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Jain Developers And 3 Ors vs Raja R. Chhabria And 4 Ors
2018 Latest Caselaw 1043 Bom

Citation : 2018 Latest Caselaw 1043 Bom
Judgement Date : 29 January, 2018

Bombay High Court
Jain Developers And 3 Ors vs Raja R. Chhabria And 4 Ors on 29 January, 2018
Bench: S.C. Dharmadhikari
                                                                  COMAP-168-17.doc

Ladda 
                      IN THE HIGH COURT OF JUDICATURE AT BOMBAY

                             ORDINARY ORIGINAL CIVIL JURISDICTION

                               COMMERCIAL APPEAL No. 168 of 2017.
                                                 In
                                       Suit No. 2808 of 2008
                                                With
                                 Chamber Summons No.139 of 2017
                                                With
                                 Notice Of Motion No.2513 of 2016
                                                 In
                                       Suit No.2808 of 2008


         1. M/s. Jain Developers,                                 ...   Appellants. 
             Office at 304/305, Raj Chambers,
             Manchubhai Road,Opp.Pragati Shopping 
             Centre, Malad (E), Mumbai -400 097.

         2. Rajesh Ramji Nandu, Adult,
             R/at.Room No.2, Jaswant Niwas, 1st floor,
             153, Modi Street, Fort, Mumbai-400 001.

         3. Dhiraj Devraj Gada, Adult, 
             R/a. C-305, Pratap Nagar, Pushpa Park,
             Daftary Road, Malad (E),Mumbai-097.

                                    Vs

         1. Raja R. Chhabria, Adult,
             R/at. Flat No.103, Sujatha Niwas,
             S.V. Road, Bandra, Mumbai-400 050.

         2.        Deviprasad Uditnarayan Mishra


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3. Sitla Prasad Uditnarayan Mishra,
    Both Adults, R/at Stable No.28, Mogra
    Village Rd., Andheri(E), Mumbai-069.
 
4. Ajay Kumar Tiwari, Adult.
     R/at. Gupta Chawl, Room No.2,
     Near Lajja Compound, Mogra Village,
     Andheri (E), Mumbai -069.

5. Zahid K. Khan, Adult.                                          ... Respondents.
    R/at. Dexter Villa, St. Francis Road,
    Vile Parle (W), Mumbai -400 056. 
 

                                 WITH
            NOTICE OF MOTION (Appeals) NO.  1940  OF   2017
                                   In
                   Commercial Appeal No. 168 of 2017
                                   In
                         Suit No. 2808   of 2008


M/s Jain Developers & Ors                         ...  Appellants/Ori.Plaintiffs

                  In the matter between:

M/s Jain Developers & Ors                         ... Appellants/Orig.Plaintiffs.

                           Vs.

Raja R. Chhabria & Ors                                          ...   Respondents.
                                           --- 

Ms. Vidya Nair a/with Riddhi Rana i/by Vimala & Co. for the 
Appellants.
None for the Respondents. 

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                                             ---

                                   CORAM  :       S.C. DHARMADHIKARI &
                                                   SMT.BHARATI H.DANGRE, JJ.

ORDER RESERVED ON : 11th December, 2017.

ORDER PRONOUNCED ON : 29th January, 2018.

JUDGMENT : (Per : Smt. Bharati H.Dangre,J).

1 Being aggrieved by the order passed by the learned Single

Judge on Notice of Motion No. 2513 of 2016 filed in Suit No. 2808

of 2008 thereby dismissing the suit for want of prosecution on the

sole ground that the plaintiffs have failed to serve the defendants as

directed by the court, the present appeal is filed.

2 Suit No. 2808/2008 was filed by the present appellants,

thereby seeking a declaration that there is a valid and subsisting

agreement of sale in respect of a piece of land situated at village

Mogra, taluka Andheri, near Silk Mill Compound, Andheri (East) in

accordance with the terms and conditions described in the

memorandum of understanding executed on 16/11/2007 between

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the plaintiffs and defendant no. 1 to 5. According to the appellants,

they had paid an amount of Rs.17 lakhs towards part payment

against the total consideration amount to respondent no.5 under

MoU for sale / transfer of the suit properties in favour of the

appellants, but there was failure on the part of respondent no.5 to

discharge his obligations under the MoU in not providing the

marketable title of the suit properties. The appellants were aggrieved

by further development that respondent no.5 indulged in an attempt

to sell the suit property in order to defeat the legitimate right of the

appellants.

In the said suit, notice of motion No.3354/2008 was filed

seeking ad-interim relief restraining respondents from creating third

party rights over the suit property and the Hon'ble Court by an order

dated 22/9/2008 granted ad-interim relief in favour of the appellants

and the same was confirmed till the final disposal of the suit by an

order dated 30/9/2014.



3                 The suit being filed, the appellants attempted to serve the 


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                                                                    COMAP-168-17.doc

respondents through private service and courier with the copies of

plaint and notice of motion etc. But respondent no. 1 to 4 were not

found at their respective address as mentioned in the cause title of

the plaint and all the envelopes containing the notice and the

documents were returned with remarks "not found". Respondent

no.5 filed his appearance in the suit and appeared through an

advocate in the proceeding.

4 In the suit, writ of summons was not served on the

respondent Nos. 1 and 4 and when the matter was listed before the

Prothontoary and Senior Master on 22/6/2015, on an application, he

granted one more opportunity to the plaintiffs to serve the writ of

summons on the respondents. Another attempt was made by the

appellants to serve respondent No. 1 to 5 again on address mentioned

in the cause title through the bailiff and also through RPAD. The

summons were again returned with a remark "left, not known". The

plaintiff filed an affidavit of the clerk of the advocate and also of the

Bailiff on 24/7/2015 before the learned Prothonotary and Senior

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Master. On 22/9/2014 the appellants again moved an application for

issuance of fresh writ of summons by way of substituted service and

presented the same before the Prothonotary and Senior Master who

passed an order on 27/7/2015 permitting the appellants to serve the

writ of summons by way of substituted service. It is the case of the

appellants that in accordance with the rules of summons as

prescribed under the CPC, the appellants published the extract or writ

of summons on 1/10/2015 in two local newspapers being "Free Press

Journal" and "Navshakti". It is also the case of the appellants that the

writ of summons again came to be served to the respondents through

the Bailiff by registered post acknowledgment due on September 30,

2015 and the copies of writ of summons were affixed on the

conspicuous part on notice board of this Court on 7/10/2015. The

appellants again filed an affidavit of service before the Court

depicting service done on the respondents.

5 When the matter was listed before the learned Single

Judge of this Court on 14/3/2016, he was of the opinion that the

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service of writ of summons was not properly done and the learned

Prothonotary and Senior Master was not justified in granting leave to

serve by substituted service as there was no document to show the

address of respondent No. 2 to 4. The learned Single Judge observed

in the said order that in the Memorandum of Understanding which

was signed by defendant No.5 the address of defendant No.5 was

only reflected and he was pleased to observe that there was nothing

on record as regards address of defendant No. 2, 3 and 4, though the

plaintiffs had relied upon the document at Exh.C to the plaint which

was an Indenture between defendant No.1 and defendant No.5 and

an attempt was made to serve the said defendant No.1 on the said

notice. The matter was again listed before the Court on 29/8/2017.

In continuation of its earlier order the learned Single Judge noted

that there was no question of recalling the order dated 14/3/2016

and the learned Single Judge then proceeded to observe that the

plaintiffs had failed to serve the defendants as directed earlier and

therefore dismissed the suit for want of prosecution. It is this order

which is impugned in the present appeal.

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6                 We have perused the notice of motion filed along with the 

said appeal and also an affidavit supporting the said motion praying

for grant of stay to the effect and operation of the impugned order

dated 29/8/2017 passed by the learned Single Judge.

We have also taken on record the compilation of

documents tendered by the Counsel for the appellants Ms Vidya Nair.

7 The affidavit in support of notice of motion sets out

certain relevant facts. In paragraph 5 of the said affidavit, it is stated

by the appellants that an attempt was made to serve the respondents

through private service and vide courier. However, respondent No. 1

to 4 were not found at the respective address as mentioned in the

clause title of the plaint and all the envelopes sent to their respective

addresses were returned with remarks "not found" etc.. The affidavit

states that respondent no.5, however, appeared in the suit from time

to time. After reiterating the steps taken to serve the respondents,

which we have mentioned in paragraph above, the appellants have

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stated in their affidavit that they have complied with all the

requirements of Order V of the Code of Civil Procedure, 1908 in

every means possible. A specific statement is made in the affidavit to

the following effect in paragraph 6:-

"I say that on March 14, 2016 when the said matter was listed before this Hon'ble High Court the learned Judge was of the opinion that the service of writ of summons was not properly done and that the learned Prothonotary and Senior Master should not have granted leave to serve by substituted service as there was no documents to show the addresses of Respondent Nos. 2 to 4. This order was passed despite the fact that the learned Judge was informed that the Applicants had even published the extract of the writ of summons in two daily newspapers. I say that the applicants thereafter took out Notice of Motion No. 2513 of 2016 for recalling the order dated March 14, 2016. In the meantime, the applicants took a search in the office of the Sub- Registrar of Assurances in order to see if there are any other documents in respect of the suit property, which would have mention of the addresses of the Respondent Nos. 1 to 4."

8 Section 27 of the Code of Civil Procedure, 1908 deals

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with summons to be served to the defendants. It provides that

where a suit has been duly instituted, a summons may be issued to

the defendants to appear and answer the claim and may be served in

the manner prescribed not beyond 30 days from the date of

institution of the suit. Order V of the CPC deals with service of

summons. Rule 2 mandates that every summons shall be

accompanied by a copy of the plaint. As per Rule 5, the summons

may be issued either for settlement of issues or final disposal of the

suit and it is mandatory to mention the date of appearance of the

defendants on receipt of service of summons. On receipt of the

summons, the defendant may produce the documents which he

intends to rely upon in his defence and if the summons is for final

disposal, he may produce his witnesses on whom he intends to rely in

support of his case. Rule 9 prescribes the manner in which the

summons are to be delivered to the defendant and the summons can

be delivered or sent either to the proper office to be served by him or

it can be served through a courier service approved by the Court.

Rule 10 provides mode of service of summons by delivery or

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tendering a copy thereof signed by the Judge or any officer

authorized on its behalf and sealed with the seal of the Court. Rule

17 prescribes the procedure when the defendant refuses to accept the

service or cannot be found and it requires the serving officer to affix

the copy of the summons on the door or some conspicuous part of the

house in which the defendants ordinarily reside or carries on business

or personally works for gain and to return the original to the Court

from which it was issued. Rule 18 mandates the serving officer to

endorse or annex or caused to be served, annexed or caused to be

served, annexed or to the original summons returned stating the time

and the manner in which the summons were served. When the

summons is returned unserved, the Court is duty bond to examine

the serving officer on oath and may make further enquiry about

service of such summons.

9 Rule 20 of the Code of Civil Procedure,1908, sets out

modalities for effecting substituted service and provides that where

the court is satisfied that there is reason to believe that the

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defendant is keeping out of the way for the purpose of avoiding

service, or that for any other reason the summons cannot served in

the ordinary way, the court shall order the summons to be served

by affixing a copy thereof in some conspicuous place in the court-

house and also upon some conspicuous part of the house (if any) in

which the defendant is known to have last resided or carried on

business or personally worked for gain, or in such other manner as

the court thinks fit.

However, as per sub-rule (1A) - Where the court acting

under sub-rule (1) and orders service by an advertisement in a

newspaper, the newspaper shall be a daily newspaper circulating in

the locality in which the defendant is last known to have actually

and voluntarily resided, carried on business or personally worked for

gain.

Sub-Rule (2) of Rule 20 provides that the service

substituted by order of the court shall be as effectual as if it has

been made on the defendant personally.

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Thus the perusal of the Order V of Rule 20 makes it

amply clear that a substituted service effected under the order of

the court shall be considered as effective service and, as if it had

been made on the defendant personally.

10 The learned single Judge has not taken into

consideration the effect of a substituted service. On institution of the

suit, the appellant attempted to serve the defendant the writ of

summons but the same was returned back with postal remarks "left -

not found" in respect of defendant no.1 and in respect of defendant

nos. 2 to 4 with a remark "unclaimed". Ordinarily, such a remark

denotes that the summons was served by delivery at the address

mentioned on it, meaning it was properly addressed and delivered.

That it is not claimed particularly even after due intimation from the

Post Office means it is taken as served. The Appellants, therefore,

preferred an application, seeking permission to serve the defendants

with writ of summons by way of a substituted service. A joint

affidavit of service was also filed in this court, demonstrating

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attempts to serve the defendants. The Prothonotary and Senior

Master on 27th July, 2015 made the following endorsement :

"PC : Advocate for Plaintiffs submits that when attempt was made to serve with writ of summons upon Defendants, packet returned back with postal remarks "Left, Not Found". Affidavit of service dtd. 24.07.2015 is taken on file. Advocate for Plaintiffs seeks and permitted to serve on Defendants with Writ of Summons by way of Substituted Service under the provision of Order V Rule 17 and 20 of C.P.C. 1908 by publishing the extract of the writ of Summons in (1) two daily local newspaper viz. One in English and another in vernacular language widely circulated at last known address shown in the Plaint (2) by affixing true copy of Writ of Summons on the Notice Board provided for, of this Hon'ble High Court (3) by sending duplicate Writ of Summons at the residence of the Defendants by Registered A. D.. The returnable date is extended till 28.09.2015. Office to issue fresh writ of summons. Adjourned to 28.09.2015."

On the permission being granted to serve the defendants

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by way of substituted service, the appellant published the extract of

service of summons in the Free Press Journal, which is circulated

in Mumbai on 1st October, 2015 and also in Marathi Daily Nav-Shakti,

published and circulating in Mumbai. Another affidavit of service

came to be filed before this court on 14/01/2016 which was sworn

by the bailiff and clerk attached to the office of the Sheriff of

Mumbai in which the deponent stated that as per request of the

plaintiff's Advocate the office had transmitted packet containing writ

of summons in the above matters at their above address by registered

post acknowledgement due on 30/09/2015 and the office receives

the original packets with marking either "not found" or

"unclaimed".

11 In the impugned order dated 29/08/2017, the learned

single Judge was pleased to refer the earlier order passed by this

court on 14/03/2016, where the court had observed that the

Prothonotary and Senor Master should not have granted the leave

to serve by substituted service and directed the plaintiff to re-serve

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defendants as required in law within four weeks from that date.

The learned single Judge failed to take into consideration

that a substituted service is also one of the mode of service and by

virtue of the Order V Rule 20, the service substituted by the

alternate mode shall be effectual as if it had been made on the

defendants personally. As per Order V, Rule 20 the court is

empowered to permit the substituted service when it is satisfied that

the defendant is keeping out of way for the purpose of avoiding

service or for some other reasons, the summons cannot served in the

ordinary way, then the court may permit to effect the substituted

service by affixing a copy thereof in some conspicuous place in the

court-house and also upon some conspicuous part of the house (if

any) in which the defendant is known to have last resided or carried

on business or personally worked for gain or in such other manner as

the court thinks fit. The court may thus permit a substituted service

either in the manner enumerated under the Rule 20 of Order V or in

such a manner as it thinks fit. The learned single Judge failed to

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consider that substituted service is also a service recognized in law

and the direction issued by the court on 14/03/2016, directing the

plaintiff to re-serve the defendants as required in law, is without

consideration of the provisions of Order V, Rule 20.

12 The learned single Judge was appraised of the

substituted service by fling an affidavit in support of the notice of

Motion where a prayer was made to recall the order dated

14/03/2016 on the ground that the plaintiff had even undertaken

substituted service by publishing the extract of writ of summons

in the two newspapers. The learned single Judge, however, refused

to accept the said statement and makes a reference to the order

dated 14/03/2016 and specifically referred to paragraph 2 of the

said order, where the learned single Judge has noted that the

Prothonotary and Senior Master ought not to have granted

permission to serve the defendants by substituted service. The

learned single Judge had then observed that when the plaintiff was

asked as to which is the address to which the writ of summons was

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sent, it was mentioned that it is the same address as is mentioned in

the cause title and upon asking as to what is the correct address of

the defendants, the counsel had referred to Exh. 'D' annexed to the

plaint, which is the memorandum of understanding which was

signed by the defendant no. 5 and reliance was placed on Exh.'C',

which is an Indenture between the defendant no. 1 and defendant

no.5 and it was the address that was mentioned in it. We fail to

understand with respect, as to how the plaintiff can be charged for

not giving the correct address. As we have noted that in the suit

filed by the plaintiff, he has categorically mentioned the address of

the 5th defendant and has attempted to serve the defendants on the

aforesaid address. The defendant No. 5 has put an appearance and

did not dispute about he being resident of the place mentioned in

the suit under the caption of defendant no.5. The appellants have

taken all efforts to serve the defendants through the bailiff and also

by RPAD. The packets issued to the respondents were returned with

remark "left, not known" or "unclaimed". The affidavit of the bailiff

is placed on record and based on the said affidavit the Prothonotary

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and Senior Master, on an application filed by the appellant, passed

an order on 27th July, 2015, permitting the service of writ of

summons on the respondents by way of substituted service.

Pursuant to the said order, the appellants published extract of writ

of summons on September 22, 2015 in two local newspapers being

- "Free Press Journal" and "Navshakti". Not only this, the bailiff once

again served the writ of summons to the respondents by

acknowledgment due on 30/09/2015 and it also affixed the copies

of writ of summons on October 07, 2015 on the conspicuous part of

the Notice Board of this Hon'ble Court. Thereafter, the appellants

have filed the affidavits of service dated 20/10/2015, 14/01/2016

and 18/01/2016, interalia, pointing out the service effected on the

respondents. The appellants have thus complied with the

requirement of Order V Rule 20 of the Code of Civil Procedure in

every means possible. With great respect, we are of the opinion that

the learned single Judge did not consider the provisions of Order V,

Rule 20 of the CPC and the effect of the substituted service.

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13             The present matter arises   out of a suit filed  in ordinary 

Original Civil Jurisdiction of the High Court of Judicature at Bombay.

The Hon'ble High Court, being a chartered High Court, in exercise of

powers conferred upon it by Article 225 of the Constitution of India,

has framed Bombay High Court (Original Side) Rules. The power of

the Hon'ble High Court to make rules is also recognised in section

122 of the Code of Civil Procedure, 1908. Section 122 reads as

follows :

"S.122. Power to certain High Courts to make rules.-- [High Courts [not being the Court of a Judicial Commissioner]] [***] may, from time to time after previous publication, make rules regulating their own procedure and the procedure of the Civil Courts subject to their superintendence, and may by such rules annul, alter or add to all or any of the rules in the First Schedule.

Thus the High Court regulates its procedure through the said Rules

made by it and as such the Rule may alter or add to all or any of the

rules in the first schedule. Section 128 of the Civil Procedure Code

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provides for the matters for which the Rule may provide for and by

virtue of the said section, the Rules framed by the High Court, may

provide for : (a) the service of summons, notices and other

processes by post or in any other manner either generally or in any

specified areas, and the proof of such service.

Further section 129 of the Code also recognise the power

to make rules on the original civil procedure. Section 129 reads as

follows :

"S.129. Power of High Courts to make rules as to their original civil procedure. - - Notwithstanding anything in this Code, any High Court [not being the Court of a Judicial Commissioner] may make such rules not consistent with the Letters Patent [or order] [or other law] establishing it to regulate its own procedure in the exercise of its original civil jurisdiction as it shall think fit, and nothing herein contained shall affect the validity of any such rules in force at the commencement of this Code.

14 Perusal of the said Rules, framed by the Bombay High

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Court in the form of "The Bombay High Court Original Side Rules"

shows that the said Rules deal with the procedure to be followed by

the High Court. The said Rules in Part-II include the Rules relating to

jurisdiction of the High Court on its Original Side. Chapter VI of the

Part -II deals with summons and the manner in which the summons

are to be issued and served on the defendant in various proceedings.

Rule 76 provides for mode of service of summons and it reads as

follows :

"R.76. Mode of service of summons.-- A Writ of Summons shall be served within the local limits of the Ordinary Original Civil Jurisdiction of the High Court by personal service or, if the plaintiff so desires, by registered post pre-paid for acknowledgement. Where the Writ of Summons is to be served at a place situate beyond the said limits, it may be served by registered post pre-paid for acknowledgment. An acknowledgement purporting to be signed by the defendant or an endorsement by a postal servant that the defendant refused service shall be deemed to be prima facie proof of service. In all other cases, the Court shall hold such

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inquiry as it thinks fit and either declare the summons to have been duly served or order such further service as may in its opinion be necessary."

Rule 84 - provides for proof of service of Summons.-- Said Rule reads as follows :

"R.84. Proof of service of Summons.-- Unless the Court shall otherwise order, the service of a Summons to appear and answer shall be proved by the vakalatnama having been filed or when on vakalatnama has been filed, by evidence showing that the Summons was served in the manner provided by the Code of Civil Procedure. Such proof shall ordinarily be by the affidavit of bailiff and (as to such matters as the bailiff cannot speak to of his knowledge) of the person who attended the bailiff for the purpose of identification at the time of service,, or of such other person or persons as can speak to the identify of the person served or to other matters necessary to be proved in respect of the service."

Rule 86 provides for substituted service and Rule 87 provides for

dismissal of the suit if the summons is not served within six months.

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Rules 86 and 87 are reproduced as below : -



"R.86. Substituted service.-- Application for substituted service of the Writ of Summons shall be made in chambers. The application shall be supported by an affidavit, and in the case of service through another Court, by the deposition of the Officer who attempted to make the service, and of such other person or persons as may have accompanied him for the purpose of pointing out the party to be served, stating when where and how such service was attempted to be made."

"R.87. Suits to be placed on board for dismissal if summons not served within six months. -- If the Writ of Summons is not served within six months from the date of the filing of the plaint, the Prothonotary and Senior Master shall, unless good cause is shown, place the suit on board for dismissal. The Prothonotary and Senior Master shall notify such items on his notice board one week before they are placed on the board for dismissal.

15 The Bombay High Court, Original Side Rules contain a

procedure for service of summons to the defendants and such writ of

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summons are to be served within the local limits of the Ordinary

Original Civil Jurisdiction of the High Court by personal service or, if

the plaintiff so desires, by registered post prepaid for

acknowledgment. In terms of Rule 76 an acknowledgment

purporting to be signed by the defendant or an endorsement by a

postal servant that the defendant refused service shall be deemed to

be prima facie proof of service. Such service has to be proved by the

evidence showing that the summons is issued and served in the

manner provided for in the Code of Civil Procedure. Such proof has

to be ordinarily in the form of the affidavit of the bailiff and of the

person who attended the bailiff for the purpose of identification at

the time of service or of such other person or persons who can

identify the person served. Rule 86 of the Bombay High Court,

Original Side Rules contain the provisions for substituted service

which is to be granted on an application being made, supported by

an affidavit by the deposition of the officer, who attempted to effect

service on such person or any other persons who is accompanied him

for the purpose of effecting such a service, stating the manner in

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which the service was attempted to be made.

The aforesaid procedure prescribed is consistent with the

procedure prescribed for service of summons as contemplated under

order V of the Code of Civil Procedure. The learned single Judge

has failed to take into consideration the said Rules framed by the

High Court on the Original Side, dealing with the service of

summons, when he issued a direction to serve the defendants as

required in law when an affidavit was already placed before the

Prothonotary, reflecting a valid service.

The learned single Judge has also not taken into account

section 27 of the General Clauses Act, 1897, which deals with the

manner of service by post and by virtue of the said section where

ever any [Central Act] or Regulation authorizes or requires any

document to be served by post, then, unless a different intention

appears, the service shall be deemed to be effected by properly

addressing, pre-paying and posting by registered post, a letter

containing the document, and, unless the contrary is proved, to have

been effected at the time at which the letter would be delivered in

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the ordinary course of post. Thus when a notice is served by a

registered post acknowledgment due, then it is a deemed service,

properly effected, unless the contrary is proved by the defendant.

The learned single Judge failed to take into consideration all the

material placed before him to reflect the efforts taken to serve

service on the defendants and the endorsement of "refused" or

"unclaimed" would amount to a service by applying provisions of

section 27 of the General Clauses Act, 1897. The said aspect of the

matter, with due respect, has been completely lost sight of by the

learned single Judge while dismissing the suit on the ground that the

summons were not served on the defendants.

16 We may gainfully refer the judgment of the Hon'ble Apex

Court in the case of Gujarat Electricity Board and Anr. vs.

Atmaram Sungomal Poshani, reported in AIR 1989 Supreme Court

1433, where the Apex Court while dealing with the presumption

under section 27 of the General Clauses Act, was pleased to observe

as follows in para 8 :

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"8. There is presumption of service of a letter sent under registered cover, if the same is returned back with a postal endorsement that the addressee refused to accept the same. No doubt the presumption is rebuttable and it is open to the party concerned to place evidence before the Court to rebut the presumption by showing that the address mentioned on the cover was incorrect or that the postal authorities never tendered the registered letter to him or that there was no occasion for him to refuse the same. The burden to rebut the presumption lies on the party, challenging the factum of service. In the instant case the respondent failed to discharge this burden as he failed to place material before the Court to show that the endorsement made by the postal authorities was wrong and incorrect. Mere denial made by the respondent in the circumstances of the case was not sufficient to rebut the presumption relating to service of the registered cover. We are, therefore of the opinion that the letter dated 24.4.1974 was served on the respondent and he refused to accept the same. Consequently, the service was complete and the view taken by the High Court is incorrect.

The Hon'ble Apex Court in case of M/s. Madan and Co.

vs. Wazir Jaivir Chand, reported in AIR 1989 Supreme Court 630,

while dealing with the issue of a notice sent by a landlord to a

tenant, demanding arrears of rent and the same being returned on

account of non-availability of the addressee, concluded that all that

the landlord can do to ensure an opportunity to the tenant to post a

prepaid registered post letter acknowledgment due, containing the

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tenant's correct address and once that letter is delivered to the post

office over which the landlord has lost his control, it is to be

presumed that it has been delivered to the addressee under section

27 of the General Clauses Act. The Hon'ble Apex Court has

observed so in paragraph 6, which is reproduced below :

"6. We are of opinion that the conclusion arrived at by the courts below is correct and should be upheld. It is true that the proviso to Clause (i) of S.11(1) and the proviso to S. 12(3) are intended for the protection of the tenant. Nevertheless it will be easy to see that too strict and literal a compliance of their language would be impractical and unworkable. The proviso insists that before any amount of rent can be said to be in arrears, a notice has to be served through posts. All that a landlord can do to comply with this provision is to post a prepaid registered letter (acknowledgement due or otherwise) containing the tenant's correct address. Once he does this and the letter is delivered to the post office, he has no control over it. It is then presumed to have been delivered to the addressee Under Section 27 of the General Clauses Act. Under the rules of the post office, the letter is to be delivered to the addressee or a person authorised by him. Such a person may either accept the letter or decline to accept it. In either case, there is no difficulty, for the acceptance or refusal can be treated as a service on, and receipt by, the addressee.

The difficulty is where the postman calls at the address mentioned and is unable to contact the addressee or a person authorised to receive the letter. All that he can then do is to return it to the sender. The Indian Post Office Rules

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do not prescribe any detailed procedure regarding the delivery of such registered letters. When the postman is unable to deliver it on his first visit, the general practice is for the postman to attempt to deliver it on the next one or two days also before returning it to the sender. However, he has neither the power nor the time to make enquiries regarding the whereabouts of the addressee; he is not expected to detain the letter until the addressee chooses to return and accept it; and he is not authorised to affix the letter on the premises because of the assessee's absence. His responsibilities cannot, therefore, be equated to those of a process server entrusted with the responsibilities of serving the summons of a Court under Order V of the C.P.C. The statutory provision has to be interpreted in the context of this difficulty and in the light of the very limited role that the post office can play in such a task. If we interpret the provision as requiring that the letter must have been actually delivered to the addressee, we would be virtually rendering it a dead letter. The letter cannot be served where, as in this case, the tenant is away from the premises for some considerable time. Also, an addressee can easily avoid receiving the letter addressed to him without specifically refusing to receive it. He can so manipulate matters that it gets returned to the sender with vague endorsements such as "not found", "not in station", "addressee has left" and so on.

17 The presumption under section 27 of the General Clauses

Act is once involved and applied, the burden shifts on the defendant

to rebut the presumption by adducing evidence that there was no

service of notice upon him. In the case in hand, the plaintiff had

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taken the steps to serve the defendants and also filed affidavits to

that effect from time to time and has also effected the substituted

service and tendered an affidavit to that effect. The learned Single

Judge, however, has apparently erred in concluding that it is not a

service as required in law. The learned Single Judge by invoking

Rule 87 of the Chapter VI, Part-II of the Bombay High Court (Original

Side) Rules, was pleased to dismiss the suit since the summons were

not served within six months from the date of the filing of the

plaint. The learned single Judge has rather been harsh on the

plaintiff, as the plaintiff has taken all the steps to serve the

defendants and had put all the material before the learned single

Judge, pointing out the steps taken by the plaintiff for serving the

defendants. No contrary material was produced before the Court to

show that the endorsement was made by the processor of service

and the affidavit filed before the court to be either false or

erroneous. The rejection of the suit by the learned single Judge,

therefore, is extreme step which the learned single Judge has

adopted, causing grave prejudice to the plaintiff / appellant.

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                                                               COMAP-168-17.doc

18             In   these   circumstances,   the   service   effected   on   the 

defendant nos. 1 to 4 is "effective service". The order passed by the

learned single Judge which records that the plaintiffs have failed to

serve the defendants and therefore, dismissed the suit for want of

prosecution is not sustainable. We feel that the appellants have

taken all steps to serve the writ of summons on the address known

to the appellants. They had specifically filed an affidavit stating that

the defendants were avoiding service and that it was clear from the

affidavit of service filed on record, based on which the Prothonotary

and Senior Master of this court has granted permission to effect

substituted service and which was accordingly effected on the

respondents, we do not feel that the order passed by the learned

single Judge is sustainable in law.

19 In the result, the appeal is allowed

and we set aside the impugned order dated 29th August, 2017

passed by the learned Single Judge of this Court, thereby

dismissing the Suit No.2808 of 2008 with Chamber Summons

No. 139 of 2017 with Notice of Motion No. 2513 of 2016

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in the said suit, for want of prosecution.

The Suit No. 2808 of 2008 is restored to file and the

appellants are permitted to move appropriate Notice of Motion for

seeking appropriate reliefs, as is advised.

[SMT. BHARATI H.DANGRE, J.] [S.C. DHARMADHIKARI, J.] .....

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