Suresh Kumar Khetawat And Anr vs Canara Bank on 14 July, 2026

    0
    7
    ADVERTISEMENT

    Gauhati High Court

    Suresh Kumar Khetawat And Anr vs Canara Bank on 14 July, 2026

                                                                   Page No.# 1/12
    
    GAHC010110642026
    
    
    
    
                                                             undefined
    
                          THE GAUHATI HIGH COURT
      (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
    
                               Case No. : RFA/43/2026
    
             SURESH KUMAR KHETAWAT AND ANR
             PROPRIETOR OF M/S SHREE KHETAWAT INDUSTRIES, S/O LATE MAHABIR
             PRASAD KHETAWAT, R/O HOUSE NO. 231 (GHA), WARD NO. 3, T. R.
             PHUKAN ROAD, HAIBARGAON, P.S.- NAGAON, DIST- NAGAON, ASSAM,
             PIN- 782002
    
             2: M/S SHREE KHETAWAT INDUSTRIES
              REPRESENTED BY ITS PROPRIETOR
              SHRI SURESH KUMAR KHETAWAT
              OFFICE ADDRESS- T. R. PHOOKAN ROAD
              HAIBARGAON
              P.S.- NAGAON
              DIST- NAGAON
             ASSAM
              PIN- 78200
    
             VERSUS
    
             CANARA BANK, NAGAON BRANCH AND 3 ORS.
             REPRESENTED BY ITS SENIOR MANAGER, OFFICE ADDRESS- VIP ROAD,
             NEAR STADIUM MARKET, CHRISTIANPATTY, NAGAON, P.S.- NAGAON,
             DIST- NAGAON, ASSAM- 782002
    
             2:CANARA BANK
             ARM BRANCH
              REPRESENTED BY THE AUTHORISED OFFICER
              1ST FLOOR
              DEE BEE GRANDE
              PANJABARI ROAD
              SIXMILE
              GUWAHATI
              DIST- KAMRUP (M)
             ASSAM
              PIN- 781022
                                                                           Page No.# 2/12
    
    
                3:CANARA BANK
                 CIRCLE OFFICE
                 REPRESENTED BY ITS CHIEF MANAGER
                 1ST FLOOR
                 DEE BEE GRANDE
                 PANJABARI ROAD
                 SIXMILE
                 GUWAHATI
                 DIST- KAMRUP (M)
                ASSAM
                 PIN- 781022
    
                4:SMT. SUCHITA DEVI KHETAWAT
                W/O SHRI SURESH KUMAR KHETAWAT
                 R/O FLAT NO. 5B
                 BLOCK B
                 SUBHAM GARDEN
                 BINOWA NAGAR
                 KALAPAHAR
                 GUWAHATI
                 DIST- KAMRUP (M)
                ASSAM
                 PIN- 78101
    
    Advocate for the Petitioner   : MS M HAZARIKA, MS V V THANYU,MS. S NEWAR
    
    Advocate for the Respondent : ,
    
    
    
    
                                       BEFORE
                          HONOURABLE MR. JUSTICE ROBIN PHUKAN
    
                                            ORDER
    

    14.07.2026

    Heard Mrs. M. Hazarika, learned Senior Counsel, assisted by Ms.
    V. V. Thanyu
    , learned counsel for the appellant.

    SPONSORED

    2. This appeal, under Section 96, read with Order XLI Rule 1 CPC,
    is directed against the judgment and order, dated 10.03.2026, passed
    by the Learned Civil Judge (Senior Division), Nagaon, rejecting the
    Page No.# 3/12

    plaint under Order VII Rule 11(d) CPC.

    3. It is to be noted here that the Appellant No. 1 herein had
    instituted a suit, being Title Suit No. 50/2024, (Shri Suresh Kumar
    Khetawat & Anr. vs. Canara Bank, Nagaon Branch & 3 Ors.), on
    10.04.2024, before the Learned Civil Judge (Senior Division), Nagaon
    (Trial Court, hereinafter), seeking adecree for declarations, damages,
    and other consequential reliefs arising out of fraud, manipulation of
    loan accounts, unauthorized sanction of credit facilities, and illegal
    recovery proceedings. The said suit was duly registered and numbered
    as Title Suit No. 50 of 2024, and the learned Trial Court had issued
    summons to the respondent.

    4. The respondents herein had entered appearance and filed a joint
    written statement. On the same date, the respondent No. 1 also filed a
    petition under Order VII Rule 11 read with Section 151 of the Code of
    Civil Procedure, 1908, being Petition No. 1615/2024, which was
    subsequently registered as Misc. (J) Case No. 217/2024, in T.S. No.
    50/2024. The appellants herein had filed their written objection to
    Misc. (J) Case No. 217/2024. Then after hearing both sides, the
    learned Trial Court had, vide impugned judgment and order dated
    10.03.2026, in Misc. (J) Case No. 217/2024, rejected the plaint under
    Order VII Rule 11(d) CPC, by holding that the suit was barred under
    Section 34 of the SARFAESI Act, 2002, consequently, dismissed the
    Title Suit No. 50/2024.

    5. Being aggrieved, the appellants have preferred the present
    Page No.# 4/12

    appeal.

    6. This Court has carefully perused the memo of appeal and the
    document enclosed therewith.

    7. It is worth mentioning in this context that in the case of Sayyed
    Ayaz Ali vs. Prakash G. Goyal and others
    , reported in (2021)
    7 SCC 456, Hon’ble Supreme Court has held that the rejection of a
    plaintshall be deemed to be a decree. It has also been held as under:-

    17. Section 2(2) CPC defines the expression
    “decree” in the following terms:-

    “2. (2) “decree” means the formal expression
    of an adjudication which, so far as regards
    the Court expressing it, conclusively
    determines the rights of the parties with
    regard to all or any of the matters in
    controversy in the suit and may be either
    preliminary or final. It shall be deemed to
    include the rejection of a plaint and the
    determination of any question within Section
    144, but shall not include–

    (a) any adjudication from which an appeal
    lies as an appeal from an order, or

    (b) any order of dismissal for default.

    Explanation.-A decree is preliminary when
    further proceedings have to be taken before
    the suit can be completely disposed of. It is
    final when such adjudication completely
    disposes of the suit. It may be partly
    preliminary and partly final;”

    18. Order 7 Rule 13 provides that the rejection of
    the plaint “on any of the grounds hereinbefore
    Page No.# 5/12

    mentioned shall not of its own force preclude the
    plaintiff from presenting a fresh plaint in
    respect of the same cause of action”.

    19. The definition of “decree” in Section 2(2)
    “shall be deemed to include the rejection of a
    plaint”. Hence, the order of the trial court
    rejecting the plaint is subject to a first appeal
    under Section 96 CPC………..

    ……………………………………………….”

    8. It is to be noted here that at the time of hearing, a specific query
    was put to the learned counsel for the appellant that whether, the
    present appeal is maintainable, as it has not been preferred against
    the decree, as mandated by Section 96 CPC, which provides for
    appeals from original decrees and as it does not provide for appeals
    from judgments independent of a decree, and similarly, Order 41 Rule
    1 CPC
    , also reinforces that the appeal is against the decree, and the
    memorandum of appeal shall be accompanied by a copy of the decree
    appealed from (and, unless dispensed with, a copy of the judgment on
    which it is founded), whereas the present appeal is against judgment
    and order only and not against the decree.

    8.1. The learned counsel for the appellant then, referring to a decision
    of Kerala High Court in Reetha vs. Paul, delivered on Nov.
    11 of
    2014, 2014 SCC OnLine Ker 28458, submitted that after the
    amendment of Order XLI Rule 1 CPC by the Code of Civil Procedure
    (Amendment) Act 1999 (Act 46 of 1999) obviated the necessity for a
    memorandum of appeal to be accompanied by a copy of the decree,
    and that the Kerala High Court has also discussed a decision of Hon’ble
    Page No.# 6/12

    Supreme Court in Banarasi and others vs. Ram Phal, reported
    in (2003) 9 SCC 606. The learned counsel further submitted that the
    decree could not be enclosed with the appeal memo as the same has
    not been prepared by the learned Trial Court and on the other hand
    the period of limitation is about to over, for which there was a
    necessity in filing the appeal without the decree.

    9. Thus, the anguish of this Court, regarding the very maintainability
    of the appeal, against the judgment and order, under Section 96 and
    Order XLI Rule 1, which provides for appeal from original decree,
    remained unaddressed. Moreover, perusal of the entire memorandum
    of appeal reveals that there is no whisper therein about the decree
    being not drawn up by the learned Trial Court, on account of which,
    the same could not be enclosed with the memorandum of appeal.

    10. This Court has carefully considered the submission of learned
    counsel for the appellant and also carefully gone through the decision
    relied upon by her and also gone through the decision of Hon’ble
    Supreme Court Banarasi & Ors. (supra).

    11. But, this Court is afraid that the decision of Kerala High Court and
    also the decision of Hon’ble Supreme Court in Banarasi & Ors.
    (supra) do not advance her argument. Rather, the proposition laid
    down in the case of Banarasi & Ors. (supra), completely nullifies
    the argument so advanced by the learned counsel for the
    appellant.Notably, in the said case, in no uncertain term, Hon’ble
    Supreme Court has held that under Section 96 appeal lies only against
    the decree, not against the judgment or findings.The relevant
    Page No.# 7/12

    paragraph is extracted herein below for better understanding the legal
    position:-

    “8. Sections 96 and 100 CPC make provision for an
    appeal being preferred from every original decree
    or from every decree passed in appeal
    respectively; none of the provisions enumerates
    the person who can file an appeal. However, it is
    settled by a long catena of decisions that to be
    entitled to file an appeal the person must be
    one aggrieved by the decree. Unless a person is
    prejudicially or adversely affected by the decree
    he is not entitled to file an appeal.

    (See Phoolchand v. GopalLal [AIR 1967 SC 1470 :

    (1967)3 SCR 153], Jatan Kumar Golcha vs. Golcha
    Properties (P) Ltd.
    [(1970) 3 SCC 573]and Ganga
    Bai v. Vijay Kumar
    [(1974) 2 SCC 393].) No appeal
    lies against a mere finding. It is significant to
    note that both Sections 96 and 100 CPC provide for
    an appeal against decree and not
    against judgment.”

    11.1. Again in the case of Jagat Dhish Bhargava vs. Jawahar
    Lal Bhargava & Others
    , reported in 1961 SCR (2) 918, a three
    Judges Bench of Hon’ble Supreme Court, while dealing with the
    requirement of accompanying the memorandum of appeal by the
    decree, has held as under:-

    “The position of law under 0. 41, r. 1 is
    absolutely clear. Under the said rule every appeal
    has to be preferred in the form of a memorandum
    signed by the appellant or his pleader and
    presented to the Court or to such officer as it
    appoints in that behalf, and has to be accompanied
    Page No.# 8/12

    by a copy of the decree appealed from, and of the
    judgment on which it is founded. Rule 1 empowers
    the appellate Court to dispense with the filing of
    the judgment but there is no jurisdiction in the
    appellate Court to dispense with the filing of the
    decree. Where the decree consists of different
    distinct and severable directions enforceable
    against the same or several defendants the Court
    may permit the filing of such portions of the
    decree as are the subject matter of the appeal but
    that is a problem with which we are not concerned
    in the present case. In law the appeal is not so
    much against the judgment as against the decree;
    that is why Article 156 of the Limitation Act
    prescribes a period of 90 days for such appeals
    and provides that the period commences to run from
    the date of the decree under appeal. Therefore
    there is no doubt that the requirements that the
    decree should be filed along with the memorandum
    of appeal is mandatory, and in the absence of the
    decree the filing of the appeal would be
    incomplete, defective and incompetent.”

    12. The proposition of law, as laid down in the said case also affirmed
    by another three Judges Bench of Hon’ble Supreme Court, in the case
    of Phoolchand and Anr. vs. Gopal Lal, reported in 1967 SCR
    (3) 153, however, an exception to the said proposition was carved
    out in the said case and it has been held that in absence of a copy of
    the decree, the appeal could be maintained.

    13. Notably, the amendment of Order XLI Rule 1 CPC vide Code of
    Civil Procedure (Amendment) Act
    1999 (Act 46 of 1999) obviated the
    necessity of memorandum of appeal to be accompanied by a copy of
    Page No.# 9/12

    decree. Even though amendment of Order XLI Rule 1, obviated the
    necessity of accompanying the memorandum of appeal by a copy of
    the decree, yet Section 96 of the CPC is not amended and as such the
    mandate of the said provision remains the same.

    14. Notably, in the instant case, not a single whisper is therein the
    memo of appeal to that effect that the decree was not drawn up by the
    learned Trial Court. Though it was the oral submission of the learned
    counsel for the appellant that period of limitation is about to over for
    which the appellants have been compelled to file the appeal urgently
    without the decree, yet Article 116 of the Limitation Act prescribes a
    period of 90 days for filing an appeal and provides that the period
    commences to run from the date of the decree or order, under appeal.

    15. It is well settled that judgment explains why, while the decree
    states what has been decided and is enforceable. Appeal lies against
    the decree, not the judgment alone . Once the formal decree is drawn
    up, the appeal proceeds against the decree, and the judgment ceases
    to have the effect of a decree for execution or other purposes. It is
    equally well settled that filing of an appeal only against the judgment
    (without challenging the decree where it exists) can be defective. It
    must be against the decree (as defined under Section 2(2) CPC), in
    view of the decision of Hon’ble Supreme Court in Banarasi & Ors.
    (supra).

    16. Similar proposition is reiterated in the case of Ganga Bai vs.
    Vijay Kumar and others
    , reported in (1974) 2 SCC 393, that
    appeals are maintainable against decrees (or appealable orders), not
    Page No.# 10/12

    isolated findings or judgments alone. Relevant para are extracted
    herein below:-

    “16. Under Section 96(1) of the Code of Civil
    Procedure, save where otherwise expressly provided
    by the Code or by any other law for the time being
    in force, an appeal lies from every decree passed
    by any court exercising original jurisdiction, to
    the Court authorised to hear appeals from the
    decisions of such court. Section 100 provides for
    a second appeal to the High Court from an
    appellate decree passed by a court subordinate to
    the High Court. Section 104(1) provides for
    appeals against orders of the kind therein
    mentioned and ordains that save as otherwise
    expressly provided by the Code or by any law for
    the time being in force an appeal shall lie “from
    no other orders”. Clause (i) of this section
    provides for an appeal against “any orders made
    under Rules from which an appeal is expressly
    allowed by rules”. Order 43 Rule 1 of the Code,
    which by reason of clause (i) of Section 104(1)
    forms a part of that section, provides for appeals
    against orders passed under various rules referred
    to in clauses (a) to (w) thereof. Finally, Section
    105(1) of the Code lays down that save as
    otherwise expressly provided, no appeal shall lie
    from any order made by a court in exercise of its
    original or appellate jurisdiction.

    17. These provisions show that under the Code of
    Civil Procedure
    , an appeal lies only as against a
    decree or as against an order passed under rules
    from which an appeal is expressly allowed by Order
    43 Rule 1. No appeal can lie against a mere
    finding for the simple reason that the Code does
    not provide for any such appeal. ……..

    ……………”

    Page No.# 11/12

    17. Under the given factual and legal position, more specifically
    drawing premises from the decision of Hon’ble Supreme Court in
    Banarasi & Ors.(supra), this Court is of the considered opinion
    that an appeal against the judgment alone is not maintainable under
    Section 96 of the CPC, which provides for an appeal from original
    decree only, when the decree was drawn by the learned Trial Court.
    However, in the event of the decree being not drawn up, an exception
    can be carved out under Order XX Rule 6A (2) CPC.

    18. In view of the aforesaid discussion and finding while not
    dismissing the appeal being not maintainable, this Court, on the basis
    of the oral submission of learned counsel for the appellant, is inclined
    to direct the appellant to file an amended memorandum of appeal
    challenging the decree and also to enclose the decree with the same.

    19. It is however, a fact that Article 156 of the Limitation Act was there
    in the erstwhile Limitation Act, 1908 and the said Act is no longer in
    existence after the enactment of the new Limitation Act, 1963. But,
    similar provision is there in Article 116 of the Act of 1963, which
    prescribes a period of 90 days for filing an appeal to a High Court and
    it also provides that the period commences to run from the date of the
    decree or order, under appeal. If the limitation has to be counted from
    the date of decree, which according to the learned counsel for the
    appellant is yet to drawn up, the apprehension of the appeal from
    being time barred is certainly unfounded.

    20. List the matter after two weeks.

    Page No.# 12/12

    JUDGE

    Comparing Assistant



    Source link

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here