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Delhi High Court Allows Constitution Of Confidentiality Club Comprising The Counsels-On-Record For Both Parties And One Authorised Representative Of The Respondent

Zeb Hasan
12 May 2022 6:14 AM GMT
Delhi High Court

The Delhi High Court recently in a matter allowed the constitution of a confidentiality club and directed whatever information is revealed in it, will be used by the respondent only for the purpose of progressing this case.

The order was passed by a division bench of Justice Rajiv Shakdher and Justice Poonam A. Bamba:

"In the meanwhile, counsel for the parties are agreed that they will form a confidentiality club with regard to examination of the details filed by the appellants concerning their assets, albeit in the sealed cover.

It is ordered accordingly.

Counsels for the parties, for this purpose, will appear before the concerned Registrar on 31.05.2022." Court said

The matter is now listed for hearing on 25 July, 2022.

In the present case, the Plaintiff filed a suit seeking a direction for making payment of EURO 44,102,086 against the defendants.

On 15.01.2021, the High Court of Delhi passed an interim order of status quo with respect to the assets of the Defendants. At the same time, it directed the Defendants to make a disclosure of its assets.

Against this order, the Defendants filed an application seeking disclosure of assets in a "sealed cover", to prevent the misuse of such disclosure by third parties. The Hon'ble High Court of Delhi through its order dated 16 December,2021, declined this prayer.

Against this order dated 16 December, 2021, the Defendants preferred an appeal before the Division Bench.

The Counsel for petitioner submitted that they were challenging an ex parte order passed by a Single Judge.

Counsel for petitioner said that the appellant is aggrieved by the said impugned order i.e., order dated 15.01.2021 as, in effect, it is akin to an attachment order which has been passed without taking into account the principles that had to be adhered to before passing such an order.

Court said that the said aspect will be examined on the next date of hearing.

Court said that the concerned Registrar will open the sealed envelope in which the appellants have placed the details concerning their assets.

Court also directed the counsels to adhere to the rigour of the confidentiality club. And that the details revealed to the counsel for the parties and the authorised representative of the respondent, should not be disclosed to any third party.

Court also directed the respondent to file an affidavit saying that the aforesaid information which he or she shall become privy to, will not be disclosed to any third party.

"The aforementioned steps will be taken by the Authorised Representative of the respondent, prior to the date fixed for the aforesaid purpose before the concerned Registrar i.e., 31.05.2022."


Click Here To Read/Download Order

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