Bombay High Court Dismisses Appeal Against Refusal of Discovery in Specific Performance Suit — Discovery Sought After Issues Settled and Evidence Led, Not Permitted Under CPC Order XI Rule 1A

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The appeal arises from a suit filed by NTPC Limited (respondent-plaintiff) in December 2005 seeking specific performance of a contract for supply of 132 trillion BTU of Natural Gas for 17 years, based on documents executed in 2004. Reliance Industries Limited (appellant-defendant) filed its written statement on 31 October 2007, contending that there was no concluded contract and parties were merely negotiating. Issues were settled on 6 October 2008, and the plaintiff filed its affidavit in lieu of examination-in-chief on 9 January 2009. On 2 February 2010, the defendant sent a notice for discovery and production of documents, and on 3 February 2010, filed a chamber summons seeking an order directing the plaintiff to disclose and give inspection of documents, including internal communications of NTPC officials between July 2004 and November 2005. The learned Single Judge dismissed the chamber summons. In appeal under Clause 15 of the Letters Patent, the Division Bench held that the discovery sought was not permissible under Order XI Rule 1A of the Code of Civil Procedure, 1908, as it was sought after issues were settled and evidence had been led. The court noted that the defendant had already filed its affidavit of documents in January 2008 and the chamber summons was filed over two years later. The court found no error in the Single Judge's order and dismissed the appeal.

Headnote

A) Civil Procedure - Discovery and Inspection - Order XI Rule 1A CPC - Timeliness - The appellant-defendant sought discovery and inspection of documents after issues were settled and the plaintiff had filed its affidavit in lieu of examination-in-chief. The court held that such discovery is not permissible under Order XI Rule 1A CPC as it would delay the trial and prejudice the plaintiff. (Paras 2-4)

B) Contract Law - Specific Performance - Concluded Contract - The suit was for specific performance of a contract for supply of natural gas. The defendant contended that there was no concluded contract and parties were only negotiating. The court did not decide this issue but noted that discovery of internal communications of the plaintiff was not necessary for the defendant's defence. (Paras 2-3)

C) Civil Procedure - Affidavit of Documents - Sufficiency - The plaintiff had already filed its affidavit of documents on 7 December 2007. The defendant's chamber summons for further discovery was filed on 3 February 2010, after a delay of over two years. The court upheld the Single Judge's refusal to order discovery. (Paras 3-4)

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Issue of Consideration

Whether the appellant-defendant is entitled to discovery and inspection of documents after issues were settled and the plaintiff had already filed its affidavit of evidence, particularly when the documents sought were internal communications of the plaintiff.

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Final Decision

The Division Bench dismissed the appeal, upholding the order of the learned Single Judge refusing to grant discovery and inspection of documents.

Law Points

  • Discovery and inspection
  • Order XI Rule 1A CPC
  • Specific performance
  • Concluded contract
  • Negotiation stage
  • Affidavit of documents
  • Chamber summons
  • Letters Patent appeal
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Case Details

2014 LawText (BOM) (03) 54

Appeal Lodging No.151 of 2014 in Chamber Summons No.201 of 2010 in Suit No.95 of 2005

2014-03-20

Mohit S. Shah, C.J., M.S. Sanklecha, J.

Dr. Milind Sathe, Sr. Counsel, Mr. Firdosh Pooniwalla, Mr. Rishit Badiani, Ms. Reshma Ranadive i/by A. S. Dayal & Associates for the Petitioner; Mr. D.D.Madon, Sr. Counsel, Mr. V.R. Dhond, Sr. Counsel with Mr. S.V. Doijode, Ms. Reshma Mulla Feroze, Mr. R.H.Davlat and Mr. C.K.Sancheti i/by Doijode Associates for the Respondent

Reliance Industries Limited

NTPC Limited

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Nature of Litigation

Appeal under Clause 15 of the Letters Patent against an order of the learned Single Judge dismissing a chamber summons for discovery and inspection of documents in a suit for specific performance of contract.

Remedy Sought

The appellant-defendant sought an order directing the respondent-plaintiff to disclose on oath and give inspection of documents mentioned in the schedule to the chamber summons.

Filing Reason

The appellant-defendant contended that the documents sought were necessary for its defence that there was no concluded contract between the parties.

Previous Decisions

The learned Single Judge dismissed the chamber summons. The present appeal challenges that order.

Issues

Whether the appellant-defendant is entitled to discovery and inspection of documents after issues were settled and the plaintiff had already filed its affidavit of evidence? Whether the documents sought, being internal communications of the plaintiff, are relevant and necessary for the defendant's defence?

Submissions/Arguments

The appellant-defendant argued that the documents sought were necessary to show that there was no concluded contract and parties were only negotiating. The respondent-plaintiff opposed the discovery on the ground that it was sought belatedly after issues were settled and evidence had been led, and that the documents were not relevant.

Ratio Decidendi

Under Order XI Rule 1A of the Code of Civil Procedure, 1908, discovery and inspection of documents cannot be ordered after issues have been settled and the plaintiff has already filed its affidavit of evidence, as it would delay the trial and prejudice the other party.

Judgment Excerpts

In this appeal under Clause 15 of the Letters Patent the order dated 20 February 2014 passed by the learned Single Judge of this Court in Chamber Summons No.201 of 2010 has been challenged. The Chamber Summons was taken out by the appellant defendant seeking an order against the plaintiff for discovery and inspection of documents as indicated and enumerated in Annexure to the chamber summons.

Procedural History

Suit No.95 of 2005 filed in December 2005 for specific performance. Written statement filed on 31 October 2007. Issues settled on 6 October 2008. Plaintiff filed affidavit in lieu of examination-in-chief on 9 January 2009. Defendant filed chamber summons on 3 February 2010. Learned Single Judge dismissed chamber summons on 20 February 2014. Present appeal filed on 29 March 2014.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order XI Rule 1A
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High Court Bombay High Court Dismisses Appeal Against Refusal of Discovery in Specific Performance Suit — Discovery Sought After Issues Settled and Evidence Led, Not Permitted Under CPC Order XI Rule 1A