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2023 Supreme(Kar) 537

IN THE HIGH COURT OF KARNATAKA AT KALABURAGI BENCH
SURAJ GOVINDARAJ, J.
Krishna Bhagya Jala Nigam Ltd. – Petitioner
Versus
A. Prabhakara Reddy – Respondent
Writ Petition No. 201900 of 2023
Decided On : 11-09-2023

Advocates:
Advocate Appeared:
For the Petitioner: Krupa Sagar Patil.
For the Respondents: Sachin M. Mahajan, Maya T.R.

The main legal point established in the judgment is that a Commercial Court cannot permit a party to lead fresh evidence after the matter is posted for arguments if the procedural requirements under the CPC as amended by the CCA, specifically Order 18 Rule 4(1A) and Order 15A, are not met, unless exceptional circumstances justify such permission.

Headnote:[KEYWORD] - [EVIDENCE] - [CPC ORDER 18 RULE 4(1A), ORDER 15A, SECTION 151; CCA SECTION 8, 13, 16] - [The court discussed the provisions of the Code of Civil Procedure (CPC) as amended by the Commercial Courts Act (CCA), specifically focusing on Order 18 Rule 4(1A) which mandates the simultaneous filing of affidavits of evidence at the time directed in the first Case Management Hearing. The court also referred to Order 15A, which deals with Case Management Hearings, and Section 151 of CPC, which is a residuary provision for orders necessary for the ends of justice. The court highlighted that the CCA aims to expedite the disposal of commercial disputes and that its provisions prevail over conflicting High Court rules or CPC provisions. Section 8 of the CCA bars civil revision applications against interlocutory orders of a Commercial Court, emphasizing the finality of such orders except in an appeal against the decree. Section 13 outlines the appeal process from decrees of Commercial Courts. The court's decision was influenced by the interpretation of these provisions, ensuring adherence to the procedural requirements set by the CCA and CPC for commercial disputes.]

Fact of the Case:

The plaintiff, a Member of Parliament, filed a suit for recovery of a substantial sum based on a contract, agreement, and correspondence. The plaintiff's Chief General Manager, acting as a General Power of Attorney (GPA) holder, was examined as PW-1 and cross-examined. After evidence was led and the matter was posted for reply arguments, the plaintiff sought to adduce additional evidence through an application under Section 151 of CPC, which was allowed by the trial court and challenged in the present writ petition.

Finding of the Court:

The court found that the application under Section 151 CPC was not maintainable for the relief sought, as it should have been filed under Order 18 Rule 4(1B) of CPC as amended by the CCA. The court also found that the plaintiff was not named as a witness, and no affidavit was filed on his behalf during the Case Management Hearing as required. The trial court's decision to allow the plaintiff to lead additional evidence was based on incorrect premises and legal infirmities, particularly the failure to establish sufficient cause as required by Order 18 Rule 4(1B).

Ratio Decidendi:

The court held that a Commercial Court cannot permit a party to lead fresh evidence after the matter is posted for arguments when the witness has not been named in the list of witnesses and the affidavit has not been filed as per the calendar of dates fixed under Order 15A of CPC, except if exceptional grounds are made out. The court also held that the supervisory power under Article 227 of the Constitution can be exercised despite Section 8 of the CCA when there is a manifest error resulting in grave injustice. [FINAL DECISION] The writ petition was allowed, the impugned order was quashed, and the trial court was directed to dispose of the matter expeditiously.

ORDER :

1. The petitioners who are defendant Nos. 1 to 3 in Commercial O.S. No. 1/2018 pending on the file of Principal District and Sessions Judge and Commercial Court, Raichur, are before this Court seeking for the following reliefs:

    (a) Issue a Writ of Certiorari quashing the impugned order on I.A. No. XI dated 13.06.2023 passed by the Court of Prl. District and Sessions Judge and Commercial Court, Raichur, in Commercial O.S. No. 1/2018 at Annexure-D to the Writ Petition.

(b) Issue any other Writ, Order or Direction as this Hon’ble Court deems fit in the circumstances of the case in the interest of justice and equity.

2. Respondent No. 1 had filed the aforesaid suit in Commercial O.S. No. 1/2018 seeking for the following reliefs:

    (a) Directing the Defendants to pay to the Plaintiff an amount of Rs. 57,48,47,264:00 (Rupees Fifty-seven crores, forty eight lakhs, forty seven thousand two hundred and sixty four only) including an interest of 12% P.A. as quantified as on 22.3.2018 with future interest of 12% P.A. till its realisation, through the process of this Hon’ble Court in this summary suit for recovery, as specifically claimed and stated in the calculations of claims, interest rates, dates from and to which the interests are claimed, number of days for which interest claimed up to the date of filing of this summary suit, i.e. 22.3.2018, as per Annexures-49 to Annexures-62, which is based on the contract, agreement and correspondence with quantification of liquidated damages.

(b) To pass any suitable reliefs to which the Plaintiff is entitled to under the facts and circumstances of the case.

3. In the said suit, the plaintiff led the evidence of one Sri. P. Chandramouli S/o P. Venkatarama Shastry, Chief General Manager of APR Constructions Limited claiming also to be the GPA Holder of the plaintiff. He was examined as PW-1 and cross-examined. Subsequent thereto, the defendants led their evidence. The witnesses having been cross-examined, the matter was posted for reply arguments. It is at that stage, an application came to be filed by the plaintiff under Section 151 of the Code of Civil Procedure (for short, hereinafter referred to as ‘CPC’) which came to be numbered as I.A. No. 11 on 23.03.2023 vide Annexure-B seeking permission to permit the plaintiff to adduce evidence of the plaintiff. The said application being objected to, came to be allowed by way of the impugned order dated 13.06.2023 which is under challenge in the present petition.

4. Sri. Krupa Sagar Patil, learned counsel appearing for the petitioner submits as under:

    4.1. The Commercial Court would not have allowed an application under Section 151 of Code of Civil Procedure permitting the plaintiff to file an affidavit in lieu of the evidence of the plaintiff in light of the embargo under Order 18 Rule 4(1A) of Code of Civil Procedure as amended by the Commercial Court Act, 2015.

4.2. The submission is that all affidavits of all witnesses are required to be filed at the designated time and if they are not so filed, there is no provision to permit the filing of an affidavit in lieu of evidence of a witness after the matter is posted for arguments, in this case reply arguments.

4.3. The application is not maintainable under Section 151 of Code of Civil Procedure, any such application ought to have been filed either under the Commercial Courts Act, 2015 or the relevant provision of Code of Civil Procedure 1908 as amended by the Commercial Courts Act, 2015.

4.4. Thirdly, he submits that the application to file the affidavit in lieu of evidence is filed only to get over the admissions made by PW-1 who has led evidence on all matters and has been cross-examined on all matters.

4.5. If the plaintiff were permitted to file an affidavit of another witness on the entire matter, the answers which had been given by PW-1 would get negated and by filing of the affidavit the lacuna in the evidence could be filled up which has not been taken into consideration by the trial Court.

4.6. Ther

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