IN THE HIGH COURT OF CALCUTTA
Shampa Sarkar, J.
Sayan Sarker - Appellant
Versus
Austin Distribution Private Limited - Respondent
Civil Order No. 1470 of 2020
Decided On : 21-01-2021
Article 227 - Commercial Suit - Commercial Courts Act, 2015 - Section 2(1)(c), Order V Rule 1 (proviso), Order VIII Rule 1, Order VIII Rule 10 - The court discussed the applicability of the Commercial Courts Act, 2015 and the amended provisions of the Code of Civil Procedure to a suit filed before the establishment of the Commercial Court. The court highlighted the mandatory provisions for filing the written statement within 120 days and the discretion of the court in transferred suits. The court set aside the impugned order and directed the Commercial Court to accept the written statement and proceed with the suit.
Fact of the Case:
The defendant filed a written statement in a money suit after 141 days from the receipt of summons. The suit was transferred to the Commercial Court after its establishment. The Commercial Court rejected the written statement, treating the suit as undefended.
Finding of the Court:
The court found that the suit, initially filed as a regular money suit, should be treated as a transferred suit and the provisions of Section 15 of the Commercial Courts Act, 2015 should apply. The court held that the Commercial Court had the discretion to accept the written statement filed after 141 days.
Issues: The issues involved the applicability of the Commercial Courts Act, 2015 and the amended provisions of the Code of Civil Procedure to a suit filed before the establishment of the Commercial Court, and the discretion of the court in transferred suits.
Ratio Decidendi: The court held that the mandatory provisions for filing the written statement within 120 days did not apply at the time of the suit's institution and the Commercial Court had the discretion to accept the written statement in transferred suits.
Final Decision: The impugned order was set aside and quashed, directing the Commercial Court to accept the written statement and proceed with the suit in accordance with law.
JUDGMENT
Shampa Sarkar, J. - This application has been filed under Article 227 of the Constitution of India, challenging the order dated February 18, 2020 passed by the learned Judge, Commercial Court at Alipore , in Money Suit No. 39 of 2019. The petitioner is the defendant in Money Suit No. 39 of 2019. By the order impugned, the learned Court did not accept the written statement filed by the defendant. The learned Court fixed the suit for hearing as an undefended suit.
2. The case of the petitioner/defendant is that the opposite party filed a money suit in the Court of the learned Civil Judge (Senior Division), 4th Court at Alipore on April 17, 2018. It was registered as Money Suit No. 166 of 2018. The defendant received the summons on May 16, 2018. July 13, 2018, was fixed for appearance of the defendant. On July 13, 2018, the defendant prayed for time to file the written statement. The learned Civil Judge (Senior Division) at Alipore, by order No.2 dated July 13, 2018, allowed such prayer of the defendant and fixed October 4, 2018 for filing the written statement. On October 4, 2018, the defendant filed the written statement, which was recorded by the learned Civil Judge in the order sheet. The learned Court fixed December 20, 2018 for acceptance of the written statement and thereafter March 19, 2019 and April 17, 2019 were fixed for acceptance of the written statement. The matter could not be taken up on the dates fixed due to resolutions of the local bar. On April 17, 2019 also, the matter could not be taken up due to a resolution of the local bar and September 20, 2019 was fixed for acceptance of the written statement. On September 20, 2019, the learned Civil Judge (Senior Division), 4th Court at Alipore, while considering the application for acceptance of the written statement came to the conclusion that the suit was in the nature of a commercial suit. Accordingly, the records were directed to be transmitted to the Commercial Court for trial and disposal. The said suit was then registered as Money Suit No. 39 of 2019 and the same appeared before the learned Judge, Commercial Court at Alipore. February 18, 2020 was fixed for passing orders with regard to the acceptance of the written statement. The learned Commercial Judge upon considering the amended provisions of the Code of Civil Procedure came to the conclusion that the written statement ought to have been filed within 120 days from the date of receipt of summons. As the same was filed after 141 days from the date of receipt of summons, the written statement could not be accepted beyond a period of 120 days as per the mandatory provisions of the Code of Civil Procedure. According to the learned Judge Commercial Court, the present suit involved a dispute covered by the definition of a 'commercial dispute' under Section 2(1)(c) of the Commercial Courts Act, 2015 (hereinafter referred to as the said Act). Upon consideration of the decision of the Hon'ble Apex Court in the matter of SCG Contracts India Pvt. Ltd. v. K.S. Chamankar Infrastructure Pvt. Ltd. and ors., (2019) AIR SC 2691 , the said court came to the conclusion that the Commercial Courts Act, 2015 came into effect on and from October 23, 2015 and the Commercial Court started functioning at Alipore on and from July 5, 2019 and as such the defendant was under an obligation to follow the time prescribed for filing the written statement under the amended provisions of Order V Rule 1 (proviso), Order VIII Rule 1 and Order VIII Rule 10 of the Code of Civil Procedure as applicable to commercial suits. The learned Court below placed reliance on another decision of the Calcutta High Court in the matter of RDB Textile v. Union of India & ors. passed in connection with CS 214 of 2016.
3. It was urged by the learned Advocate for the petitioner, that the suit was filed as a money suit under the provisions of the Code of Civil Procedure. The Commercial Court at Alipore started functioning on and from July 5, 2019. Prior to
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