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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Flick Studios Pvt. Ltd. - Appellant
Versus
Gravity Entertainment Pvt. Ltd. - Respondent
CM(M) 653 of 2022 & CM No. 30276 of 2022, CM No. 30277 of 2022
Decided On : 12-07-2022




The Court affirmed the necessity of proper service of summons and held that the failure to demonstrate adequate service justified the trial court's decision to issue fresh summons.

Headnote:(A) Constitution of India - Article 227 - Code of Civil Procedure, 1908 - Order XXXVII - Summary suit against respondent for recovery based on unsigned invoices - Trial court directed fresh summons to be served; petitioner’s review rejected due to failure to ensure service - Court held that service was not duly effected as per law, hence justified in issuing fresh summons. (Paras 3, 9, 19)

(B) Legal principle of material evidence in service of process - The petitioner failed to demonstrate adequacy of service for the summons issued. (Paras 12, 18)

(C) Jurisdiction under Article 227 is limited to ensure that procedural irregularities do not render justice impossible; this Court declined to interfere with the Trial Court’s order. (Paras 14, 21)

Facts of the case:
Petitioner filed a summary suit against the respondent under Order XXXVII; previous order determined that unsigned invoices could not support a summary suit; following orders led to mixed issues of service adequacy and review application rejections.

Findings of Court:
The Court found no merit in the petitioner’s contentions about service adequacy and noted the absence of requisite evidence for proper service.

Issues: The main issues revolved around whether the petitioner sufficiently served the summons and the procedural implications of service failure.

Ratio Decidendi: The Court concluded the review application was dismissed rightly, as the petitioner did not meet the burden of proving proper service on the respondent.

Result: Petition dismissed in limine.

JUDGMENT

C. Hari Shankar, J. (Oral)

1. This petition under Article 227 of the Constitution of India assails orders dated 29th December, 2021 and 7th May, 2022, passed by the learned District Judge (Commercial Court) (hereinafter "the learned Commercial Court") in CS(Comm) 113/2021 (Flick Studios Pvt. Ltd. v. Gravity Entertainment Pvt. Ltd.), a summary suit preferred by the petitioner against the respondent under Order XXXVII of the Code of Civil Procedure, 1908 (CPC).

2. By order dated 28th July, 2021, the learned Commercial Court directed issuance of fresh summons to the defendant under Order XXXVII Rule 2(2) of the CPC on filing of process fee by the petitioner. Instead of filing process fee so that fresh summons could be issued, the petitioner preferred to file a review application, seeking review of the said order. The said review application stands dismissed by the learned Commercial Court vide order dated 7th May, 2022. Both these orders form the subject matter of challenge in this petition, preferred under Article 227 of the Constitution of India.

3. Given the nature of the controversy, it is not necessary to enter into the intricacies of the disputes between the parties. Suffice it to state that, consequent on the filing of CS (Comm) 113/2021 by the petitioner under Order XXXVII of the CPC, the learned Commercial Court converted the suit into an ordinary suit vide order dated 12th October 2021, holding that a summary suit would not lie on the basis of unsigned invoices. This order was carried, by the petitioner, before this Court by way of CM (M) 1185/2021 (Flick Studios Pvt. Ltd. v. Gravity Entertainment Pvt. Ltd.). The said petition was disposed of by a coordinate Single Bench of this Court by order dated 20th December 2021, holding that a summary suit was maintainable on the basis of unsigned invoices. The said order also records thus, in para 8, on which the petitioner seeks to capitalize:

    "8. In the present case, the additional factor in favour of the petitioner would be that summons were already issued on 28th July, 2021 on the basis of suit under Order XXXVII of the CPC and despite service, the respondent has failed to enter appearance within the statutory period of ten days."

4. This Court, therefore, set aside the order dated 12th October, 2021 and directed the learned Commercial Court to treat the petitioner's suit as a summary suit and decide the suit accordingly.

5. The suit was, therefore, again registered as a summary suit under Order XXXVII of the CPC, and vide the following order dated 29th December, 2021, fresh summons were directed to be issued to the respondent under Order XXXVII Rule 2 of the CPC, returnable on 18th April, 2022:

    "OMP (I) (Comm) No. 113/21

    Flick Studios Pvt. Ltd. Vs. Gravity Entertainment

    29.12.2021

    Matter has been taken up today pursuant to order No. Judl.II/F.31/South/Saket/2021/23155-23229 dated 18.12.2021 issued by the office of Ld. Principal District & Sessions Judge (South), Saket Courts, New Delhi.

    Present: None.

    File has been taken up today on receipt of the soft copy of the order dated 20.12.2021 passed by the Hon'ble Delhi High Court in CM(M) No. 1185/2021 whereby the order dated 12.10.2021 has been set aside and the present suit is directed to be treated as a suit U/o 37 CPC. Accordingly, the present suit be registered as a summary suit U/o 37 CPC.

    The next date given in the matter i.e. 14.02.2022 is hereby cancelled and let the summons of the suit be now issued to the defendant as per Order 37 Rule 2(2) of CPC i.e. in Form No.4 Appendix B on filing of PF and RC, within seven days, returnable for 18.04.2022.

(Prem Kumar Barthwal)

Vacation Judge/District Judge (Comm)-01

(South)/Saket Courts,

New Delhi/29.12.2021/ak"

6. The petitioner did not file process fee, as directed by the order dated 29th December 2021 so that fresh summons could be issued to the respondent. Instead, the petitioner filed an application seeking review of the order dated 29th December 2021

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