Case Note & Summary
The Supreme Court dealt with an application by the State of Uttar Pradesh to recall an ex parte order dated 16.12.2013 in a suit filed by the State of Uttarakhand under Article 131 of the Constitution. The suit sought declarations regarding the allocation of 25% shareholding in Tehri Hydro Development Corporation (THDC) and related reliefs. The State of U.P. was served notice but failed to appear, leading to the ex parte order. It filed I.A. No. 3/2014 on 09.04.2014 seeking recall, citing internal delays and consultations. The State of Uttarakhand opposed the application and sought a decree under Order VIII Rule 1 CPC. The Court noted that after filing the application, the State of U.P. was not negligent, and the plaintiff itself sought adjournments. Balancing the interests, the Court allowed the recall subject to payment of Rs. 30 lakhs as costs to the plaintiff within four weeks, and permitted the State of U.P. to file its written statement within four weeks thereafter. The suit was directed to be listed after twelve weeks for framing of issues.
Headnote
A) Civil Procedure - Recall of Ex Parte Order - Order VIII Rule 1 CPC - Delay and Costs - State of U.P. was set ex parte for non-appearance despite service - Application for recall filed after internal consultations - Court allowed recall subject to costs of Rs. 30 lakhs to compensate plaintiff for legal expenses - Held that while State was tardy, it was not solely negligent after filing application (Paras 1-8).
Issue of Consideration
Whether the ex parte order against the State of Uttar Pradesh should be recalled and under what terms, including costs.
Final Decision
I.A. No. 3/2014 allowed subject to State of U.P. paying costs of Rs. 30,00,000/- to plaintiff within four weeks. State of U.P. permitted to file written statement within four weeks; plaintiff's replication within eight weeks; suit listed after twelve weeks for framing issues.
Law Points
- Recall of ex parte order
- Costs for delay
- Code of Civil Procedure
- 1908 Order VIII Rule 1
- Article 131 of the Constitution
Case Details
2019 LawText (SC) (12) 91
Original Suit No. 5 of 2012
R.F. Nariman, S. Ravindra Bhat
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Nature of Litigation
Civil suit under Article 131 of the Constitution seeking declaration and injunction regarding shareholding in Tehri Hydro Development Corporation.
Remedy Sought
State of Uttarakhand sought declaration that allocation of 25% shareholding in THDC to State of U.P. is void, and decree for mandatory and permanent injunction to allocate shareholding and dividends to Uttarakhand.
Filing Reason
Dispute over ownership of shareholding in THDC following the U.P. Reorganisation Act, 2000.
Previous Decisions
Suit entertained on 06.12.2012; interim relief dismissed on 12.12.2012; State of U.P. set ex parte on 16.12.2013.
Issues
Whether the ex parte order against State of U.P. should be recalled.
What costs should be imposed for the delay.
Submissions/Arguments
State of U.P. argued that after receiving notice, internal consultations caused delay but prompt steps were taken after learning of ex parte order.
State of Uttarakhand opposed recall and sought decree under Order VIII Rule 1 CPC, claiming legal costs of Rs. 57,48,791/-.
Ratio Decidendi
An ex parte order can be recalled if the defaulting party shows reasonable cause and is not solely negligent; costs may be imposed to compensate the other party for delay.
Judgment Excerpts
This court is of the opinion that though the State of U.P. was tardy and could not ensure timely appearance, yet, when the concerned officials were made aware of the pendency of the present suit and order dated 16.12.2013, prompt steps were taken.
Having regard to the entirety of circumstances, the Interlocutory Application is allowed subject to the State of U.P. paying costs quantified at Rs. 30,00,000/- (Rupees Thirty Lacs only) to the plaintiff/State of Uttarakhand, within four weeks from today.
Procedural History
Suit filed under Article 131 on 06.12.2012; interim relief dismissed 12.12.2012; notice served on State of U.P. in October 2013; State of U.P. set ex parte on 16.12.2013; I.A. No. 3/2014 filed on 09.04.2014; notice on application issued on 06.04.2016; matter heard on multiple dates; order passed on 06.12.2019.
Acts & Sections
- Code of Civil Procedure, 1908: Order VIII Rule 1
- Constitution of India: Article 131
