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SALIL DUTTA versus T.M. AND M.C. PRIVATE LTD.

Citation: [1993] 1 S.C.R. 794 · Decided: 05-02-1993 · Supreme Court of India · Bench: K. JAYACHANDRA REDDY · Disposal: Appeal(s) allowed

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Judgment (excerpt)

A 
B 
SALILDUTIA 
v. 
T.M. AND M.C. PRIVATE LTD. 
FEBRUARY 5, 1993 
(K. JAYACHANDRA REDDY AND B.P. JEEVAN REDDY, JJ.) 
COde of Civil Procedure, 1908: 
Order 9, Rule 13-Setting aside ex-parte decree against defen-
C dant-Cause for non-appean;nce-lmproper advice of advocate-Whether a 
sufficient cause-Held: Cannot as a rule be accepted-f'arty cannot disown 
its advocate and seek relief. 
The suit filed by tbe appellant for ejecting the respondent-private 
D limited company, from the suit premises, was decreed ex-psrte by tbe trial ~ 
court since neither the advocate nor the respondent-tenant, appeared 
.,. 
when tbe case came up for final-hearing. Thereafter, tbe respondent-com· 
pany filed an application to set aside tbe ex-psrte decree, stating tbat tbe 
non-appearance of tbe respondent-tenant was due to tbe advice tendered 
by tbe advocate-on:record to tbe effect tbat tbe respondent-tenant need 
E 
not be present at the hearing of tbe suit till the disposal of tbe two 
interlocutory applications filed by the respondent-tenant. According to It, 
_-'. 
there was sufficient cause to set aside the ex-parte decree within tbe 
meaning of Order 9 Rule 13 C.P.C. The trial court dismissed the said 
application. The appeal against tbe trial court's order was also dismissed 
F 
by a Division Bench of the High Court. However, before the judgment was 
signed by tbe learned Judges, an application was moved by tbe respon· 
dent-tenant for alteration or modification and/or reconsideration of the 
judgment on tbe ground tbat tbe respondents' counsel could not bring to 
tbe notice of tbe Court, the decision of the Supreme Court in the case of 
G Rafiq and Anr. v. Munshi/al and Anr., AIR 1981 SC 1400 which supported 
respondent-tenant's case. This was opposed by the appellant on tbe 
ground tbat once the judgment was pronounced in open court, it was final 
and that matter could not be reopened, just because a relevant decision 
was 11ot brought to the notice of tbe court. However, the Division Bench 
reopened tbe case on the ground tbat technicalities should not be allowed 
H to stand in tbe way of doing justice to tbe parties and allowed the appeal, 
794 
SAUL DUTIA v. T.M & M.C. (P) LID. 
795 
relying. on the decision. 
A 
'y' 
Io the appeal before this Court on behalf of the appellant it was 
contended that the decision in the case of Rafiq did not support the 
respondents' case and the High Court had erred in holding othehrise, 
inasmuch as the respoodent·teoaot in the instant case was a private B 
limited company, managed by persons who were not only well-educated 
but were practical businessmen, unlike the appellant in the case of Rafiq, 
who was a rustic innocent villager, placing his entire trust lo his advocate. 
On behalf of the respoodeot.tenaot ii was submitted that when the 
High Court had applied and acted upon a decision of this Court, it would c 
not be proper to set aside lhei~ order under Article 136 of the Cooslitu· 
lion, and that the respondent-company implicitly trusted their advocate 
and acted according to his advice and should not be penalised therefore. 
Allowing the appeal, this Court, 
D 
HELD : 1.1. The advocate is the agent of the party. His acts and 
statements made within the limits of authority given to him, are the acts 
and statements or the principal, i.e., the party who engaged him. It is true 
that in certain situations, the Court may, in the interest of justice, set 
aside a dismissal order or an ex·parte decree notwithstanding the E 
negligence and/or misdemeaoour or the advocate where ii finds that the 
-~ 
client was an innocent litigant, but there is no such absolute rule that a 
party can disown its advocate at any time and seek relief. No such absolute 
immunity can be recognised. Such an absolute rule would make the work-
Ing ofthe system extemely difficult. [801G] 
F 
1.2. The instant case was an on-going suit posted for final hearing 
after a lapse of seven years or its institution. It was not a second appeal 
~ filed by a villager residing away from the city, where the Court is located. 
~ 
The respondent is also not a rustice ignorant villager but a private limited 
company with its head-office at the place where the court is located and G 
managed by educated businessmen who know where their interest lies. It 
is evident that when their interlocutory applications were not disposed of 
before taking up the suit for final hearing, they felt piqued and refused to 
>--
appear before the c

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