IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
ADS Hi-Tech Polymers Private Limited - Appellant
Versus
DR Polymers Ltd. - Respondent
CM(M) 114 of 2021
Decided On : 28-04-2022
| Table of Content |
|---|
| 1. petition challenges an earlier court order. (Para 1 , 2) |
| 2. defendant claims no outstanding amounts owed. (Para 3 , 4) |
| 3. court allows additional documents to be filed. (Para 6 , 7) |
| 4. plaintiff's new claim regarding transactions challenged. (Para 8 , 9) |
| 5. evidentiary value of documents may be scrutinized later. (Para 10 , 11 , 12) |
| 6. court declines to interfere with lower court's order. (Para 13 , 14) |
JUDGMENT
C. Hari Shankar, J. (Oral)
1. This petition, under Article 227 of the Constitution of India, assails the order dated 12th December, 2019, passed by the learned Additional District Judge (the learned ADJ) in CS No. 610504/2016 to the extent the order allows the application filed by the respondent (the plaintiff before the learned ADJ) under Order VII Rule 14 of the Code of Civil Procedure, 1908 (CPC).
2. The aforesaid suit, at the instance of the plaintiff, sought recovery, from the petitioners (the defendant before the learned ADJ) of an amount of Rs. 50,98,710/-, against certain goods and services stated to have been supplied by the respondent to Petitioner 1.
3. In the written statement filed by them, the petitioners contended that no amounts were due or payable by them to the respondent and that in fact all payments due to the respondent had been made by the petitioners. Para 8 of the written statement filed by the petitioners, which so avers, reads thus:
"8. Without prejudice, it is submitted that the alleged bills are pertaining to the period 28.10.2013 to 19.06.2014 and are to the tune of Rs.44,12,775/- (Rupees Forty Four Lacs Twelve Thousand Seven Hundred and Seventy Five Only). It is submitted that for the said period, i.e. from 28.10.2013 onwards, the Defendant No.1 has made total payments of more than the alleged outstanding dues of Rs.44,12,775/- (Rupees Forty Four Lacs Twelve Thousand Seven Hundred and Seventy Five Only) to the Plaintiff Company on on-account basis immediately after the bills were raised."
Details of the payments made by Defendant No.1 are as follows:
| Alleged outstanding Bills | Payment made by defendant no.1 company | |||
| S. No. | Date | Amount | Date | Amount |
| 1. | 28.10.2013 | Rs. 3,18,2401/- | 30.10.2013 | Rs. 2,00,000/- |
| 2. | 28.10.2013 | Rs. 30,600/- | 07.11.2013 | Rs. 1,50,000/- |
| 3. | 07.11.2013 | Rs. 3,12,120/- | 09.11.2013 | Rs. 3,00,000/- |
| 4. | 12.11.2013 | Rs. 3,04,317/- | 20.11.2013 21.11.2013 | Rs. 1,10,000/- Rs. 2,00,000/- |
| 5. | 21.11.2013 | Rs. 2,34,090/- | 25.11.2013 | Rs. 3,50,000/- |
| 6. | 26.11.2013 27.11.2013 | Rs. 78,030/- Rs. 3,12,120/- | 04.12.2013 | Rs. 4,25,000/- |
| 7. | 05.12.2013 | Rs. 4,68,180/- | 11.12.2013 | Rs. 5,20,000/- |
| 8. | 13.12.2013 | Rs. 3,12,120/- | 21.01.2014 | Rs. 3,60,000/- |
| 9. | 21.01.2014 | Rs. 3,12,120/- | 24.01.2014 | Rs. 3,50,000/- |
| 10. | 24.01.2014 | Rs. 3,12,120/- | 31.01.2014 | Rs. 3,50,000/- |
| 11. | 01.02.2014 | Rs. 3,12,120/- | 04.02.2014 | Rs. 3,50,000/- |
| 12. | 04.02.2014 | Rs. 3,12,120/- | 03.03.2014 | Rs. 3,50,000/- |
| 13. | 04.03.2014 | Rs. 2,02,878/- | 26.03.2014 | Rs. 2,60,000/- |
| 14. | 11.06.2014 | Rs. 2,95,800/- | 11.06.2014 | Rs. 3,30,000/- |
| 15. | 19.06.2014 | Rs. 2,95,800/- | 19.06.2014 16.01.2015 | Rs. 3,30,000/- Rs. 3,20,000/- |
A bare perusal of the above table makes it evident that the Defendant No.1 Company has consistently paid the alleged outstanding invoices shortly after the invoices were raised and have to some extent made excess payments. Thus, there are no outstanding dues and the present suit is liable to be dismissed on this ground alone."
4. Ms. Bharti Chawla, learned Counsel for the plaintiff has also drawn my attention to the corresponding paragraph in the replication filed by the respondent, which reads as under:
"6. That in reply to para 8 of preliminary objections & submissions of written statement it is submitted that defendant asked plaintiff to reconcile the ledger account which plaintiff served upon them and subsequently defendants reconciled their statement and acknowledged the said liability by sending plaintiff's ledger account maintained in their own books of accounts to the plaintiff with-a remark "we confirm the same" along with their rubber stamp seal. The defendants confirmed that amount of Rs. 46,76,148/- is payab
The court emphasized the limited scope of jurisdiction under article 227 of the Constitution of India and the admissibility of additional documents in support of pleadings.
The court's exercise of supervisory jurisdiction under Article 227 of the Constitution of India and the finding that the existence and relevance of the invoices were not in dispute, and the defendant....
Timeliness and diligence in adhering to court orders are crucial; failure to comply may result in dismissal of application to admit evidence.
Documents not part of the pleadings and not on record cannot be considered in a civil suit, and the scope of interference in proceedings under Article 227 of the Constitution of India is limited.
While exercising jurisdiction under Article 227 of the Constitution of India, the Court is not sitting as an appellate court over the orders passed by the subordinate courts.
The main legal point established in the judgment is the requirement for the plaintiff to establish reasonable cause for non-disclosure of documents and the court's role in determining the sufficiency....
The court emphasized a liberal interpretation of procedural rules allowing additional documents to be admitted if reasonable cause is shown, particularly in extraordinary situations like a pandemic.
The court affirmed that documents not disclosed with the written statement in commercial cases cannot be admitted, but contradictory decisions on evidence closure were ruled unsustainable.
Defendants' failure to show due diligence and timely filing of documents justifies dismissal of their applications under the Code of Civil Procedure and no grounds were shown for High Court intervent....
The admissibility of additional documents and the allowance of such documents in civil suits and criminal proceedings.
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