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2016 Supreme(Del) 1726

IN THE HIGH COURT OF DELHI AT NEW DELHI
VIPIN SANGHI, J.
POLYFLOR LIMITED - Appellant
Vs.
SH. A.N. GOENKA & ORS. - Respondent
CS(OS) 504/2004
Decided on : 18-04-2016

Advocates Appeared:
For the Appellant :Sushant Singh, Kumar Chitranshu and Harsh Pathak, Advocates
For the Respondent:Ajay Amitabh Sharma, Advocate

Headnote:

Civil Procedure Code, 1908 - Order 7 Rule 14 (2), (3) - Injunction - Passing off - Unfair trade practices - Suit was filed - Documents were sought to be produced to substantiate the sales figures - Non-disclosure of the documents - Non-filing of the documents even till the stage of framing of the issues - Plaintiff was obliged to produce all documents - Plaintiff was obliged to state in whose possession and power the said documents were - Production of additional documents - Filing an additional affidavit - Application had been filed prior to the defendants' witnesses filing their affidavits by way of evidence - Single Judge rejected the application - Held, plaintiffs were aware of the existence of their own audited annual reports from 1997 onwards till 2013 - Plaintiffs are obliged to maintain the records for a period of seven years under the law applicable to the plaintiff company - It cannot be said that in spite of due diligence, the plaintiffs could not have produced the said documents at the time of filing of the suit in respect of the period 1997 to 2004, and for the period thereafter till the time of framing of issues in 2013 - Neither documents nor copies were filed earlier - Chamber appeal is dismissed.

Civil Procedure Code, 1908 - Order 7 Rule 14(3) - Annual reports - Additional documents - Production - Denied - Suit was filed - Plaintiff was obliged to produce all documents which it sought to rely upon - Annual reports from 1997 to 2003-04 were not filed with - Grant leave to file and lead in evidence additional documents - Plaintiff didnot state in whose possession and power the said documents - Plaintiff's witness is under cross-examination - Substantial portion of his cross-examination has completed - Defendants have not had the occasion to deal with the documents - Annual reports are of the plaintiffs - Plaintiffs are obliged to maintain the records for a period of seven years - Plaintiffs could not have produced the documents at the time of filing of the suit - Appeal is dismissed.

JUDGMENT :

VIPIN SANGHI, J.

O.A. No.84/2016

1. This chamber appeal is directed against the order dated 16.03.2016 passed by the learned Joint Registrar dismissing the application preferred by the plaintiff under Order 7 Rule 14(3) CPC i.e. I.A. No.1446/2016. The suit seeking permanent injunction, passing off, delivery up and unfair trade practices and rendition of accounts was filed by the plaintiff in April 2004. The issues in the suit were framed on 02.12.2013. The recording of evidence is in progress before the Local Commissioner. The plaintiffs witness PW-1 has been under cross examination. At that stage the plaintiff moved the aforesaid application under Order 7 Rule 14(3) CPC seeking to place on record three sets of documents relating to the audited statement of accounts of the plaintiff. These documents were sought to be produced to substantiate the sales figures and turnover of the plaintiffs under the trademark POLYFLOR since 1997, upto 2013.

2. The first set of documents sought to be produced are photocopies of annual report of the plaintiff, which includes the annual report of its predecessor, for the year 1997-99. The second set is the original duly audited annual report for the year ending 30.06.2001 and 30.06.2003. The third set of original annual reports are of the plaintiff company for the years ended on 30.06.2005, 2007, 2009, 2011 and 2013.

3. The learned Joint Registrar in his order takes note of the fact that the original suit was filed in the year 2004; the documents sought to be produced were neither filed alongwith the plaint, nor at the stage of admission/denial of documents, nor even at the stage of framing of issues on 02.12.2013; PW-1 is under cross examination and had been substantially cross examined when the application was moved on 27.01.2016. The learned Joint Registrar has observed that vague and non convincing reasons have been given by the plaintiff for not filing the documents earlier, and unjustifiable reason has been given as to why, when the documents were in the domain and control of the plaintiff, the same were not filed at the appropriate stage, or even at the stage of framing of issues.

4. So far as the documents pertaining to the years after 2004 are concerned, the Joint Registrar has also observed that they do not appear to be relevant, as they reflect the sales figures post the filing of the suit, whereas the claim of the plaintiff for damages upon rendition of accounts is limited to Rs.20 lacs, which would have to be substantiated on the basis of the claim of sales/goodwill for the period prior to the filing of the suit.

5. The submission of learned counsel for the petitioner is that the stage at which the application under Order 7 Rule 14(3) was moved is not relevant. What is relevant to be examined is whether the documents are germane. It also needs to be appreciated that the documents are audited accounts of the plaintiff company, and their authenticity is beyond doubt. Learned counsel submits that no prejudice would have been suffered by the defendant even if the plaintiff was permitted to place on record the additional documents at this stage, and the defendant could have been compensated by way of costs for the inconvenience suffered.

6. Learned counsel submits that the power of the court to permit filing of additional documents at any stage of the proceedings is not taken away under the law, and in the interest of justice, the court can grant permission to produce additional documents even at the final stage of proceedings, and even at the appellate stage. In support of his submission, he has placed reliance on a judgment of the Division Bench of Bombay High Court in Smt. Shantibai K Vardhan v. Meera G Patel, Appeal No.86/2008 decided on 29.08.2008.

7. Learned counsel for the defendants has appeared even before issuance of notice in this chamber appeal, and he has advanced his submissions.

8. Learned counsel for the defendants submits that there is absolutely no justification for see

























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