Supreme Court Upholds Setting Aside of Ex Parte Preliminary Decree in Redemption Suit — Order 9 Rule 13 CPC Maintainable. The court held that a decree passed after defendants were proceeded ex parte under Order 9 Rule 6(1)(a) and the court proceeded under Order 17 Rule 2 (Explanation) is an ex parte decree amenable to Order 9 Rule 13 CPC.

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Case Note & Summary

The original appellant, G. Ratna Raj (since deceased, represented by legal representatives), filed a civil suit (C.S. No. 131/1999) in the High Court of Madras on its original side against Sri Muthukumarasamy Permanent Fund Ltd. (respondent No.1) and others, seeking redemption of mortgage and permanent injunction in relation to mortgaged property. The defendants entered appearance and filed written statements. Issues were framed, and the plaintiff examined himself as PW1 and was cross-examined by the defendants. The plaintiff then closed his case, and the matter was posted for defendants' evidence. At that stage, the defendants did not appear, and the court proceeded ex parte against them under Order 9 Rule 6(1)(a) CPC. The plaintiff was re-examined but could not be cross-examined due to the ex parte proceedings. The Trial Court (Single Judge) passed a preliminary decree on 25.02.2003. Subsequently, defendant No.1 filed two applications: IA No. 341/2006 under Order 9 Rule 13 CPC to set aside the preliminary decree, and IA No. 340/2006 for condonation of delay. The Single Judge dismissed both applications, holding that the preliminary decree was not an ex parte decree and thus Order 9 Rule 13 was not maintainable. Defendant No.1 appealed to the Division Bench, which allowed the appeals, set aside the Single Judge's order, and held that the preliminary decree was an ex parte decree, making the Order 9 Rule 13 application maintainable. The Division Bench allowed the application subject to payment of Rs. 10,000 costs to the plaintiff and restored the suit for disposal on merits. The plaintiff appealed to the Supreme Court. The Supreme Court dismissed the appeals, affirming the Division Bench's view. The Court analyzed Order 9 Rule 6(1)(a), Order 17 Rules 2 and 3, and the Explanation to Rule 2. It held that since the defendants were absent and the court proceeded under Order 17 Rule 2 (not Rule 3), the decree was ex parte. The Explanation to Rule 2, which allows the court to proceed as if the absent party were present when substantial evidence has been recorded, does not change the character of the decree as ex parte. The Court relied on B. Janakiramaiah Chetty vs. A.K. Parthasarthi (2003) 5 SCC 641 to distinguish between Rules 2 and 3. The appeals were dismissed with no order as to costs.

Headnote

A) Civil Procedure - Ex Parte Decree - Order 9 Rule 13 CPC - Maintainability - The court examined whether a preliminary decree passed after the defendants were proceeded ex parte under Order 9 Rule 6(1)(a) and the court proceeded under Order 17 Rule 2 (Explanation) could be set aside under Order 9 Rule 13. Held that such a decree is an ex parte decree and Order 9 Rule 13 application is maintainable (Paras 16-22).

B) Civil Procedure - Order 17 Rule 2 vs Rule 3 CPC - Distinction - Rule 2 applies when parties fail to appear on adjourned hearing; Rule 3 applies when a party is present but defaults in producing evidence. The Explanation to Rule 2 allows the court to proceed as if the absent party were present if substantial evidence has been recorded. In this case, since the defendants were absent and the court proceeded under Rule 2, the decree was ex parte (Paras 19-22).

C) Civil Procedure - B. Janakiramaiah Chetty vs. A.K. Parthasarthi - Precedent - The Supreme Court relied on this case to clarify the scope of Order 17 Rules 2 and 3, holding that when a party is absent and the court proceeds under Rule 2 (including its Explanation), the resulting decree is ex parte and amenable to Order 9 Rule 13 (Paras 22-23).

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Issue of Consideration

Whether the preliminary decree dated 25.02.2003 was an 'ex parte decree' for the purpose of Order 9 Rule 13 of the Code of Civil Procedure, 1908, and whether the application under Order 9 Rule 13 was maintainable.

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Final Decision

The Supreme Court dismissed the appeals, affirming the Division Bench's order that the preliminary decree was an ex parte decree and the application under Order 9 Rule 13 CPC was maintainable. The suit was restored for disposal on merits.

Law Points

  • Order 9 Rule 13 CPC
  • Order 17 Rule 2 CPC
  • Order 17 Rule 3 CPC
  • Ex parte decree
  • Setting aside ex parte decree
  • Redemption of mortgage
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Case Details

2019 LawText (SC) (2) 44

Civil Appeal Nos. 2582-2583 of 2011

2019-02-01

Abhay Manohar Sapre

G. Ratna Raj (D) by LRs.

Sri Muthukumarasamy Permanent Fund Ltd. & Anr.

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Nature of Litigation

Civil suit for redemption of mortgage and permanent injunction

Remedy Sought

Setting aside of preliminary decree and restoration of suit

Filing Reason

Defendants failed to appear after plaintiff closed evidence, leading to ex parte proceedings and preliminary decree

Previous Decisions

Single Judge dismissed application under Order 9 Rule 13 holding decree not ex parte; Division Bench reversed and allowed application

Issues

Whether the preliminary decree dated 25.02.2003 was an ex parte decree for the purpose of Order 9 Rule 13 CPC Whether the application under Order 9 Rule 13 CPC was maintainable

Submissions/Arguments

Appellant argued that the decree was not ex parte because the court proceeded under Order 17 Rule 2 Explanation, treating defendants as present Respondent argued that the decree was ex parte as defendants were absent and court proceeded under Order 17 Rule 2

Ratio Decidendi

A decree passed after the defendants are proceeded ex parte under Order 9 Rule 6(1)(a) and the court proceeds under Order 17 Rule 2 (including its Explanation) is an ex parte decree, and an application under Order 9 Rule 13 CPC is maintainable to set it aside. The Explanation to Order 17 Rule 2 does not convert the decree into a contested decree.

Judgment Excerpts

The short question, which arises for consideration in these appeals, is whether the Division Bench was justified in setting aside the preliminary decree dated 25.02.2003 by holding the same to be an 'ex parte decree' for the purpose of Order 9 Rule 13 of the Code. In our opinion, the question involved in these appeals is required to be decided keeping in view the provisions of Order 9 Rule 6 (a) and Order 17 Rules 2 and 3 of the Code.

Procedural History

Original suit filed in 1999; preliminary decree passed on 25.02.2003; applications under Order 9 Rule 13 filed in 2006; dismissed by Single Judge on 14.03.2006; appeals to Division Bench allowed on 11.01.2008; appeals to Supreme Court by special leave dismissed.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 9 Rule 6(1)(a), Order 9 Rule 13, Order 17 Rule 2, Order 17 Rule 3
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