M/S GRAND AUTO CAPITAL AND ORS v. M/S JINDAL DYECHEM INDUSTRIES PVT. LTD.

Delhi High Court · 05 Jan 2023 · 2023:DHC:109-DB
Sanjeev Sachdeva; Rajnish Bhatnagar
RFA(COMM) 1/2023
2023:DHC:109-DB
civil appeal_dismissed Significant

AI Summary

The Delhi High Court dismissed the appeal challenging an ex-parte eviction decree, upholding modification of mesne profits and emphasizing expeditious resolution under the Commercial Courts Act, 2015.

Full Text
Translation output
Neutral Citation Number : 2023/DHC/000109
RFA (COMM) 1/2023 1
HIGH COURT OF DELHI
JUDGMENT
delivered on: 05.01.2023
RFA(COMM) 1/2023
M/S GRAND AUTO CAPITAL AND ORS ..... APPELLANTS
versus
M/S JINDAL DYECHEM INDUSTRIES PVT. LTD. ..... RESPONDENTS
Advocates who appeared in this case:
For the Petitioner: Mr. Sameer Srivastava and Ms. Baishali Bose, Advocates.
For the Respondent: None.
CORAM:-
HON’BLE MR. JUSTICE SANJEEV SACHDEVA
HON'BLE MR. JUSTICE RAJNISH BHATNAGAR
JUDGMENT
SANJEEV SACHDEVA, J. (ORAL)
CM APPL.366/2023 (exemption)
Exemption is allowed subject to all just exceptions.
RFA(COMM) 1/2023 & CM APPL. 364/2023 & 365/2023

1. Appellant impugns judgment dated 19.02.2020 whereby an exparte decree has been passed against the appellant of eviction in respect of tenanted premises No. C-42, Wazirpur Industrial Area, New Delhi and also of awarding damages at the rate of Rs.30,000/- per day starting from January, 2019 till vacation of the suit property. RFA (COMM) 1/2023 2

2. It may be noticed that appellant had filed an application under Order IX Rule 13 which was dismissed by order dated 26.10.2020 against which appellant filed an appeal which was listed before a Division Bench of this Court being FAO(COMM) 20/2021.

3. By a detailed judgment dated 20.05.2021 the appeal was dismissed, however, with regard to the ex-parte decree (impugned herein) the same was modified holding as under:-

“26. Once it is found that the appellants/defendants, as per their lease deed, have no defence to the claim which has been decreed ex-parte, this Court would not mechanically set aside the decree. An ex-parte decree is to be set aside only if grounds therefor are made out and if such setting aside is necessary to enable the defendant to contest the claim. However if the defendant has no defence, the ex-parte decree is not to be set aside to keep the Courts and the Advocates busy. 27. Though the counsel for the respondent/plaintiff has no instructions to agree to reduction in the rate at which mesne profits had been decreed and seeks time therefor, but the need to keep the matter pending therefor, is not felt. A perusal of the ex-parte judgment and decree shows that there was no material and evidence before the Commercial Court for awarding mesne profits at a rate higher than the agreed rate of rent and the same has been done merely on the basis of ex-parte evidence of the respondent/plaintiff and on the basis of clause in the registered lease deed whereunder the appellants/defendants had agreed to pay mesne profits @ Rs.50,000/- per day. It is felt that the interest of justice would be served, if the ex-parte decree is modified, by reducing the rate of mesne profits from that awarded of Rs.30,000/- per day to that of Rs.7,18,750/- per month which the appellants/defendants had agreed to pay under the registered lease deed.
RFA (COMM) 1/2023 3
28. We are conscious that the ex-parte decree is not in appeal before us and it is only the dismissal of the application for setting aside the ex-parte decree which is in appeal in these proceedings; however the whole purport of enacting the Commercial Courts Act, 2015 was to enable the Courts to decide the commercial disputes expeditiously, without being slave to the procedure and it is felt that if the aforesaid course is not followed in this appeal, it will do immense disservice to the change brought about by the Legislature. Reference in this regard can be made to Ambalal Sarabhai Enterprises Limited Vs. K.S. Infraspace LLP (2020) 15 SCC 585, Government of Maharashtra (Water Resources Department) Vs. Borse Brothers Engineers & Contractors Pvt. Ltd. 2021 SCC OnLine SC 233 and Kandla Export Corporation Vs. OCI Corporation (2018) 14 SCC 715.
29. Before parting with this judgment, we may also deal with the other two applications filed yesterday. The documents filed with one of the applications have already been considered above and the application therefor is thus allowed. The third application is for bringing on record the list of inventories enclosed therewith. It is stated that the items in the said inventory are lying in the premises. Though it is not clear, what purpose, bringing on record the said inventory would serve but if it is the purport of the appellants/defendants, that the appellants/defendants are entitled to recover the value thereof from the respondent/plaintiff, then we are afraid, the appellants/defendants on 22nd March, 2021 have already given up right with respect thereto.
30. Accordingly, though this appeal is dismissed but the ex-parte judgment and decree dated 19th February, 2020 is directed to be modified, by reducing the rate of mesne profits, from Rs.30,000/- per day to that of RFA (COMM) 1/2023 4 Rs.7,18,750/- per month, w.e.f. January, 2019 till delivery of possession on 23rd March, 2021. Liberty is also granted to the appellants/defendants to, if entitled thereto, make a claim for security deposit and for the respondent/plaintiff having prevented ingress and egress of the appellants/defendants to the tenancy premises, in accordance with law and if any such claim is made, the respondent/plaintiff would be entitled to contest the same on all pleas available in law.
31. The Commercial Court is directed to make the requisite modification in the decree under execution. The parties are left to bear their own costs.” (underlining supplied)

4. Perusal of the judgment dated 20.05.2021 of the Coordinate bench of this Court in the earlier appeal filed by the appellant shows that though the appeal of the appellant with regard to rejection of the application under Order IX Rule 13 is concerned was dismissed, however, the judgment which is impugned herein, the same was modified by reducing the rate of mesne profits. The rationale given by the Coordinate bench of this Court for adopting the said course is in view of the enactment of the Commercial Court Act, 2015 for expeditious dismissal of commercial disputes.

5. Since a Coordinate bench of this Court has already considered the impugned judgment in an appeal filed by the appellant themselves and granted relief to the appellant, it is not open to the appellant to seek to impugn the same once again by way of this appeal.

6. It may also be noticed that against the judgment dated 20.05.2021 of the Coordinate bench in the appeal filed by the RFA (COMM) 1/2023 5 appellant, a Special Leave Petition was filed by the appellant before the Supreme Court being SLP (Civil) No.13131/2022 which has been dismissed by the Supreme Court holding as under:- “We have heard Mr. Gopal Sankaranayanan, learned Senior Advocate, appearing for the petitioners at length. We see no reason to interfere with the impugned judgment and order passed by the High Court, more particularly, the earlier order dated 22.03.2021. The Special Leave Petition stands dismissed. Pending application stands disposed of.”

7. The contention of learned counsel for the appellant is that in order dated 20.05.2021, it has been erroneously recorded that possession was delivered on 23.03.2021 and as such direction has been issued to the appellant to pay mesne profits w.e.f January, 2019 till delivery of possession on 23.03.2021. It is contended that possession was forcibly taken in the month of February, 2019. He submits that the Coordinate bench of this Court in its judgment dated 20.05.2021 had erroneously recorded the date of possession as 23.03.2021.

8. We find no merit in the contention of learned counsel for the appellant for the reason that the date of 23.03.2021 mentioned in order of 20.05.2021 of the Coordinate bench is pursuant to an order of 22.03.2021 wherein the Coordinate Bench of this Court had directed the respondent to take possession on 23.03.2021. Be that as it may, the issue of date of handing over possession was also raised by the RFA (COMM) 1/2023 6 appellant before the Supreme Court in the above-referred Special Leave Petition and that is why in the order itself the Supreme Court has recorded that it finds no ground to interfere with the impugned judgment particularly the earlier order dated 22.03.2021. The order of 22.03.2021, as we have noticed hereinabove, is the order whereby the respondents were directed to take possession on 23.03.2021.

9. In view of the above, we find no ground to entertain the appeal. The appeal is consequently dismissed. CM APPL. 363/2023 (condonation of delay)

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1. Though the application mentions that there is a delay of 75 days in filing the appeal, however, we observe that the appeal impugns judgment dated 19.02.2020 and has been filed only on 16.12.2022. Accordingly, there is substantial delay in filing the appeal. The number of days is incorrectly mentioned in the application and even otherwise there are no reasons whatsoever mentioned in the application.

2. Consequently, we find no ground to condone the delay. The application is accordingly dismissed.

SANJEEV SACHDEVA, J RAJNISH BHATNAGAR, J JANUARY 5, 2023