Supreme Court Allows Appellant in Civil Appeal Against High Court's Interference Under Article 227 Constitution of India - High Court's order setting aside trial court's decision to set aside ex parte decree was quashed as unjustified interference in discretionary order under Order IX Rule 13 CPC.

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Case Note & Summary

The dispute arose from a civil suit for recovery of money filed by the respondent against the appellant. The appellant contested the suit, but during proceedings, the sole proprietor of the appellant was arrested and detained in judicial custody from October 2015 to May 2017, which hindered his ability to participate in the suit. Consequently, the defence evidence was closed, and an ex parte decree was passed against the appellant in November 2016. Upon release, the appellant filed an application under Order IX Rule 13 of the Code of Civil Procedure, 1908 to set aside the ex parte decree, which was allowed by the trial court on 24th July 2018, finding sufficient cause for non-appearance due to incarceration. The respondent challenged this order before the High Court under Article 227 of the Constitution of India, which set aside the trial court's order. The core legal issue was whether the High Court's interference under Article 227 was justified. The appellant argued that incarceration constituted sufficient cause for non-appearance, while the respondent likely contended otherwise. The Supreme Court analyzed the facts, noting the appellant's detention and the procedural history, including attempts to secure his production via warrants. The court reasoned that the trial court's order was detailed and based on factual findings of sufficient cause, making the High Court's interference under Article 227 unwarranted. The decision restored the trial court's order, setting aside the ex parte decree and allowing the suit to proceed for defence evidence.

Headnote

A) Civil Procedure - Ex Parte Decree - Setting Aside Under Order IX Rule 13 CPC - Code of Civil Procedure, 1908, Order IX Rule 13 - Appellant was incarcerated in jail, preventing effective participation in civil suit, leading to ex parte decree - Application under Order IX Rule 13 CPC was allowed by trial court, finding sufficient cause for non-appearance - Held that High Court erred in interfering under Article 227 as trial court's order was reasoned and based on facts (Paras 2-16).

B) Constitutional Law - Supervisory Jurisdiction - Article 227 of Constitution of India - Constitution of India, Article 227 - High Court set aside trial court's order allowing setting aside of ex parte decree - Limited issue was whether High Court's interference was justified - Held that High Court was not justified in exercising powers under Article 227 to overturn trial court's discretionary order (Paras 2-3).

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Issue of Consideration

Whether the High Court was justified and correct in law and on facts in exercising powers under Article 227 of the Constitution of India to set aside the order dated 24th July 2018 allowing the application under Order IX Rule 13 of the Code of Civil Procedure, 1908 filed by the appellant.

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Final Decision

Supreme Court allowed the appeal, setting aside the High Court's order and restoring the trial court's order dated 24th July 2018 which allowed the application under Order IX Rule 13 CPC, thereby setting aside the ex parte decree and restoring the suit for defence evidence.

Law Points

  • Exercise of power under Article 227 of the Constitution of India
  • Setting aside ex parte decree under Order IX Rule 13 of the Code of Civil Procedure
  • 1908
  • Sufficient cause for non-appearance due to incarceration
  • Judicial discretion in procedural fairness
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Case Details

2022 Lawtext (SC) (1) 30

Civil Appeal arising out of SLP (C) No. 13941/2021

2022-01-11

Sanjiv Khanna

Shailendra Garg, sole proprietor of M/s Garment Craft

Prakash Chand Goel

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Nature of Litigation

Civil suit for recovery of money

Remedy Sought

Appellant seeks setting aside of ex parte decree under Order IX Rule 13 CPC

Filing Reason

Appellant was incarcerated and unable to participate in suit, leading to ex parte decree

Previous Decisions

Trial court allowed application under Order IX Rule 13 CPC on 24th July 2018; High Court set aside this order under Article 227 Constitution of India

Issues

Whether the High Court was justified and correct in law and on facts in exercising powers under Article 227 of the Constitution of India to set aside the order dated 24th July 2018 allowing the application under Order IX Rule 13 of the Code of Civil Procedure, 1908 filed by the appellant.

Ratio Decidendi

The High Court was not justified in interfering under Article 227 of the Constitution of India with the trial court's discretionary order allowing setting aside of ex parte decree under Order IX Rule 13 CPC, as the trial court had found sufficient cause for non-appearance due to the appellant's incarceration.

Judgment Excerpts

Limited issue which arises for our consideration in this appeal is whether the High Court was justified and correct in law and on facts in exercising powers under Article 227 of the Constitution of India to set aside the order dated 24th July 2018 allowing the application under Order IX Rule 13 of the Code of Civil Procedure, 1908 filed by Shailendra Garg, sole proprietor of M/s Garment Craft – the appellant before us. Upon consideration of the facts, vide detailed reasoned order dated 24th July 2018, the application under Order IX Rule 13 of the Code was allowed, setting aside the ex parte decree, restoring it to its original number and listing it for defence evidence.

Procedural History

In 2011, respondent filed civil suit for recovery; appellant contested; appellant's sole proprietor arrested and detained from October 2015 to May 2017; defence evidence closed on 28th October 2015; suit transferred to District Judge; order dated 14th March 2016 recalled closure of defence evidence; production warrant issued on 11th May 2016; suit transferred back and forth between High Court and District Court; defence evidence closed on 4th November 2016; ex parte decree passed on 8th November 2016; appellant filed application under Order IX Rule 13 CPC on 16th May 2017; trial court allowed application on 24th July 2018; High Court set aside this order under Article 227; Supreme Court heard appeal.

Acts & Sections

  • Constitution of India: Article 227
  • Code of Civil Procedure, 1908: Order IX Rule 13
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