Tea Auction Ltd vs Grace Hill Tea Industry And Anr

The Supreme Court interpreted Order IX Rule 13 of the Code of Civil Procedure, 1908, addressing the conditions under which an ex-parte decree can be recalled. The Court held that the imposition of a harsh condition for recalling the decree, such as requiring a security of Rs. 37 lakhs, was not justified given the circumstances of the case, including the lack of proper service of summons to the defendant. The appeal was allowed, and the Division Bench's order was set aside, reinstating the learned Single Judge's decision with modifications.