Created byFuzzy Cloud

Supreme Court of India

M/S NAHAR ENTERPRISESversusM/S HYDERABAD ALLWYN LTD. AND ANR.

Citation
2007 INSC 124
Decided
9 February 2007
Disposal
Appeal(s) allowed

Holding

A summons must be accompanied by a copy of the plaint; if not, service is defective, fresh summons and a new date are required, and the limitation period for setting aside an ex‑parte decree starts from the date of knowledge of the decree, making the application timely.

Summary

The respondent sued the appellant for recovery of money and issued a summons for appearance on 10‑Oct‑1988, which was served on 14‑Oct‑1988 without attaching a copy of the plaint. The trial court, without issuing a fresh summons, proceeded to an ex‑parte hearing and decreed on 13‑Dec‑1988. The appellant learned of the decree only when served with execution summons on 2‑Dec‑1991 and filed an application on 13‑Dec‑1991 to set aside the ex‑parte decree. The Supreme Court held that a summons must be accompanied by the plaint (Order V, R.2 CPC); failure to do so makes service defective, obliging the court to fix a new date and direct fresh service (Order IX, R.6(1)(c) CPC). Consequently, the limitation period for setting aside the decree began from the date of knowledge of the decree under Article 123(2) of the Limitation Act, rendering the application timely. The ex‑parte decree was set aside subject to the appellant depositing Rs 15,000 as a reasonable condition under Order IX, R.13 CPC, and the appeal was allowed.

Issues considered

  • When a summons is served without a copy of the plaint, is the service defective under Order V, Rule 2 CPC?
  • Does the failure to serve a fresh summons after defective service require the court to fix a new appearance date under Order IX, Rule 6(1)(c) CPC?
  • From what date does the limitation period for filing an application to set aside an ex‑parte decree commence when service of summons is defective?
  • Can the court impose reasonable conditions, such as a security deposit, when setting aside an ex‑parte decree under Order IX, Rule 13 CPC?

Legislation cited

Subjects

service of summonscopy of plaintex‑parte decreelimitation periodOrder V Rule 2 CPCOrder IX Rule 6 CPCOrder IX Rule 13 CPCsetting aside decreecivil procedure

Judgment

~
           ..,.                         MIS NAHAR ENTERPRISES                                         A
                                                  v.
                                 MIS HYDERABAD ALL WYN LTD. AND ANR.

                                               FEBRUARY 9, 2007

                                  [S.B. SINHA AND MARKANDEY KA TJU, JJ.]                              B


                        Code of Civil Procedure, 1908:
           -i
                        Or. 5,r.2-Service of summons on defendant-When a summons is sent
,,                to defendant to appear in court and to file a written statement, it is obligatory   c
                  on Court to send along with it a copy of plaint and other documents
                  appended thereto.

                       Or. 9, r.6(J)(c)-Summons not served in due time-Held, in such a case
                  Court would direct plaintiff to take steps for fresh summons.
                                                                                                      D
-1
                        Or. 9, r.13-Application for setting aside ex-parte decree-Limitation-
           t      Held, summons having not been duly served in terms of Or. 5, r.2 or provisions
     .;    '
                  of Or.9, r.6(J)(c) having not been complied with, second part of Article 123
                  of Schedule to Limitation Act would be attracted and limitation will begin
                  to run from date of knowledge ofex-parte decree-Ex-pa rte decree set aside-         E
                  Defendant would deposit the specified amount before trial court-Limitation
                  Act, 1963-Schedule-Art. 123.

                         Respondent filed a suit for recovery of money against the appellant.
                  Summons for appearance on 10.10.1988 was sent to appellant which was
                  served on him on 14.10.1988 without enclosing a copy of the plaint Meanwhile        F
          -\      the Court adjourned the case for 2.12.1988. Without issuing any further
                  summons the Court fixed another date for ex-parte hearing and the suit was
                  ultimately decreed ex-parte on 13.12.1988. The appellant was served with
                  summons in execution case on 2.12.1991 whereupon he filed an application
                  on 13.12.1991 for setting the ex-parte decree, which was dismissed on the
                  grounds that (1) non-receipt of copy of the plaint and other documents              G
                  alongwith the summons could not be a ground to set aside ex-parte decree;
     ~            (2) since there was no report about service of summons on 10.10.1988, there
                  was no necessity to serve fresh summons; and (3) the ex-parte decree having

                                                        413                                           H
                                                                                        ~

    414                            SUPREME COURT REPORTS [2007) 2 S.C.R.
                                                                                                     t:
A been passed on 13.12.1988, the application for setting aside the same filed on
    13.12.1991 was barred by limitation. The appeal of the defendant having been        .f'          ',.
                                                                                                     ~·
    dismissed by the High Court, he filed the present appeal.

          Allowing the appeal, the Court                                                             :
                                                                                                      ..
B         HELD: 1.1. When a summons is sent calling upon a defendant to appear
    in the Court and file his written statement, it is obligatory on the part of the
    Court to send a copy of the plaint and other documents appended thereto, in
    terms of Order V, Rule 2 CPC. (Para 8] (416-B)
                                                                                        )-
           1.2. The trial Court, furthermore, committed a manifest error in so far
c   as it failed to take into consideration that the summons having been served                      f-
    upon the appellant after the date fixed for his appearance, it was obligatory on                 "
    its part to fix another date for his appearance and filing written statement
    and direct the plaintiff to take steps for service of fresh summons, as envisaged
    by Order IX Rule 6(1)(c) ofCPC. (Para 9) (416-D-E)
D
    .      1.3. Thus, the summons having not been duly served upon the appellant
    inasmuch as tl:e provisions of Order V Rule 2 CPC or provisions of Order                         oj.
                                                                                                     ~

    IX Rule 6(1)(c) having not been complied with, the second part of Article 123
    of the Limitation Act will be attracted and the date of knowledge of passing of         ~   .,
    the said ex-parte decree would be the date from which the limitation will begin
E   to run. The ex-parte decree dated 13.12.1988 is set aside. However, in view of
    Order IX, Rule 13 CPC the defendant-appellant shall deposit a sum of
    Rs.15,000/- before the trial Court. (Paras 11,12 and 14]                                         '
                                                                                                     '
                                                                                                     It::.
                                                         (416-H; 417-A-B; 418-B]

          CIVIL APPELLATE JURISDICTION: Civil Appeal No. 714 of2007.
F                                                                                                    k
          From the Judgment and Order dated 28.6.2004 of the High Court of                  {-
    Judicature, Andhra Pradesh at Hyderabad in C.M.A. No. 1253/1996.

          Prakash Shrivastava for the Appellant. .

G         The Judgment of the Court was delivered by
                                                                                                     ~
          S.B. SINHA. J. 1. Leave granted.
                                                                                            ~
          2. Heard the learned counsel for the parties.


H
          3. The appellant is before us aggrieved by and dissatisfied with the                       ~
                 NAHAR ENTERPRISES v. HYDERABAD ALL WYN LTD. [S.B. SINHA, J.] 415

               judgment and order dated 28.6.2004 passed by a learned Single Judge of the          A
     --+       High Court of Andhra Pradesh at Hyderabad dismissing the appeal preferred
               against an order dated 19. 7.1996 passed by Addi. Civil Judge Hyderabad in
               l.A. No. 6/1992.

                      4. The respondent herein filed a suit for recovery of a sum of Rs.
                1,87,904.62 with future interest at the rate of I 8.5% per annum against the       B
               appellant. It appears that in the summons sent to the appellant. 10 .10 .1988 was
               fixed for his appearance. However, as the summons had not been served the
               Court adjourned the matter to 2. I 2.1988. Summons were served on the appellant
     - f....
               on 14.l 0.1988. but according to him a copy of the plaint was not annexed
               thereto. He sent a telegram on 17. IO .1988 and also a letter to the Court
               concerned but, admittedly, the same was not responded to. Without issuing
                                                                                                   c
               any further summons fixing another date for his appearance, the Court fixed
               a date and having found the appellant absent on that date, fixed another _date
               for ex-parte hearing. On 13.12.1988 the suit was decreed with costs.

                     5. An execution case was filed by the respondent herein to execute the        D
               said decree. According to the appellant, the bailiff came to serve a copy of
               summons on him on 2.12.1991. The said summons having been served upon
     1
               the appellant, he came to learn that ex-parte decree has been passed. An
   > '         application for setting aside the said ex-parte decree filed on 13.12.1991. By
               an order dated 17.1.1992 the learned Judge. City Civil Court, Hyderabad
               dismissed the said application inter alia opining:                                  E
                          (1) Non-receipt of a copy of the plaint and documents along with
                      the summons cannot be a ground to set aside an ex-parte decree.

                         (2) Moreover, Since there was no report about the service of
                      summons on 10.10.1988, there was no necessity to serve fresh                 F
                      summons.

                          (3) An ex-Parte decree having been passed on 13. 12. 1988 and an
                      application for setting aside the ex-parte decree having been filed on
                      13.12.1991, the same was barred by limitation.
                                                                                                   G
                    6. An appeal preferred thereagainst was dismissed by the High Court
               by reason of the impugned judgment.
... rt
                    7. Mr. Prakash Shrivastava, learned counsel appearing on behalf of the
               appellant would submit that the Trial Court as also the High Court committed
                                                                                                   H
    416                             SUPREME COURT REPORTS [2007) 2 S.C.R.

A a manifest error in passing the impugned judgment in so far as it failed to
    consider the implication of: (i) the provisions of o'rder V Rule 2 of CPC: (ii)     k
    provisions of Order IX Rule 6 (1) (C) ofCPC: and (iii) the Provisions of Article
    123 of the Limitation Act.

           8. The Learned Counsel appears to be correct. When a summons is sent
B   calling upon a defendant to appear in the Court and file his written statement,
    it is obligatory on the part of the court to send a copy of the plaint and other
    documents appended thereto, in tenns of Order 5, Rule 2 CPC.

          Order V Rule 2 of the CPC reads as under:

C           "Copy of plaint annexed to summons - Every summons shall be
            accompanied by a copy of the plaint."

          9. The learned Judge did not address itself the question as to how a
    defendant, in absence 9f a copy of the plaint and other documents, would
    be able to file his written statement. The Court, furthermore, in our opinion,
D   committed a manifest error in so far as it failed to take into consideration that
    the summons having been served upon the appellant after the date fixed for
    his appearance, it was obligatory on its part to fix another date for his
    appearance and filing written statement and direct the plaintiff to take steps
    for service of fresh summons. This legal position is explicit in view of the            \   ...
E   provisions of order IX Rule 6 (1) (C) of CPC which reads:

           "When summons served but not in due time - if it is proved that the
           summons was served on the defendant, but not in sufficient time to
           enable him to appear and answer on the day fixed in the summons,
           the Court shall postpone the hearing of the suit to a future day to be
F          fixed by the Court, and shall direct notice of such day to be given to
           the defendant."

          I 0. The court, therefore, committed an illegality in dismissing the
    application for setting aside the ex-parte decree. It was a fit case where the
    Court should have exercised its jurisdiction under order IX Rule 13 of CPC.
G
          11. The third ground on which the learned Trial Judge dismissed the
    application for setting aside the ex-parte decree was that it was barred by
    limitation. The said ground in our opinion, is also without substance. The
    summons had not been duly served upon the appellant inasmuch as the
    provisions of order IX Rule 2 CPC or provisions oforder IX Rule 6 (1) (C)
H
  NAHARENTERPRISESv. HYDERABAD ALL WYN LTD. [S.B. SINHA . .I.] 417

had not been complied with. In that view, the second part of Article 123, in       A
terms whereof an applicant would be deemed to have knowledge of passing
of the said ex-parte decree would be the date from which the limitation will
begin to run, would be attracted in the instant case and not the first part
thereof.

      12. We, therefore, are of the opinion that the impugned judgments            B
cannot be sustained and they are accordingly set aside. The ex-parte decree
dated 13 .12.1988 is also set aside.

     13. However, such an order need not be wholly unconditional one.
Imposition of such condition is permissible under order IX Rule 13 of CPC,         C
as would appear from a recent decision of this Court in Tea Auction Ltd. v.
            '~
Grace Hill Tealndustry & Anr., (2006) 9 SCALE 223, wherein this Court held:

       "However, the interpretation of the expression 'Payment into Court'
       did not' directly fall for consideration in those cases.

       Order IX Rule 13 of CPC did not undergo any amendment in the year           D
        1976. The High Courts, for a Jong time, had been interpreting the said
       provisions as conferring power upon the courts to issue certain
       directions which need not be confined to cost5 or otherwise. A
       discretionary jurisdiction has been conferred upon the court passing
       an order for setting aside an ex-parte decree not only on the basis that    E
       the defendant had been able to prove sufficient cause for his non-
       appearance even on the date when the decree was passed, even on
       the date when the decree was passed, but also other attending facts
       and circumstances. It may also consider the question as to whether
       the defendant should be put on terms. The court, indisputably, however,
       is not denuded of its power to put the defendants to terms. It is,          F
       however, trite that such terms should not be unreasonable or harshly
       excessive. Once unreasonable or harsh conditions are imposed, the
       appellate court would have power to interfere therewith. But, it would
       not be correct to hold that no error has been committed by the
       Division Bench in holding that the learned Single Judge did not             G
       possess such power. The Learned Single Judge exercised its
       discretionery jurisdiction keeping in view that the matter has been
       disposed of in fact finally at the interim stage at the back of defendant
       and it was in that view of the matter a chance was given to it to
       defend the suit, but, then the learned Single Judge was not correct to
                                                                                   H
                                                                                    ·:/

    418                           SUPREME COURT REPORTS l2007] 2 S.C.R.

A          direct securing of the entire sum of Rs. 37 lakhs in the form of bank     ~
           guarantee or deposit the sum in cash. The condition imposed should
           have been reasonable. What would be reasonable terms would depend
           upon facts and circumstances of each case."

          14. We, therefore, direct that the appellant shall deposit a sum of Rs.
B   15,000/- before the learned court below, within a period of six weeks from
    today. The appeal is allowed. In the facts and circumstances of this case,
    there shall be no order as to costs.
                                                                                     J.·-
    R.P.                                                        Appeal allowed.




                                                                                          \   ....


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "service of summons"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.