HC: Court’s observation that a document was fabricated document would not be binding in any proceedings

 

The Division Bench of the Delhi High Court in the case of Kkr India Finance Limited vs Altico Capital India Limited & Ors. consisting of Justices Sanjeev Sachdeva and Tushar Rao Gedela noted that the observation of a Court that the document was a fabricated document could at best be taken as only prima facie observation and not conclusive final findings based on any evidence. Consequently, the said observations would not be binding in any proceedings, inter-se the parties.

Facts

Appellant in the suit was aggrieved by two observations in the impugned order about the resolution of a Board of Directors which was filed by the appellant in the suit along with an application seeking impleadment, whereby it was observed that the resolution was not a genuine document but a fabricated document.

Contentions Made

Appellant: It was contended that there was no foundation for such an observation in the impugned order since no opportunity of leading evidence was provided to the parties. It was further contended that there was no evidence on record to show that the resolution was a forged or fabricated document. It was also contended that at the stage of disposal of such application under O₃₉ Rules 1 and 2 CPC and under O₃₉R₄ CPC, the Court must return prima facie finding and while disposing an application under O₇R₁₁ CPC, only the plaint and its enclosed documents are to be adverted to.

 

Observations of the Court

The Bench noted that the observations in the impugned order that the resolution of Board of Directors was not a genuine document and was a fabricated document was not based on any evidence or other material on record except for the averments of defendant no. 4 doubting its genuineness. It further observed that the appellant/defendant no. 15 in response to the said allegations was not given an opportunity to lead any evidence and the said observations do not have any foundational basis in any other evidence/material on record.

It further noted that the observation of the learned Single Judge that the said document was not a genuine document and was a fabricated document could at best be taken as only prima facie observation and not conclusive final findings based on any evidence. Consequently, the said observations would not be binding in any proceedings, inter-se the parties. 

 

Judgment

The Bench noted that the above observation would also not come in the way of defendant no. 4 to impugning the said resolution or establishing that the resolution was forged or fabricated document. The appeal was disposed accordingly. 

 

Case: Kkr India Finance Limited vs Altico Capital India Limited & Ors.

Citation: FAO(OS) (COMM) 142/2022

Bench: Justice Sanjeev Sachdeva, Justice Tushar Rao Gedela 

Decided on: 13^th October 2022

Read Judgment ; 

 

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