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2014 Supreme(Bom) 440

High Court of Judicature at Bombay
R.D. DHANUKA, J.
NTPC Limited (formerly National Thermal Power Corporation) Limited
Versus
Reliance Industries Limited
Chamber Summons No. 201 of 2010 In Suit No. 95 of 2006
Decided On : 20-2-2014

Advocate Appeared:
For the Plaintiff:Ravi Kadam, Senior Advocate, a/w. D.D.Madan, Senior Advocate, a/w.
V.R. Dhond, Senior Advocate, a/w. S.V. Doijode, Rashne Mulla – Feroze, i/b. Doijode & Associates, Advocates. For the Defendant:Dr. Milind Sathe, Senior Advocate, a/w. Rishit Badiyani, i/b. Junnarkar & Associates, Advocates.

Headnote:Civil Procedure Code, 1908 - Order XI, Rule 12 Discovery/production of documents. - Court has to consider, before passing an order for discovery of documents about relevancy of such documents with regard to dispute between parties. In present case applicant sought inspection and discovery of documents. Before directing discovery or production of documents, Court has to be. satisfied whether any of these documents are relevant for the purpose of disposing of the suit and not to enable the party to cause a roving enquiry to fish out information which may or may not be relevant. Court has to consider before passing an order for discovery of documents about the relevancy of such documents with regard to dispute or controversy between the parties. Discovery of any of the documents described in the schedule appended to the chamber summons is not necessary and in any event could not be permitted at this stage.

       The discovery sought in respect of the documents described in the schedule is totally vague and is also by way of fishing enquiry. None of these documents, would be relevant for the purpose of deciding the issue already framed as to why the Letter of Intent issued by the plaintiff and accepted by the defendant is a concluded contract or not.

       

Judgment :

1. By this chamber summons, defendant seeks an order and direction against the plaintiff to disclose on oath and give inspection and copies of the documents listed in the schedule appended to the chamber summons. Some of the relevant facts which emerge from the pleadings filed by both parties and which are relevant for the purpose of deciding this chamber summons are as under :-

2. Pursuant to the bids invited by the plaintiff for supply of natural gas to power plants at Kawas at Jhanor – Gandhar, defendant, on 14th May 2004 the defendant confirmed that the defendant had perused the RFP documents and various amendments issued by the plaintiff and confirmed its unconditional acceptance to all provisions of the RFP document read with amendments in totality. The defendant submitted its bid document.

3. By letter dated 16th June 2004 the plaintiff issued a Letter of Intent in favour of the defendant conveying its acceptance to the proposal including financial and supplementary financial proposal submitted by the defendant. In the said Letter of Intent, it was provided that the defendant shall prepare and finalise the documents for signing of the Gas Sale and Purchase Agreement (GSPA) and shall enter into the said GSPA with the plaintiff as per proforma enclosed to the bidding document within 30 days from the date of said Letter of Intent. It was further provided that the terms and conditions of all the provisions such as scope, commencement of obligations, duration, build up period and delay in first delivery, quantities, quality, taxes, invoicing and payment etc. shall be governed by the GSPA to be entered into between the plaintiff and the defendant. The plaintiff requested the defendant to return its duplicate copy duly signed and stamped as a proof of its acknowledgment and confirmation.

4. By letter dated 17th June, 2004 to the plaintiff, the defendant acknowledged the receipt of Letter of Intent and forwarded a duplicate copy thereof duly signed and stamped as a proof of acknowledgment and confirmation of receipt.

5. By a letter dated 24th June, 2004 the plaintiff requested the defendant to accept the LOI unconditionally and prepare and finalise the documents for signing of GSPA agreement as per paragraphs 5 of Letter of Intent dated 16th June, 2004. 6. By letter dated 15th July, 2004, the defendant conveyed to the plaintiff its acceptance of the Letter of Intent based on the premise that the outstanding provisions in the GSPA will require to be agreed and incorporated between the plaintiff and the defendant and further conveyed that the defendant would look forward to finalise the GSPA with the plaintiff for execution within the required period.

7. The plaintiff vide its letter dated 16th July, 2004 informed the defendant and clarified that the outstanding provisions in the GSPA relates to various details that were to be inserted at the time of signing of agreement as per agreed draft of the said GSPA and there were no other outstanding provisions to be incorporated in the GSPA. The plaintiff requested the defendant to furnish those details and prepare documents to sign the agreement and to indicate the date of execution of the agreement at the earliest.

8. The plaintiff by its letter dated 12th August, 2004 invited the attention of the defendant that under the provisions of RFP documents, the GSPA was required to be signed within 30 days from the acceptance of LOI. It was also placed on record that schedule of GSPA was discussed for finalisation in two meetings held on 26th July, 2004 and 5th August, 2004. Plaintiff requested the defendant to furnish the final GSPA immediately for verification by plaintiff and also to indicate the name of the authorised person and date for signing the agreement.

9. By letter dated 12th August, 2004, the defendant requested the plaintiff to extend the date of signing of the GSPA by one month expecting that the Ministry of Petroleum and Natural Gas would start the ROU notificat





























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