Case Note & Summary
The dispute arose from a suit filed by the State of Uttarakhand against the Union of India and the State of U.P. regarding the allocation of shareholding in the Tehri Hydro Development Corporation (THDC). The State of Uttarakhand sought a declaration that the allocation of 25% shareholding to the State of U.P. was void and requested a decree for mandatory and permanent injunction to allocate the shareholding in its favor. The suit was entertained by the Supreme Court on 06.12.2012, but the State of U.P. was set down ex parte on 16.12.2013 due to its non-appearance despite being served notice. The State of U.P. filed an application to recall this order on 09.04.2014, claiming it had received notice of the suit and had taken steps to address the matter. The application faced delays in hearings, with the court issuing notice on 07.09.2015 and further delays in subsequent hearings. The State of Uttarakhand opposed the recall application and claimed significant legal costs incurred due to the proceedings. The court acknowledged the tardiness of the State of U.P. but noted that it took prompt action once aware of the proceedings. Ultimately, the court allowed the recall of the ex parte order, imposing costs of Rs. 30,00,000 on the State of U.P. and permitting it to file its written statement within four weeks, with the plaintiff allowed to file a replication within eight weeks. The matter was scheduled for further proceedings after twelve weeks.
Headnote
A) Constitutional Law - Article 131 - Recall of Ex Parte Order - Supreme Court allowed the recall of an ex parte order against the State of U.P. subject to payment of costs. The court noted that while the State defaulted in timely appearance, it took prompt steps upon becoming aware of the proceedings, and thus, the blame for the delay was not solely on the State of U.P. (Paras 6-8).
Issue of Consideration
Whether the order setting the State of U.P. ex parte should be recalled and the implications of the delay in representation.
Final Decision
The court allowed the recall of the ex parte order against the State of U.P. subject to payment of costs of Rs. 30,00,000 to the plaintiff, and permitted the State of U.P. to file its written statement within four weeks.
Law Points
- Article 131 of the Constitution
- Code of Civil Procedure
- 1908
- ex parte proceedings
- recall of orders
- legal costs
