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Civil Property & InheritanceSupreme Court of India

Shyam Kumar Gupta & Ors. vs Shubham Jain (Civil Appeal No. 765/2023)

Civil Appeal · 2023 INSC 98Decided 2 Feb 2023
Civil Appeal No. 765 of 2023
Dinesh Maheshwari · Bela M. Trivedi

Background

The respondent-landlord sued the appellants' late father, a tenant, for arrears of rent (Rs. 8,000) and eviction from a shop. The Small Causes Court proceeded ex parte and decreed the suit, ordering eviction plus arrears, costs, and ongoing compensation of Rs. 2,000/month for use of the shop until possession was handed over. The tenant applied under Order IX Rule 13 CPC to set aside the ex parte decree and deposited Rs. 11,212 (the quantified arrears and costs), but not the further ongoing monthly compensation amount (which had not been specifically quantified in the decree). Both the Trial Court and the Allahabad High Court rejected the application, holding that Section 17 of the Provincial Small Cause Courts Act, 1887 mandatorily requires full deposit of everything due under the decree before an ex parte decree can be challenged, relying on the Supreme Court's earlier ruling in Kedarnath vs Mohan Lal Kesarwari.

Decision Breakdown

The Supreme Court allowed the appeal and set aside the ex parte decree, restoring the suit for trial on merits. It held that Section 17's deposit requirement, while mandatory in principle, must be applied practically and not used to penalize a defendant who made a genuine, substantial attempt to comply - here the tenant had deposited the specifically quantified arrears and costs, and the case was distinguishable from Kedarnath where the applicant had made no deposit at all and sought no leave to dispense with it. The Court noted the appellants, when queried by the Court, promptly deposited a further Rs. 1,90,000 covering rent/mesne profits up to the date of hearing, showing bona fide intent. Since the decree involved eviction (not merely a money claim) and the ongoing compensation amount had never been precisely quantified by the Trial Court, an overly technical, rigid application of Section 17 was inappropriate, and the tenant deserved a chance to contest the eviction suit on its merits.

Lesson Learnt

The requirement to deposit money due under a decree before challenging an ex parte judgment (Section 17 of the Provincial Small Cause Courts Act) should be applied practically, not mechanically; a defendant who deposits the clearly quantified amounts and shows genuine good faith should not be shut out from a merits hearing merely because an unquantified, ongoing compensation figure was not also deposited.

Shyam Kumar Gupta & Ors. vs Shubham Jain (Civil Appeal No. 765/2023) – Legal Case Shots | LegalAware