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
| 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) |
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
The necessity for reasonable opportunity in legal proceedings is fundamental, even in expedited commercial disputes, ensuring parties can adequately present their cases.
The court confirmed that repeated failures to present evidence warranted closure of defence as per CPC, emphasizing that Article 227 does not permit appellate interference unless jurisdictional error....
The main legal point established in the judgment is the limited and circumscribed nature of the superintending jurisdiction vested in Article 227 of the Constitution of India, emphasizing the importa....
The court emphasized the importance of providing a fair opportunity for cross-examination and ensuring expeditious disposal of the trial.
The court emphasized that judicial proceedings must allow ample opportunity for evidence presentation, particularly during extraordinary circumstances such as a pandemic, to uphold the right to a fai....
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