Bombay High Court Allows Second Appeal in Money Suit Due to Violation of Natural Justice — First Appellate Court Set Aside Decree Without Hearing Appellant. Failure to Afford Opportunity of Hearing to Original Plaintiff Constitutes Breach of Principles of Natural Justice Under Section 96 CPC.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The case arises from a money suit filed by Madhusudan Radheshyam Jopat (appellant) against Laxmanrao Vithobaji Samarit (respondent) for recovery of Rs.1,00,000/- based on a promissory note dated 26.11.1999. The trial court (Civil Judge, Junior Division, Kamptee) decreed the suit on 19.8.2009, directing the defendant to pay the principal amount with 6% interest from the date of suit. The defendant appealed to the District Judge, Nagpur (Regular Civil Appeal No.486 of 2009). The first appellate court, by judgment dated 6.3.2013, set aside the decree and dismissed the suit, holding that the plaintiff had not paid the loan amount. The appellant contended that he was not heard by the first appellate court before the decree was set aside. The respondent argued that the appeal, initially dismissed for default, was restored and reheard. However, the High Court found that the appellant was not given an opportunity of hearing, as the restoration proceedings were not communicated to him. The High Court held that the first appellate court's judgment violated principles of natural justice and was unsustainable. The court set aside the appellate judgment and remanded the matter to the first appellate court for fresh hearing, directing both parties to appear on 23.6.2014. The second appeal was allowed with no order as to costs.

Headnote

A) Civil Procedure - Natural Justice - Right to be Heard - Section 96 Code of Civil Procedure, 1908 - First appellate court set aside trial court's money decree without hearing the appellant (original plaintiff) - Held that failure to afford opportunity of hearing violates principles of natural justice and renders the appellate judgment unsustainable - Matter remanded for fresh hearing (Paras 1-4).

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Issue of Consideration

Whether the first appellate court could set aside a money decree without hearing the original plaintiff/appellant, and whether such action violates principles of natural justice.

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Final Decision

The High Court allowed the second appeal, set aside the judgment of the first appellate court dated 6.3.2013, and remanded the matter to the first appellate court for fresh hearing after affording opportunity to both parties. Parties directed to appear on 23.6.2014. No order as to costs.

Law Points

  • Principles of Natural Justice
  • Right to be heard
  • Appellate Court's duty to hear both parties
  • Section 96 Code of Civil Procedure
  • 1908
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Case Details

2014 LawText (BOM) (04) 129

Second Appeal No.375 of 2013

2014-04-17

A.P. Bhangale, J.

Mr. S.D. Sirpurkar for appellant, Mr. C.N. Deshpande for respondent

Madhusudan Radheshyam Jopat

Laxmanrao Vithobaji Samarit

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Nature of Litigation

Second appeal against judgment of first appellate court setting aside money decree.

Remedy Sought

Appellant sought restoration of trial court's decree and setting aside of appellate judgment.

Filing Reason

Appellant claimed he was not heard by the first appellate court before his decree was set aside.

Previous Decisions

Trial court decreed suit on 19.8.2009; first appellate court set aside decree on 6.3.2013.

Issues

Whether the first appellate court violated principles of natural justice by not hearing the appellant before setting aside the decree.

Submissions/Arguments

Appellant argued that he was not heard by the first appellate court and the appeal was not reheard after restoration. Respondent argued that the appeal was restored and reheard, but the appellant was aware of proceedings.

Ratio Decidendi

A first appellate court cannot set aside a trial court decree without hearing the party in whose favor the decree was passed, as it violates principles of natural justice. The appellate judgment is unsustainable and must be set aside with a direction for fresh hearing.

Judgment Excerpts

Instead of going into this controversy, I think it would be appropriate to set aside the impugned judgment and order and remand the matter to the first Appellate Court for fresh hearing after affording opportunity of hearing to both the parties.

Procedural History

Trial court decreed suit on 19.8.2009. First appellate court set aside decree on 6.3.2013. Appellant filed second appeal on grounds of violation of natural justice. High Court allowed appeal and remanded on 17.4.2014.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 96
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