Case Note & Summary
The case arises from a Notice of Motion filed by the Defendants (Applicants) to set aside an ex parte decree dated 19 December 2012 in Summary Suit No.906 of 2011. The decree ordered the Defendants to pay Rs.1,04,50,000 with interest at 18% per annum. During the hearing of the Motion, the parties settled and filed consent terms on 19 November 2015, which were taken on record and the Motion was disposed of. The consent terms provided for payment of Rs.90 lakhs in two installments of Rs.45 lakhs each, the first payable on or before 20 December 2015 and the second on or before 20 February 2016. In case of default, the Motion was to stand dismissed and the Plaintiff could execute the decree. The first installment fell due on 20 December 2015, which was a Sunday. The Defendants applied for a demand draft on the following Monday, 21 December 2015, and received it on 22 December 2015. The Plaintiff refused to accept the draft citing delay. The Defendants sought condonation of the two-day delay or extension of time under Section 148 of the Code of Civil Procedure, 1908. The Plaintiff opposed, arguing that without her consent, the court cannot extend time. The court held that it has the power under Section 148 CPC to extend time for payment even in a consent decree, provided the extension is reasonable and does not alter the substance of the decree. The court found that the delay of two days was caused by the due date falling on a Sunday and the time taken by the bank to issue the draft, which was a reasonable cause. The court extended the time for payment of the first installment by two days, i.e., up to 22 December 2015, and directed the Plaintiff to accept the demand draft. The court also clarified that the second installment remains payable on or before 20 February 2016.
Headnote
A) Civil Procedure - Extension of Time - Section 148 CPC - Consent Decree - Default - Court has power to extend time for payment under Section 148 CPC even in a consent decree, provided the extension is for a reasonable period and does not alter the substance of the decree - The court's power under Section 148 is not ousted merely because the decree is based on consent terms - Held that the court can condone a short delay of two days caused by a Sunday and bank processing time, as it is a reasonable extension (Paras 1-5).
Issue of Consideration
Whether the Court has jurisdiction and power to grant extension of time for payment of decretal amount under Section 148 of the Code of Civil Procedure, 1908, in a consent decree, when the plaintiff opposes such extension.
Final Decision
The court allowed the Defendants' application for extension of time under Section 148 CPC. The time for payment of the first installment of Rs.45 lakhs was extended by two days, i.e., up to 22 December 2015. The Plaintiff was directed to accept the demand draft of Rs.45 lakhs tendered by the Defendants. The second installment remains payable on or before 20 February 2016.
Law Points
- Section 148 CPC
- extension of time
- consent decree
- compromise decree
- inherent power of court
- default clause
