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On Wednesday, the Calcutta High Court ruled that it holds the power to set aside those ex parte decrees that have been obtained by the party on the basis of fraud or by some abuse of the process of the court.
A Bench of the court comprising Justice Shekhar B Saraf observed that a civil court is conferred with sufficient powers to set aside such decrees under section 151 of the Code of Civil Procedure (CPC).
Usually, as per Order IX Rule 13 of CPC, an ex parte decree can only be set aside under two conditions-
The court looked at the decisions of the Supreme Court in AC Ananthaswamy v. Boraiah and Ram Prakash Agarwal v. Gopi Krishnan. In the case of AC Ananthaswamy v. Boraiah the court said that “To prove fraud, it must be proved that representation made was false to the knowledge of the party making such representation or that the party could have no reasonable belief that it was true.”
Applying the ratio of these cases to the case in hand (Emars Mining and Construction Pvt. Ltd. v. Manjunath Hebbar), the court said that there was no fraud and the court did not set aside the ex parte decrees it passed earlier on the grounds of fraud or abuse of process of the court. The defendant’s plea was thus set aside by the Calcutta High Court.
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