh with Direction for Payment Within Three Weeks, Failing Which Application for Condonation of Delay Would Be Dismissed.
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