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2023 Supreme(Del) 21

IN THE HIGH COURT OF DELHI AT NEW DELHI
Mini Pushkarna, J.
M/s. Lintas India Pvt. Ltd. - Plaintiff
Versus
M/s. Prasar Bharti - Defendant
CS(COMM) No.72 Of 2018, I.A. No. 5210, 5428 & 15490 Of 2018
Decided On : 18-01-2023

Advocates Appeared:
For the Plaintiff : Mr. Yogendra Misra and Mr. Chandan Malav, Adv.
For the Defendant : Ms. Shruti Sharma, Mr. Saket Chandra and Mr. Pranav Gigi, Adv.

Headnote:

Code of Civil Procedure, 1908 - Section 151, Order 37 Rule 3(7) - Companies Act, 1956 - Condonation of delay - Summons - Application on behalf of defendant for condonation of delay of 43 days – Held, It is clearly submitted on behalf of defendants that functionaries of defendants who received summons in suit were completely unaware of provisions of Order 37 CPC - It is also pertinent to note that defendant would not benefit or profit in any manner by not entering appearance within 10 days - On contrary as held in various judgments, not contesting suit would have grave repercussion for defendant, as same would result in default decree being passed against defendant - Delay of 43 days in entering appearance is condoned subject to payment of costs of Rs.30,000/- to plaintiff - Application allowed.

JUDGMENT :

[Mini Pushkarna, J.]

I.A. No. 15490/2018 (Application on behalf of plaintiff seeking condonation of delay under Section 151 CPC in filing the affidavit in response)

1. This is an application on behalf of the plaintiff seeking condonation of delay of 33 days in filing affidavit in response to I.A. No. 5428/2018 filed on behalf of the defendant.

2. Considering the averments made in the application, the delay of 33 days in filing the affidavit on behalf of plaintiff is condoned.

3. Application is disposed of.

I.A. No. 5428/2018 (Application under Order 37 Rule 3(7) CPC read with Section 151 CPC on behalf of defendant for condonation of delay in entering appearance)

4. This is an application under Order 37 Rule 3(7) of the Code of Civil Procedure, 1908 (in short „CPC?) read with Section 151 CPC on behalf of the defendant for condonation of delay of 43 days in entering the appearance in the captioned suit under Order 37 CPC.

5. The present suit has been filed as a summary suit under Order 37 CPC against the defendant for recovery of a sum of Rs.3,80,87,166/- and interest thereon amounting to Rs.98,44,475/- along with interest @ 18% per annum from the date of filing of the suit till payment and realization.

6. It is the case on behalf of the defendant that summons of the suit were served upon the defendant on 23.02.2018. Unfortunately, in the office where the summons were served, none was aware of the provision of Order 37 CPC or the import thereof. No functionary was aware that in such a suit, appearance has to be entered within 10 days from the date of service. The summons were taken to be routine summons in suits. By way of administrative processing without realising the nature of the suit and the action required, the matter was transferred to the Directorate General: Doordarshan, on 05.03.2018, since the disputes related to dealing between the Directorate General of Doordarshan of the defendant and the plaintiff.

7. It is submitted on behalf of the defendant that even in the Directorate General: Doordarshan, initially it was not noticed that the present was a suit under Order 37 CPC and that appearance had to be entered within 10 days of the service. Since the records relating to the dealings between the parties were with the Vigilance Section, by letter dated 14.03.2018, the Vigilance Section was required to provide the same. The Vigilance Section returned the records in 3rd week of March, 2018. The matter was processed by the concerned Deputy Director, Administration in the first week of April, 2018. It was recorded by the said Deputy Director (Administration) that the matter appeared to be complex having both administrative and legal ramifications. It is the case of the defendant that it was in the course of the processing that it was realised by a functionary that the suit was of a summary nature in which leave ought to be filed within 10 days from the receipt of the summons. However, even at that stage the consequence of not entering appearance within 10 days was not noticed. It is submitted that it is only when papers were forwarded to the counsel that he brought to the notice of the defendant the legal position. Thereafter, the matter was considered at the highest level and a decision was taken to file the instant application for condonation of delay in entering appearance.

8. It is submitted that the delay in entering appearance on behalf of the defendant was not wilful or intentional. It was solely on account of the fact that the functionaries who received the summons and those to whom the summons and the papers were forwarded by way of administrative processing, were completely ignorant and oblivious of the provisions of Order 37 CPC. They were not aware of the fact that in a summary suit appearance has to be entered within 10 days of service nor were they aware of the consequences of not entering appearance within 10 days. Thus, it is submitted that the defendant entered appearance in this Court on 17.04.2018

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