High Court Quashes Ex-Parte Decree in Commercial Suit Due to Improper Service of Summons. The court found that the service of summons was not valid as it was sent to an under-construction site instead of the appellant's known address, violating the mandatory provisions of the CPC.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The dispute arose from a commercial suit where the respondent claimed that the appellant defaulted on a loan of ₹25,00,000, leading to an ex-parte decree against the appellant. The appellant contended that he was not properly served with the summons, as it was sent to an under-construction site rather than his known address. The respondent had issued three cheques as loan repayment and claimed that the appellant had acknowledged receipt of the loan and paid interest until September 2016. After the appellant stopped payments, the respondent filed a suit in the City Civil Court, which decreed the suit ex-parte based on the respondent's affidavit of service. The appellant argued that the service was invalid under the Code of Civil Procedure, 1908, as it did not comply with the required rules for service of summons. The court analyzed the service affidavit and found that the respondent had failed to serve the summons at the correct addresses listed in the plaint. The court emphasized that the plaintiff must prove the existence of relevant facts for a decree to be valid, and the trial court's reliance on the affidavit without proper evidence was insufficient. Consequently, the High Court quashed the ex-parte decree and ordered the suit to be restored for a hearing on merits, allowing the appellant to file a written statement within four weeks. The decision underscored the importance of proper service of summons and the right to be heard in legal proceedings.

Headnote

A) Civil Procedure - Service of Summons - Validity of Service - Code of Civil Procedure, 1908, Order V, Rules 1, 9, 9A, 10 - The court held that the service of summons was not valid as it was served at an under-construction site instead of the appellant's known address, violating the mandatory provisions of the CPC. The trial court's reliance on the respondent's affidavit of service without proper verification led to an ex-parte decree, which was quashed and set aside (Paras 9-15).

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Issue of Consideration

Whether the service of summons was valid and whether the ex-parte decree should be set aside.

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Final Decision

The High Court quashed the ex-parte decree dated 20th April 2022, restored the suit for a hearing on merits, and directed the appellant to file a written statement within four weeks.

Law Points

  • Service of summons
  • ex-parte decree
  • compliance with CPC
  • burden of proof
  • right to be heard
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Case Details

2026 LawText (BOM) (11) 27

Commercial Suit No. 1340 of 2021

2026-11-04

Dr. Neela Gokhale, G. S. Kulkarni

Mr. Aseem Naphade, A. Patel, Viloma Shah, Harshad Vyas, Ishita Desai, Mr. Jagdish Nagar

Vipul D. Shah

Dinesh D. Shah Karta Of Dinesh Kumar Babulal (HUF)

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Nature of Litigation

Commercial dispute regarding loan repayment and service of summons

Remedy Sought

Appellant seeks to set aside the ex-parte decree

Filing Reason

Respondent claims default on loan repayment

Previous Decisions

Ex-parte decree passed by the City Civil Court

Issues

Validity of service of summons Right to be heard in legal proceedings

Submissions/Arguments

Appellant contended improper service of summons Respondent argued service at any one address suffices

Ratio Decidendi

The court held that proper service of summons is mandatory under the CPC, and failure to comply with these provisions resulted in a violation of the appellant's right to be heard.

Judgment Excerpts

The service of summons was not valid as it was served at an under-construction site instead of the appellant's known address. The trial court's reliance solely on the affidavit of service filed by the Respondent does not, in any manner, satisfy the CPC's mandate for valid service.

Procedural History

The respondent filed Commercial Suit No. 240 of 2021, which was decreed ex-parte on 20.04.2022. The appellant filed an appeal against this decree.

Acts & Sections

  • Code of Civil Procedure, 1908: Order V, Rules 1, 9, 9A, 10
  • Commercial Courts Act, 2015:
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