IN THE HIGH COURT OF DELHI AT NEW DELHI
Amit Bansal, J.
Saregama India Limited – Plaintiff
Versus
ZEE Entertainment Enterprises Limited – Defendant
CS (COMM) No. 57 of 2017, I.A. No. 15601 of 2017 (for directions u/s 151 of CPC)
Decided On : 28-04-2023
CIVIL PROCEDURE CODE - Additional Issue - Order XIV Rule 5 of CPC - 15
Fact of the Case:
The plaintiff filed an application under Order XIV Rule 5 of the CPC to frame an additional issue regarding rendition of accounts by the defendant. The defendant opposed the application on the grounds of delay and existing license agreement.
Finding of the Court:
The court found that the issue of rendition of accounts was essential for the just adjudication of the case, despite the delay in filing the application. The plaintiff was directed to pay costs to the defendant.
Issues: The main issue was whether the plaintiff was entitled to rendition of accounts by the defendant.
Ratio Decidendi: The court held that the delay in filing the application could not be the sole ground for rejection if additional issues were necessary for determining the controversy between the parties.
Final Decision: The court allowed the application and framed the additional issue, directing the plaintiff to pay costs to the defendant.
JUDGMENT :
AMIT BANSAL, J.
I.A. 5070/2023 (O-XIVR-5 of CPC)
1. The present application has been filed on behalf of the plaintiff under Order XIV Rule 5 of the Civil Procedure Code, 1908 (CPC) to frame an additional issue.
2. Notice in the application was issued on 15th March, 2023 and reply has been filed on behalf of the defendant.
3. Following issues were framed on 28th November, 2019:
ii) Whether the defendant is stopped from challenging the rights of the plaintiff in the sound recordings and underlying literary and musical works of the cinematograph films forming the subject matter of the present suit? (OPP)
iii) Whether the plaintiff is entitled to any damages, if so, to what amount? (OPP)
iv) Cost.
v) Relief”
4. On 16th December, 2022, a Local Commissioner was appointed to record the evidence in the matter. Evidence by way of affidavit has been filed on behalf of the plaintiff, however, the evidence is yet to be recorded.
5. Senior counsel appearing on behalf of the plaintiff submits that while preparing for the evidence in the matter, it came to the notice of the plaintiff that inadvertently, the issue regarding rendition of accounts by the defendant has not been framed. Accordingly, the present application has been filed to frame an issue with regard to the aforesaid.
6. Senior counsel appearing on behalf of the plaintiff has drawn the attention of the Court to paragraph 15 of the plaint where averments with regard to rendition of accounts by the defendant have been made. The contents of the said paragraph have been denied by the defendant in his written statement.
7. Counsel appearing on behalf of the defendant submits that no such issue with regard to rendition of accounts was framed by the Court on 28th November, 2019, when the issues were being framed in the suit. This was because the relationship between the plaintiff and the defendant was governed by a License Agreement in terms of which annual license fee was payable by the defendant to the plaintiff. Therefore, there was no question of the defendant providing a statement of accounts and hence, such an issue was not framed. It is further submitted that the present application has been filed in a highly belated matter i.e., more than three years after the framing of issues.
8. In rejoinder, senior counsel appearing on behalf of the plaintiff submits that the License Agreement between the plaintiff and the defendant was terminated on 30th December, 2016 and thereafter, there is no subsisting contract between the parties and the payments are being made by the defendant to the plaintiff only in terms of interim orders passed by this Court.
9. I have heard the counsels for the parties.
10. In terms of Order XIV Rule 1 of the CPC, the Court is required to frame issues upon all material propositions of fact or of law on which the parties are at variance. Order XIV Rule 5 of the CPC empowers the Court to amend issues or frame additional issues before passing a decree if such issues may be necessary for determining the matters in controversy between the parties.
11. At this stage, a reference may be made to paragraph 15 of the plaint, which is set out below:
12. In its written statement, the defendant has simply denied the co
The court emphasized that the necessity of additional issues for just adjudication should not be dismissed solely based on delay.
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Order XI Rule 1(7) of CPC, as applicable to commercial disputes, casts an obligation on defendant to file all documents in its power, possession, control or custody.
The main legal point established in the judgment is the requirement for the plaintiff to disclose all documents in its power, possession, control or custody, pertaining to the Suit, along with the pl....
The court emphasized the strict adherence to document filing rules in commercial disputes, denying late submission of documents without establishing reasonable cause for prior non-disclosure.
The court established that non-filing of documents due to negligence does not constitute reasonable cause for allowing additional evidence under the CPC.
(1) After Order XI Rule 1 has been amended with respect to suits before commercial courts and a specific provision/procedure has been prescribed with respect to suits before commercial division and b....
Parties in commercial disputes must timely disclose documents; late submissions require a compelling justification to avoid prejudicing the opposing party.
The central legal point established in the judgment is the requirement for the plaintiff to establish 'reasonable cause' for non-disclosure of documents along with the pleadings, as per the provision....
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