Delhi High Court Orders Woodland to Deposit Rs. 30 Lakhs in Commercial Dispute

Court scrutinizes alleged suppression of facts by Woodland in a dispute with Speedways Tyre Treads, demands affidavits from top executives.

In a significant development in the commercial dispute between Woodland (Aero Club) Pvt. Ltd. and M/S Speedways Tyre Treads, the Delhi High Court has directed Woodland to deposit Rs. 30 lakhs, representing the value of goods seized, with the court. The order was issued by Justice Manmeet Pritam Singh Arora in response to applications filed by Speedways Tyre Treads.

The court's directive follows allegations by Speedways Tyre Treads that Woodland had suppressed material facts from the court. The defendant, Speedways Tyre Treads, filed an application under Order VII Rule 11 of the Civil Procedure Code (CPC), seeking rejection of the plaint on the grounds that it disclosed no cause of action and was barred by law.

The court examined the claims that the goods seized by a Local Commissioner were not counterfeit as alleged but were instead manufactured under purchase orders placed by Woodland. The defendant argued that Woodland had failed to disclose crucial correspondence regarding these purchase orders in its plaint. The court has taken these allegations seriously and required Woodland's Managing Director, Mr. Harkirat Singh, and Senior Manager, Mr. Madan Kalra, to file personal affidavits explaining the nondisclosure of correspondence exchanged between the parties.

In addition to these affidavits, Mr. Singh and Mr. Kalra have been ordered to be present in court for the next hearing scheduled for December 23, 2025. The court's interim order further mandates Woodland to deposit Rs. 30 lakhs, the estimated value of the seized goods, as a condition for the continuation of proceedings.

The court also noted that Speedways Tyre Treads had filed another application under Order XXXIX Rule 4 of the CPC, seeking the vacation or modification of an ex-parte ad interim injunction granted on October 30, 2025. The injunction had initially restricted Speedways Tyre Treads from dealing with the seized goods.

The Delhi High Court's decision underscores the importance of transparency and full disclosure in commercial litigation, especially in cases involving significant financial stakes. The court's requirement for affidavits and personal appearance of Woodland's top executives reflects its commitment to ensuring that justice is served based on a complete and truthful representation of facts.

Bottom Line:

Commercial dispute - Application under Order VII Rule 11 CPC for rejection of plaint on the grounds of no cause of action and being barred by law - Allegation of suppression of material facts by plaintiff - Direction for plaintiff to deposit Rs. 30 lakhs, the value of seized goods, with the Court.

Statutory provision(s): Civil Procedure Code, 1908 - Order VII Rule 11(a) and (d), Order XXXIX Rule 4; Commercial Courts Act, 2015, Section 12A

Woodland (Aero Club) Pvt. Ltd. v. M/S Speedways Tyre Treads, (Delhi) : Law Finder Doc Id # 2819304