In Brief
A businessman who received a 45-lakh-rupee loan issued cheques that were dishonored. The lender sued and obtained an ex-parte decree. The businessman first tried to set aside the decree under Order IX Rule 13 CPC, but that application was dismissed. He then filed a regular appeal after 546 days. The High Court refused to condone the delay. The Supreme Court held that the right to appeal under Section 96(2) CPC is a separate statutory right that cannot be denied merely because an earlier application under Order IX Rule 13 CPC was dismissed. If pursued bona fide, the time spent in such proceedings can count toward condonation of delay. The Court allowed the appeal on condition that the businessman deposit the balance amount of 20 lakhs.
The lawyer headnote and full judgment text are available to registered users.