{"id":5335,"date":"2008-01-25T00:00:00","date_gmt":"2008-01-24T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/b-p-agarwal-anr-vs-dhanalakshmi-bank-ltd-ors-on-25-january-2008"},"modified":"2015-12-29T13:31:58","modified_gmt":"2015-12-29T08:01:58","slug":"b-p-agarwal-anr-vs-dhanalakshmi-bank-ltd-ors-on-25-january-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/b-p-agarwal-anr-vs-dhanalakshmi-bank-ltd-ors-on-25-january-2008","title":{"rendered":"B.P. Agarwal &amp; Anr vs Dhanalakshmi Bank Ltd. &amp; Ors on 25 January, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">B.P. Agarwal &amp; Anr vs Dhanalakshmi Bank Ltd. &amp; Ors on 25 January, 2008<\/div>\n<div class=\"doc_author\">Author: . A Pasayat<\/div>\n<div class=\"doc_bench\">Bench: Dr. Arijit Pasayat, P. Sathasivam<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  922 of 2002\n\nPETITIONER:\nB.P. Agarwal &amp; Anr\n\nRESPONDENT:\nDhanalakshmi Bank Ltd. &amp; Ors\n\nDATE OF JUDGMENT: 25\/01\/2008\n\nBENCH:\nDr. ARIJIT PASAYAT &amp; P. SATHASIVAM\n\nJUDGMENT:\n<\/pre>\n<p>J U D G M E N T<\/p>\n<p>Dr. ARIJIT PASAYAT, J.\n<\/p>\n<p>1.\tChallenge in this appeal is to the order passed by the<br \/>\nDivision Bench of the Kerala High Court.  By the impugned<br \/>\norder the High Court in exercise of jurisdiction under order<br \/>\nXLI Rule 1(3) of the Code of Civil Procedure, 1908 (in short the<br \/>\nCPC) directed the appellant to deposit a sum of Rs.5,00,000\/-<br \/>\nin trial court within a particular time.  Appellants question the<br \/>\ncorrectness of the order on the ground that the High Court<br \/>\ncould not have referred to Order XLI Rule 1(3) in the absence<br \/>\nof any application for stay.\n<\/p>\n<p>2.\tLearned counsel for the respondents on the other hand<br \/>\nsupported the order of the High Court.\n<\/p>\n<p>3.\tUndisputedly, in the present case there was no<br \/>\napplication for stay filed.  A few decisions of this Court being<br \/>\nrelevant need to be noted.\n<\/p>\n<p>4.\t<a href=\"\/doc\/395766\/\">In Kayamuddin Shamsuddin Khan  v. State Bank of<br \/>\nIndia<\/a>  [1998 (8) SCC 676] the dispute related to Order XLI Rule<br \/>\n1(3) it was held that if the amount is not deposited, the appeal<br \/>\ncould be directed to be dismissed.  Obviously reference was to<br \/>\nOrder XLIII Rule 5(5). In paragraphs 6 and 8 this Court<br \/>\nobserved as follows:\n<\/p>\n<p>6. The learned counsel for the respondent has<br \/>\ninvited our attention to sub-rule (3) of Rule 1<br \/>\nof Order XLI in the Code of Civil Procedure, as<br \/>\namended in the State of Maharashtra, which<br \/>\nreads as under:\n<\/p>\n<p>(3) Where the appeal is against a<br \/>\ndecree for payment of money, the<br \/>\nappellant shall, within such time as<br \/>\nthe Appellate Court may allow,<br \/>\ndeposit the amount disputed in the<br \/>\nappeal or furnish such security in<br \/>\nrespect thereof as the Court may<br \/>\nthink fit:\n<\/p>\n<p>Provided that the Court may<br \/>\ndispense with the deposit or security<br \/>\nwhere it deems fit to do so for<br \/>\nsufficient cause. <\/p>\n<p>8. This would mean that non-compliance with<br \/>\nthe direction given regarding deposit under<br \/>\nsub-rule (3) of Rule 1 of Order XLI would result<br \/>\nin the Court refusing to stay the execution of<br \/>\nthe decree. In other words, the application for<br \/>\nstay of the execution of the decree could be<br \/>\ndismissed for such non-compliance but the<br \/>\nCourt could not give a direction for the<br \/>\ndismissal of the appeal itself for such non-<br \/>\ncompliance. <\/p>\n<p>5.\tSimilarly, in <a href=\"\/doc\/1357688\/\">Devi Theatre v.  Vishwanath Raju<\/a> [2004 (7)<br \/>\nSCC 337] it was inter alia observed as follows:<br \/>\n5. The learned counsel for the appellant<br \/>\nsubmits that appeal lies from every decree<br \/>\npassed by any court exercising original<br \/>\njurisdiction. The jurisdiction of the court in<br \/>\nfirst appeal extends to examine the questions<br \/>\nof facts as well as that of law. It is though true<br \/>\nas pointed out by the learned counsel for the<br \/>\nrespondent that under Order 41 Rule 11 CPC<br \/>\nit would be open for the court to dismiss the<br \/>\nappeal in limine at the time of admission but<br \/>\neven examining the matter from that point of<br \/>\nview we find that the court while considering<br \/>\nthe question of admission of appeal filed under<br \/>\nSection 96 CPC, may admit the appeal if<br \/>\nconsidered fit for full hearing having prima<br \/>\nfacie merit. Otherwise, if it finds that the<br \/>\nappeal lacks merits, it may be dismissed at the<br \/>\ninitial stage itself. But admission of the appeal,<br \/>\nsubject to condition of deposit of some given<br \/>\namount, is not envisaged in the provision as<br \/>\ncontained under Section 96 read with Order 41<br \/>\nRule 11 CPC. The deposit of the money would<br \/>\nobviously have no connection with the merits<br \/>\nof the case, which alone would be the basis for<br \/>\nadmitting or not admitting an appeal filed<br \/>\nunder Section 96 CPC. Further, imposition of<br \/>\ncondition that failure to deposit the amount<br \/>\nwould result in dismissal of the appeal<br \/>\ncompounds the infirmity in the order of<br \/>\nconditional admission.\n<\/p>\n<p>6. It is a different matter, in case the appellant<br \/>\nprays for stay of the execution of the decree or<br \/>\nfor any order by way of an interim relief during<br \/>\nthe pendency of the appeal; it is open for the<br \/>\ncourt to impose any condition as it may think<br \/>\nfit and proper in the facts and circumstances<br \/>\nof the case. Otherwise imposing a condition of<br \/>\ndeposit of money subject to which an appeal<br \/>\nmay be admitted for hearing on merits, is not<br \/>\nlegally justified and such order cannot be<br \/>\nsustained. <\/p>\n<p>6.\tIn the instant case there is no direction that in case of<br \/>\nnon-payment, the appeal is to be dismissed.   In the absence of<br \/>\nany application for stay the High Court could not have passed<br \/>\nthe order impugned.  The direction for deposit as given<br \/>\naccordingly stands vacated.\n<\/p>\n<p>7.\tThe appeal is allowed but without any order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India B.P. Agarwal &amp; Anr vs Dhanalakshmi Bank Ltd. &amp; Ors on 25 January, 2008 Author: . A Pasayat Bench: Dr. Arijit Pasayat, P. Sathasivam CASE NO.: Appeal (civil) 922 of 2002 PETITIONER: B.P. Agarwal &amp; Anr RESPONDENT: Dhanalakshmi Bank Ltd. &amp; Ors DATE OF JUDGMENT: 25\/01\/2008 BENCH: Dr. ARIJIT PASAYAT &amp; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-5335","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>B.P. 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