The recent judgment of the Supreme Court in the case of M/s Trois Corporation HK Ltd v/s M/s National Ventures Pvt Limited; SLP (C) Nos 4012-4013 of 2024, found the directive to deposit 75% of the suit claim to condone delay and set aside an ex-parte decree to be unwarranted and disproportionate, leading to the decision to set aside the impugned orders of the High Court.
The case originated from the High Court of Judicature at Madras, where the respondent sought to recover a substantial sum of Rs 3.42 crores from the appellant. Following a series of legal proceedings, including the grant of leave to sue and the issuance of notices, an ex parte decree was eventually passed against the appellant by the High Court.
In response to the ex parte decree, the appellant filed a Judges Summons under relevant legal provisions for setting aside the decree and sought condonation of delay. The High Court initially directed the appellant to deposit 75% of the suit claim within a specified period to set aside the ex parte decree. However, this decision was challenged and brought before the Supreme Court for review.
Upon careful consideration of the facts and legal provisions, the Supreme Court deemed the requirement of depositing 75% of the suit claim as a condition to condone the delay and set aside the ex parte decree as unwarranted and disproportionate. The Court highlighted that imposing such a substantial financial burden on the appellant was not justified in the circumstances of the case.
Consequently, the Apex Court allowed the appeals and set aside the orders of the High Court. Instead of the initial directive, the Court directed the appellant to deposit a more reasonable amount towards costs payable to the respondent. This decision aimed to strike a fair balance between the interests of both parties and ensure that justice was served without imposing an unjustifiable financial burden on the appellant.

Author of this article:
Adv. Ravish Bhatt,
Partner, R&D Law Chambers,
Dual Qualified Lawyer Solicitor | International Tax Affiliate

Connect with Mr. Bhatt on Linkedin: https://www.linkedin.com/in/adit-ravishbhatt/

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