IN THE HIGH COURT AT CALCUTTA
KRISHNA RAO, J.
Axis Bank Limited - Plaintiff
Versus
Treenath Vanijya Private Limited - Defendant
IA No. GA 3 of 2023 In CS 144 of 2014
Decided On : 03-07-2023
WRITTEN STATEMENT FILING EXTENSION - CIVIL PROCEDURE CODE, 1908 - ORDER VIII RULE 1 - Held that the provision of Order VIII Rule 1 is directory and not mandatory, and the court has the power to extend the time for filing the written statement beyond the time schedule provided.
Fact of the Case:
In a suit for recovery of money, the defendant filed an application for extension of time to file the written statement. The defendant had participated in the interlocutory proceedings but had not filed the written statement within the prescribed period. The defendant claimed that he was facing financial crisis and that the premises in question was taken over by a company under the SARFAESI Act in 2016. The defendant also relied on the period of Covid-19 from March 2020 to November 2021 as a reason for the delay.
Finding of the Court:
The court held that the provision of Order VIII Rule 1 is directory and not mandatory, and the court has the power to extend the time for filing the written statement beyond the time schedule provided. The court considered the reasons assigned by the defendant in support of the prayer for extension of time and found that both the parties had got the reliefs of main prayers but were only contesting their respective suits for mesne profit and for interest. The court also noted that the defendant was ready to file the written statement within a week if leave was granted.
Issues: Whether the provision of Order VIII Rule 1 is mandatory or directory and whether the court has the power to extend the time for filing the written statement beyond the time schedule provided.
Ratio Decidendi: The court relied on the judgment of the Supreme Court in Kailash v. Nanhku (2005) 4 SCC 480, which held that the provision of Order VIII Rule 1 is directory and not mandatory, and the court has the power to extend the time for filing the written statement beyond the time schedule provided. The court also considered the reasons assigned by the defendant in support of the prayer for extension of time and found that both the parties had got the reliefs of main prayers but were only contesting their respective suits for mesne profit and for interest.
Final Decision: The court granted the defendant leave to file the written statement within a week from the date of the order, subject to payment of costs of Rs. 10,000/- to the plaintiff within 4 (four) days from the date of the order.
JUDGMENT :
(Krishna Rao, J.) :
1. The defendant has filed the present application being GA 3 of 2023 praying for extension of time to file written statement in CS No. 144 of 2014.
2. The plaintiff has filed the suit against the defendant for recovery of an amount of Rs. 1,90,29,906.20/-along with interest @ 18% per annum. The defendant had also filed a suit being CS No. 228 of 2014 praying for a decree of possession, arrears of rent and mesne profit. Both the parties have filed two separate interlocutory applications being GA 2496 of 2014 and GA 3257 of 2014 seeking interim relief. Both the parties have preferred an appeal against the order passed by this Court. By an order dated 7th November, 2014, the Hon’ble Appellate Court directed the plaintiff to hand over the entire premises to the plaintiff along with an amount of Rs. 59,90,464/-. The Appellate Court had further directed the defendant to return an amount of Rs. 1,44,09,080/-being the security deposit to the plaintiff. The order passed by the Appellate Authority has been duly complied with.
3. By an order dated 18th December, 2015 on the prayer made by the Learned Counsel for the respective parties of both the suits, this Court directed that the suit go out of the list for the time being with the liberty to mention.
4. The Learned Advocate representing the defendant submits that as the defendant was facing severe financial crisis and in the mean time, in the month of October, 2016, the possession of the premises was also taken over by the International Asset Reconstruction Company Private Limited in terms of the provisions of Section 13 of the SARFAESI Act, 2002 and subsequently only on 17th October, 2018, the said Company had issued no-dues certificate in favour of the defendant and released the charge over the demised immovable property after payment of all dues by the defendant.
5. The Learned Counsel for the defendant submits that due to the aforementioned financial crisis, the defendant was not able to take appropriate step and thus written statement could not be filed within the time prescribed under law. He submits that till the month of March, 2020, the plaintiff could not file written statement and in the mean time Pandemic Covid-19 intervened and there was no occasion for the defendant to take any step in the suit.
6. The Learned Counsel for the defendant submitted that on normalization of the situation after Pandemic Covid-19, the defendant contacted his erstwhile advocate on record for taking appropriate steps in the suit but subsequently the defendant came to know that the erstwhile advocate on record Mr. Pawan Kumar Jhunjhunwala is not keeping well and was virtually indisposed and is not coming to Court regularly.
7. The Learned Counsel for the defendant submits that thereafter the defendant has taken a decision to change the advocate and had contacted the present advocate on record on 2nd May, 2022 to proceed with the matter.
8. The erstwhile advocate had handed over all the cause papers to the defendant after six months and thereafter on 15th December, 2022, the defendant had provided the papers to the present advocate on record and after going through the papers, it was found that written statement has not been filed and thereafter appropriate steps were taken after getting proper instruction from the defendant for preparing written statement.
9. Learned Advocate for the defendant submits that as the written statement is ready and if this Court will allow the defendant to file written statement, the defendant will file written statement within a week.
10. Learned Advocate for the defendant has relied upon the following judgments:
ii. (1998) 7 SCC 123 (N. Balakrishnan –vs-M. Krishnamurthy).
iii. (1984) 4 SCC 66 (O.P. Kathpalia –vs-Lakhmir Singh (dead) & Ors.).
iv. (2018) 6 SCC 639 (Atcom Technologies Ltd. –vs- Y.A. Chunawala & Company & Ors.).
11. Per contra, Learned Counsel for the plaintiff submitted that t
N. Balakrishnan –vs- M. Krishnamurthy
O.P. Kathpalia –vs-Lakhmir Singh (dead) & Ors.
Atcom Technologies Ltd. –vs- Y.A. Chunawala & Company & Ors.
Salem Advocate Bar Association, Tamil Nadu v. Union of India: AIR 2003 SC 189
The provision of Order VIII Rule 1 is directory and not mandatory, and the court has the power to extend the time for filing the written statement beyond the time schedule provided.
The court affirmed that procedural rules regarding the filing of written statements can be interpreted flexibly to ensure justice, allowing extensions in exceptional circumstances.
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.
The court holds that delays in filing additional written statements can be condoned under Rule 9 of Order VIII provided there is sufficient cause and no prejudice is caused to the opposing party.
The court affirmed that defendants lose the right to file a written statement if not submitted within the prescribed 120 days, highlighting the necessity of adhering to procedural timelines in commer....
Amendments to pleadings are permissible to ensure justice, and acceptance of belated written statements is allowed in exceptional circumstances, provided reasons are recorded.
The striking off of a defendant's defence due to late filing of a written statement, despite court's extension, is unjustifiable, and such extensions are regarded as directory rather than mandatory, ....
The court held that procedural unfairness due to technical irregularities can justify allowing the filing of Written Statements after delays, emphasizing the importance of justice over procedural str....
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