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IN THE HIGH COURT OF DELHI
Jyoti Singh, J.
Phonepe Private Limited - Appellant
Versus
Ezy Services - Respondent
CS(COMM) 292 of 2019 & I.A. 4975 of 2022
Decided On : 29-08-2022




The court confirmed that documents arising after the submission of written statement may be included without showing reasonable cause for non-disclosure, emphasizing the importance of procedural justice in commercial litigation.

Headnote:(A) Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 - Order XI Rule 1(10) - Disclosure of documents - Defendants sought permission to file additional documents after written statement was filed, citing them as not in possession during that time - Court allowed certain documents related to ongoing business expansion while disallowing those filed without reasonable cause for non-disclosure - Court ruled that documents coming into existence after written statement do not have the same disclosure requirement - Relevant case laws cited: Sudhir Kumar @ S. Baliyan v. Vinay Kumar G.B., Rishi Raj v. Saregama India Ltd. (Paras 12-28).

(B) Procedural Fairness - Court emphasized procedural rules must aid justice, and non-disclosure should not impede a fair hearing if justified properly (Paras 6, 10).

(C) Reasonable Cause - Requirement established that documents post-written statement do not need a reasonable cause for non-disclosure as per legislative intent (Paras 12-14).

(D) Final Order - Application I.A. 9897/2021 partly allowed with costs, while documents for celebrity endorsements permitted in sealed cover. (Paras 29, 31).

Table of Content
1. filing additional documents by defendants (Para 1 , 2)
2. plaintiff seeks injunction against defendants (Para 3 , 4 , 5)
3. defendants' arguments for admissibility of documents (Para 6 , 9 , 10)
4. plaintiff's objections to defendants' documents (Para 7 , 8 , 19)
5. legal standards for document admission (Para 11 , 12 , 13 , 14 , 15 , 16 , 18)
6. court's rationale for allowing/disallowing documents (Para 25 , 26 , 27 , 28)
7. conclusion and order of the court (Para 29 , 30 , 31 , 32 , 33)

JUDGMENT

Jyoti Singh, J.

I.A. 9897/2021 (Under Order 11 Rule 1(10) read with Section 151 CPC, by Defendants), 9898/2021 (Under Section 151 CPC, by Defendants)

1. I.A. 9897/2021 has been filed on behalf of the Defendants for filing additional documents under Order XI Rule 1(10) read with Section 151 CPC as amended by the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 (hereinafter referred to as the `Act').

2. I.A. 9898/2021 has been filed on behalf of the Defendants seeking permission to file certain contracts mentioned in the List of Documents in I.A. 9897/2021, in a sealed cover as they contain information which is confidential and disclosure of which shall be detrimental to the business interests of the Defendants.

3. Plaintiff has filed the present suit seeking a decree of permanent injunction restraining the Defendants and all others acting on their behalf from using `Pe' or any deceptive variant of `PhonePe', which is identical and/or similar to Plaintiff's trademarks PhonePe, , amounting to infringement as well as in respect of payment services or in any other manner, thereby amounting to passing off, along with other reliefs claiming damages etc.

4. Summons in the suit were issued to the Defendants on 29.05.2019. Upon being served, Defendants filed their written statement on 01.07.2019. Replication was filed by the Plaintiff on 21.08.2019. Both parties have filed their affidavits of admission and denial of documents as well as joint schedule of documents. Admittedly, issues are yet to be framed in the suit.

5. By the present application being I.A. 9897/2021, Defendants seek to place on record the following additional documents:

    1. Certificate issued by the Finance Controller of Defendant No. 2 attesting to the number of transactions that have taken place on Defendant No. 2 mobile application.

    2. Certificate issued by the Finance Controller of Defendant No. 2 attesting to the expenses of Defendant No. 2 on advertisements and business promotions.

    3. Certificate issued by the Finance Controller of Defendant No. 2 attesting to the annual turnover of Defendant No. 2.

    4. Certificate issued by the Finance Controller of Defendant No. 2 attesting to the capital and debt funds of Defendant No. 2.

    5. Certificate issued by the Finance Controller of Defendant No. 2 attesting to the number of merchants that have tied up with Defendant No. 2.

    6. Certificate issued by the Finance Controller of Defendant No. 2 attesting to the number of Defendant No. 2's mobile application downloads.

    7. Certificate issued by the Finance Controller of Defendant No. 2 attesting to the investment done by third parties on Defendant No. 2.

    8. Certificate issued by the Finance Controller of Defendant No. 2 attesting to the number of internet hits of Defendant No. 2's website.

    9. Certificate issued by the Finance Controller of Defendant No. 2 attesting to the Valuation of Defendant No. 2.

    10. Screenshots of Defendant No. 2's mobile application taken from Google Play Store and Apple Store.

    11. Sample terms and conditions on which Defendant No. 2 agrees to provide its services to merchants.

    12. Unsolicited media articles published for Defendant No. 2's `BharatPe" trademarks.

    13. Documents showing awards received by Defendant No. 2 for its "BharatPe" trademarks.

    14. Extract taken from Defendant No. 2's website www.bharatpe.com.

    15. Printouts taken from various social media platform accounts maintained by De

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