U.S.A v. Ashok K. Chauhan & Ors.

Delhi High Court · 02 Aug 2011 · 2011:DHC:3861
A.K. Pathak
E.A. No. 438/2011 and E.A. No. 439/2011 in Execution Petition No. 38/1998
2011:DHC:3861
civil appeal_dismissed Significant

AI Summary

The Delhi High Court held that restoration of an execution petition dismissed in default must be sought within 30 days under Order 21 CPC, and delay beyond this period cannot be condoned under Section 5 of the Limitation Act or Section 151 CPC.

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HIGH COURT OF DELHI
E.A. No. 438/2011 (under Section 151 CPC) and E.A.
No. 439/2011 (under Section 5 of the Limitation
Act) in Execution Petition No. 38/1998.
JUDGMENT
decided on: 2nd August, 2011 M/s FORMOSA PLASTICS CORPORATION, ......Decree Holder
U.S.A.
Through: Mr. Deepak Biswas, Adv.
Versus
ASHOK K. CHAUHAN & ORS. ….Judgment Debtors
Through: Mr. Rajiv Nayar, Sr. Adv. with Mr. Vinay Garg, Adv. for J.D. No. 1.
Mr. A.P. Singh and Mr. Rajan Chawla, Advs. for J.D. Nos. 2 and 3.
Mr. Vikas Singh, Sr. Advocate with Mr. Rajesh Yadav, Adv. for J.D. No.
4.
Coram:
HON’BLE MR. JUSTICE A.K. PATHAK

1. Whether the Reporters of local papers No may be allowed to see the judgment?

2. To be referred to Reporter or not? No

3. Whether the judgment should be No reported in the Digest? A.K. PATHAK, J. (Oral)

1. Execution Petition was dismissed in default on 31st March, 2011 since decree holder remained unrepresented on that day. Decree holder has filed E.A. No. 438/2011 under Section 151 of the Code of Civil Procedure, 1908 (CPC) for restoration of the execution petition. By E.A. No. 439/2011 filed under Section 5 of the 2011:DHC:3861 that the delay of 112 days in filing the application for restoration be condoned. It is alleged that on 15th December, 2010 the matter was adjourned to 31st March, 2011, however, counsel for the decree holder had inadvertently noted the next date of hearing as 31st May, 2011, consequently, he could not appear on 31st March, 2011 when the matter was taken up for hearing. Only on 31st May, 2011, counsel came to know that petition had been dismissed in default on 31st March, 2011. Thereafter, decree holder was informed and on receiving instructions, present application had been filed. It is further alleged that delay in filing the application was also for the reason that the Courts were closed in the month of June.

2. It may be noted here that the decrees are executed by following the procedure as laid down in Order 21 of the CPC. Order 21 is a complete code in itself, providing mode and manner in which a decree has to be executed. Rule 105 of Order 21 CPC provides the manner in which an application under any of the rules of Order 21 has to be dealt with and the same reads as under:- “Order 21 Rule 105. Hearing of application

105. Hearing of application.—(1) The Court, before which an application under any of the foregoing rules of this Order is pending, may fix a day for the hearing of the application. (2) Where on the day fixed or on any other day to which the hearing may be adjourned the applicant does not appear when the case is called on for hearing, the Court may make an order that the application be dismissed. (3) Where the applicant appears and the may hear the application ex parte and pass such order as it thinks fit. Explanation.—An application referred to in subrule (1) includes a claim or objection made under Rule 58.”

3. Sub-Rule 2 of Rule 105 of Order 21 CPC vests power in the Court to dismiss an execution petition if the decree holder does not appear or remains unrepresented on the date fixed. Rule 3 of Rule 105 takes care of the situation when the applicant appears and the opposite party to whom the notice has been issued by the court does not appear. It provides that in such an eventuality Court may hear the applicant ex-parte and pass such order(s) as it deems fit. Sub-Rule 1 of Rule 106 of Order 21 CPC vests power in Court to set aside the order passed under sub-Rule 2 and sub-Rule 3 of Rule 105 of Order 21 CPC, if the applicant against whom such an order is passed, satisfies the Court that there was sufficient cause for his non-appearance when the application was called on for hearing. Sub-Rule 3 of Rule 106 prescribes period of limitation for filing such application under sub-Rule 1. Rule 106 of Order 21 CPC reads as under:- “106. Setting aside orders passed ex parte, etc.— (1) The applicant, against whom an order is made under sub-rule (2) of Rule 105 or the opposite party against whom an order is passed ex parte under sub-rule (3) of that rule or under sub-rule (1) of Rule 23, may apply to the Court to set aside the order, and if he satisfies the Court that there was sufficient cause for his non-appearance when the application was called on for hearing, the Court shall set aside the order on such terms as to costs or otherwise as it thinks fit, and shall appoint a day for the further hearing of the application. (2) No order shall be made on an application (3) An application under sub-rule (1) shall be made within thirty days from the date of the order, or where, in the case of an ex parte order, the notice was not duly served, within thirty days from the date when the applicant had knowledge of the order.”

4. Sub-Rule 3 of Order 106 provides limitation for filing such application under sub-Rule 1 of Rule 106 CPC. It is in two parts. The first part deals with the orders passed under sub-Rule 2 of Rule 105 CPC. The second part refers to ex-parte orders passed under sub-Rule 3 of Rule 105 CPC. The period of limitation of 30 days has been provided in respect of order passed under sub-Rule 2 of Rule 105 CPC. This period commences from the date of dismissal of the execution petition. In case of recalling of ex-parte orders against the opposite party (judgment debtor), the limitation period of 30 days has to be reckoned from the date of knowledge of the order by the opposite party who has suffered ex-parte order.

5. In this case, execution petition was dismissed in default on 31st March, 2011 since decree holder remained unrepresented on that date. Thus, the dismissal of execution petition in default on 31st March, 2011 falls within the ambit and scope of sub-Rule 2 of Rule 105 of Order 21 CPC. Accordingly, the present application under Section 151 CPC has to be treated under sub-Rule 1 of Rule 106 of Order 21 CPC. Application under Section 151 CPC would not be maintainable in view of the specific provision governing the field. In Damodaran Pillai & Ors. vs. South Indian Bank Ltd. (2005) 7 SCC 300, in similar facts, Supreme Court has held that

6. Section 5 of the Limitation Act reads as under:-

“5. Extension of prescribed period in certain cases. Any appeal or any application, other than an application under any of the provisions of Order XXI of the Code of Civil Procedure, 1908 (5 of 1908 ), may be admitted after the prescribed period if the appellant or the applicant satisfies the court that he had sufficient cause for not preferring the appeal or making the application within such period. Explanation.- The fact that the appellant or the applicant was misled by any order, practice or judgment of the High Court in ascertaining or computing the prescribed period may be sufficient cause within the meaning of this section.”

7. A bare perusal of the above quoted provision makes it clear that Section 5 of the Limitation Act would not be applicable to the applications under any of the provisions of Order 21 CPC.

8. In Deutsche Ranco GMBH vs. Mohan Murti MANU/DE/1971/2009, a Single Judge of this Court has taken note of the fact that Section 5 of Limitation Act would not be applicable to the proceeding arising under Order 21 of the CPC.

9. In Damodaran Pillai’s case (supra), Supreme Court has held that period of limitation for filing the application under sub-Rule 1 of Rule 106 CPC would commence from the date of the order under Order 21 Rule 105 (1) and not from the date on which decree holder acquires the knowledge of that order. In para 21 of the judgment it has also been held that hardship or injustice may be a relevant consideration in applying the principles of interpretation of the statue, but cannot be a ground for extending the period of limitation.

10. In this case, execution petition was dismissed in default on 31st March, 2011. 30 days period expired on or before 30th April,

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2011. Admittedly, application has not been filed within this period. Application has been filed on 22nd July 2011 i.e. about two and a half months after expiry of 30 days period. Order 21 Rule 106 admits no discretion in regard to entertaining the application for restoration of execution petition, which had been dismissed in default, if presented beyond the period of limitation as prescribed by law.

11. For the foregoing reasons, both the applications are dismissed being devoid of merits. A.K. PATHAK, J. AUGUST 02, 2011 ga