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Issues Involved:
1. Misrepresentation and failure to fulfill conditions precedent. 2. Validity of ex parte proceedings on a declared holiday. 3. Compliance with Order 20, Rule 4(2) of the Civil Procedure Code by the trial court's judgment. Issue-wise Detailed Analysis: 1. Misrepresentation and Failure to Fulfill Conditions Precedent: The plaintiff alleged that Kuldip Singh, a director of the defendant company, misrepresented the terms under which the plaintiff agreed to purchase shares. The plaintiff claimed that he was promised a position as a promoter director and that the company belonged primarily to members of the Ahluwalia Community. Based on these assurances, the plaintiff advanced Rs. 12,500 by cheque on January 8, 1946. Subsequent communications, including a telegram on January 15, 1940, confirmed the plaintiff's acceptance as a director. However, the plaintiff demanded additional particulars, such as the date of incorporation and a certified copy of the resolution co-opting him as a director, which were not fully provided by the defendant. Consequently, the plaintiff served a lawyer's notice on May 25, 1946, demanding a refund of Rs. 12,500 with interest, which the defendant refused. The plaintiff then filed the present suit on July 18, 1947, seeking recovery of the amount with interest. 2. Validity of Ex Parte Proceedings on a Declared Holiday: The defendant argued that the trial court erred in proceeding ex parte on October 2, 1947, which was a declared holiday for Mahatma Gandhi's birthday. The High Court noted that although the date was not listed as a close holiday in the Official Gazette under Section 15 of the Bengal, Agra, and Assam Civil Courts Act, a notification under Section 25 of the Negotiable Instruments Act declared it a public holiday. The High Court issued a circular and telegrams to all subordinate courts, including Dehra Dun, indicating that October 2, 1947, should be observed as a close holiday. The court emphasized that judicial acts on such holidays should only be performed in cases of urgent necessity with the consent of the parties, as per Rule 19, Chapter XX of the General Rules (Civil). The trial court's decision to proceed ex parte without urgent necessity or the defendant's consent was deemed an error. Consequently, the High Court set aside the order directing the ex parte hearing, the subsequent judgment, and the decree passed by the trial court. 3. Compliance with Order 20, Rule 4(2) of the Civil Procedure Code: The defendant contended that the trial court's judgment did not meet the requirements of Order 20, Rule 4(2) of the Civil Procedure Code, which mandates a concise statement of the case, points of determination, and reasons for the decision. The High Court found that the trial court's judgment lacked a detailed statement of facts, points of determination, discussion of evidence, and reasoning for the decision. The judgment was described as excessively brief and devoid of necessary analysis. Consequently, the High Court concluded that the case should be remanded for a fresh judgment that complies with the legal requirements. Conclusion: The High Court allowed the appeal, set aside the judgment and decree of the trial court, and remanded the case for disposal in accordance with the law and the observations made. The court emphasized that judicial acts on close holidays should be limited to urgent matters and require the consent of the parties. The trial court's failure to comply with these principles and the requirements of Order 20, Rule 4(2) necessitated the remand. The costs were ordered to abide by the result of the fresh proceedings.
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