IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Vimal Kumar Taheem - Appellant
Versus
Hari Om Nirala - Respondent
C.R.P. 98 of 2021
Decided On : 16-12-2021
The evaluation of an application under Order VII Rule 11 is strictly confined to the plaint's contents, with substantive merits to be addressed in the course of the trial.
Headnote:(A) Code of Civil Procedure, 1908 - Order VII Rule 11 - Order dated 29th November, 2021, dismissed application under Order VII Rule 11 for lack of cause of action in a suit for recovery of Rs.6,00,000/- - Defendant's defense of conspiracy contested; evidence ongoing. (Paras 3-5)
(B) Legal Principles - The application under Order VII Rule 11 is determined solely based on the plaint; merits considered at final adjudication. Reference made to Liverpool & London S.P. & I Assn. Ltd. v M.V. Sea Success I, 2004 (9) SCC 512; however, deemed inapplicable in current factual context. (Paras 6-7)
Facts of the case:
The suit was filed by the Plaintiff in 2011 for recovery of a friendly loan of Rs.6,00,000/- against the Defendant, who alleged a lack of acquaintance and claimed conspiracy related to other loans.
Findings of Court:
The trial court is directed to proceed with the trial expeditiously without undue delays, while assessing merits at final proceedings.
Issues: Determination of whether the application under Order VII Rule 11 presented a valid lack of cause of action.
Ratio Decidendi: The court reaffirmed that only the plaint is evaluated when considering an application under Order VII Rule 11 and any merit-based submissions are reserved for final hearings.
Result: Petition dismissed with no order as to costs.
| Table of Content |
|---|
| 1. background of the loan recovery suit (Para 3 , 4) |
| 2. defendant's arguments on lack of cause of action (Para 5) |
| 3. court's observations on ongoing trial (Para 6) |
| 4. legal standards for order vii rule 11 (Para 7) |
| 5. counsel conduct in court filings (Para 8) |
| 6. dismissal of the petition and pending applications (Para 9) |
JUDGMENT
Prathiba M. Singh, J. (Oral)--This hearing has been done in physical Court. Hybrid mode is permitted in cases where permission is being sought from the Court.
CM APPLs. 45558-45559/2021 (for exemption)
2. Allowed, subject to all just exceptions. Applications are disposed of.
CRP 98/2021 & CM APPL. 45557/2021 (for stay)
3. This is a petition challenging the impugned Order dated 29th November, 2021 passed by ld. ADJ-04/Dwarka Courts/SW/New Delhi (hereinafter "trial court") by which the application filed by the Petitioner/Defendant (hereinafter "Defendant") under Order VII Rule 11 in the suit has been dismissed. The brief background of the matter is that a suit for recovery of a sum of Rs.6 lakhs was filed by the Respondent/Plaintiff (hereinafter "Plaintiff") against the Defendant on the ground that a friendly loan of Rs.6,00,000/- (six lacs) was advanced by the Plaintiff to the Defendant. The suit was instituted by the plaintiff in 2011. In the suit, the Defendant took the defence that the Plaintiff and the Defendant were not known to each other and further, the allegations of the Defendant are that the four blank cheques were actually given by the Defendant to one Sh. Rampal in re-payment of a loan that he took from Mr. Ram Pal. It is his submission that Mr. Ram Pal and Sh. O.P. Bharti, who is the Counsel for the Plaintiff before the trial court have conspired and implicated the Defendant in the suit.
4. Initially, the suit was filed under Order XXXVII CPC in which application seeking leave to defend under Order XXXVII Rule 3(5) CPC was dismissed by the trial court vide order dated 30th May, 2012. An appeal was filed against the said order by the Defendant and conditional leave was granted by this Court whereby the Defendant was directed to deposit 50% of the suit amount. The matter is currently at the stage of evidence before the trial court. Plaintiff's evidence has already been closed. The Defendant has led the evidence of three of his witnesses. Ld. Counsel for the Defendant submits that he also has additional witnesses whom he wishes to examine as defence witnesses.
5. The Court has at this stage examined the application of Defendant under Order VII Rule 11 and held that the issues raised in the application would have to be considered post the trial and cannot be appreciated at this stage. Ld. counsel appearing for the Defendant relies upon the statement made in Plaintiff's evidence where according to him, the Plaintiff admits that he did not know the Defendant. He further relies upon the order passed by the Metropolitan Magistrate-07 (Central) in CT No. 529831/2016 titled Vimal Kumar Taheem vs. Ram Pal, P.S. Sabzi Mandi on 18th December, 2020 where the Ld. Metropolitan Magistrate had held that a prima facie offence of extortion is made out under Section 384 read with Section 34 IPC against Respondents No.1 & 2 i.e., Sh. Ram Pal and Sh. O.P. Bharti. In this background, the Defendant submits that the suit itself is liable to be dismissed for lack of cause of action.
6. The Court has perused the impugned Order as also the material placed on record and relied upon by the Defendant during oral submission. The clear position as on today is that the suit is at the stage of evidence and Plaintiff's evidence has been concluded. The Defendant's evidence is already underway and the matter is now listed on 20th January, 2022 before the ld. ADJ for further defendant's evidence. The suit dates back to 2011 and it is after a period of 10 years that the matter is in fact nearing conclusion. All the submissions being made by the counsel for Defendant are on merits and would require appreciation