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SHANTILAL GULABCHAND MUTHA versus TATA ENGINEERING & LOCOMOTIVE CO. LTD. & ANR.

Citation: [2013] 2 S.C.R. 432 · Decided: 18-03-2013 · Supreme Court of India · Bench: B.S. CHAUHAN, F.M. IBRAHIM KALIFULLA · Disposal: Disposed off

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Judgment (excerpt)

[2013] 2 S.C.R. 432 
A 
SHANTILAL GULABCHAND MUTHA 
v. 
TATA ENGINEERING & LOCOMOTIVE CO. LTD. & ANR. 
(Civil Appeal No. 6162 of 2005) 
B 
MARCH 18, 2013. 
c 
[DR. B.S. CHAUHAN AND FAKKIR MOHAMED 
IBRAHIM KALIFULLA, JJ.] 
CODE OF CIVIL PROCEDURE, 1908:. 
0. 8, r.10 - Judgment on failure of defendant to file written 
statement- Held: Relief under 0. 8, r. 10 is discretionary, and 
court has to be more cautious while exercising such power 
where defendant fails to file written statement -Court must be ' 
D satisfied that there is no fact which need to be proved in spite 
of deemed admission by defendant, and court must give 
reasons for passing such judgment - In the instant case, trial 
court has not examined as to whether the suit was filed within 
limitation and whether on the basis of pleadings, the relief 
E granted by it could have been granted - Court did not even 
consider it proper to examine the case prima facie before 
passing the decree - As trial court failed to meet the 
parameters laid down by Supreme Court to proceed under 0. 
8 r. 10, judgment and decree passed by it is set aside and 
F the case is remanded to it to decide afresh - Appellant is at 
liberty to file written statement within the period provided. 
Ba/raj Taneja & Anr. v. Sunil Madan & Anr. 1999 (2) 
Suppl. SCR 258 = AIR 1999 SC 3381; Bogidhola Tea & 
Trading Co. Ltd. & Anr. v. Hira Lal Somani, 2007 (12) SCR 
G 1153 = AIR 2008 SC 911; Ramesh Chand Ardawatlya v. Anil 
Panjwani 2003 (3) SCR 1149 = AIR 2003 SC 2508 • relied 
on. 
H 
432 
SHANTILAL GULABCHAND MUTHA v. TATA 
ENGINEERING & LOCOMOTIVE CO. LTD. 
433 
Case Law Reference: 
1999 (2) Suppl. SCR 258 
relied on 
2007 (12) SCR 1153 
relied on 
2003 (3) SCR 1149 
relied on 
para 3 
para 5 
para 5 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 
6162 of 2005. 
A 
B 
From the Judgment & Order dated 22.06.2005 of the High 
Court of Judicature at Bombay in Appeal No. 478 of 2005 in 
Notice of Motion No. 503 of 2004 in Suit No. 1924 of 1998. 
C 
Prasenjeet Keswani, Pawan Kr. Bansal {for V.D. Khanna) 
for the Appellant. 
Debmalya Banerjee (for Manik Karanjawala) for the 
.. Respondents. 
D 
The following order of the Court was delivered 
ORDER 
1. This appeal has been preferred against the judgment 
E 
and order dated 22.6.2005 of the High Court of Judicature at 
Bombay, passed in Appeal No.478 of 2005 in Notice of Motion 
No.503 of 2004 in Suit No.1924 of 1988. 
2. Facts and circumstances giving rise to this appeal are: 
A. That the appellant had purchased five Tata Diesel 
F 
Vehicles from the respondent No.1 for a sum of Rs.9,58,913/-
which was to be paid in 8 installments through respondent No.2 
as per repayment schedule. The appellant alleges that eight 
Bills of Exchange were drawn by the respondent no.1 upon the 
respondent no.2 - banker of the appellant and by way of which 
G 
the entire amount was paid. Respondent no.1 filed Suit 
No.1924 of 1988 on 2.6.1988 against the appellant as well as 
the banker for recovery of sum of Rs.5,66,000/- alongwith 
interest. Summons were served upon the appellant and he 
entered appearance through advocate to contest the suit. 
H 
434 
SUPREME COURT REPORTS 
[2013] 2 S.C.R. 
A However, subsequently under the impression that the entire 
amount had already been paid, he did not file the written 
statement. The High Court decreed the suit vide judgment and 
decree dated 12.11.2003 under the provisions of Order VIII Rule 
10 of the Code of Civil Procedure 1908, (hereinafter referred 
B to as 'CPC') without considering any issue involved therein or 
taking note of the pleadings in the plaint itself. 
B. Aggrieved, the appellant took out a Notice of Motion 
bearing no.503 of 2004 in the said suit for setting aside ex 
parte decree dated 12.11.2003, however, it stood rejected vide 
C order dated 10.12.2004 holding it to be not maintainable in view 
of division bench judgment of the Bombay High Court wherein 
it had been held that any decree passed under Order VIII Rule 
10 CPC could not be subjected to the application under Order 
IX Rule 13 CPC. 
D 
C. Aggrieved, the appellant filed the appeal which has 
been dismissed vide order dated 22.6.2005 concurring with the 
learned Single Judge. 
Hence, this appeal. 
E 
3. We have heard Shri Prasenjit Keswani, learned counsel 
for the appellant and Shri Debmalaya Banerjee, learned 
counsel for respondent no.1- and perused the record. 
4. This Court in Ba/raj Taneja & Anr. v. Sunil Madan & 
Anr., AIR 1999 SC 3381 d

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