Bombay High Court Allows Second Appeal by Municipal Corporation Against Decree for Recovery of Dues — Striking Off Defence Without Reasonable Opportunity Under Order XI Rule 21 CPC Held Illegal. The Court Set Aside the Decree and Remanded the Matter for Fresh Consideration After Giving the Defendant an Opportunity to Comply with Discovery Orders.

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

The respondent (original plaintiff) filed a suit for recovery of Rs.1,33,303/- for water supply services rendered to the Akola Municipal Corporation. The trial court partly decreed the suit, and the first appeal was dismissed. In the second appeal, the appellant (original defendant) challenged the trial court's order striking off its defence under Order XI Rule 21 CPC for non-compliance with discovery orders. The High Court found that the trial court had directed the defendant to discover documents on 22-10-2010, but on 11-11-2010, without any further notice or hearing, struck off the defence. The High Court held that such an order must be passed only after giving reasonable opportunity to the party, and the failure to do so vitiated the proceedings. Consequently, the second appeal was allowed, the impugned judgment and decree were set aside, and the matter was remanded to the trial court for fresh decision after giving the defendant an opportunity to comply with the discovery orders.

Headnote

A) Civil Procedure - Discovery and Inspection - Order XI Rule 21 CPC - Striking off defence - The trial court struck off the defendant's defence for non-compliance with discovery orders without granting reasonable opportunity - Held that the order was passed without notice or hearing, violating principles of natural justice - The decree and judgment were set aside and the matter remanded for fresh consideration (Paras 1-8).

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Issue of Consideration

Whether the order passed by the trial Court below Exhibit 1 in exercise of powers under Order XI Rule 21 of the Code of Civil Procedure, 1908 is after giving reasonable opportunity to the defendant?

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Final Decision

Second appeal allowed. Impugned judgment and decree set aside. Matter remanded to trial court for fresh decision after giving the defendant an opportunity to comply with the discovery orders and to file say on the applications.

Law Points

  • Order XI Rule 21 CPC requires reasonable opportunity before striking off defence
  • striking off defence without notice or hearing is illegal
  • appellate court must consider challenge to such order even if not formally raised
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Case Details

2018 LawText (BOM) (07) 138

Second Appeal No. 520 of 2017

2018-07-20

A.S. Chandurkar, J

Shri Anjan De for appellant, Shri O. Y. Kashid for respondent

The Akola Municipal Corporation through its Commissioner

Purushottam Punjabrao Gawande

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Nature of Litigation

Second appeal against decree for recovery of money

Remedy Sought

Setting aside of the decree and judgment passed by the trial court and first appellate court

Filing Reason

The appellant's defence was struck off under Order XI Rule 21 CPC without granting reasonable opportunity

Previous Decisions

Trial court partly decreed the suit; first appeal dismissed

Issues

Whether the order striking off defence under Order XI Rule 21 CPC was passed after giving reasonable opportunity to the defendant?

Submissions/Arguments

Appellant: The defence was struck off without granting an opportunity to comply, causing prejudice. Respondent: The order was not challenged before the appellate court; the claim was duly proved.

Ratio Decidendi

An order under Order XI Rule 21 CPC striking off defence must be passed only after giving reasonable opportunity to the party to comply with the discovery orders; failure to do so violates principles of natural justice and vitiates the proceedings.

Judgment Excerpts

As per the provisions of Order XI Rule 21 of the Code, the Court may order the defence to be struck off if a party fails to comply with an order for discovery. However, such an order can be passed only after giving reasonable opportunity to the party concerned. In the present case, the order below Exhibit 1 was passed on 11-11-2010 without any notice or hearing to the defendant. The defendant was not given any opportunity to comply with the earlier order dated 22-10-2010.

Procedural History

Plaintiff filed suit for recovery; trial court partly decreed suit; first appeal dismissed; defendant filed second appeal challenging the order striking off defence.

Acts & Sections

  • Code of Civil Procedure, 1908: Order XI Rule 10, Order XI Rule 21
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