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2003 Supreme(Del) 106

High Court Of Delhi
SUDYOG LIMITED - Appellant
Versus
FLISTEX MAGNETICS LIMITED - Respondent
L.P.A. 468 of 2001
Decided On : 02/03/2003

Advocates Appeared:
Abhinav Jain, B.L.Pandey, JAYANT NATH, Y.K.Jain

Headnote:Civil Procedure Code, 1908 - Section 151 — Inherent power — Plaintiff seeking striking out the defense of the defendant on the ground of non-production of ledger and accounts of defendant despite undertaking — Under Section 151 Court has power to make such orders as may be necessary to meet the needs of justice or to prevent the abuse of the process of the Court — Defendant adopting various tactics for delaying/prolonging the case, even solemn undertaking given to Court, not complied with — Fit case where the inherent powers of the Court are required to be invoked in the interest of justice and to prevent abuse of the process by striking out the defense of the defendant under Section 151 of CPC.

       Held :

       On a totality of consideration of the police complaint, the successive affidavits, the contentions adopted from time to time as recorded in the various order sheets, and also the absence of any application by the defendant seeking discharge from the undertaking on account of the drastic change of circumstances, this Court gets a clear impression that the defendant is trying to take the Court for a ride.

       After adopting various tactics for delaying/prolonging the case for more than six years, even the solemn undertaking given to the Court, has not been complied with. The Explanationn furnished is wishy-washy and full of holes.

       A fit case where the inherent powers of the Court are required to be invoked in the interest of justice and to prevent abuse of the process by striking out the defense of the defendant under Section 151 of the Code of Civil Procedure.

       No doubt, the passing of an order by this Court by striking out the defense of the defendant, will not obviate the necessity for plaintiffs producing its own evidence and proving its case. The defendant will also be entitled to participate in the proceedings to the extent to which, as a party whose defense is struck off, it is entitled to do so.

S. Mukerjee

( 1 ) THIS application (IA No. 468/2001) has been filed by the plaintiff with the prayer for striking out the defendce of the defendant, on the ground of non-production of ledger and accounts by defendant in violation of the undertaking given to this Court in the order dated 19. 9. 2001.

( 2 ) THE main suit filed by the plaintiff is for recovery of Rs. 55 lakhs on account of the alleged non-payment by the defendant company of the charges falling due on account of (i) "liquid Nitrogen" actually supplied by the plaintiff; (ii) fixed facility charges payable by the defendant; and (iii) the compensation in lieu of short lifting/non-lifting of material in terms of agreement dated 16. 3. 1992 as executed between the parties.

( 3 ) DURING the course of arguments, it has been admitted that the only surviving dispute between the parties, is primarily regarding the liability of the defendant on account of the short-lifting/non-lifting of minimum quantity of liquid nitrogen in terms of the agreement dated 16. 3. 1992.

( 4 ) IN fact, as recorded in the order dated 21. 9. 1995 of this Court after hearing the parties, the defendant has been already directed to pay certain admitted amount to the plaintiff. On 26. 9. 1995, the defendant paid Rs. 4,72,500 /- to the plaintiff, which amount was accepted without prejudice to the rights of the plaintiff.

( 5 ) ACCORDING to the plaintiff s averments in the application, even leaving aside the amount claimed on account of the short-lifting/non-lifting of material, being Rs. 46,51,671. 20, there were still other dues to the tune of Rs. 11,10,875. 00, on account of the outstanding amount for actual gas supplied, besides Rs. 7,85,900/- on account of fixed facility charges.

( 6 ) FROM the total of these two other outstanding amounts, even after deducting rs. 4,72,500/-paid by the defendant on26. 9. 1995, still the outstanding balance of Rs. 14,25,875 /- remained payable by way of what the plaintiff describes to be admitted liability required to be paid in terms of the orders already passed by this Court.

( 7 ) FROM the perusal of the order sheets, relating to the hearing dated 26. 9. 1995 and of a number of occasions thereafter, the defendant was asked to give its response on the subject of the outstanding amounts, in the context of a statement of which had been handed over by the plaintiffs Counsel, to the defendant in the Court as far back as on 26. 9. 1995.

( 8 ) THE plaintiff filed an application being IA No. 1404/99 under Order 11 Rules 12 and 14 read with Section 151, CPC, for necessary directions to be issued to the defendant to discover on oath the relevant account books in their power of possession, and also for production of ledger accounts of the plaintiffs as forming part of the account books of the defendant, for the years 1992 to 1999.

( 9 ) VIDE order dated 19. 9. 2000, this Court had recorded the undertaking of learned Counsel for the defendant assuring the filing of the true copy of the accounts in the Court and that too within four weeks from the said date.

( 10 ) THE plaintiff s application for discovery and protection, was disposed of on the said undertaking of learned Counsel for the defendant, and acting on the undertaking, the main suit was directed to be listed on 14. 3. 2001 for framing of issues.

( 11 ) THE period of four weeks, as per undertaking given by the defendant through its Counsel, expired in the third week of October, 2000. After waiting for almost a further period of two months, this application (IA No. 468 /2001), was filed by the plaintiff on 16. 1. 2001, praying for the defence of defendant to be struck off.

( 12 ) THE plaintiff/applicant vehemently contends that the defendant has admittedly not complied with either the order dated 19. 9. 2000 or the subsequent order dated 22nd May, 2001 by which the defendant was directed to produce the proper statement of accounts, supported by affidavit of the defendant, specifically stating that there is no transacti


























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