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2024 Supreme(Cal) 1004

KRISHNA RAO
Baynee Industries – Appellant
Versus
Rajiv Rosha – Respondent


Advocates Appeared:
For the Plaintiff : Mr. Jishnu Chowdhury, Mr. Ritoban Sarkar, Mr. Sagnik Basu, Mr. Subhrojyoti Dey, Mr. Abhidipto Tarafder.
For the Defendant : Mr. Shourjyo Mukherjee, Mr. Sourojit Dasgupta, Mr. Vishwarup Acharyya.

Judgement Key Points

Key Points

  • Case Identification: High Court at Calcutta, Krishna Rao, J., Baynee Industries (Plaintiff) vs. Rajiv Rosha (Defendant), G.A. No. 1 of 2023 in CS No. 232 of 2022, decided on 14-08-2024. (!) (!)

  • Plaintiff's Claim: Suit for damages of Rs.19,77,48,220.13/- plus interest at 18% per annum due to defendant's wrongful interference with plaintiff's business via a patent. (!) (!)

  • Defendant's Application: Filed under Order VII Rule 11(d) CPC seeking rejection of plaint on grounds including: barred by limitation; no cause of action; barred by law; non-joinder of parties; lack of territorial jurisdiction; arbitration clause; plaintiff's admissions; no crystallized claim; technical defects. (!) (!) (!) (!) (!) (!) (!) (!) (!)

  • Defendant's Arguments on Cause of Action: No pleadings linking defendant's patent or actions to plaintiff's business loss; no explanation of how Tata Motors blocked orders due to defendant; inconsistent pleadings on supply stoppage (end-2019 vs. till Oct 2021); no specifics on damage period or causation. (!) (!) (!) (!)

  • Plaintiff's Arguments on Cause of Action: Long-term supplier (since 1980/1995) of exhaust brake units to Tata Motors (95% share); learned in 2018 of defendant's rival supply using Tata drawings and patent claim; Tata shifted business to defendant portraying plaintiff as unauthorized; defendant served cease notice 15-01-2019; plaintiff opposed patent, revoked 01-01-2022; Tata blocked orders end-Jan 2019 causing quantified losses; referenced plaint paras 11,12,13,16,17,20,23,31,32. (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!)

  • Court's Consideration: Focused primarily on cause of action despite multiple grounds raised; other grounds not argued. (!)

  • Relevant CPC Provision: Order VII Rule 11 CPC lists grounds for rejection, including (a) no cause of action, (d) barred by law. (!) (!) (!)

  • Plaintiff's Factual Narrative in Plaint: Developed/supplied exhaust brake units per Tata specs from 1995; notice from defendant 28-05-2018 claiming patent on Tata-provided drawings; opposed and revoked patent 01-01-2022; Tata blocked orders end-Jan 2019 due to defendant's interference. (!) (!) (!) (!) (!)

  • Legal Principle Applied: Plaint rejection under O VII R 11 only if no cause of action disclosed on reading plaint as whole (averments taken as true); not based on defendant's statements; cause of action is bundle of material facts; cannot reject if some cause shown, even if plaintiff unlikely to succeed. (!) (!)

  • Court's Finding: Plaint discloses cause of action via paras 17,20,23,31,32,33,34 read together, despite no explicit "cause of action" phrase. (!)

  • Outcome: No merit in application; G.A. No. 1 of 2023 dismissed. (!) (!)

  • Core Ratio: Plaint cannot be rejected if it discloses a cause of action, even if plaintiff's success uncertain. (!) (!)


JUDGMENT :

Krishna Rao, J.

1. The plaintiff has filed the suit for a decree for a sum of Rs.19,77,48,220.13/- along with interest at the rate of 18% per annum.

2. The defendant has filed the present application being GA 1 of 2023 under Order VII Rule 11(d) of the Code of Civil Procedure, 1908, for rejection of plaint. On the following grounds :

    (a) The suit is barred by the laws of limitation,

(b) It does not disclose a cause of action which can be adjudicated by this Court,

(c) The suit is barred by an existing law,

(d) Non-joinder of necessary parties,

(e) No territorial jurisdiction of Court;

(f) Presence of Arbitration Clause,

(g) Specific admission by plaintiff,

(h) No crystalized claim;

(i) Technical incurable defects.

3. Mr. Shourjyo Mukherjee, Learned Advocate representing the defendant submits that the foundation of the plaint case, is that the defendant wrongfully interfered with the business of the plaintiff due to which the plaintiff is entitled for damages. He submits that there is no pleading in the plaint to the effect as to how the defendant’s act or conduct or the patent itself interfered with the business of the plaintiff. He submits that there is no correlation between the cl

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