In the case of Rupchand vs Raghuwanshi 1964, the Supreme Court has held that:
In this case the Supreme Court held that the effect of setting aside an ex parte decree is that the suit is restored and the court should proceed to decide the suit as it stood before the decree. The ex parte is a decree under s.2(2) of the Code and therefore, an aggrieved party can also file an appeal under section 96(2) of the Code.