Bombay High Court Allows Appeal in Recovery Suit Dismissed for Non-Prosecution — Sets Aside Dismissal Order and Permits Appellant to Lead Evidence. Court Holds That Dismissal for Default Without Considering Merits Is Not a Bar to Restoration Under Order 9 Rule 9 CPC, and That Liberal Approach Is Warranted When Default Is Not Wilful.

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

The appellant, Deepak Shah, a civil contractor, filed a suit (Civil Suit No. 40/12) against M/s. Shah Builders (Respondent No. 1) and Union of India (Respondents 2-4) for recovery of Rs. 60,00,000 due under an agreement dated 06.07.1999 and for an injunction restraining Respondent No. 1 from taking proceeds of an arbitration award. The suit was dismissed for non-prosecution on 26.09.2014 when the appellant's advocate sought time for instructions, but the court closed evidence noting six prior adjournments. The appellant filed an application to set aside the closure order, citing his advanced age, ill health, and need to care for his daughter in Mumbai. The learned Additional District Judge I, Fast Track Court-I, Margao dismissed the application on 29.11.2014. The appellant appealed to the Bombay High Court at Goa. The High Court considered whether the dismissal and refusal to restore were justified. The appellant argued that the default was not wilful and that he had sufficient cause. The respondents opposed, contending that the appellant had ample opportunities. The court held that dismissal for non-prosecution is not a bar to restoration under Order 9 Rule 9 CPC if the default is not wilful. It found that the appellant's reasons—advanced age, health issues, and family responsibilities—constituted sufficient cause. The court emphasized that a liberal approach should be adopted to decide cases on merits. It set aside the impugned orders, allowed the appeal, and directed the trial court to restore the suit and permit the appellant to lead evidence, with costs of Rs. 5,000 payable to Respondent No. 1.

Headnote

A) Civil Procedure - Dismissal for Non-Prosecution - Restoration of Suit - Order 9 Rule 9, Code of Civil Procedure, 1908 - The suit was dismissed for default when the appellant failed to appear on a date fixed for evidence. The court held that dismissal for non-prosecution does not bar restoration if the default was not wilful. The appellant's advanced age and health issues constituted sufficient cause for non-appearance. The court set aside the dismissal and allowed the appellant to lead evidence, emphasizing that a liberal approach should be adopted to decide cases on merits rather than on technicalities (Paras 6-10).

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Issue of Consideration

Whether the dismissal of a suit for non-prosecution and the refusal to set aside the closure of evidence were justified, and whether the appellant should be permitted to lead further evidence.

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Final Decision

The appeal is allowed. The impugned order and decree dated 29.11.2014 and the order dated 26.09.2014 are set aside. The suit is restored to file. The appellant is permitted to lead evidence subject to payment of costs of Rs. 5,000 to Respondent No. 1 within two weeks. The trial court is directed to dispose of the suit expeditiously.

Law Points

  • Dismissal for non-prosecution
  • Restoration of suit
  • Order 9 Rule 9 CPC
  • Wilful default
  • Liberal approach
  • Right to be heard
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Case Details

2016:BHC-GOA:3130

First Appeal No. 65 of 2015

2016-12-02

F.M. REIS, J

2016:BHC-GOA:3130

Mr. J. E. Coelho Pereira, Senior Advocate with Mr. V. Korgaonkar, Advocate for the Appellant; Mr. Mahesh Amonkar, Central Government Standing Counsel for Respondents no. 2, 3 and 4; Mr. V. A. Lawande, Advocate with Ms. P. Kaur, Advocate for the Respondent no. 1

Mr. Deepak Shah

M/s. Shah Builders, Union of India, Garrison Engineer (MES), The Secretary and Engineer in Chief (MES)

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Nature of Litigation

First appeal against dismissal of suit for non-prosecution and refusal to set aside closure of evidence.

Remedy Sought

Appellant sought setting aside of the order dismissing the suit and the order refusing to permit him to lead further evidence, and restoration of the suit.

Filing Reason

The suit was dismissed for non-prosecution on 26.09.2014 when the appellant's advocate sought time for instructions, and the application to set aside the closure of evidence was dismissed on 29.11.2014.

Previous Decisions

The learned Additional District Judge I, Fast Track Court-I, Margao dismissed the suit for non-prosecution and later dismissed the application to set aside the closure of evidence.

Issues

Whether the dismissal of the suit for non-prosecution was justified. Whether the refusal to set aside the closure of evidence and permit the appellant to lead further evidence was proper.

Submissions/Arguments

Appellant argued that the default was not wilful; he was of advanced age, not keeping well, and had to look after his daughter in Mumbai, which constituted sufficient cause for non-appearance. Respondent No. 1 opposed, contending that the appellant had sought time on six earlier occasions and the default was deliberate.

Ratio Decidendi

Dismissal of a suit for non-prosecution does not bar restoration under Order 9 Rule 9 CPC if the default is not wilful. A liberal approach should be adopted to decide cases on merits rather than on technicalities. Sufficient cause for non-appearance includes advanced age, ill health, and family responsibilities.

Judgment Excerpts

The dismissal of the suit for non-prosecution does not bar the restoration of the suit under Order 9 Rule 9 of the Code of Civil Procedure, 1908. The reasons given by the appellant for his non-appearance, such as his advanced age, ill health, and need to look after his daughter, constitute sufficient cause. A liberal approach should be adopted to decide the case on merits rather than on technicalities.

Procedural History

The appellant filed Civil Suit No. 40/12 before the learned District Judge at Margao. The suit was dismissed for non-prosecution on 26.09.2014. An application to set aside the closure of evidence was filed and dismissed on 29.11.2014. The appellant then filed the present first appeal before the High Court of Bombay at Goa.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 9 Rule 9
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