'Civil Proceedings Mean Nothing To Parties, Because Courts Are So Lax' : Supreme Court

Mehal Jain

18 April 2021 6:14 AM GMT

  • Civil Proceedings Mean Nothing To Parties, Because Courts Are So Lax : Supreme Court

    The Supreme Court on Friday orally remarked that parties are not taking civil proceedings seriously because of the laxity of the Courts."...Civil proceedings mean nothing to the parties. This is because the courts are so lax", observed Justice DY Chandrachud while hearing a civil appeal."Our (civil justice) system is a 'defendant' system. The reason is that the courts do not take the...

    The Supreme Court on Friday orally remarked that parties are not taking civil proceedings seriously because of the laxity of the Courts.

    "...Civil proceedings mean nothing to the parties. This is because the courts are so lax", observed Justice DY Chandrachud while hearing a civil appeal.

    "Our (civil justice) system is a 'defendant' system. The reason is that the courts do not take the provisions seriously", added Justice D. Y. Chandrachud.

    The bench of Justices Chandrachud and M. R. Shah was hearing a Special Leave Petition against a Delhi High Court decision confirming the trial court's order to strike off its defence under Order 11 Rule 21, CPC in a suit for recovery. The order under Rule 21 came to be passed on account of Hindustan Zinc's failure to comply with a direction under Order 11 Rule 12 for the discovery of work protocols entered into between itself, BHEL and the respondent.

    While Rule 12 is the provision for the 'Application for discovery of documents', Rule 21 states that if any party fails to comply with any order to answer interrogatories, or for discovery or inspection of documents, he shall, if a plaintiff, be liable to have his suit dismissed for want of prosecution, and, if a defendant, to have his defence, if any, struck out, and to be placed in the same position as if he had not defended.
    "The moment the courts do (start taking the civil law seriously), people will start complying...Civil proceedings mean nothing to the parties. This is because the courts are so lax", observed Justice Chandrachud.
    "Imagine the Supreme Court of India is listening to this matter. Nowhere in the world will this be tolerated!", added the judge.
    In the instant case, the subject suit for recovery was filed before the Delhi High Court by the respondent against the petitioner contending that the respondent/plaintiff was given a work order by BHEL for erection and commissioning of a 80 Mega Watt Capacity Power Plant. The BHEL in turn awarded a sub contract to the respondent/plaintiff for the said purpose as respondent was an approved vendor/contractor for the same.

    It was contended in the plaint that the petitioner company had introduced an incentive scheme for rewarding the respondent company in carrying out the erection and commissioning of the plant and accordingly issued a letter/scheme of incentive dated 26.02.2007. It was argued that the respondent/plaintiff duly executed the work as per the scheme, however, the benefit of the scheme was not granted to the respondent/plaintiff. Consequently, the subject suit was filed.

    Respondent filed an application under Order 11 Rule 12 CPC seeking discovery of the work protocols entered into between the petitioner, BHEL and the respondent. The contention of the respondent was that the work protocols after their execution were in the power and possession of the petitioner.

    By order dated 14.01.2016, the Delhi High Court specifically directed Hindustan Zinc to discover, in accordance with law and as provided in the specified form, the documents being the work protocols entered into by itself with M/s. BHEL pertaining to such work protocols which had a direct bearing on the work which was sub contracted to the respondent. The Court clarified that appellant need not discover documents being the work protocols entered into between it and BHEL which had no bearing with respect to the obligations of the respondent. The needful was directed to be done within a period of eight weeks.

    Order dated 14.01.2016 also noticed the fact that the pecuniary jurisdiction of the High Court had been enhanced. The Court by order dated 14.01.2016 transferred the Records to the jurisdictional Court under the District & Sessions Judge and directed the parties to appear before the District Judge on 22.03.2016.

    It is an admitted position that said order dated 14.01.2016, under Order 11 rule 12 CPC, was not complied with by the appellant within the period of eight weeks.

    Thereafter, on 18.11.2017 subject application under Order 11 Rule 21 CPC was filed by the respondent seeking striking off of the defence of the petitioner for failure to comply with order dated 14.01.2016.

    The Trial Court by the impugned order dated 04.08.2018 noticed that the contention raised by the petitioner was that the records sought to be produced are old and as such could not be produced. The Trial Court held that such a contention, if at all, should have been raised before the High Court at the time of consideration of the application under Order 11 Rule 12 CPC and not at the said stage.

    The Trial Court has also held that the contention of the petitioner that the concerned officers who were in-charge of the relevant record had left their organization was a vague plea as neither detail of such officers nor facts relating to them leaving the organization had been furnished.

    The Trial Court accordingly held that since there was no compliance by the appellant of the order dated 14.01.2016, the defence was liable to be struck off and consequently it was struck off.

    In appeal, the Single Judge of the Delhi High Court noted that the reply to the application under Order 11 Rule 12 CPC itself shows that the stand was not that the documents were not available but the stand taken by the petitioner at the time was that the documents are very voluminous. "This objection of the appellant was addressed by the learned Single Judge while passing the order dated 14.01.2016 under Order 11 Rule 12 CPC wherein it is specifically directed that the work protocols entered into by the appellant with BHEL would be limited to such work protocols which had a direct bearing on the work which was sub contracted by BHEL to the respondent and the work protocols which had no bearing need not be discovered. This narrowed down the volume of the documents which the appellant was required to discover", observed the Single Bench.

    The High Court noted that admittedly, the appellant did not comply with the order within eight weeks as directed by the Court. Even thereafter, when the application was mistakenly being taken up by the Trial Court afresh on 12.04.2017, it was pointed out by the appellant themselves that the application already stood disposed of. "This shows that the once again on 12.04.2017 were reminded of the order dated 14.01.2016. Despite being once again reminded about the said order, it was not complied with", said the Single Judge

    The bench reflected that an affidavit dated 12.02.2018, alleged to have been filed in response to the order dated 14.01.2016 is filed alongwith the reply to the application under order 11 rule 21 seeking striking off the defence. "This affidavit is filed exactly after one year of 12.04.2017 and that is over two years and three months after the passing of the original order. As noticed above, the appellants have still not discovered the documents as directed. The affidavit is completely vague. In the affidavit appellant has not shown as to why and how these documents are no longer in their possession, custody or power. The stand rather is that the defendant has not been able to trace these documents (if at all these were available with the defendant during the execution of the Project)", said the Single Judge

    The bench noted that it is not denied that the work protocols were executed at the relevant time, and that by the nature of the documents, they were to be in possession of the appellants.

    "Since appellant has not given any explanation, it is clear that appellant is refusing to discover the said documents. Adverse inference is also liable to be drawn that the discovery of documents would not be favourable to the appellant for their defence. In that view of the matter, I find that this is an extreme case where the provisions of Order 11 Rule 21 CPC should be applied. The conduct of the appellant as noticed above would clearly bring it within the category of extreme cases, where there is contumacy on the part of the defendant or a wilful attempt to disregard the order of the court as laid down by the Supreme Court in Babbar Sewing Machine Company vs. Trilok Nath Mahajan (1978)", said the High Court in dismissing the appeal.

    In Babbar Sewing Machine Co. v. Tirlok Nath, the Supreme Court held that the power for dismissal of a suit or striking out of the defence under Order 11 Rule 21, should be exercised only where the defaulting party fails to attend the hearing or is guilty of prolonged or inordinate and inexcusable delay which may cause substantial or serious prejudice to the opposite party.


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