Flight Centre Travels P. Ltd. Vs Rahul Nath and Ors
Flight Centre Travels P. Ltd. Vs Rahul Nath and Ors
Flight Centre Travels P. Ltd. Vs Rahul Nath and Ors
2012 SCC OnLine Del 3080 : (2012) 190 DLT 367 : (2012) 116
AIC 780 : (2012) 3 Civ LT 97 : (2012) 50 PTC 517
represented them during the pendency of the suit shall not be allowed
to cause grave injustice and prejudice to the non-applicant. It is
submitted that if, the applicants are granted the relief claimed by them
then, it will give a free rein to the defendants to have a decree set-
aside on a mere technical ground of non-service.
10. It is also contended by the plaintiff that while the defendants
No. 1, 2 and 4 had been served with summons by ordinary process on
14.09.2005 and by registered AD on 27.09.2005, the service report of
defendant No. 3 was awaited. Counsel for the defendants entered
appearance on its behalf on three dates viz 05.10.2005, 30.01.2006
and 11.05.2006. On the first two occasions, the counsel for both the
parties had informed the Court that parties were attempting to settle
the matter. The fact that settlement talks were on, is further borne out
by the e-mails exchanged between the counsels for the parties. On
11.05.2006, when no settlement was forthcoming, the counsel for the
defendants sought time to file its reply to the application under Order
XXXIX, Rule 1 and 2 CPC. The Court also directed the defendants to file
written statement.
11. Plaintiff has also challenged the validity of additional affidavit
filed on 18.04.2012 by stating that the advocates Mr. N. Ganpathy, Mr.
Rohit Puri and Ms. Natasha, who ‘purportedly’ entered appearance in a
‘casual manner’, on 05.10.2005, 30.01.2005 or 11.05.2006, were not
authorized to do so, the applicant chose not to seek any explanation
from the concerned advocates for entering appearance on its behalf
before the High Court. It is alleged by the plaintiff that if, the
allegations made in the pleadings and the additional affidavit are to be
believed for setting aside the decree, then, it will tantamount to holding
that the concerned advocates who appeared before the Court on the
dates were guilty of appearing in the matter without instructions.
12. They are same the counsels representing defendant No. 3 in the
Share Purchase Agreements and who have filed application for
registration of the defendant No. 3's mark FLIGHT SHOP in 2007.
13. Following decisions are referred to by the plaintiff's counsel:
1. Sunil Poddar v. Union Bank of India; (2008) 2 SCC 326 : AIR
2008 SC 1006.
2. Sri Nath Agrawal v. Sri Nath, AIR 1981 All 400.
14. It has been held by a Division Bench of the Supreme Court in
Sunil Poddar (supra), that if, the Court is convinced that the defendant
had otherwise knowledge of the proceedings and he could have
appeared and answered the plaintiff's claim, he cannot put forward a
ground of non-service of summons for setting aside ex-parte order
passed against him by invoking Order IX Rule XIII of the Code.
15. The Allahabad High Court has also held in Sri Nath Agrawal
SCC Online Web Edition, © 2023 EBC Publishing Pvt. Ltd.
Page 4 Wednesday, June 21, 2023
Printed For: Muskaan Prasad, School of Law, Galgotias University
SCC Online Web Edition: http://www.scconline.com
© 2023 EBC Publishing Pvt. Ltd., Lucknow.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
enable him to appear and answer the plaintiff's claim), and held as
follows:
“It is, however, clear that the provisions are to the effect that,
if the defendant is able to show that the summons were not duly
served on him, it is mandatory that the decree should be set
aside; the question of knowledge or no knowledge is not relevant
for the purpose of Order 9, Rule 13.
26. As far as the defendant No. 3 is concerned, nothing is on record
to show that summons have been served upon them. As per record,
service report is awaited except there was appearance recorded in Court
by the counsel on behalf of defendant No. 3, otherwise, he had
knowledge of the suit, which appears from the e-mails exchanged
between the parties and orders passed by the Court for settlement, if
any. But, the fact of the matter is that there is no service of summons
and vakalatnama on its behalf. Additional affidavit of David Smith,
Consultant and Power of Attorney Holder of the defendant No. 3 has
filed his affidavit. Para 4 to 8 of the affidavit reads as under:
“4. I state that to the best of my knowledge based on the record
of Defendant No. 3, no lawyer was authorized by Defendant No. 3 to
appear on behalf of the Defendant No. 3 before this Court in the
present proceedings. This is further evidenced from the fact that
there is no Vakalatnama/Memo of Appearance or any other proof of
authority to appear on behalf of the Defendant No. 3 which has been
filed on record of the Hon'ble Court. Any appearance on behalf of
Defendant No. 3 in the records of this Hon'ble Court, including that
on 05th October, 2005 when purportedly a lawyer is said to have
represented Defendant Nos. 2-4, ex facie appears to be inaccurate
recorded.
5. I state that to the best of my knowledge no lawyer was
authorized to appear on behalf of the Defendant No. 3 on 5th
October, 2005 or at any stage prior or later during the suit
proceedings. The Defendant No. 3 became aware of the proceedings
only after passing of the decree by way of the legal notice dated 13th
April, 2011 served upon by the counsel for the plaintiff on the
Defendant No. 3 herein.
6. In aforesaid context, I wish to emphasize herein that the
Defendant No. 3 is seeking setting aside of the ex-parte decree to
protect is valuable rights over is well-known, longstanding and
established trade mark FLIGHT CENTRE. The Defendant No. 3 is an
internationally well-known travel company that has its business
spread over several countries and continents.
7. The Defendant No. 3 is the largest traditional high street travel
agent in Australia carrying on its business since 1981, under the
SCC Online Web Edition, © 2023 EBC Publishing Pvt. Ltd.
Page 9 Wednesday, June 21, 2023
Printed For: Muskaan Prasad, School of Law, Galgotias University
SCC Online Web Edition: http://www.scconline.com
© 2023 EBC Publishing Pvt. Ltd., Lucknow.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
29. It is also the matter of record that no fresh notice was issued to
the defendants at the time of filing and allowing the amendment to the
plaint. It is settled position of law that issuance of fresh notice at the
time of amendment of plaint is mandatory and any amendment allowed
without allowing an opportunity to the opposite party to contest the
same is negation of justice and illegal.
30. This principle has been affirmed by the Supreme Court of India
in a three Judge Bench decision in Ramnik Vallabhdas Madhvani v.
Taraben Pravinlal Madhvani, reported in (2004) 1 SCC 497 : AIR 2004
SC 1084 in the following manner:—
“Procedural aspect demands that on the amendment being
allowed, the opposite party has to be given a chance to respond to
the amended pleading and if the plea is contested, the court has to
give its decision thereon. Not affording an opportunity to the
contesting party to contest a plea, which has been allowed to be
amended, is negation of justice. In the present case the fact remains
that the amendment application of the plaintiff was allowed vide
order dated 16-12-1985 when on the same date the appeal against
the preliminary decree was disposed of and rate of interest going
even beyond what was permitted by way of amendment, was
awarded. The decree which was passed was for much more than
what the amendment allowed. The plaintiff had only sought leave to
amend the rate of interest as originally pleaded as 6% per annum to
13% per annum. This amendment was allowed. But in the decree
the Court allowed interest to be charged at the prevailing bank rate
of interest charged by nationalised banks from time to time on
commercial transactions during the relevant period. Thus the High
Court while allowing the prayer for amendment simultaneously
passed a decree not only based on the amended plea, but for
exceeding it. No amended pleadings were filed. No opportunity was
given to the defendants to contest the plea. A bare reading of Order
6 Rule 17 of the Code of Civil Procedure shows that amendment is of
a plea contained in the pleadings and the object of allowing the
amendment of pleadings is to determine the real questions in
controversy between the parties. This means that the parties have to
be given a chance to contest the questions in controversy and the
court has to give its decision ultimately on such contested issues.
This procedure was not followed in the present case. The procedure
followed is wholly illegal.
31. In the following decision, it is held that even if a party is ex
parte, and thereafter, if an amendment application is made, then that
must be served to the party concerned and if the party remains absent
despite notice, then the Court applying its discretion may pass an
appropriate order. Reliance is placed on the following judgment:—
SCC Online Web Edition, © 2023 EBC Publishing Pvt. Ltd.
Page 11 Wednesday, June 21, 2023
Printed For: Muskaan Prasad, School of Law, Galgotias University
SCC Online Web Edition: http://www.scconline.com
© 2023 EBC Publishing Pvt. Ltd., Lucknow.
-----------------------------------------------------------------------------------------------------------------------------------------------------------