IN THE HIGH COURT OF JUDICATURE AT BOMBAY
G. S. KULKARNI, ADVAIT M. SETHNA, JJ
Ajay S. Kathuria – Appellant
Versus
Jayesh Kumar & Co. – Respondent
JUDGMENT :
Advait M. Sethna, J.
1. This commercial appeal is filed against the final judgment/order dated 4 September 2023 passed in Notice of Motion no. 1823 of 2023, in commercial suit No. 137 of 2022, by the District Judge, City Civil Court, Mumbai (“Impugned Order” for short). Considering that a short issue is involved the appeal is taken up final disposal at the stage of admission. It appears from the record that the respondent (plaintiff) has not entered apperance as also observed by us in our order dated 16 January 2025.
2. The respondent (plaintiff) filed the commercial suit no. 137 of 2022 on 17 January 2022, before the City Civil Court, Mumbai with the following substantive prayer :-
“a. That the Defendants be decreed and ordered to pay to the Plaintiffs the sum of Rs. 11,77,464/- along with the interest on Rs. 11,77,464/- at 18% per annum or such other rate that may be awarded by this Honourable Court from the date of filing of the suit till realisation.”
3. By the impugned order, the appellant’s (defendant’s) right to file the written statement has been forfeited, on the ground that the conditional order passed by earlier the trial court 30 November 2022 taking the written s
Non-payment of costs should not negate the right to file a written statement if filed within the statutory period, ensuring substantive rights are preserved.
The right to file a written statement is forfeited after 120 days unless justifiable grounds for extension are shown, requiring substantive reasoning recorded by the court.
The court emphasized that the extension of time to file the written statement must be justified and recorded in writing, and the defendant cannot claim an extension of time as a matter of course.
The main legal point established in the judgment is the requirement for the defendant to file the written statement within the prescribed period, the consequences of failing to do so, and the applica....
Point of Law : Honourable Supreme Court has held that amended provisions of Orders V and VIII of Code are mandatory.
The right to file a written statement in a commercial suit is extinguished after 120 days as mandated by law, emphasizing strict adherence to procedural timelines.
(1) Written statement in a commercial suit – Limitation period – Power, authority and jurisdiction of Court to extend time to file written statement mandatorily ceases after said mandated 120 days.(2....
The time limit for filing the written statement under Order VIII Rule 1 of CPC is not mandatory for suits not governed by the Commercial Court Act, 2015, as established in the judgment of 'Kailash V.....
Defendants must file a formal application to extend time for the written statement beyond thirty days, as failure to do so results in forfeiture of the right to file.
Defendants in commercial suits forfeit the right to file a written statement if not submitted within 120 days from the service of summons, as per amendments in the Commercial Courts Act.
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