Bombay High Court Restores Summary Suits Dismissed for Want of Prosecution, Imposing Costs for Non-Compliance with Directions. Non-Resident Indian Plaintiffs' Explanation of Travel Commitments Accepted as Sufficient Cause for Restoration.

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

The plaintiffs, Nakul Arun Jagjivan and Nayan Arun Jagjivan, filed summary suits against Ram V. Tyagrajan and another defendant, claiming recovery of sums paid as sureties under a contract of guarantee. The suits sought approximately Rs. 2.91 crores and Rs. 2.58 crores respectively. After unconditional leave to defend was granted, issues were framed on 3rd July 2014, and the plaintiffs were directed to file affidavits of evidence and documents by 13th August 2014. The plaintiffs failed to comply, and despite a further extension of two weeks granted on 2nd September 2014, they again defaulted. On 5th November 2014, the court dismissed both suits for want of prosecution. The plaintiffs then filed notices of motion seeking recall of the dismissal order and restoration of the suits. In their supporting affidavits, the plaintiffs explained that they were Non-Resident Indians residing in Dubai, required to maintain their NRI status by staying outside India for over 182 days a year, and had extensive business travel commitments. They submitted that these factors prevented timely compliance. The court found the explanation to be sufficient cause for non-compliance, but noted the repeated defaults. Consequently, the court allowed the motions, set aside the dismissal order, and restored the suits to the board, subject to payment of costs of Rs. 25,000 per suit to the defendants. The plaintiffs were directed to file their affidavits of evidence and documents within two weeks from the date of the order.

Headnote

A) Civil Procedure - Restoration of Suit - Dismissal for Want of Prosecution - Sufficient Cause - Plaintiffs, NRIs residing in Dubai, failed to file affidavit of evidence and documents despite multiple extensions - Court dismissed suits for want of prosecution - Plaintiffs sought restoration explaining their travel commitments and NRI status - Held that the explanation constituted sufficient cause for non-compliance, but costs of Rs. 25,000 per suit were imposed as a condition for restoration (Paras 7-9).

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Issue of Consideration

Whether the order dismissing the summary suits for want of prosecution should be recalled and the suits restored, given the plaintiffs' explanation for non-compliance with court directions.

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Final Decision

Notices of Motion allowed. Order dated 5th November 2014 dismissing Summary Suit No.2822 of 2010 and Summary Suit No.2823 of 2010 is set aside. Both suits restored to the board subject to payment of costs of Rs. 25,000 per suit to the defendants. Plaintiffs to file affidavits of evidence and documents within two weeks from today.

Law Points

  • Restoration of suit dismissed for want of prosecution
  • Sufficient cause for non-compliance
  • Imposition of costs as condition for restoration
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Case Details

2014 LawText (BOM) (12) 90

Notice of Motion (L) No.2620 of 2014 in Summary Suit No.2822 of 2010 and Notice of Motion (L) No.2621 of 2014 in Summary Suit No.2823 of 2010

2014-12-03

S. J. Kathawalla, J.

Mr. Sharan Jagtiani alongwith Mr. K. J. Dwarkadas and Mr. Shrivardhan Deshpande, instructed by M/s. Desai & Diwanji, for the Applicants / Original Plaintiffs; Mr. R.M. Tiwari for Defendant No.1

Nakul Arun Jagjivan and Nayan Arun Jagjivan

Ram V. Tyagrajan & Anr.

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Nature of Litigation

Civil suits for recovery of debt under a contract of guarantee

Remedy Sought

Recall of dismissal order and restoration of summary suits

Filing Reason

Plaintiffs failed to comply with court directions to file affidavits of evidence and documents, leading to dismissal of suits

Previous Decisions

Suits dismissed for want of prosecution on 5th November 2014

Issues

Whether the order dismissing the suits for want of prosecution should be set aside and the suits restored

Submissions/Arguments

Plaintiffs submitted that they are NRIs residing in Dubai with extensive travel commitments, which prevented timely compliance with court directions

Ratio Decidendi

The explanation of the plaintiffs, being NRIs with travel commitments, constituted sufficient cause for non-compliance with court directions, warranting restoration of the suits upon payment of costs.

Judgment Excerpts

The Plaintiffs have filed the captioned Summary Suits in respect of a sum that they claimed as a debt or liquidated sum of money due to the Plaintiffs on a contract of guarantee... Both the Summary Suits were dismissed for ‘want of prosecution’. In the Affidavit in Support of the present Notices of Motion, the Plaintiffs explained the reasons why they were unable to comply with the directions... The Court is satisfied that the Plaintiffs have made out sufficient cause for non-compliance... The Notices of Motion are accordingly allowed in the aforesaid terms.

Procedural History

Summary suits filed in 2010. On 14th March 2014, unconditional leave to defend granted. Issues framed on 3rd July 2014 with directions to file affidavits. Plaintiffs failed to comply despite extensions. Suits dismissed on 5th November 2014. Plaintiffs filed notices of motion for restoration on an unspecified date. Order on motions passed on 3rd December 2014.

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High Court Bombay High Court Restores Summary Suits Dismissed for Want of Prosecution, Imposing Costs for Non-Compliance with Directions. Non-Resident Indian Plaintiffs' Explanation of Travel Commitments Accepted as Sufficient Cause for Restoration.
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