2020 Supreme(Cal) 468
IN THE HIGH COURT OF CALCUTTA
Debangsu Basak, J.
Dilip Choudhury - Appellant
Versus
Pratishruti Projects Limited And Others - Respondents
Old General Application No. 1369 of 2019; General Application No. 17 of 2019; Civil Suit No. 23 of 2015
Decided On : 09-01-2020
Suman Dutt, Advocate, Saunavo Basu, Advocate, Balanko Sen, Advocate, S.P. Sarkar, Advocate, A.K. Awasthi, Advocate, Aishwarya Kumar Awasthi, Advocate
The main legal point established in the judgment is the interpretation and application of the provisions of the Commercial Courts Act, 2015, particularly regarding the classification of commercial disputes and the transfer of cases to the Commercial Division.
Headnote:
Extension of Time - Commercial Division - Commercial Courts Act, 2015 - Section 15 - Summary of Acts and Sections: The court discussed the provisions of Section 15 of the Commercial Courts Act, 2015 and the definition of 'commercial dispute' under Section 2 (1) (c) (xi). The court also highlighted the transfer of pending cases under Section 15 and the amendments to the Code of Civil Procedure, 1908 under Section 16 of the Act. The interpretation of these provisions influenced the court's decision to transfer the suit to the Commercial Division for trial.
Fact of the Case:
The plaintiff sought a money decree and damages against multiple defendants. The defendant No. 2 applied for an extension of time to file a written statement, citing various reasons for the delay.
Finding of the Court:
The court found that the suit involved a commercial dispute and should be transferred to the Commercial Division for trial. It also held that the defendant No. 2 was entitled to one opportunity to file a written statement.
Issues: The issues involved the classification of the suit as a commercial dispute, the transfer of the case to the Commercial Division, and the extension of time for filing a written statement.
Ratio Decidendi: The court's decision was based on the interpretation of the Commercial Courts Act, 2015, specifically Sections 15 and 16, and the application of these provisions to the facts of the case.
Final Decision: The suit was transferred to the Commercial Division for trial, and the defendant No. 2 was granted one opportunity to file a written statement within seven days.
JUDGMENT
Debangsu Basak, J. - By this application the defendant No. 2 has sought extension of time to file written statement.
2. Learned advocate appearing for the defendant No. 2 has submitted that, the instant suit was filed in January 2015. The Commercial Courts Act, 2015 came into effect in October 2015. The plaintiff applied for judgement on admission in the suit, sometime in January 2016. On such application, a judgement and decree was passed in July 2016. An appeal was preferred from such decree and that, such appeal was allowed in August 2017. A special leave petition filed against the Appeal Court's order was admitted subsequently. By an order dated July 3, 2018, the time to file written statement on behalf of the defendant No. 5 was extended. By two several orders dated February 1, 2019, the time to file written statement on behalf of the defendant Nos. 3 and 4 were extended. An appeal was carried from the order of extension of time to file written statement whereupon, by an order dated February 15, 2019, the Appeal Court observed that, since the suit was to be classified as a Commercial Division matter, no appeal lay against an order of extension of time to file written statement under the Act of 2015. Prior to the order dated February 15, 2019, the suit was never treated as one to fall under the Commercial Division under the Act of 2015.
3. Learned advocate appearing for the defendant No. 2 has relied upon the provisions of Section 15 of the Act of 2015 and submitted that, since the Court did not transfer the suit to the Commercial Division and since, the Court did not pass any order on the time management in the suit, therefore, the Court can extend the time to file written statement, of course, on just cause being shown. He has submitted that, there are just causes existing in the facts of the present case for the defendant No. 2 to have an extension of time to file written statement. He has relied upon ( Reliance General Insurance Company Ltd. vs. Colonial Life Insurance Company (Trinidad) Limited,2019 SCConline(Bom) 848 ) in support of his contentions.
4. Learned senior advocate appearing for the plaintiff has submitted that, the suit was filed in 2015. The writ of summons in the suit was served upon the defendants on April 2, 2015. On February 15, 2019, the suit was recognised to be one falling under the Commercial Division under the Act of 2015. The time to file written statement under the Act of 2015 expired long time ago. He has referred to and relied upon Section 2 (1) (c) (xi) of the Act of 2015. He has submitted that, no rules have been framed under the Act of 2015. He has drawn the attention of the Court to the provisions of Order VIII Rule 1 of the Code of Civil Procedure, 1908 particularly to the proviso thereof. He has also relied upon the provisions of Sections 15 (4) and (5) of the Act of 2015. He has submitted that, since the suit was treated as one to fall under the Commercial Division on February 15, 2019, the application for extension of time to file written statement made on June 20, 2019 was belated and therefore, no relief should be granted to the defendant No. 2.
5. Learned advocate appearing for the defendant Nos. 3, 4 and 5 has submitted that, the contentions of the plaintiff as sought to be raised herein were raised by the plaintiff in two review petitions filed by the plaintiff in respect of the order dated February 1, 2019 extending the time to file written statement for the defendant Nos. 3 and 4. None of the contentions of the plaintiff were accepted by the Court while disposing of the two review petitions by the common judgement and order dated September 17, 2019. He has submitted that, the time to file written statement by the defendant No. 2 be extended.
6. The plaintiff have prayed for a money decree of Rs.4,76,35,178/- against defendants nos. 1 to 8 and an enquiry into the damages suffered by the plaintiff at the hand of such defendants and an appropriate decree in respect thereo