Supreme Court Allows Appeal in Specific Performance Suit — Sets Aside Review Order Recalling Judgment Due to Non-Filing of Vakalatnama. Service of Notice Held Complete and Arguments Not Collusive, Hence Recall Unjustified Under Order 47 Rule 1 CPC.

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Case Note & Summary

The dispute arose from a specific performance suit filed on 15.10.2010 by the appellant, Shree Chaitanya Constructions, against eight defendants. Only Respondent No.1 (Sudhir Poonamchand Parakh) filed a written statement on 04.02.2011 but did not lead evidence or cross-examine the plaintiff. The Trial Court on 07.11.2012 rejected specific performance but ordered refund of Rs.2,26,40,370/-. The appellant filed a first appeal on 03.04.2013. Meanwhile, a partition suit (O.S. No.1298 of 1999) between family members had an interim injunction restraining alienation of properties, including the suit property (Item No.7). That suit was dismissed for non-prosecution on 18.11.2014, vacating the injunction. The appellant and defendants entered into an MoU, which Respondent No.1 admitted in his written statement. The High Court, in the first appeal, set aside the trial court judgment and decreed specific performance on 14.02.2018. In that appeal, Senior Advocate Mr. P.S. Dani appeared for Respondent No.1 and made several arguments, all of which were considered and rejected. Respondent No.1 then filed a review petition claiming he never appointed the advocate who appeared for him and that there was no written Vakalatnama. The High Court allowed the review and recalled its judgment on 27.09.2018. The Supreme Court examined the facts: notices of appeal were served on Respondent No.1 by affixation, registered post (returned unclaimed), and paper publication in 'Prabhat' newspaper on 18.01.2016. The High Court declared service complete on 22.02.2016. The Supreme Court noted that the arguments made by Mr. Dani were all in defence of Respondent No.1 and not collusive. Affidavits from family members and the advocate confirmed that oral instructions were given to engage the counsel. The Court held that after due service, if a party chooses not to appear, he cannot later complain. The absence of a written Vakalatnama is an irregularity that can be cured and does not warrant recall unless prejudice or collusion is shown. The argument regarding the interim injunction was also considered in the original judgment (para 33). The Supreme Court set aside the High Court's review order and restored the judgment dated 14.02.2018 decreeing specific performance.

Headnote

A) Civil Procedure - Review - Recall of Judgment - Order 47 Rule 1 CPC - Non-filing of Vakalatnama - The High Court recalled its judgment on the ground that the advocate who appeared for the respondent had no written Vakalatnama. The Supreme Court held that since the respondent was duly served and chose not to appear, and the arguments made were not collusive but in his interest, the recall was unjustified. The mere absence of a written Vakalatnama, without any prejudice or collusion, does not warrant recall of a judgment. (Paras 10-14)

B) Specific Performance - Service of Notice - Effect of Non-Appearance - The respondent was served by affixation, registered post (returned unclaimed), and paper publication. The High Court declared service complete. The Supreme Court held that after due service, if a party chooses not to appear, he cannot later complain of being unheard. (Paras 10-11)

C) Civil Procedure - Vakalatnama - Irregularity - The absence of a written Vakalatnama is at best an irregularity that can be cured. If the judgment had been in favour of the respondent, he would have ratified the appearance. The court must examine whether the irregularity caused any prejudice or collusion. (Paras 8, 12)

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Issue of Consideration

Whether the High Court was justified in recalling its judgment in a first appeal on the ground that the advocate who appeared for the respondent had no written Vakalatnama, despite the respondent having been duly served and the arguments made being in his interest.

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Final Decision

The Supreme Court allowed the appeal, set aside the impugned judgment of the High Court dated 27.09.2018, and restored the High Court's judgment dated 14.02.2018 decreeing specific performance in favour of the appellant.

Law Points

  • Review jurisdiction
  • Recall of judgment
  • Vakalatnama requirement
  • Service of notice
  • Collusion
  • Specific performance
  • CPC Order 47 Rule 1
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Case Details

2019 lawtext (SC) (7) 136

Civil Appeal No. 5620 of 2019 (Arising out of SLP (C) No. 30543 of 2018)

2019-07-17

Rohinton Fali Nariman, Sanjiv Khanna, Surya Kant

Mr. R. Basant (Senior Advocate) for Appellant; Ms. Anjani Aiyagari for Respondent No.1

Shree Chaitanya Constructions

Sudhir Poonamchand Parakh & Ors.

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Nature of Litigation

Civil appeal against High Court order allowing review and recalling its judgment in a specific performance suit.

Remedy Sought

Appellant sought setting aside of the High Court's review order and restoration of the judgment decreeing specific performance.

Filing Reason

The High Court recalled its judgment on the ground that the advocate who appeared for Respondent No.1 had no written Vakalatnama.

Previous Decisions

Trial Court rejected specific performance but ordered refund of part consideration. High Court in first appeal decreed specific performance. High Court then allowed review and recalled that judgment.

Issues

Whether the High Court was justified in recalling its judgment on the ground of absence of written Vakalatnama when the respondent was duly served and the arguments were not collusive. Whether the non-filing of a Vakalatnama is a mere irregularity that can be cured and does not warrant recall of a judgment.

Submissions/Arguments

Appellant: Respondent was duly served; he chose not to appear; arguments made by his counsel were in his interest and not collusive; non-filing of Vakalatnama is an irregularity curable later. Respondent No.1: He never appointed the advocate; the advocate had appeared against him in earlier contempt proceedings; the argument regarding interim injunction was not made; he had no knowledge of the appeal.

Ratio Decidendi

A judgment cannot be recalled merely because the advocate who appeared for a party had no written Vakalatnama, if the party was duly served and chose not to appear, and the arguments made were not collusive but in the party's interest. The absence of a written Vakalatnama is an irregularity that can be cured and does not, by itself, warrant recall under Order 47 Rule 1 CPC.

Judgment Excerpts

It is clear that had the Respondent No.1 not chosen to appear at all, the judgment dated 14.02.2018 could not possibly have been recalled. The mere absence of a written Vakalatnama, without any prejudice or collusion, does not warrant recall of a judgment.

Procedural History

Specific performance suit filed on 15.10.2010. Trial Court judgment on 07.11.2012 rejected specific performance but ordered refund. First appeal filed on 03.04.2013. High Court decreed specific performance on 14.02.2018. Review petition filed and allowed on 27.09.2018 recalling the judgment. Supreme Court appeal against review order.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 47 Rule 1
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Supreme Court Supreme Court Allows Appeal in Specific Performance Suit — Sets Aside Review Order Recalling Judgment Due to Non-Filing of Vakalatnama. Service of Notice Held Complete and Arguments Not Collusive, Hence Recall Unjustified Under Order 47 Rule 1 CPC.
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