In a recent judgment by the Supreme Court of India, a civil appeal was dismissed as infructuous. The appeal was based on an interim order from the Trial Court during the suit’s pendency, however, the suit had already been decided and a decree passed. Stay informed about the latest legal developments in this case.
Facts
- Plaintiffs filed a suit under Order XXXVII of CPC against the defendants for recovery of Rs. 1,04,16,576/- with interest.
- Defendants sought leave to defend which was granted by the Trial Court with a direction to deposit 50% of the suit claim.
- Defendants challenged the High Court’s order in Writ Petition No 10975 of 2020 (GM-CPC) which set aside the Trial Court’s order and directed acceptance of plaintiffs’ memo.
- High Court allowed petitioners to approach within four weeks for variation of the order by providing adequate security, which the defendants did not do.
- Plaintiffs submitted a memo on 14 November 2019 seeking decree of the suit under Order XXXVII Rule 3(6)(b) of CPC.
- Trial Court, after considering objections by defendants, rejected the memo on 07 March 2020.
- The order in question was challenged before the High Court in Writ Petition No 28349 of 2019.
- The High Court dismissed the Writ Petition on 08 August 2019.
- An SLP (C) No 20626 of 2019 was filed by the appellants/defendants against the High Court’s decision.
- The Supreme Court dismissed the SLP on 06 September 2019.
- The Supreme Court refused to interfere with the High Court’s order.
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Analysis
- The appellants argued that the moratorium under Section 14 of the IBC must apply, halting further proceedings of the suit.
- The respondent challenged this argument before the High Court and was successful.
- The High Court’s decision directed the Trial Court to accept the memo and act accordingly.
- High Court did not accept the argument presented.
- Trial Court was directed to accept the memo and pass appropriate orders.
- The decree issued was not challenged by the defendants.
- The Court had issued an order staying the impugned order on 01 December 2023.
- However, the suit had already been decided and a decree passed on 20 April 2023.
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Decision
- The suit is not pending at the present moment
- The appeal is based on an interim order from the Trial Court during the suit’s pendency
- The appeal has become infructuous due to the suit’s status
- Therefore, the Civil Appeal is dismissed as infructuous
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Case Title: ANISH M RAWTHER @ ANEES MOHAMMED RAWTHER Vs. HAFEEZ UR RAHMAN (2024 INSC 460)
Case Number: C.A. No.-004120-004120 – 2024
