Bombay High Court Sets Aside Ex Parte Decree in Summary Suit Due to Lack of Proper Service of Summons. Delay of 164 Days Condoned as Defendant Demonstrated Good Cause for Non-Appearance Under Order XXXVII of CPC, 1908.

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

The plaintiff, Fountainhead Promotions & Events Pvt Ltd, filed a Summary Suit No. 874 of 2010 against the defendant, Gitanjali Lifestyle Limited, claiming a sum of Rs. 10,78,053/- for organizing an event called 'Gitanjali Lifestyle Luxury Fest 2007' held at Turf Club, Mahalaxmi, Mumbai between 22nd and 25th December 2007. The plaintiff alleged that despite part payments, the defendant failed to pay the balance amount. The plaintiff claimed that the writ of summons was served on the defendant, but no appearance was entered. On 15th September 2010, the court passed an ex parte decree in favor of the plaintiff. The defendant filed a notice of motion seeking condonation of delay of 164 days and setting aside of the ex parte decree, contending that it was never served with any summons and only came to know of the decree when a garnishee notice was served on its bank. The court examined the affidavit of the bailiff and found that it did not specify the mode of service or the person on whom summons was served. The court held that the plaintiff failed to prove valid service of summons. The court also found that the defendant had sufficient cause for the delay in filing the application. Consequently, the court allowed the notice of motion, condoned the delay, set aside the ex parte decree, and granted leave to the defendant to defend the suit subject to depositing Rs. 5,39,026.50 within four weeks.

Headnote

A) Civil Procedure - Summary Suit - Ex Parte Decree - Setting Aside - Order XXXVII, Code of Civil Procedure, 1908 - The defendant sought to set aside an ex parte decree passed in a summary suit on the ground that no writ of summons was served upon it. The court held that since the defendant was not served, the decree was liable to be set aside. The delay of 164 days in filing the application was condoned as the defendant had sufficient cause for the delay. (Paras 1-11)

B) Civil Procedure - Service of Summons - Affidavit of Bailiff - Order V, Code of Civil Procedure, 1908 - The court noted that the affidavit of the bailiff did not specify the mode of service or the person on whom summons was served. The court held that mere filing of an affidavit without proper details does not prove valid service. (Paras 5-7)

C) Civil Procedure - Condonation of Delay - Sufficient Cause - Section 5, Limitation Act, 1963 - The defendant claimed that it came to know of the decree only when a garnishee notice was served. The court found this explanation reasonable and condoned the delay of 164 days. (Paras 8-10)

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Issue of Consideration

Whether the ex parte decree passed in a summary suit should be set aside when the defendant claims lack of service of summons and whether the delay of 164 days in filing the application should be condoned.

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Final Decision

The court allowed the notice of motion, condoned the delay of 164 days, set aside the ex parte decree dated 15th September 2010, and granted leave to the defendant to defend the suit subject to depositing Rs. 5,39,026.50 within four weeks.

Law Points

  • Service of summons is mandatory for ex parte decree
  • Condonation of delay requires sufficient cause
  • Order XXXVII CPC summary suit procedure
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Case Details

2013 LawText (BOM) (07) 118

Notice of Motion No.1902 of 2012 in Summary Suit No.874 of 2012

2013-07-15

R.D. Dhanuka

Mr Sandeep Parikh with Mr Mayur Agarwal with Mr Ayaz Bilawala i/by M/s Bilawala & Co. for the petitioner, Ms Tanmayi Gadre a/with Mr Sunil Gangan and Ms Kanishka Muthukumar i/by RMG Law Associates for the Defendant

Gitanjali Lifestyle Limited

Fountainhead Promotions & Events Pvt Ltd

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Nature of Litigation

Application for condonation of delay and setting aside ex parte decree in a summary suit for recovery of money.

Remedy Sought

Defendant sought condonation of delay of 164 days and setting aside of ex parte decree dated 15th September 2010.

Filing Reason

Defendant claimed it was not served with writ of summons and only came to know of the decree when a garnishee notice was served on its bank.

Previous Decisions

Ex parte decree passed on 15th September 2010 in Summary Suit No.874 of 2010.

Issues

Whether the ex parte decree should be set aside due to lack of proper service of summons? Whether the delay of 164 days in filing the application should be condoned?

Submissions/Arguments

Defendant argued that it was never served with any writ of summons and only came to know of the decree when a garnishee notice was served on its bank. Plaintiff argued that the bailiff's affidavit proved service and that the defendant had not shown sufficient cause for delay.

Ratio Decidendi

An ex parte decree passed without proper service of summons is liable to be set aside. The court must be satisfied that the defendant had sufficient cause for non-appearance and delay. In this case, the bailiff's affidavit did not specify the mode of service or the person served, thus service was not proved. The defendant's explanation for delay was reasonable.

Judgment Excerpts

The affidavit of the Bailiff does not indicate as to how the service was effected and on whom the service was effected. In my view, the plaintiff has failed to prove that the defendant was duly served with the writ of summons. The defendant has made out a sufficient cause for condonation of delay.

Procedural History

Plaintiff filed Summary Suit No.874 of 2010 on 15th September 2010. Ex parte decree passed same day. Defendant filed Notice of Motion No.1902 of 2012 on 15th July 2013 seeking condonation of delay and setting aside of decree.

Acts & Sections

  • Code of Civil Procedure, 1908: Order XXXVII, Order V
  • Limitation Act, 1963: Section 5
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High Court Bombay High Court Sets Aside Ex Parte Decree in Summary Suit Due to Lack of Proper Service of Summons. Delay of 164 Days Condoned as Defendant Demonstrated Good Cause for Non-Appearance Under Order XXXVII of CPC, 1908.