APPEAL AGAINST HIGH COURT’S DIRECTIVE TO ACCEPT MEMO IN SUMMARY SUIT INVOLVING RECOVERY OF FUNDS

by | Jun 15, 2024

ASPECTS DETAILS
CASE TITLE Anish M Rawther @ Anees Mohammed Rawther vs. Hafeez Ur Rahman & Ors.
INTRODUCTION Anish M Rawther appealed against the Karnataka High Court’s order, which directed the Trial Court to accept a memo submitted by Hafeez Ur Rahman and others. The High Court’s order set aside an earlier Trial Court decision, leading to this appeal.
FACTUAL BACKGROUND The respondents filed a suit under Order XXXVII of the Code of Civil Procedure (CPC) to recover Rs. 1,04,16,576/- with interest. The Trial Court allowed the appellants to defend by depositing 50% of the claim. The High Court upheld this, and the Supreme Court dismissed the appellants’ SLP. The respondents’ memo to decree the suit was initially rejected by the Trial Court but accepted by the High Court.
LEGAL ISSUES
  • Whether the High Court was correct in directing the Trial Court to accept the respondents’ memo.
  • Whether the moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC), 2016, affects the proceedings.
APPLICABLE LAW
  • Order XXXVII of the Code of Civil Procedure, 1908
  • Section 14 of the Insolvency and Bankruptcy Code, 2016
ANALYSIS The High Court set aside the Trial Court’s rejection of the respondents’ memo and directed the Trial Court to accept it. The appellants argued that the IBC moratorium should halt proceedings, but the High Court dismissed this argument. The Supreme Court’s interim stay order did not affect the final decree issued by the Trial Court.
CONCLUSION The Supreme Court dismissed the appeal as infructuous because the suit had already been decreed, and the decree was not further challenged by the appellants.
CURRENT SCENARIO Since the decree has not been challenged, the suit is resolved, rendering the appeal infructuous and leading to its dismissal.

 

CASE SUMMARY – Anish M Rawther challenged the Karnataka High Court’s decision to accept a memo submitted by Hafeez Ur Rahman and others in a recovery suit. Initially, the Trial Court allowed Rawther to defend the suit by depositing 50% of the claim, a decision upheld by the High Court and the Supreme Court. Despite the dismissal of Rawther’s Special Leave Petition (SLP), the respondents’ memo to decree the suit was initially rejected by the Trial Court but later accepted by the High Court. Rawther’s appeal cited the Insolvency and Bankruptcy Code moratorium but was dismissed as the suit had already been decreed.

 

SOURCE – SUPREME COURT OF INDIA

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Written By Nancy Sharma

I am Nancy Mahavir Sharma, a passionate legal writer and , a judicial service aspirant who is interested in legal researching and writing. I have completed Latin Legum Magister degree. I have been writing from past few years and I am excited to share my legal thoughts and opinions here. I believe that everyone has the potential to make a difference.

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