The Tax Publishers 2022 TaxPub(CL) 2822 (SC) : (2022) 173 SCL 0459

CONSTITUTION OF INDIA, 1950

Article 136

Trial Court passed ex-parte decree in favour of bank, but notice issued by the Trial Court were returned 'unclaimed' as the same was sent to address at Chennai, which property was already sold by appellants, one opportunity was to be given to the appellants to defend the suit, which would be in fitness of things and meet ends of justice.

Special leave to appeal by the Supreme Court - Appeal against judgment of dismissing application to set aside ex parte decree - Notice returned as unclaimed and deposit of decretal amount - Grant of opportunity to defend suit

Bank instituted against appellant for recovery of loan amount, which Trial Court passed ex-parte decree in favour of the bank. Further, DRT also issued recovery certificate in favour of the bank. The appellants filed an application for setting aside the decree on the ground that notice was sent to address at Chennai which property according was already sold by them. The Trial Court passed judgment of rejection of the application, which was also upheld by High Court. Therefore, the appellants filed an appeal against the judgment before Apex Court. Held: It is found that summons/notices issued by the Trial Court were returned 'unclaimed' as the same were sent at the address at Chennai and the house was closed as the appellants were staying in USA and thereafter the said house was sold. Further, entire decretal amount is deposited by the appellants to show their bona fides and therefore the amount alleged to have been due and payable to the bank is secured. Therefore, if the appellants are given one additional opportunity to defend the suit it will be in the fitness of things and meet the ends of justice. Thus, the order of ex parte decree is quashed and set aside and the original suit is restored on the file of the Trial Court, which shall be decided and disposed of by Trial Court in accordance with law and on its own merits.

REFERRED :

FAVOUR : In favour of appellant

A.Y. :



IN THE SUPREME COURT OF INDIA

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