IN THE HIGH COURT OF CALCUTTA
MOUSHUMI BHATTACHARYA, J.
Harji Engineering Works Pvt. Ltd. – Plaintiff
Versus
Hindustan Steelworks Construction Ltd. – Defendant
I.A. Nos. G.A. 5, 6 of 2021, C.S. No. 212 of 2018
Decided On : 14-09-2021
Code of Civil Procedure, 1908 - Order VI Rule 15A - Commercial Courts Act, 2015 - whether a Statement of Truth in a Written Statement in a Commercial Suit is a mandatory requirement under the Commercial Courts Act, 2015 and whether the absence thereof warrants striking out of the defence in the suit.
Finding of the Court:
Without taking the avowed object of quick resolution of commercial disputes away from the 2015 Act, rules of procedure cannot be given precedence in a manner so as to defeat the substantive rights of the parties unless specifically prohibited by law. In the present case, Sub-Rule (5) of Order VI Rule 15A can be pressed into service in aid of the defendant. If a purposive interpretation is given to the various provisions contained therein, the discretion conferred on a court in the matter of striking out a pleading which is not verified by a Statement of Truth cannot be seen as a speed-breaker in the momentum of the Act.
Result: Striking off the defence of the defendant is dismissed.
JUDGMENT :
MOUSHUMI BHATTACHARYA, J.
1. The issue which falls for consideration is whether a Statement of Truth in a Written Statement in a Commercial Suit is a mandatory requirement under The Commercial Courts Act, 2015 and whether the absence thereof warrants striking out of the defence in the suit.
2. The plaintiff contends that a Written Statement without a Statement of Truth is an incurable defect while the defendant urges otherwise. The difference of view centres on the construction of Order VI Rule 15A of The Code of Civil Procedure, 1908, as amended by The Commercial Courts Act, 2015.
3. The two applications before this Court proceed on the respective stands taken by the parties as stated above; G.A. 5 of 2021 is of the plaintiff for striking out the defence while the defendant seeks to cure the defect by filing the Statement of Truth in G.A. 6 of 2021. Both the applications have been heard and are being decided in this Judgment.
4. Order VI Rule 15 of the CPC underwent two major changes brought about by The Code of Civil Procedure (Amendment) Act of 1999 with effect from 2002 and by The Commercial Courts Act in 2015:
“15. Verification of pleadings:
(1) Save as otherwise provided by any law for the time being in force, every pleading shall be verified at the foot by the party or by one of the parties pleading or by some other person proved to the satisfaction of the Court to be acquainted with the facts of the case.
(2) The person verifying shall specify, by reference to the numbered paragraphs of the pleading, what he verifies of his own knowledge and what he verifies upon information received and believed to be true.
(3) The verification shall be signed by the person making it and shall state the date on which and the place at which it was signed.”
(ii) Addition to Order VI Rule 15 after the amendment of 1.7.2002:
“15. Verification of pleadings:
...........
(4) The person verifying the pleading shall also furnish an affidavit in support of his pleadings.”
(iii) Order VI Rule 15A after the amendments brought in by The Commercial Courts Act, 2015:
“15A. Verification of pleadings in a Commercial Dispute:
(1) Notwithstanding anything contained in Rule 15, every pleading in a Commercial Dispute shall be verified by an affidavit in the manner and form prescribed in the Appendix to this Schedule.
(2) An affidavit under Sub-Rule (1) above shall be signed by the party or by one of the parties to the proceedings, or by any other person on behalf of such party or parties who is proved to the satisfaction of the Court to be acquainted with the facts of the case and who is duly authorised by such party or parties.
(3) Where a pleading is amended, the amendments must be verified in the form and manner referred to in Sub-Rule (1) unless the Court orders otherwise.
(4) Where a pleading is not verified in the manner provided under Sub-Rule (1), the party shall not be permitted to rely on such pleading as evidence or any of the matters set out therein.
(5) The Court may strike out a pleading which is not verified by a Statement of Truth, namely, the affidavit set out in the Appendix to this Schedule.”
5. The change after 1.7.2002 indicates that the deponent was fixed with additional responsibility as to the truth of the facts stated in the pleadings; Ref Salem Advocate Bar Association, T.N. vs. Union of India, (2005) 6 SCC 344. The amendments with effect from October 2015 however brought in a wholly new procedural regime in matters of verification of pleadings and the competence of the party taking responsibility thereof.
Statement of Truth:
6. The changes brought into the CPC in 2015 in the form of Order VI Rule 15A relate to verification of pleadings in a commercial dispute. The requirements introduced under Rule 15A is that every pleading in a Commercial Dispute shall be verified by an affidavit as prescribed in the Appendix to the Schedule to the 2015 Act. Appendix I to the
Bachahan Devi vs. Nagar Nigam, Gorakhpur
Salem Advocate Bar Association, T.N. vs. Union of India
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