What are the consequences for failure to comply with court’s order granting discovery and production?
If a party fails to comply with the court’s order of discovery, they may face penalties as specified in Rule 21, Order 11 of the Code. Courts have the discretion to dismiss a suit or strike out a defence for such a default. However, Indian courts have held that such discretion is to be only exercised when the default is wilful and only as a last resort. Courts have also observed that the consequence of an order being passed under Rule 21, Order 11 is highly penal in nature and ought to be used only in extreme cases.
Additionally, under the rules of evidence, if a party fails to produce documents, they cannot use the document as evidence without the consent of the other party or an order of the court and it is open to the court to draw adverse inference under Section 114(g) of the Indian Evidence Act, 1872. However, the Indian Evidence Act, 1872 does not envisage any penal consequences a for failure to produce documents.
Source: Barandbench
