Supreme Court of India
Shantilal Gulabchand Mutha v. Tata Engineering & Locomotive Co. Ltd. & Anr.
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What the Court ordered
In view of the above, it appears to be a settled legal proposition that the relief under Order VIII Rule 10 CPC is discretionary, and court has to be more cautious while exercising such power where defendant fails to file the written statement.
Judgment, page 5
From the headnote
CODE OF CIVIL PROCEDURE, 1908:. 0. 8, r.10 - Judgment on failure of defendant to file written statement-Held: Relief under 0. 8, r. 10 is discretionary, and court has to be more cautious while exercising such power where defendant fails to file written statement -Court must be ' satisfied that there is no fact which need to be proved in spite of deemed admission by defendant, and court must give reasons for passing such judgment - In the instant case, trial court has not examined as to whether the suit was filed within limitation and whether on the basis of pleadings, the relief granted by it
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