M/S. JOHN IMPEX (PVT.) LTD. & ANR.versusATHUL KAPUR & ORS

                                 (2009] 11 S.C.R. 863
'
        >I             M/S. JOHN IMPEX (PVT.) LTD. & ANR.                      A
                                           v.
                                ATHUL KAPUR & ORS ..
                           ·(Civil Appeal No. 4960 of 2009)
                                    JULY 31,.-2009
                                                                               B
                     [S.B. SINHA AND CYRIAC JOSEPH, JJ.)

                  Code of Civil Procedure, 1908 - Order 9 r. 13 - Suit for
             eviction - Decided ex-parte against the tenant- Setting aside
             of the ex-parte decree sought - Held: The facts of the case       c
             show, that the intention of the tenant was to delay the court
             proceed[ngs - Possession of the suit premises delivered to
             the landlord and partition thereof effected as per court order
             between co-sharers - Tenant not entitled to any kind of relief.
                                                                           D
                  A suit for eviction praying also for recovery of arrears
             of rent, was filed by respondents-landlord against the
             appellant-tenant before High Court. The case was posted
             for final arguments. Consequent upon enhancing of
             pecuniary jurisdiction of the District Courts, the suit was
                                                                           E
             transferred to District Court. The court issued notice to
             the parties. However, the service thereof was disputed by
             the tenant. Respondent-landlord had also filed an
             application under Ordet 38 Rule 5 and Order 39, Rule 1
             and Section 151 CPC. Issuance of notice of motion on
    )        the application was admitted by the appellant. However, F
             appellant did not appear before the Court. The suit was,
             therefore, decreed ex-parte. The application for setting
             aside the ex-parte decree was dismissed. The appeal
             against the order was also dismissed by High Court.
             Hence the present appeal.                                     G

                 Dismissing the appeal, the Court
    ;

                 HE:D: 1. No sufficient or cogent reason has been
                                          863                                  H
    864      SUPREME COURT REPORTS             [2009] 11 S.C.R.


A assigned by the appellants as to why despite receipt of         ..
  the notice of the application, they did not appear before
  the Court of the Additional District Judge. The plea that
  the appellants were not conversant with the Hindi
  language cannot be accepted. A copy of the summons
B shows that it was both in Hindi as well as in English
  language. [Para 11] [870-E-F]

       2. A finding of fact had been arrived at by the
  Additional District Judge that having regard to the
  quantum of rent being above Rs.6,500/- per month, the
C provisions of the Delhi Rent Control Act will have no
  application. It had further been found that the tenancy in
  respect of the premises had legally been determined.
  Order IX Rule 13 CPC provides for setting aside ex parte
  decree passed against the defendants. The Court, in
D terms of the aforementionec:{ provision, is entitled. to
  exercise its jurisdiction subject to its being satisfied that
  : 1. the summons was not duly served; or 2. he was
  prevented by any sufficient cause from appearing when
  the suit was called on for hearing. [Paras 11 and 12) [870-
E G-H; 871-A-B]

       3. The suit was transferred in the year 2004. It
  appears that even during pendency of the suit before the
  High Court, an application filed under Order IX Rule 9 was
F dismissed with costs. An appeal preferred thereagainst
                           1



  was also dismissed. The High Court had directed the
  appellant to pay arrears of 'Use and Occupation' charges.
  The said order was not complied with. The appellants
  furthermore did not appear in the suit with effect from
G 23.4.2002. Respondents filed an application praying for
  a direction upon the appellants to deposit the 'Use and
  Occupation' charges and on their failure to comply
  therewith to strike off the defence. An application was
  also filed by the respondent to direct the appellants to
  make payment of rent. Copies of the said applications
H
        JOHN IMPEX (PVT.) LTD. & ANR. v. ATHUL KAPUR             865
                           & ORS.

        were served upon the appellants. But despite the same,           A
        the appellants did not appear before the Court. The sole
        aim of the appellants was to delay the di.,posal of the suit.
        The respondents, in terms of the order passed by the
        High Court directing the appellants to deposit the
        charges for occupying the tenanted premises, became              B
        entitled to receive a sum of Rs.24,00,000/-. [Paras 13 and
        14] [871-D-H; 872-A]

             4. The articles stored in the premises had been put
.       on auction. The appellants even did not take part in the
        auction proceedings. Indisputably possession of the              C
        premises in question had been delivered to the
        respondent. Pursuant to the decree passed, a partition
        has been effected amongst the co-sharers and the
        property in question has been physically divided. In a
        situation of this nature, the appellant is not entitled to any   D
        relief. [Para 15] [872-8-C]

            Sunil Poddar and Ors. v. Union Bank of India (2008) 2
        sec 326, relied on.
                                                                         E
                              Case Law Reference:
            (2008) 2 sec 326            Relied on.          Para 15
            CIVIL APPELLATE JURISDICTION : Civil Appeal Nos.
        4960 of 2009.
                                                                         F
    )
            From the Judgment & Order dated 12.01.2006 of the High
        Court of Delhi at New Delhi in F.A.O. 50 of 2005.

            Anoop G. Choudhary, Shakil Ahmed Syed, Syed Ahmad
        Saud, for the Appellants.                                        G

            Devendra Singh, for the Respondents.

            The Judgment of the Court was delivered by

                                                                         H
    866         SUPREME COURT REPORTS               [2009] 11 S.C.R.


A         S.S. SINHA, J. 1. Leave granted.

         2. Defendant in the suit is before us aggrieved by and
    dissatisfied with a judgment and order dated 12.01.2006
    passed by a learned Single Judge of the High Court, Delhi" in
    FAO No.50 of 2005 whereby and whereunder an appeal
8
    preferred by him under Section 104 read with Order XLlll Rule
    1(d) of the Code of Civil Procedure was dismissed.

        3. The relationship between the parties hereto was
  landlord and tenant. Respondents-landlord filed a suit for
C eviction of the appellant from the suit premises. A prayer for
  recovery of arrears of rent was also made. The said suit was
  filed in the Original Side of the Delhi High Court. Appellant,
  indisputably, appeared before the Delhi High Court. Evidences
  had been adduced in the matter. The suit was listed for final
D hearing on 23.10.2003 .. The said suit, however, consequent
  upon issuance .of a notification enhancing the pecuniary
  jurisdiction of the. District Courts, was transferred to the Court
  of Additional District Judge, Delhi. On 13.2.2004, the le~rned             •
  Additional District Judge, Delhi passed the following order:
E
          "Present. None.

          Fresh suit received by transfer. It be checked ancf
          registered. Issue Court Notice to parties and their counsels
          for 15.7.2004"
F
       4. Appellants contend that no summon was, in fact, issued
  as directed by the learned Additional District Judge nor the
  same was served upon them. It, however, stands admitted that
  respondents had also filed an interlocutory application on
G 8.3.2004 purported to be in terms of Order XXXVlll, Rule 5,
  Order XXXIX, Rule 1 and Section 151 of the Code of-Civil
  Procedure.

         5. Notice of motion on the said application was issued for      •
    service on -the defendant. The said notice was undisputedly
H
-·
          JOHN IMPEX (PVT.) LTD. & ANR. v. ATHUL KAPUR                       867
                     & ORS. [S.B. SINHA, J.]

         served upon the appellants. They, however, contend that they A
         were not conversant with the Hindi language and, thus, were,
         not aware of the contents thereof. The said interlocutory
         application came up before the Court on 15.7.2004 on which
         date, the court passed the following order :
                                                                                    B
              "15. 7.2004 Proxy Cl of Plaintiff. Court Notice issued to deft .
              No.1. Received after due service called repeatedly. It is ·
              11.00 AM. B,e called at 12.30 PM. There are two defts in ,
              all.

              15. 7.2004 Pr. ; Sh. Anil Airi, f;..dv. For the plff. Plff. Is also   C
              present in person. It is 11.45 AM. Case has been called
              repeatedly. The deft. No.1 is absent despite service of the
              Courtnotice. Ld.CI. for plff. Submits that deft. No.2 has
              already been given up on 14.7.95."
                                                                                    D
               The said suit was, therefore;-taken up for ex parte hearing
         and upon consideration of the materials brought on record by
         the plaintiff-respondent, the suit was decreed. The appellants
         filed an application for setting aside the said ex perte decree
         which by reason of an order dated 14.1.2005 was dismissed,
                                                                                    E
         opining:

             "The argument of counsel for the JD/applicant could of the
             suit had been served on the JD/applicant, therefore, the
             JD/applicant could not have been proceeded ex parte in
     ;       the main suit. I do not agree with him. Had .I preponed the            F
             date of hearing and issued notice of the applicant to the
             JD/applicant for any date before 15.7.2004, the matter
             would have been different and in that case, the absence
             of the JD/applicant on the date fixed would have resulted
             in proceeding ex parte against him so far as the                       G
             application is concerned. However, in the present case,
             the notice of the applicant had been issu~d to the JD/
             applicant for 15.7.2004 on which the suit w~s to be taken
             up. Here, I would like to further add that t_he ~pplication filed
             by the plaintiff the notice of which had.been served on the            H
                                                                              ••

    868         SUPREME COURT REPORTS                [2009] 11 S.C.R.


A         JD/applicant, contained each and every fact stating from
          the various dates and fact that the suit had lie in the mouth
          of the JD/applicant to Say that since, the court notice was
          not issued for 15.7.2004, therefore, even after served of
          the application moved by the plaintiff which was served on
B         the JD/applicant for 15.7.2004, it (defendant) should not
          have been proceeded ex parte. The applicant u/o 9 Rule
          13 CPC is meritless and is dismissed. Consequently,
          application u/s 144 CPC is also dismissed. Filed be
          Consigned to record room."
c        .6. An appeal preferred thereagainst has been dismissed
    ·by t~e l-lligh Court by reason of the impugned judgment, stating


        ·"From the r~c.;urd of the Trial Court it is apparent that this
D        notice for the next date of hearing fixed before the Trial
         Coyrt on 15th July, 2004 was duly received and served
         upon the appellant on 18th March, 2004. There is also a
         registened AD. acknowledgement card which shows that
         this notice for hearing fixed on 15th July, 2004 was duly
E        served upon the appellant on 20th March, 2004. A bare
         perusal of the copy of the said notice available on the Court
         shows that the suit number and the name of the parties has
         been mentioned. The said notice did not anywhere indicate
         that the notice has been issued only on an application. The
F        appellant has admitted service of this notice and has not        ,
         disputed service of notice. The appellant has himself also
         enclosed copy of the notice received by one of its Directors
         at page 34 of the paper book filed in this Court. In any
         case the plea taken by the appellant is hyper technical. The
         second proviso under Order IX Rule 13 of Code makes it
G
         clear that an ex parte judgment or decree passed by the
         court is not liable to be set aside merely on the ground of
         irregularity in service if the party had notice of the date of   •
         hearing and had sufficient time to appear. It is clear from
         the notices and it is not a case of the appellant that it did
H
JOHN IMPEX (PVT.) LTD. & ANR. v. ATHUL KAPUR & 869
             ORS. [S.B. SINHA, J.]

     have sufficient time to appear before the Trial Court or that   A
     he was not aware of the next date of hearing. Date of
     hearing is mentioned in the notice and the notice was
     served almost four months before the next date ofhearing.

      The judgme11t of the Supreme Court in the case 'of Sushi/
                                                                     8
      Kumar (supra) relied upon by the learned counsel for the
      appellant does not in any manner support the contention
      of the appellant. In the said.judgment, the_ Supreme Court
      has noticed distraction between knowledge of mere ·
      "pendency of suit" and knowledge aboat the 'date of
      hearing'. In the present case, as is clear from the facts C
      stated above, the appellant was aware and lied notice of
      the 'date of hearing' i.e. 15th July, 2004. Rather than
      supporting the case of the appellant, the said judgment
      supports the impugned order."
                                                                     D
      7. Mr. Anoop G. Choudhary, learned s-enior counsel
appearing on behalf of the appellant, would- GODtencflhat the
learned Trial Judge as also the Higl'i Court committed a serious
~'rror in passing the imp~gri~d judgments in so far a~ they failed
to take into consideratio'f1 1 that the records .of the case E
categ9rjcally establish that the, appellants had r.i'ever .been
served with any notice of transfer of the suit or the fact,.that the
suit was placed for hearing on 15.7.2004.

    ·8. Mr. Oevendra Singh, learned counsel appearing on
behalf of the respondent, on the other hand, urged that the suit F
for eviction having been filed in the year 1993 and the
respondents having already obtained possession pursuant to·
the decree passed by the learned Trial Judge, this Court should
not exercise its discretionary jurisdiction under Article 136 of
the Constitution of India.                                       G

     9. The basic fact of the matter is not in dispute. The
appellants were tenants. A suit for eviction was filed by the
respondent before the original side of the Delhi High Court on
27th March, 1993 which was marked as Suit No.767 of 1993.            H
    870        SUPREME COURT REPORTS                (2009] 11 S.C.R.


A The appellants in their written statement took the plea of their
  right to continue in the suit premises as statutory tenants.

        The parties adduced evidences in support of their
  respective case. The matter i,yas posted for final argument. It
  is, at this stage, the suit was t('ansferred. The fact that the suits
B
  had been transferred from the Original Side of the Delhi High
  Court to the Court of Additional District Judge was known to
  all the litigants. The appellants, indisputably, had not made any
  endeavour to find out the date on which the suit was likely to
  be taken up for hearing:                                                "
c
       10. We would proceed on the basis that Mr. Choudhary is
  correct in his submission that notice of transfer of the suit had
  not been served but, as indicated hereinbefore, the parties are
  at ad idem that the respondents also filed interlocutory
D application under Order 38 Ruie 5 and Order 39 Rule 1 of the
  Code of Civil Procedure which had indeed been served. It is
  also not in dispu~e that 15. 7.2004 was the date fixed for hearing
  of both, the interfocutory application as also the suit.

       11. No sufficient or cogent reason has been assigned by
E
  the appellants as to why despite receipt of the notice, they did
  not appear before the Court of the learned Additional District
  Judge, Delhi. The plea taken before us that the appellants were
  not convers·ant with the Hindi language cannot be accepted. A
  copy of the summons produced before us shows that it was
F both in Hindi as well as in English language. We, therefore, fail
  to appreciate as to why such an incorrect stand had been taken
  by the appellants.

       It is furthermore not disputed before us that a finding of fact
G had  been arrived at by the learned Additional District Judge
  that having regard to the quantum of rent being above Rs.6,500/
  - per month, the provisions of the Delhi Rent Control Act will
  have no application. It had further been found that the tenancy
  in respect of the premises had legally been determined.
H
          JOHN IMPEX (PVT.) LTD. & ANR. v, ATHUL KAPUR &871
                       ORS. [S.B. SINHA, J.]                J



              12. Order IX Rule 13 of the Code of Civil Procedure             A
         provides for setting aside ex parte decree passed· against the
         defendants. The Court, in terms of the aforementioned
         provision, is entitled to exercise its jurisdiction subject to its
         being satisfied that :
                                                                              B
               1.    the summons was not duly served; or

               2.    he was prevented by any sufficient cause from
   ~-
                     appearing when the suit was called on for hearing.

             The second proviso appended thereto which was inserted           c
         by Act 104 of 1976 reads as under :

              "Provided further that no Court shall set aside a decree
              passed ex parte merely on the ground that there has been
              an irregularity in the service of summons, if it is satisfied
              that the defendant had notice of the date of hearing and        D
              had sufficient time to appear and answer the plaintiffs
              claim."

               13. The suit was transferred in the year 2004. It appears
         that even before the Delhi High Court, an application filed under E
         Order IX Rule 9 was dismissed with costs. An appeal preferred
         thereagainst was also dismissed. The High Court by order
         dated 27.5.2003 directed the appellant to pay arrears of 'Use
         and Occupation' charges at the rate of Rs.24,000/- per month.
         The said order was not complied with. The appellants F
         furthermore did not appear in the suit with effect from 23.4.2002.
         Respondents filed an application praying for a direction upon
         the appellants to deposit the 'Use and Occupation' charges and
.._,
  <'
   ,.
   ..;   on their failure to comply therewith to strike off the defence. An
         application was also filed by the respondent to direct the G
         appellants to make payment of rent. Copies of the said
         applications were served upon the appellants. But despite the
         same, the appellants did not appear before the Court.

             14. The learned counsel appearing on behalf of the
         respondents, therefore, in our opinion correctly contended that      H
    872         SUPREME COURT REPORTS               [2009] 11 S.C.R.


A   the sole aim of the appellants was to delay the disposal of the
    suit. The respondents, in terms of the order passed by the Delhi
    High Court directing the appellants to deposit the charges for
    occupying the tenanted premises, became entitled to receive
    a sum of Rs.24,00,000/- (Rupees twenty four lacs).
B
         15. The articles stored in the premises had been put on
    auction. The appellants even did not take part in the auction
    proceedings. Indisputably possession of the premises in
    question had been delivered to the respondent. Pursuant to the
C   decree passed, a partition has been effected amongst the co-
    sharers and the property in question has been physically
    divided.

         In a situation of this nature, we are of the opinion that the
    appellant is not entitled to any relief. We may noltice that this
D   Court in Sunil Poddar & Ors. v. Union Bank of India [(2008) 2
    sec 326], held as under :                                            ,
          "14. It was further stated that summonses were issued to
          the appellants at the addresses at which they were earlier
          served. In fact, according to the respondent Bank, it was
E
          the same address which was given by the appellants
          themselves before both the Tribunals and before the High
          Court. But with a view to deprive the Bank of the legitimate
          dues and to delay the proceedings initiated against them,
          they did not appear before DRT. Though it was not
G         necessary for the Bank to serve the appellants once again,
          they made a prayer to the Tribunal to get the summonses
          published in a newspaper which was done and in Nav
          Bharat Times, Bombay as well as Nav Bharat Times,
          Raipur summonses were published. Nav Bharat Times is
                                                                         ...
H         having very wide circulation at both the places i.e. Bombay
          as well as at Raipur. It was, therefore, not open to the
          appellants to contend that they were not subscribing and/
          or reading a Hindi newspaper by producing a bill from a
          newspaper agent. Such a bill can be obtained from any
J         vendor. No reliance can be placed on such evidence.
                          I
       JOHN IMPEX (PVT1) LTD. & ANR. v. ATHUL KAPUR 873
                 ,; & ORS. [S.B. SINHA, J.]
 ...     Moreover, an extremely important fact which weighed with     A
         both the Tribunals as well as with the High Court was that
         in an application under Section 22(2)(g) of the Act for
         setting aside ex parte order passed by ORT, the appellants
         have suppressed material and extremely important fact that
         they had appeared before the civil court and had filed       B
         written statement. The application proceeded on the
         footing as if the appellants were never aware of any
         proceedings initiated against them by the plaintiff Bank.
         DRT was, therefore, wholly right in dismissing the
         application and the said order was correctly confirmed by    c
         DRAT and by the High Court. No case can be said to have
         been made out by the appellants to interfere with those
         orders and the appeal deserves to be. dismissed.

          15. Having heard the learned counsel for the parties, in our
          opinion, the appellants have not made out any ground on D
         the basis of which the .order passed by ORT, confirmed
         by DRAT and by the High Court can be set aside. From
         the record, it is clearly established that the suit waa
         instituted by the plaintiff Bank as early as in August 1993.
         The appellants who were Defendants 7 to 9 were aware E
         of the proceedings before the civil court. They appeared
         before the court, engaged an advocate and filed a written
         statement. They raised preliminary objections as also
         objections on merits. They filed applications requesting the
,;       court to raise certain issues and try them as preliminary F
         issues. It was, therefore, obligatory on their part to appear
         before ORT, Jabalpur when the matter was transferred
         under the Act. The appellants, however, failed to do so. We
         are not impressed by the argument of the learned counsel
         for the appellants that they were not aware of the G
         proceedings before ORT and summonses could not be
         said to have been duly served. As is clear, summonses
         were issued earlier and on the same address, summonses
         ~ere sought to be served again after the case was
         transferred to ORT. There is substance in the submission H
    874        SUPREME COURT REPORTS             [2009] 11 S.C.R.


A         of the learned counsel for the respondent Bank that the     .
          appellants had avoided service of summons as they
          wanted to delay the proceedings."

         16. Furthermore, it appears that the appellant had taken
    an incorrect stand in support of their case that the Managing
8
    Director of the appellant was ill at the relevant time. No such
    plea had been taken before the learned Trial Judge.

       17. For the aforementioned reasons, there is no merit in
  the appeal. It is dismissed accordingly with costs. Counsel's
C fee assessed at Rs.10,000/-.

    K.K.T.                                     Appeal dismissed.




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