Supreme Court: Condoned delay but altered payment condition in ex‑parte decree case

The Supreme Court, sitting as a bench of the Supreme Court of India, dismissed the appeals filed by Hiroo Hotchand Advani and Integrated Finance Company Limited, affirming the Madras High Court’s discretion to condone a 423‑day delay in an application to set aside an ex‑parte decree, while modifying the condition that the fourth defendant pay ₹75,00,000 to the plaintiff.

Advani had obtained an ex‑parte decree in a hire‑purchase suit against the fourth defendant. After a delay of 423 days, the defendant filed an application seeking to set aside the decree, arguing that he was entitled to contest the suit. The Madras High Court, exercising its inherent power, condoned the delay but conditioned the relief on the defendant’s payment of ₹75,00,000 to the plaintiff. The parties appealed, contending whether the High Court erred in both condoning the delay and imposing the payment condition.

The Supreme Court held that the High Court’s discretion to condone the delay was exercised within its jurisdiction and was not arbitrary, as the defendant had a legitimate right to be heard. However, the Court found the order directing immediate payment to the plaintiff premature, directing instead that the amount be deposited with the Madras High Court to earn interest until the final determination of the appeals. Consequently, the payment condition was modified, and both appeals were dismissed without costs.

Read the judgment and its head note on DLJ: Hiroo Hotchand Advani vs Integrated Finance Company Limited (2026 INSC 1182).