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IN THE HIGH COURT OF DELHI
Manmohan, Navin Chawla, JJ.
Mittal Electronics - Appellant
Versus
Sujata Home Appliances Private Limited - Respondent
FAO(OS) (COMM) 153 of 2020 & CM Appls. 30023-25 of 2020 and 30354-55 of 2020
Decided On : 09-02-2022




Conclusive findings regarding suppression of material facts should not be made in interim proceedings and require a full trial to evaluate evidence comprehensively.

Headnote:(A) Code of Civil Procedure, 1908 - Order XXXIX Rules 1, 2, and 4 - Appeal against order regarding interim measures - Court directed expeditious trial and maintenance of accounts related to goods bearing disputed mark - Conclusive findings of suppression or concealment of facts to be determined after full trial. (Paras 1-6)

(B) Appellate Practice - Scope of review in interim applications - Orders in interim proceedings should not reach conclusive determinations regarding the merits of the case. (Para 5)

Facts of the case:
The appeal challenges the order disposing of interim applications in a commercial suit concerning allegations of suppression and concealment of facts by the appellant regarding the sale of goods bearing the mark SUJATA.

Findings of Court:
The learned Single Judge's conclusion regarding the appellant's concealment is left open for determination after a full trial; the order to expedite the suit was affirmed.

Issues: The key issues involved the conclusions drawn by the Single Judge on suppression of facts and whether such findings were appropriate at the interim stage.

Ratio Decidendi: The court emphasized that a conclusive finding regarding suppression should not be determined without a full trial, validating the need for a thorough examination of facts in subsequent proceedings.

Result: Appeal disposed of with directions.

Table of Content
1. challenging the order from a single judge. (Para 1)
2. contentions regarding suppression of material facts. (Para 2 , 3 , 4)
3. judicial findings on material facts. (Para 5)
4. order to expedite hearing and maintain accounts. (Para 6)

JUDGMENT

Manmohan, J.: (Oral)-- The hearing has been done by way of video conferencing.

1. Present appeal has been filed challenging the order dated 9th September, 2020 passed by learned Single Judge disposing of I.A. No. 1751/2020 filed under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908 (in short, `CPC') and I.A. No. 4098/2020 filed under Order XXXIX Rule 4 of CPC in CS (Comm) No. 60/2020.

2. After some arguments, learned senior counsel for the appellant- plaintiff states that the appellant would be satisfied in the event, this Court were to direct the learned Single Judge to expedite the disposal of the suit i.e. CS (Comm) No. 60/2020) and also direct the respondents-defendants to maintain accounts with regard to goods manufactured and sold by them bearing the mark SUJATA.

3. Learned senior counsel for the appellant-plaintiff also states that learned Single Judge has erroneously presumed and concluded that there had been suppression and/or concealment of material facts in the plaint on the part of the appellant-plaintiff.

4. Learned counsel for the respondents-defendants states that the respondents-defendants have no objection to the hearing of the suit being expedited as well as if a direction is issued to the respondents-defendants to maintain accounts with regard to the goods manufactured and sold bearing the mark SUJATA. He, however, states that the finding of the learned Single Judge with regard to the suppression and/or concealment by the appellant- plaintiff was justified.

5. We have heard the learned counsel for the parties at some length. We are of the view that at this stage, in the facts of the present case, the learned Single Judge could not have finally concluded that the appellant-plaintiff had concealed material facts and indulged in clever drafting. The said conclusive findings could have been reached only after a full trial. Consequently, the issue of suppression and/or concealment is left open to be decided after a full trial by the learned Single Judge.

6. As agreed, the present appeal and applications are disposed of with a direction to the learned Single Judge to expedite the hearing of the suit i.e. CS (Comm) No. 60/2020. The respondents-defendants are also directed to maintain and file books of accounts quarterly with regard to the goods manufactured and sold by them bearing the mark `SUJATA' till the disposal of the suit.

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