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1988 Supreme(Del) 132

High Court Of Delhi
WOOSTER PRODUCTS INC - Appellant
Versus
MAGNA TEK INC. - Respondent
Interim Application 9759 of 1987
Decided On : 05/25/1988

Advocates Appeared:
C.S.VAIDYANATHAN, P.R.AGRAWAL, R.K.MAKHIJA, R.K.Sanghi, S.R.Setia, Satish Luthra, SHANTI BHUSHAN

A foreign court's letter of request for the examination of witnesses in India under Section 78 read with Rule 19 of Order 26 of the Code of Civil Procedure should be executed if the conditions specified in Rule 19 (1) (a), (b), and (c) are satisfied, and the court has no jurisdiction to inquire into the relevance or admissibility of the evidence or the propriety of the letter of request.

Headnote:

COMMISSION FOR EXAMINATION OF WITNESSES - LETTER OF REQUEST - ISSUANCE - CONDITIONS - RELEVANCE OF DOCUMENTS AND TESTIMONY - JURISDICTION OF COURT - PRIVILEGE - WITNESSES - DOCUMENTS.

Fact of the Case:

Petitioner, Wooster Products Inc., filed an O.M.P. under Order XXVI Rules 18, 20, and 21 read with Section 151 Civil Procedure Code, seeking to examine witnesses and obtain documents in India for a civil suit pending in the Court of Common Pleas of Wayne County, Ohio, USA. The intervener, Garwar Plastics and Polyester Limited, objected to the issuance of the commission, claiming lack of relevance and privilege over the documents.

Finding of the Court:

The court held that the conditions for issuing a commission for the examination of witnesses under Section 78 read with Rule 19 of Order 26 of the Code of Civil Procedure were satisfied: (i) a foreign court wished to obtain evidence of a witness, (ii) in a civil proceeding before it, and (iii) the witness resided within the appellate jurisdiction of the High Court. The court found no merit in the intervener's objections, noting that the relevance of the documents and testimony was for the foreign court to decide and that the intervener had no right to claim privilege over the documents.

Issues: 1. Whether the conditions for issuing a commission for the examination of witnesses under Section 78 read with Rule 19 of Order 26 of the Code of Civil Procedure were satisfied. 2. Whether the intervener had a right to object to the issuance of the commission. 3. Whether the documents sought to be produced were relevant. 4. Whether the intervener had a right to claim privilege over the documents.

Ratio Decidendi: 1. The court held that the conditions for issuing a commission for the examination of witnesses under Section 78 read with Rule 19 of Order 26 of the Code of Civil Procedure were satisfied because: (i) a foreign court wished to obtain evidence of a witness, (ii) in a civil proceeding before it, and (iii) the witness resided within the appellate jurisdiction of the High Court. 2. The court held that the intervener had no right to object to the issuance of the commission because the provisions of law did not confer any power upon the court to go into the propriety of the letter of request or the questions of relevance or admissibility of the evidence. 3. The court held that the documents sought to be produced were relevant because the terms of the contract between the respondent in the foreign suit and the intervener would be relevant for the purpose of arriving at the quantum of damages by the foreign court. 4. The court held that the intervener had no right to claim privilege over the documents because only the witnesses who were required to produce the documents could claim privilege.

Final Decision: The court dismissed the intervener's applications and directed the local commissioner to proceed with the execution of the commission.

Mahesh Chandra, J.

( 1 ) THE following facts give rise to this order. M/s. Wooster Products Inc. , Wooster, Chio (hereinafter REFERRED TO to as "the petitioner") filed this O. M. P. No. 143 of 1987 under Order XXVI Rules 18, 20 and 21 read with Section 151 Civil Procedure Code. in which it was submitted that on or about 1st May. 1984 the petitioner entered into a contract with M/s, Magna Tek Components Inc. New Jersey (hereinafter REFERRED TO to as the respondents" for the purchase of Technology, equipment, machinery and related training and materials necessary for the production, sale and marketing of 1/2 inch Video Tape in the Sub-continent of India; that under the said contract, the petitioner was granted the exclusive right to the use of Magna Tek Components Inc. Technology expertise for the sub-continent of India including India, Pakistan, Bangladesh and Sri Lanka; that perusant to the said contract, the petitioner has duly discharged its obligation and has paid to the extent of s. 630,000; that the petitioner has also incurred heavy expenses being the preliminary expenses for the setting up of the project in India to the extent of s. 370. 000; that the petitioner has also been granted a Letter of Intent by the Government of India for setting up an Industry to manufacture 1/2 inch Video Tapes; that sometime in the year, 1986 the representative of the petitioner was surprised to note that the respondent in violation of the terms of the contract with the petitioner had clandestinely sold its technology to another company in India by the name M/s. Garwar Plastics and Polyester Limited (hereinafter REFERRED TO to as "the intervener") for setting up a similar plant in India; that being aggrieved by the action of the respondent and its agents, the petitioner preferred TO a petition before the Court of Common Pleas of Wayne County, Ohio, inter alia. seeking compensatory damages in the amount of Eleven Million Dollars, compensatory damages in the amount of Eleven Million Dollars and punitive damages in lhe amount of Twenty Two Million Dollars and the petition filed by the petitioner is registered as Case No, 86-CI-397 and is pending in the Court of Common Pleas at Wayne County, Ohio; that during the course of proceedings, the court of Common Pleas of Wayne County, Ohio was pleased to observe that in order to render justice it was necessary to ascertain the full fans perlinent to the dealings of M/s MAGNA IEK INC add MAGNA TEK: COMPONENTS INC. had eithei directly or through its Agents with the intervener and it was necessary to examine witness or witnesses as well as the documents within their custody and control including documents detailed in para 8 of the O. M. P. ; that the Court of Common Pleas of Wayne County, Ohio has been pleased to issue Letter of Request being called the Letters Regatory to Court in Foreign Country-witnesses to be examined not named, vide its orders dated 27th October. 1987, inter alia, requesting this court to cause such witness or witnesses to answer under oath the questions propounded to them and to cause the deposition of such witnesses to be reduced to writing and return to the court of Common Pleas of Wayne County, Ohio duly closed and sealed; that various documents REFERRED TO to in the Letter of Request dated 27th October, 1987 were in the custody/possession or supervision of the Director/directorate, Department of Electronics, Government of India,, New Delhi and the Secretary/secretariat for Industrial Approval Special Cases Section, Department of Industrial Development, Government of India, New Delhi; that as such it is necessary to examine these two persons or such other representatives or officers of the respective departments who may be deputed or authorised in this behalf; that as such it was prayed that this court may examine or issue commission for the purpose of Letter of Request.

( 2 ) AFTER hearing the learned counsel for the petitioner, this court bad allowed the application and app










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