2014 (11) TMI 1152 - HC - Indian Laws

Suit for recovery - documents sought to be summoned - Held that - We not inclined to interfere with the order passed by the Joint Registrar on 6th December, 2012 on the following reasons - (a) Firstly, it appears that the present suit is a simple suit for recovery of the amount which was paid by the plaintiff to the defendant. It also appears from the averments made in the application as well as the grounds raised in the appeal that the defendant seeks production of the documents for investigation which is pending against various parties in collateral proceedings. The power of investigation, if any, under Section 11C of the Securities and Exchange Board of India Act, 1992 is with Securities Exchange Board of India. (b) The operation of the letters issued by the defendant has already been stayed by the Calcutta High Court. (c) It is also a matter of fact that under Order XLIII Rule 1 of the Code of Civil Procedure, 1908, the impugned order is not an appealable order. Order XLIII CPC does not contemplate an appeal against the order passed in application under Order XVI Rule 1 CPC. (d) It also appears from the record that the defendant has attempted on many dates to delay the completion of the trial on one pretext or the other. The suit filed by the plaintiff is merely a suit for recovery of the amount. The said fact has not been denied. The said documents cannot be summoned from the plaintiff at the time of cross-examination of the defendant s witnesses. It is evident that those documents are actually required by the defendant for pending investigation for the purposes of collateral proceedings.

Summary

Issues:
1. Application for summoning documents under Order XVI Rule 1 CPC
2. Relevance of documents for fair adjudication
3. Defendant's intention in seeking documents
4. Scope of trial in a civil suit
5. Appeal against the order passed by the Joint Registrar

Issue 1: Application for summoning documents under Order XVI Rule 1 CPC
The defendant filed a Chamber Appeal against the order passed by the Joint Registrar seeking summoning of documents under Order XVI Rule 1 CPC. The plaintiff opposed the application, citing a previous order that declined a similar request by the defendant. The defendant argued that the documents were crucial to establish siphoning off of funds by the plaintiff, based on collusive transactions with defaulters. The defendant contended that SEBI had directed an investigation into the financial transactions of the plaintiff, justifying the need for the documents.

Issue 2: Relevance of documents for fair adjudication
The Joint Registrar considered the relevance of the documents sought by the defendant, emphasizing that the trial in a civil suit cannot be extended to cover investigations into the financial transactions of the plaintiff. The Registrar highlighted that the documents must be relevant for the effective disposal of the present suit, and the issue of relevance, once decided by a higher court, cannot be reopened. The plaintiff argued that the defendant's intention in seeking the documents was for another collateral proceeding, not directly connected to the present suit.

Issue 3: Defendant's intention in seeking documents
The plaintiff contended that the defendant's motive in seeking the documents was for a separate investigation, not for the defense of the present suit. The plaintiff pointed out that the Calcutta High Court had restrained the defendant from acting on certain letters related to the investigation, indicating that the defendant's actions were beyond the scope of the current suit. The defendant's attempt to delay the trial on various pretexts was also noted as a factor in assessing the intention behind seeking the documents.

Issue 4: Scope of trial in a civil suit
The Joint Registrar emphasized that the scope of the trial in a civil suit should not extend to investigations sought by the defendant into the plaintiff's financial transactions. The Registrar noted that the suit filed in the Calcutta High Court was based on the documents sought to be summoned, and the defendant's actions were seen as an attempt to prolong the proceedings and delay the trial. The Registrar concluded that the documents sought were not relevant for the adjudication of the suit.

Issue 5: Appeal against the order passed by the Joint Registrar
After a thorough analysis of the pleadings and grounds raised in the appeal, the Court declined to interfere with the order passed by the Joint Registrar. The Court observed that the suit was a simple case for the recovery of an amount, and the defendant's request for document production was related to investigations pending in collateral proceedings. The Court highlighted that the defendant's attempts to delay the trial and the non-appealable nature of the order under Order XLIII CPC were factors in dismissing the appeal.

In conclusion, the High Court dismissed the Chamber Appeal, upholding the order passed by the Joint Registrar regarding the summoning of documents under Order XVI Rule 1 CPC. The Court emphasized the need for relevance in document production for fair adjudication and highlighted the defendant's intentions in seeking the documents for collateral purposes. The Court's decision was based on the understanding that the suit was a straightforward recovery case, and the documents sought were not essential for the current trial proceedings.