High Court of Bombay Sets Aside Order Refusing to Vacate Ex-Parte Injunction in Trespass Suit. Defendant Granted Opportunity to Contest Interim Relief on Merits as Non-Appearance Due to Legal Advice Did Not Amount to Deliberate Neglect.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The litigation originated from a suit for perpetual injunction filed by the plaintiff-respondents to restrain trespass on the suit property. Along with the suit, a notice of motion for temporary injunction was moved. The trial court granted an ex-parte ad interim injunction on 2 February 2011, making it returnable on 4 March 2011. The defendant-appellant, though aware of the hearing date and having even served a caveat, did not appear on that date. Instead, on legal advice, he had preferred an appeal from order before the High Court challenging the ex-parte order. On 4 March 2011, in the absence of the defendant, the trial court made the ad interim order absolute. The defendant's subsequent appeal became infructuous as the order had been made absolute, and he lost the opportunity to contest the notice of motion. He then filed a notice of motion before the trial court to set aside the order dated 4 March 2011 and seek a hearing on merits, but that application was rejected on 22 June 2011. The defendant challenged that rejection in the present appeal. The appellant argued that he acted on the advice of his lawyer and thus could not appear, and that justice required an opportunity to be heard. The respondents contended that the defendant was served and knew the date, so his non-appearance was deliberate. The High Court acknowledged that both sides were factually correct but emphasized that parties often rely on their lawyers' advice. It noted the defendant's initial steps like filing a caveat showed a genuine interest in protecting his rights. The court observed that the possibility of injustice could not be ruled out if the defendant were barred from contesting the interim relief at the threshold. Consequently, in the interest of justice, the court allowed the appeal, set aside the impugned order, permitted the defendant to file a reply to the notice of motion within two weeks, and directed the trial court to hear and dispose of the notice of motion afresh on its own merits within four weeks thereafter, while keeping the ad interim injunction operative until the decision.

Headnote

A) Civil Procedure - Ex-parte Injunction Order - Setting Aside Ex-parte Order - Interest of Justice - The defendant, despite service, failed to appear on the returnable date due to filing an appeal on his advocate's advice; the trial court made the ex-parte ad interim injunction absolute and later refused to set aside that order. The High Court held that the circumstances indicated the defendant's intention to protect his rights and the possibility of injustice, therefore allowed the appeal, set aside the impugned order, permitted defendant to file reply and contest the notice of motion for interim injunction on merits, while keeping the ad interim relief operative till fresh decision. (Paras 5-6).

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Issue of Consideration

Whether the trial court's order rejecting the defendant's application to set aside the ex-parte injunction was liable to be set aside in view of the circumstances showing that the defendant intended to defend but was prevented due to legal advice.

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Final Decision

Appeal allowed. Impugned order dated 22 June 2011 set aside. Appellant-defendant permitted to file reply to the notice of motion within two weeks. Trial court directed to hear and dispose of the notice of motion afresh on merits within four weeks thereafter. Ad interim relief granted earlier to continue till decision on the notice of motion.

Law Points

  • A court may set aside an ex-parte order in the interest of justice where the party's non-appearance was due to acting on legal advice and not deliberate neglect
  • the paramount consideration is to prevent injustice.
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Case Details

2011 LawText (BOM) (08) 61

Appeal from Order No. 688 of 2011 with Civil Application No. 928 of 2011

2011-08-12

J.H. Bhatia

2011:BHC-AS:18726

P.K. Dhakephalkar for Appellant, R.N. Kachare for Respondents

Suresh Kakdya Nankar

M/s Nahalchand Laloochand Pvt. Ltd., Himmatlal Laxmichand Pvt. Ltd., M/s Raja Construction

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Nature of Litigation

Civil suit seeking perpetual injunction to restrain trespass on the suit property, with an application for temporary injunction.

Remedy Sought

The plaintiff-respondents sought temporary injunction pending suit; the defendant-appellant sought to set aside the ex-parte order making the ad interim injunction absolute and to contest the notice of motion on merits.

Filing Reason

The defendant's non-appearance on the returnable date occurred because he followed legal advice to file an appeal against the ex-parte order rather than appear in the trial court. The trial court made the ad interim order absolute and later refused to vacate that order, prompting the appeal.

Previous Decisions

On 2 February 2011, the trial court granted ex-parte ad interim injunction and made the notice of motion returnable on 4 March 2011. On 4 March 2011, due to non-appearance, the ad interim order was made absolute. The defendant's notice of motion No. 780/11 to set aside that order was rejected on 22 June 2011. That rejection is the subject of this appeal.

Issues

Whether the trial court was justified in rejecting the application to set aside the ex-parte order when the defendant's non-appearance was on legal advice and he had taken steps indicating intent to defend.

Submissions/Arguments

Appellant: The defendant was advised by his lawyer to prefer an appeal against the ex-parte order, which led to his non-appearance; he had also filed a caveat showing diligence; in the interest of justice, he should be given a chance to contest the notice of motion. Respondents: The defendant was served with the notice of motion and ad interim order, was fully aware of the returnable date, yet failed to appear; therefore, he was at fault and the ex-parte order was rightly made absolute.

Ratio Decidendi

Where a party's non-appearance was due to acting on legal advice and not a deliberate neglect, and there is a likelihood of injustice if the party is not afforded an opportunity to contest the interim relief on merits, the court may set aside the ex-parte order and grant a hearing. The interest of justice is paramount.

Judgment Excerpts

But at the same time it has to be borne in mind that many a times parties act as per advise given to them by their lawyers. Possibility of this leading to causing injustice to him cannot be ruled out. Therefore, in my opinion it would be in the interest of justice to allow the defendants to file a reply and contest the Notice of motion taken out by the Plaintiff for interim relief instead of shutting the doors at the threshold.

Procedural History

Suit No. 211 of 2011 filed by plaintiffs for perpetual injunction restraining trespass. Along with suit, notice of motion for temporary injunction. On 2 February 2011, trial court granted ex-parte ad interim relief and made notice of motion returnable on 4 March 2011. Defendant served on 7 February 2011. Defendant filed caveat. On 4 March 2011, due to non-appearance of defendant, ad interim order made absolute and directed to continue till disposal of suit. Defendant later filed Notice of Motion No. 780/11 to set aside that order and seek hearing on merits. That notice of motion rejected on 22 June 2011. Defendant appealed to High Court.

Acts & Sections

  • Code of Civil Procedure, 1908:
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High Court High Court of Bombay Sets Aside Order Refusing to Vacate Ex-Parte Injunction in Trespass Suit. Defendant Granted Opportunity to Contest Interim Relief on Merits as Non-Appearance Due to Legal Advice Did Not Amount to Deliberate Neglect.
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