Bombay High Court Allows Appeal by Judgment-Debtor in Electricity Dues Recovery Suit Due to Lack of Service of Summons. Decree Set Aside as Appellant Was Not Served Summons and Had No Opportunity to Defend, Violating Principles of Natural Justice.

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

The appellant, Shashikant s/o Eknath Choudhari, filed a first appeal under Section 96 of the Code of Civil Procedure, 1908, challenging the judgment and decree passed by the trial court in a civil suit for recovery of arrears of electricity charges. The respondent No.1, Maharashtra State Electricity Distribution Company Limited (formerly Maharashtra State Electricity Board), had filed the suit against the respondent No.2 company and its directors for recovery of Rs.24,46,740.96 paise towards arrears of charges for supply of energy, minimum charges for unexpired period of agreement, etc. During the suit, the respondent No.3/defendant No.2 filed an application stating that the directors of the respondent No.2 company were necessary parties, and accordingly, the appellant was impleaded as defendant No.4. The appellant contended that he was never served with the summons of the civil suit and had no knowledge of the proceedings until he came to know about it in the execution proceedings. The trial court proceeded ex-parte against the appellant and passed a decree for the claimed amount with interest at 18% per annum. The appellant argued that the decree was passed without giving him an opportunity of hearing, violating principles of natural justice. The High Court, after hearing the parties, found that the appellant was not served with summons and had no opportunity to defend. The court held that the decree cannot be sustained and set it aside. The suit was remanded to the trial court for fresh decision after giving the appellant an opportunity to file a written statement and lead evidence. The court directed the parties to appear before the trial court on 23rd February 2015 and requested the trial court to decide the suit expeditiously, preferably within one year from the date of the order.

Headnote

A) Civil Procedure - Service of Summons - Ex-parte Decree - Setting Aside - The appellant, a judgment-debtor, was not served with summons of the civil suit and had no knowledge of the proceedings until execution. The trial court passed a decree for Rs.24,46,740.96 with interest at 18% per annum. The High Court held that the decree cannot be sustained as the appellant was denied an opportunity of hearing, violating principles of natural justice. The decree was set aside and the suit was remanded for fresh decision after giving the appellant an opportunity to file a written statement and lead evidence. (Paras 1-5)

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Issue of Consideration

Whether the judgment-debtor who was not served with summons of the civil suit and had no knowledge of the proceedings is entitled to have the ex-parte decree set aside.

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Final Decision

The appeal is allowed. The impugned judgment and decree are set aside. The suit is remanded to the trial court for fresh decision after giving the appellant an opportunity to file a written statement and lead evidence. The parties are directed to appear before the trial court on 23rd February 2015. The trial court is requested to decide the suit expeditiously, preferably within one year from the date of the order.

Law Points

  • Service of summons
  • principles of natural justice
  • setting aside ex-parte decree
  • opportunity of hearing
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Case Details

2015 LawText (BOM) (01) 115

First Appeal No. 117 of 2015

2015-01-28

Z.A. Haq, J.

Shri S.P. Dharmadhikari, Senior Advocate assisted by Shri S.A. Dharmadhikari for the appellant; Shri S.V. Purohit for respondent No.1; Shri Alok Daga for respondent No.4; None for other respondents

Shashikant s/o Eknath Choudhari

Maharashtra State Electricity Distribution Company Limited, M/s Vikrant Exchange Engines Pvt. Ltd., Shri S.D. Shrungarpawar, Shri Prabhubhai s/o Jadhaoji Rathod, Shri A.K. Mukherjee

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Nature of Litigation

First appeal against judgment and decree in a civil suit for recovery of arrears of electricity charges.

Remedy Sought

The appellant sought setting aside of the ex-parte decree passed against him.

Filing Reason

The appellant was not served with summons and had no knowledge of the suit; decree was passed without giving him an opportunity to defend.

Previous Decisions

The trial court passed a decree for Rs.24,46,740.96 paise with interest at 18% per annum.

Issues

Whether the appellant was served with summons of the civil suit? Whether the ex-parte decree passed against the appellant is sustainable in law?

Submissions/Arguments

The appellant argued that he was not served with summons and had no knowledge of the suit until execution proceedings. The respondent No.1 argued that the decree was correctly passed.

Ratio Decidendi

A decree passed without service of summons and without giving the defendant an opportunity of hearing violates principles of natural justice and cannot be sustained.

Judgment Excerpts

The appeal is filed by the judgment-debtor challenging the judgment and decree passed by the trial Court for Rs.24,46,74096 paise with interest at 18% per annum. According to the appellant, he was not served with the summons of the civil suit and he was not aware about the pendency of the civil suit and he got knowledge about it in the execution proceedings. In the circumstances, the impugned judgment and decree cannot be sustained and are liable to be set aside.

Procedural History

The respondent No.1 filed a civil suit for recovery of arrears of electricity charges. During the suit, the appellant was impleaded as defendant No.4. The trial court proceeded ex-parte against the appellant and passed a decree. The appellant filed the present first appeal challenging the decree.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 96
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