Supreme Court Dismisses Application Under Order IX Rule 13 of CPC Due to Lack of Vigilance. Respondent's Knowledge of Proceedings Established Through Acknowledgment of Summons and Participation in Auction.

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Case Note & Summary

The dispute arose from a suit filed by Respondent No.2 for recovery of money against Respondent No.1, who failed to refund a part sale consideration. The suit was filed on 25.05.1993, and an ex-parte decree was passed on 16.09.1997 due to Respondent No.1's absence. Respondent No.1 later filed an application under Order IX Rule 13 of the Code of Civil Procedure to set aside the decree, claiming ignorance of the proceedings. The application was dismissed by the Additional District Judge on 05.07.2005, leading to an appeal (FAFO No. 2473 of 2005) in the High Court, which was allowed on 21.04.2006, restoring the suit for a decision on merits. Respondent No.2 subsequently filed a recall application, which was dismissed on 18.10.2019. The Supreme Court, upon hearing the parties, noted that Respondent No.1 had acknowledged receipt of summons and allowed the auction of the property, thus questioning his vigilance. The court set aside the High Court's orders and dismissed the application under Order IX Rule 13, affirming the validity of the auction sale and the decree. No costs were awarded.

Headnote

A) Civil Procedure - Setting Aside Ex-Parte Decree - Vigilance of Respondent - Code of Civil Procedure, 1908, Order IX Rule 13 - Respondent No.1 was aware of the proceedings yet failed to appear, leading to an ex-parte decree. The court held that the respondent's lack of vigilance disentitled him from relief, and the auction sale was valid (Paras 20-22).

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Issue of Consideration

Whether the application under Order IX Rule 13 of the Code of Civil Procedure should be allowed to set aside the ex-parte decree.

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Final Decision

The Supreme Court allowed the appeals, set aside the orders dated 21.04.2006 and 18.10.2019 passed by the High Court, and dismissed the application under Order IX Rule 13 of the Code of Civil Procedure. No costs were awarded.

Law Points

  • Order IX Rule 13 Code of Civil Procedure
  • 1908
  • execution of decree
  • service of summons
  • presumption of service
  • auction sale validity
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Case Details

2021 LawText (SC) (09) 187

Civil Appeal No. of 2021

2021-09-29

Uday Umesh Lalit, S. Ravindra Bhat

Gopal Sankaranarayanan, Pradeep Kumar Yadav

Vishwabandhu

Sri Krishna and Anr.

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Nature of Litigation

Civil suit for recovery of money and execution proceedings.

Remedy Sought

Respondent No.1 sought to set aside the ex-parte decree.

Filing Reason

Respondent No.1 claimed ignorance of the suit and execution proceedings.

Previous Decisions

The application under Order IX Rule 13 was dismissed by the Additional District Judge, and the High Court allowed the appeal restoring the suit.

Issues

Whether the application under Order IX Rule 13 should be allowed. Whether the auction sale was valid despite the application to set aside the decree.

Submissions/Arguments

Appellant argued that Respondent No.1 was aware of the proceedings and had deliberately avoided participation. Respondent No.1 contended that the High Court's orders should not be interfered with as the suit was restored.

Ratio Decidendi

The court held that the respondent's lack of vigilance and acknowledgment of summons precluded him from claiming relief under Order IX Rule 13, affirming the validity of the auction sale.

Judgment Excerpts

Delay condoned. Leave granted. The respondent initiated the execution proceeding which was registered as 04/1998. The auction was allowed to be undertaken, Respondent No.1 was disentitled from claiming any relief.

Procedural History

The suit was filed on 25.05.1993, an ex-parte decree was passed on 16.09.1997, application under Order IX Rule 13 was dismissed on 05.07.2005, appeal filed in High Court was allowed on 21.04.2006, recall application dismissed on 18.10.2019.

Acts & Sections

  • Code of Civil Procedure, 1908: Order IX Rule 13
  • General Clauses Act, 1897: Section 27
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