APPLICATION TO PURGE DEFAULT - CPC 86- INTERPRETATION ORD. SECTION 8 - COMPUTATION OF TIME- JUSTICE DEP

         

Flexport (Pvt) Limited
Vs
Commercial Bank  of Ceylon Limited of No



SC Appeal No. 03/2012
SC.HC.CA.LA No. 268/11
WP/HCCA/Mt/70/04/F                                                                                                    .
D.C. Mt. Lavinia  Case  No. 1032/96/

                  


Before                              :           Marsoof, PC,  J
                                                     Dep, PC. J &
                                                     Marasinghe, J                       
                               

Decided on                                           :               15.12.2014


Priyasath Dep, PC, J 


This is an appeal against the judgment dated 07-06-2011 of the Provincial High Court of Civil Appeal of Mt Lavinia in Case No. WP/HCCA/MT/70/04/F. The High Court affirmed the order dated 17-11-2004 of District Court of Mt Lavinia in Case No. DC1032/96/M   which rejected the application made under section 86 (2) of the Civil Procedure Code to set aside the ex parte judgment on the basis that it was filed out of time. 

The Plaintiff-Respondent-Respondent (hereinafter called and referred to as the “Respondent”) on 6th August 1996 instituted an    action against the Defendants- Appellants-Petitioners (hereinafter called and referred to as the “Appellants”) for the recovery of money based on two causes of action.

The Petitioners filed an answer with a claim in reconvention. The Respondent filed a replication in answer to the claim in reconvention.  Thereafter this case was fixed for trial and subsequently proceeded to trial. The trial was postponed on numerous occasions due to various reasons.

On 24th June, 2003 when this case came up for further trial the Petitioners were absent and unrepresented and the case was fixed for ex-parte trial. An ex-parte judgment and decree was entered on the 01st July 2003 against the Petitioners as prayed for in the Plaint. The decree was served on the Petitioners on 11-10-2003.

The Petitioners on 27th October 2003 filed an Application under section 86(2) of the Civil Procedure Code to set aside the ex-parte judgment. The inquiry pertaining to the application filed by the Petitioners was taken up on 17th November 2004.When the inquiry was taken up an objection   was raised by the Respondent that the Petitioners have failed to prefer the said Application within fourteen days as stipulated by Section 86(2) of the Civil Procedure Code and moved for a dismissal of the said Application.

The Additional District Judge having heard the submissions of the learned Counsel for the Respondent and the learned Counsel for the Petitioners upheld the objection and dismissed the   Application of the Petitioners. Thereafter the Defendants (Appellants) preferred an appeal against the order dated 17th November 2004 of the Additional District Judge of Mount Lavinia to the Court of Appeal which was subsequently transferred to the Provincial High Court of Civil Appeal of Mount Lavinia. 

The Provincial High Court having considered the written submissions as well as the oral submissions of the Counsel for the Petitioners and the Respondent, by judgment dated 07th June 2011 dismissed the   Appeal of the Petitioners.

Being aggrieved by the said judgment dated 07th June 2011, the Petitioners preferred this
Application for Leave to Appeal against the said Judgment to the Supreme Court. The Supreme Court granted Leave to Appeal from the said judgment on the grounds set out in sub paragraphs (i) to (iv) of paragraph 14 of the Petition dated 18th July2011. 

The Court having heard the submissions of both parties directed parties to tender written submissions. As directed by court parties tendered their written submissions.

The main  question that has to be decided by this Court is whether the  order dated 17th November  2004  of the Additional District Judge  of Mount Lavinia in dismissing  the  application  of the Petitioners  to set aside the ex parte order and the   order  of the Provincial High Court of Civil  Appeal  dated 07th June 2011 affirming the said order of the Additional District Judge   on the basis  that the Petitioners have failed  to prefer the said Application within the prescribed  period as set out in Section  86(2) of the  Civil Procedure  of the District Court  is correct or not.  

The section 86(2) of the Civil Procedure Code read thus:
 
86(2) “Where, within fourteen days of the service of the decree entered against him for default, the defendant with notice to the Plaintiff makes application to and thereafter satisfies court, that he has reasonable grounds for such default, the court shall set aside the judgment and decree and permit the defendant to proceed with his defence as from the stage of default upon such terms as to costs or otherwise as to the court shall appear proper”

It is not disputed that the decree was served on the Defendants on 11th October 2003 and petition and affidavit and other documents were filed by the Petitioners on 27.10.2003 to vacate the ex-parte order after the lapse of 14 days. The 14th day fell on 24th October 2003 which was declared a public holiday, on   25th Saturday the court house was closed and Sunday was a public holiday.  Petitioners submit that Section 8 (1) of the Interpretation Ordinance is applicable and if these 3 days were excluded   the Application is within time. It is to be observed that the learned Additional District judge and the learned High Court Judge did not consider the applicability of section 8 (1) of the Interpretation Ordinance. 

The learned President’s Counsel for Respondent Bank vehemently argued that the Interpretation Ordinance has no application to Section 86(2) of the Civil Procedure Code.  The learned Counsel for the Petitioners on the other hand argued that section 8 (1) of the Interpretation Ordinance applies and both the learned Additional District judge and the learned High Court judge erred in law by failing to consider the applicability of the Interpretation Ordinance. 

The main question we must decide is   whether section 8 (1) of Interpretation Ordinance applies to section 86(2) of the Civil Procedure Code or not. 

The section 8(1) of the Interpretation Ordinance reads thus:

“Where a limited time  from any date or from the  happening  of any event is  appointed or allowed   by any written  law  for the doing  of any act or the taking of any proceeding  in a court or office, and  the last day of the  limited  time is a day on  which the court  or office   is closed, then  the act  or proceeding shall  be considered as done or taken  in due  time if it  is  done or taken on the next day thereafter  on which the court or office is open.”

The word ‘within’ in relation to the time limit occurs in section 86 (2) (application to set aside an ex-parte order), section, 754 (4) (notice of appeal) and section 755(3) (petition of appeal) in the Civil Procedure Code. Therefore, judgments in relation to a section mention above are relevant to the other sections too. 

Under section 755(3) the Petition of Appeal shall be filed within 60 days from the date of the judgment. There is no exclusion of dates.  However, the Appellant has a long period of 60 days to file the Petition of Appeal

Under Section 754(4) of the Civil Procedure Code Notice of Appeal shall be preferred within 14 days from the date of the decree or order. However, the date of the decree or order and the date of filing the notice and all Public holidays are excluded. Therefore, invariably the appellant will get more than 14 days to file the Notice of Appeal.

 Under Section 86(2) of the Civil Procedure Code the Applicant is required within 14 days to file the Application.  Unlike in the Notice of Appeal intervenient public holidays falling within 14-day period, date of the decree or order or date of filing the application are not excluded. 

The learned President Counsel for the Respondent in support of his argument that there should be a strict compliance with the time limit cited the following cases namely; the Ceylon Brewery Ltd., v. Jacks Fernando, Proprietor, Maradana Wine Stores (2001) 1 SLR 270, Wickremasinghe v De Silva (1978-79)2SLR 65, Silva v.  Ankara and others (2002) 2 SLR  65.
  
 In Ceylon Brewery Ltd., v. Jax Fernando, Proprietor, Maradana Wine Stores
Fernando, J. held that 
 “section 86(2) of the Civil Procedure Code confers jurisdiction on the District Court to set aside a default decree. Hence the period 14 days provided by that section to make an application to set aside a default decree is mandatory.  

Per Fernando.

“It is settled law that provision which go to jurisdiction must be strictly complied with”. 

In the above case the Petition and affidavit was filed on the 15th day and the 14th day was not a Public holiday or a day the court was closed. Hence the question of applicability of Interpretation Ordinance did not arise.

In the Judgment given by the Court of Appeal in  Wickremasinghe v De Silva (Supra) Soza J held that:

‘The provisions of section 753(3) of the Civil Procedure Code which requires the petition of appeal to be filed within 60 days from the date of the judgment are mandatory. Accordingly, where a petition had been filed after the period of 60 days had lapsed the learned District judge was correct in rejecting such a petition.’

Soza J in the above Judgment remarked that “Parties should not wait till the last moment and then complain when they are caught out of time”

In the judgment of the Court of appeal in Silva v. Sankaran and others (Supra) the Appellant lodged the Petition of Appeal under section 754 of the Civil Procedure Code on Monday, 61st day as the 60th day fell on Sunday, a public holiday.  It was held in this case: 

(1)   A strict compliance is imperative and non-compliance is fatal to the appeal.

(2)   The words ‘within 60 days’ in section 755(3) restrict the right of the appellant to file the petition of appeal beyond the time frame of 60 days given.

(3)   The provisions of s.8(1) Interpretation Ordinance do not apply.  

To emphasis the word ‘within’ the learned President Counsel for the Respondent referred to the Black’s Law Dictionary (6th Edition, pp1602-1603) which provided definitions to the word ‘within’ thus: “when used relative to time, has been defined variously as meaning any time before; at or before; at the end of; before the expiration of; not beyond; not exceeding; not later than”. (Glenn v.Garett, Tex.Civ.App.,84 S.W. 2d 515,516)  

The learned President’s Counsel for the Respondent  submits that  the time period given  in 86(2)  of the  Civil Procedure Code  is mandatory and it should  be strictly complied with  and section  8(1) of the  Interpretation Ordinance has no application . 

The learned Counsel  for the Defendant-Appellant Appellant submits that  14th day  stipulated  under section  86(2)  of the Civil Procedure Code fell on  24th  October 2003 which happened to be a public holiday followed by Saturday, a day the court was closed and Sunday was   a public holiday,   filing   the application on Monday the 27th is within time  in view of the  section 8(1)  of the  Interpretation Ordinance. He relied on  the following cases  State Trading Corporation V Dharmadasa  (1987) 2SLR 235, Nirmala de Mel v. Seneviratne and others  1982 2SRI LR 569 and Chandrakumar  v. Kirubakaran  1989 2Sri LR (pg38)   Selenchina v.  Mohomad Marikkar  (2000) 3 SRI LR (Pg. 100), and Mendis v Mendis (2004) BLR( pg. 35). 

In State  Trading Corporation v. Dharmadasa (Supra) Sharvananda CJ  observed that:- 

 “Section 8(1)  of the Interpretation Ordinance  will  not avail  the appellant since the last date of  presenting the notice of  appeal to court was  16th June,  a Friday-  a day on which  the court was not closed. Had  the last being Saturday,  the 17th,   then the notice of appeal  could validly have been filed on  Monday the 19th  when the court was opened”.

In this case it was observed that:

“Notice  of appeal  was  not within  the  time limit  of fourteen days  permitted  by Section 754(4)  of the Civil Procedure Code  because  allowing for the fact that  the date of judgment  and  date of filing  of notice are not counted  and  the 2 Sundays (4th and 11th June)  had to be excluded, there was time to file  the  notice  of appeal only  until  16th  June (Friday).”

In the case of Nirmla de Mel v. Seneviratne and others  (Supra) after the granting of leave  by the Court of Appeal  to the Supreme Court ,petition of appeal was filed one day after the  due date.  The Rule No. 35  of the Supreme Court  Rules of 1978 was  then applicable. The court applied section 8(1)  of the Interpretation Ordinance and accepted the petition of appeal. It was held that :

“ On  the Application of this Rule of interpretation  it  would appear  that the Petition of Appeal filed on Monday the 16th February 1981  which was the  next working day was within time. 

In the case of Selenchina v.  Mohomad  Marikkar and others (2000)CLR Vol 111(pg. 100) S.N. Silva, CJ held :   

“ ….the notice of  appeal was presented  on 20.10.1986. If that day is excluded, the period of 14 days  excluding the date of judgment pronounced (i.e. 30.09.1986) and intervening Sundays and  public holidays would end  on 17.10.86 which was a public holiday. The next day on which the  notice should  have been presented  was the 18th , being a Saturday, on which the  office  of the court was closed. The next day, the 19th was a Sunday which  too had to be excluded in terms of the section. In the circumstances the notice filed on  20.10.1986 was within the period of  14 days  as provided  for in  section  754(4)  of the Civil Procedure Code”. 


As stated earlier under Section 86(2) of the Civil Procedure Code, the Applicant is  required  within  14 days  to file the  Application.  Unlike in the Notice of Appeal[section 754 (4)] intervenient public holidays  falling within 14 day limit, the date of the decree, date of filing  the application   are not taken into account. Therefore applicant’s time is limited to 14 days.   If the 14th day  falls on a  public holiday or the date on which  the court is closed  if he is required to file on  the previous day  he has only  13 days. If that interpretation is given it will be disadvantageous and cause  grave prejudice to the Applicant. 

In this case  24th October 2003 fell on a Public holiday, Saturday  was a day  on which  the court house was closed and Sunday a public holiday. If strict interpretation is given to section 86(2) Appellant is required to file papers on the 13th day. For the purpose of argument   if  we take a hypothetical case  where  the 14th day fell on Sunday the 26th  October 2003, the applicant has to file papers on the 23rd..  In that event  he has to file  papers within 11 days. The section 8(1)  of the Interpretation Ordinance  is meant  for situations  like this  to prevent  inconvenience or injustice  to the  litigant. 

I am inclined to  follow  the Supreme Court  judgments  in  State Trading Corporation v. Dharmadasa, supra, Nirmala de Mel v. Seneviratne and others supra, Selenchina v. Mohomad Marikkar,  supra;  which held that   if the last date of  filing  falls on a public holiday or on a day the court house was closed,  the act of filing   of papers could be done  or taken  on the next date thereafter, the day  the court  or office is open. I hold that section 8 (1) of the Interpretation Ordinance  Applies to section 86 (2) of the Civil Procedure Code.

For the  reasons stated above, I set aside the  judgment of the   District Court  of Mount Lavinia dated 17.11.2004 and the judgment of  the Provincial High Court dated  07.06.2011 which affirmed the judgment of the District Court.

In view of this order,  the learned District Judge  is directed to inquire  into the Application  filed by the Defendant-Appellant  to set aside the  ex-parte  order and thereafter make an appropriate order.  

Appeal allowed. No Costs.



Judge of the Supreme Court 





Saleem Marsoof, P.C., J.

I agree.                                 

                                                                                               Judge of the Supreme Court      





Rohini Marasinghe, J.                                                     

I agree.



                                                                                       Judge of the Supreme Court  

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