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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Elite Packaging - Appellant
Versus
Vasu Polymers India Pvt. Ltd. - Respondent
CM(M) 893 of 2022 & CM Appl. 38197 of 2022
Decided On : 01-09-2022




The necessity for reasonable opportunity in legal proceedings is fundamental, even in expedited commercial disputes, ensuring parties can adequately present their cases.

Headnote:(A) Constitution of India - Article 227 - Commercial Courts Act, 2015 - Denial of opportunity to file affidavit of admission and denial and to cross-examine witnesses - Petition under Article 227 challenged orders closing opportunities for the petitioner to engage in proceedings - The learned Commercial Court's orders were affirmed for lack of jurisdictional infirmity; however, the court later found a necessity for reasonable opportunity for the petitioner to defend their case. (Paras 5, 15, 19)

(B) Fair Trial - Right to fair representation - The court emphasized the essence of providing reasonable opportunities to parties, irrespective of the commercial nature of the suit. (Paras 14, 15)

Facts of the case:
The petitioner was a defendant in a commercial suit where the right to file necessary documents and cross-examine the respondent's witnesses was curtailed due to delays in offering admissions and due to a lack of presence during key hearings over personal circumstances.

Findings of Court:
The petition was disposed of after recognizing the necessity to grant a final opportunity to the petitioner to present their defense.

Issues: The main issues revolved around the closure of cross-examination rights and the implications of not filing required affidavits in a timely manner.

Ratio Decidendi: The court ruled that while expeditious handling of commercial suits is critical, the right to a fair opportunity to defend is paramount and cannot be overlooked.

Result: Petition stands disposed with directions for further proceedings on 7th October 2022.

Table of Content
1. petition challenging orders of the commercial court. (Para 1 , 2)
2. petitioner's failure to file affidavit of admission and denial. (Para 3 , 4 , 6)
3. need for expediency in commercial litigation. (Para 5 , 10 , 12 , 13 , 14)
4. requirement for reasonable opportunity in court proceedings. (Para 15 , 16 , 17)
5. granting final opportunity for defence evidence and cross-examination. (Para 18 , 19)
6. conclusion of petition with no costs. (Para 20 , 21)

JUDGMENT (Oral)

1. This petition under Article 227 of the Constitution of India assails orders dated 26th March 2022, 9th May 2022 and 10th May 2022 passed by the learned District Judge (Commercial Courts) ("the learned Commercial Court") in CS (Comm) 275/20, (Vasu Polymers India Pvt. Ltd. v. Elite Packaging & Ors.). The petitioner was the defendant in the said suit and the respondent was the plaintiff.

2. Summons in the suit were issued on 20th November 2020. Written statement, accompanied by affidavit of statement of truth, was filed by the petitioner on 30th January 2021. Affidavit of admission and denial, as required by Order XI Rule 4(1)1 of the Code of Civil Procedure, 1908, as amended by the Commercial Courts Act, 2015 was not filed by the petitioner. The matter was thereafter listed before the learned Commercial Court on 19th March 2021, 30th April 2021, 6th September 2021, 15th November 2021, 12th January 2022 and 26th March 2022. As no affidavit of admission and denial, on the part of the petitioner, was forthcoming, the learned Commercial Court, vide order dated 26th March 2022, closed the right of the petitioner to file affidavit of admission and denial. This decision constitutes the first decision under challenge in the present proceedings.

3. Mr. Kumar Utkarsh, learned Counsel for the petitioner has no ready explanation as to why no affidavit of admission and denial was filed till 26th March 2022, despite summons having been issued to the petitioner as far back as on 20th November 2020. He seeks, predictably, to capitalise on the existing COVID-19 pandemic and contends that both the petitioner as well as his Counsel were in Bombay.

4. That, in my view, is completely insufficient as a ground to explain away the inaction, on the part of the petitioner, in filing affidavit of admission and denial in support of the written statement which had been tendered by him as far back as in January 2021.

5. Accordingly, no jurisdictional or other infirmity, as could justify interference by this Court under Article 227 of the Constitution of India, can be said to exist in the decision, of the learned Commercial Court, in its order dated 26th March 2022, to close the right of the petitioner to file affidavit of admission and denial. The decision is therefore upheld.

6. The second challenge of the petitioner, in the present petition, pertains to closure of the petitioner's right to cross examine the respondent's witnesses PW-1 and PW-2.

7. The record of proceeding reveals that, on 26th March 2022, after closing the right of the petitioner to file affidavit of admission and denial and treating the pleadings in the matter to have been completed, the learned Commercial Court listed the matter for plaintiff's evidence (PE) on 9th May 2022 and 10th May 2022, for defence evidence (DE) on 11th May 2022 and 12th May 2022 and for final arguments on 17th May 2022. As such, the first date fixed for PE was 9th May 2022.

8. On 9th May 2022, examination in chief of PW-1 was concluded. The learned Commercial Court observed that, as there was no appearance on behalf of the petitioners-defendants, the right of cross-examination of PW-1 was closed, treating it as a case in which "nil" opportunity to cross-examine PW-1 was availed. Part examination in chief of PW-2 was conducted and the matter was listed for continuation of examination-in-chief of PW-2 on 10th May 2022.

9. On 10th May 2022, learned Counsel who was prosecuting the proceedings on behalf of the petitioner

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