High Court of Karnataka Allows Appeal Against Ex-Parte Decree in Suit for Recovery of Money — Sets Aside Order Rejecting Application Under Order 9 Rule 13 CPC. Failure to Serve Summons Properly and Lack of Knowledge of Proceedings Constitute Sufficient Cause for Setting Aside Ex-Parte Decree.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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Case Note & Summary

The appellant, Shri K. Raja, filed a Miscellaneous First Appeal under Order 43 Rule 1(d) of the Code of Civil Procedure, 1908 (CPC) against an order dated 28.08.2024 passed by the XXVI Additional City Civil and Sessions Judge, Mayo Hall, Bengaluru (CCH-20) in Misc.No.25012/2022. The trial court had rejected the appellant's petition filed under Order 9 Rule 13 read with Section 151 CPC seeking to set aside an ex-parte decree passed in O.S.No.25432/2015. The suit was filed by the respondent, V. Prabhakar, for recovery of a sum of Rs.8,80,000/- from the appellant. The trial court had issued summons to the appellant, which were returned unserved at the first instance. Subsequently, summons were ordered through RPAD and returned with an endorsement 'defendant is not in station'. Thereafter, the respondent filed an application under Order 5 Rule 20 CPC seeking paper publication, which was allowed. The suit proceeded ex-parte and a decree was passed against the appellant. The appellant filed an application under Order 9 Rule 13 CPC to set aside the ex-parte decree, contending that he had no knowledge of the suit proceedings and that the summons were not served properly. The trial court rejected the application, observing that the appellant had knowledge of the proceedings. The High Court heard the appeal and considered the submissions of both sides. The appellant's counsel argued that the appellant was not aware of the suit and that the paper publication was not brought to his notice. The respondent's counsel opposed the appeal, stating that the appellant had knowledge. The High Court examined the facts and found that the summons were returned unserved and the paper publication was not proved to have come to the appellant's notice. The court held that the appellant had made out a sufficient cause for his non-appearance and that the trial court had erred in rejecting the application. The High Court allowed the appeal, set aside the order of the trial court, and restored the suit to its original file, subject to payment of costs of Rs.1,000/- to the respondent.

Headnote

A) Civil Procedure Code - Setting Aside Ex-Parte Decree - Order 9 Rule 13 r/w Section 151 CPC - Sufficient Cause - The appellant contended that summons were not served properly and he had no knowledge of the suit proceedings. The trial court rejected the application on the ground that the appellant had knowledge. The High Court held that the appellant had made out a sufficient cause as the summons were returned unserved and the paper publication was not proved to have come to his notice. The appeal was allowed and the ex-parte decree was set aside subject to payment of costs. (Paras 2-6)

B) Civil Procedure Code - Service of Summons - Order 5 Rule 20 CPC - Paper Publication - The trial court had ordered paper publication after summons were returned unserved. The High Court noted that the appellant denied knowledge of the publication and the respondent failed to prove that the appellant had actual knowledge. The court held that mere paper publication without proof of knowledge is not sufficient to deny relief under Order 9 Rule 13 CPC. (Paras 3-5)

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Issue of Consideration

Whether the trial court was justified in rejecting the application under Order 9 Rule 13 read with Section 151 CPC for setting aside the ex-parte decree on the ground that the appellant had knowledge of the proceedings and failed to appear.

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Final Decision

The High Court allowed the appeal, set aside the order dated 28.08.2024 in Misc.No.25012/2022, and restored O.S.No.25432/2015 to the file of the trial court. The appellant was directed to pay costs of Rs.1,000/- to the respondent within two weeks.

Law Points

  • Order 9 Rule 13 CPC
  • Section 151 CPC
  • Order 5 Rule 20 CPC
  • Sufficient cause for setting aside ex-parte decree
  • Service of summons
  • Paper publication
  • Restoration of suit
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Case Details

NC: 2024:KHC:49086

MFA No. 7207 of 2024 (CPC)

2024-11-29

H.P. Sandesh

NC: 2024:KHC:49086

Sri. Abhishek Huddar (for appellant), Smt. Udita Ramesh and Sri. Abhishek Singh (for respondent)

Shri K. Raja

V. Prabhakar

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Nature of Litigation

Miscellaneous First Appeal against order rejecting application under Order 9 Rule 13 CPC to set aside ex-parte decree in a suit for recovery of money.

Remedy Sought

The appellant sought to set aside the order dated 28.08.2024 in Misc.No.25012/2022 and restore O.S.No.25432/2015 to contest the suit on merits.

Filing Reason

The appellant claimed that he had no knowledge of the suit proceedings and that summons were not served properly, leading to an ex-parte decree.

Previous Decisions

The trial court rejected the application under Order 9 Rule 13 CPC on 28.08.2024, observing that the appellant had knowledge of the proceedings.

Issues

Whether the appellant had sufficient cause for his non-appearance in the suit to set aside the ex-parte decree under Order 9 Rule 13 CPC. Whether the trial court erred in rejecting the application on the ground that the appellant had knowledge of the proceedings.

Submissions/Arguments

Appellant's counsel argued that the appellant was not aware of the suit and that the paper publication was not brought to his notice; summons were returned unserved. Respondent's counsel opposed the appeal, stating that the appellant had knowledge of the proceedings and the trial court correctly rejected the application.

Ratio Decidendi

The court held that when summons are returned unserved and paper publication is not proved to have come to the notice of the defendant, the defendant has made out a sufficient cause for setting aside the ex-parte decree. The trial court's observation that the appellant had knowledge was not supported by evidence.

Judgment Excerpts

The factual matrix of the case before the trial Court is that when the suit is filed for relief of the judgment and decree on the ground that defendant is liable to pay a sum of Rs.8,80,000/-... The appellant has made out a ground to set aside the ex-parte decree and the trial Court has committed an error in rejecting the petition.

Procedural History

The respondent filed O.S.No.25432/2015 for recovery of Rs.8,80,000/-. Summons were issued to the appellant but returned unserved. After RPAD summons were returned with endorsement 'defendant is not in station', the respondent filed an application under Order 5 Rule 20 CPC for paper publication, which was allowed. The suit proceeded ex-parte and a decree was passed. The appellant filed Misc.No.25012/2022 under Order 9 Rule 13 CPC to set aside the ex-parte decree, which was rejected on 28.08.2024. The appellant then filed the present MFA No. 7207 of 2024.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order 9 Rule 13, Section 151, Order 5 Rule 20, Order 43 Rule 1(d)
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