The appeal was filed against an order dated August 30, 2016, which dismissed the appellant's application for recall/review of an earlier order that closed the appellant's right to file a written statement due to a delay beyond the 120-day period mandated by the Code of Civil Procedure, 1908 (CPC), as amended by the Commercial Courts Act, 2015.
The appellant, Dish TV India Ltd., is an Indian DTH service provider, while the respondent, Gulf DTH FZ LLC, is a DTH platform operator in the Middle East and North African region, claiming exclusive rights to transmit television channels in that territory. The respondent filed a suit seeking a permanent injunction against the appellant's activities in the OSN territory and damages for copyright infringement.
The appellant argued that the suit was not a commercial suit initially and that the 120-day period for filing a written statement should not apply until the suit was converted into a commercial suit. They relied on the Supreme Court's judgment in Shah Babulal Khimji v. Jayaben D. Kania & Anr., which states that an interlocutory order affecting a valuable right to defend can be treated as a 'judgment' and is appealable.
The respondents contended that the suit was a commercial dispute under the Commercial Courts Act and that the appellant had forfeited the right to file a written statement due to the expiration of the 120-day period. They argued that the Commercial Courts Act's provisions override other laws, and thus the appeal is not maintainable.
The High Court, after analyzing the facts and the law, found that the suit was initially filed as an ordinary civil suit and was converted into a commercial suit only after the impugned order. Therefore, the appeal is maintainable under the Delhi High Court Act, 1966, and the appellant's right to file a written statement was wrongly closed. The court relied on the Supreme Court's
judgment in Raj Process Equipments and Systems Pvt. Ltd. v. Honest Derivatives Pvt. Ltd., which states that the time limit for filing a written statement in an ordinary civil suit is not mandatory until the suit is transferred to a commercial court.
The court also considered the discretion given to the Commercial Division under the Commercial Courts Act to prescribe new timelines for transferred suits. The court held that the appellant's written statement should be taken on record, and the suit should proceed from that stage.
Case Citation: Dish Tv India Ltd Vs Gulf Dth Fz Llc: 18.07.2024/FAO(OS) 26/2019 /2024:DHC:5268 DB: Delhi High Court/Rajiv Sikdher and Amit Bansal. H.J.
Written By: Advocate Ajay Amitabh Suman
IP Adjutor [Patent and Trademark Attorney]
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