Case Note & Summary
The petitioners, Baskaran and Thamaraiselvi, filed a Civil Revision Petition under Section 115 of the Code of Civil Procedure, 1908, challenging a docket order dated 01.07.2025 passed by the IV Additional District and Sessions Judge, Ponneri, Thiruvallur, in E.A.No.2 of 2023 in E.P.No.151 of 2021. The impugned order allowed the petitioners' application to set aside an exparte order in the execution proceedings but imposed an onerous condition of paying Rs.2,00,000/- as costs within 10 days. The petitioners were aggrieved only by the quantum of costs. The respondent, M/s Shriram City Union Finance Ltd., a chit fund company and decree holder, had endorsed 'no objection' to the application being allowed on payment of costs. The petitioners' counsel relied on the High Court's decision in Somu vs. Anandhaselvi (C.R.P.(NPD).No.2703 of 2021), where a condition of depositing 80% of the decree amount was held unsustainable and costs were modified to Rs.5,000/-. The respondent argued that the petitioners were in substantial arrears of over Rs.13,50,000/-, justifying the cost. The High Court considered the submissions and noted that the Supreme Court and this Court have consistently deprecated onerous conditions imposed while granting opportunities to set aside exparte orders. Since the Executing Court did not assign any special circumstances for imposing such a high cost, especially when the respondent had no objection, the order was held unsustainable. The High Court confirmed the order allowing the application but modified the cost to Rs.25,000/-, to be paid within two weeks. Upon payment, the exparte order in E.P.No.151 of 2021 would stand set aside, and the Executing Court was directed to dispose of the EP on merits.
Headnote
A) Civil Procedure - Setting Aside Exparte Order - Onerous Condition - Section 115 CPC - The Executing Court imposed a cost of Rs.2,00,000/- for setting aside an exparte order in E.P.No.151 of 2021, despite the decree holder's 'no objection' and without recording any special circumstances. The High Court held that such onerous conditions are unsustainable and modified the cost to Rs.25,000/-, relying on the principle that courts should not impose conditions that frustrate the right to be heard. (Paras 2-8) B) Civil Procedure - Costs - Reasonableness - Section 35 CPC - The High Court reduced the cost from Rs.2,00,000/- to Rs.25,000/-, considering the amounts due but also the absence of any justification for the high quantum. The modified cost was directed to be paid within two weeks, and upon payment, the exparte order would stand set aside. (Paras 7-8)
Issue of Consideration
Whether the Executing Court was justified in imposing a cost of Rs.2,00,000/- as a condition for allowing an application to set aside an exparte order in execution proceedings, when the decree holder had no objection and no special circumstances were recorded.
Final Decision
The High Court confirmed the order dated 01.07.2025 allowing E.A.No.2 of 2023, but modified the cost portion from Rs.2,00,000/- to Rs.25,000/-. The modified cost shall be paid to the respondent's counsel within two weeks from receipt of a copy of this order. On such payment, the exparte order in E.P.No.151 of 2021 shall stand set aside, and the Executing Court shall proceed to dispose of the EP on merits.
Law Points
- Onerous conditions for setting aside exparte orders are unsustainable
- Courts must not impose excessive costs without special circumstances
- Costs should be reasonable and not frustrate the right to be heard
