IN THE HIGH COURT OF JUDICATURE AT CALCUTTA
SAHIDULLAH MUNSH, J.
RDB Textiles Limited – Appellant
Versus
Union of India & Ors. – Respondents
CS 214 of 2016
Decided On : 18-01-2018
Writ of summons - Time Limit for Filing Written Statement - Section 16(1) of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 - [Section 16(1)]
Fact of the Case:
Defendants failed to file a written statement within the stipulated time limit of 120 days from the date of service of summons. The plaintiff sought leave to file written statement beyond the period of limitation, which was not allowed by the court. The defendants subsequently requested leave to file an application for extension of time to file written statement, citing reasons for delay in filing. The court, however, referred to the provisions of Section 16(1) of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015, which mandated the time limit for filing written statement in commercial disputes.
Finding of the Court:
The court found that the defendants had failed to file the written statement within the statutory time limit of 120 days from the date of service of summons. The court also noted that the provisions of Section 16(1) of the Commercial Courts Act did not provide discretion to extend the time limit for filing written statement.
Issues: The main issue was whether the court had the discretion to extend the time limit for filing written statement beyond the statutory period of 120 days from the date of service of summons.
Ratio Decidendi: The court relied on the provisions of Section 16(1) of the Commercial Courts Act, which explicitly stated the time limit for filing written statement in commercial disputes. The court also referred to the decision in the case of NEW INDIA ASSURANCE COMPANY LIMITED VS. HILLI MULTIPURPOSE COLD STORAGE PRIVATE LIMITED, where the Supreme Court held that the time limit fixed by the statute cannot be extended by the court.
Final Decision: The court held that it was not in a position to grant any extension for filing written statement to the defendants as they had failed to file written statement within 120 days from the date of receipt of the summons. Consequently, the court fixed the matter as an undefended suit and scheduled it for further action.
1. Writ of summons was received by the defendant no.1 on 23rd September, 2016 at 12.10 pm, service was effected on defendant no.2 on 18th October, 2016 at 12 Noon and service was effected on defendant no.3 on 19th September, 2016 at 3.40 pm. Report of the Sheriff also discloses that defendant nos. 1 to 3 were served though postal service. Mr. Mukherjee appearing for the plaintiff submits, according to the High Court Original Side Rules, time to file written statement is 21 days and that time expired long ago and no steps were taken by the defendants to file written statement even after receipt of writ of summons. On 20th December, 2017 this matter was listed and an oral prayer was made seeking leave to file written statement beyond the period of limitation. However, that was not allowed and no application has also been filed by the defendants thereafter. Today when the matter is taken up Mr. Sinha Roy appearing for the defendants submits that he may be granted leave to file an application for extension of time to file written statement. It is submitted at the Bar that the defendants have left Calcutta and for that reasons they could not come up with the written statement in time. However, this statement cannot be considered at this stage, nothing being put on record to that effect. The present suit is categorized as a Commercial Suit. According to the provisions of Section 16 (1) of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 (hereinafter the said Act) the defendants are required to file written statement within the time limit fixed under the said provision. The said provision says that so far the time limit fixed under the Code of Civil Procedure as amended and incorporated in the schedule of the said Act is to be valid for the Commercial disputes. Serial No. 4 of the said schedule says that if the defendant fails to file written statement within a period of 30 days he shall be allowed to file written statement on such other date as may be prescribed by the Court for reasons to be recorded in writing and on payment of such cost as the Court may deem fit and proper. But in no event it shall be later than 120 days from the date of service of summons and on expiry of 120 days from the date of service of summons, the defendant shall forfeit his right to file written statement and the Court shall not allow the written statement to be taken on record. In view of the such amended provision, Court has no discretion to extend the time to file written statement. Mr. Mukherjee appearing for the plaintiff has relied on a decision in the case of NEW INDIA ASSURANCE COMPANY LIMITED VS. HILLI MULTIPURPOSE COLD STORAGE PRIVATE LIMITED reported in (2015) 16 Supreme Court Cases page 22. In the said decision the Hon’ble Apex Court has categorically stated that the time limit fixed by the Statute in no circumstances can be extended by the Court. Paragraphs 23 to 27 of the said decision are relevant in the present case.
“23.Upon hearing the counsel concerned and upon perusal of both the judgments referred to hereinabove, which pertain to extension of time for the purpose of filing written statement, we are of the opinion that the view expressed by the three-Judge Bench of this Court in J.J. Merchant should prevail.
24. In J.J. Merchant which is on the same subject, this Court observed as under:
13. The National Commission or the State Commission is empowered to follow the said procedure. From the aforesaid section it is apparent that on receipt of the complaint, the opposite party is required to be given notice directing him to give his version of the case within a period of 30 days or such extended period not exceeding 15 days as may be granted by the District Forum or the Commission. For having speedy trial, this legislative mandate of not giving more than 45 days in submitting the written statement or the version of the case is required to be adhered to. If this is not adhered to
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.