IN THE HIGH COURT AT CALCUTTA
I.P. MUKERJI, BISWAROOP CHOWDHURY, JJ.
Sreeleathers Limited – Appellant
Versus
PIC Departmentals Pvt. Ltd. – Respondent
APO 147 of 2023 With CS 549 of 1999
Decided on : 22-03-2024
Condonation of Delay - Written Statement - Chapter IX Rule 2 of the Original Side Rules, Order 38 Rule 46, Mohd. Mehtab Khan and Ors. vs. Khushnuma Ibrahim Khan & Ors. (2013) 9 SCC 221, Basawaraj and Anr. vs. Special Land Acquisition Officer (2013) 14 SCC 81, Atcom Technologies Limited vs. Y.A. Chunawala and Company and Ors. (2018) 6 SCC 639 - The court discussed the law and authorities on condonation of delay in filing the written statement, emphasizing the need to establish sufficient cause and absence of negligence or bona fides. It also highlighted the court's discretion in granting or refusing permission to file the written statement, and the appellate court's powers to affirm, reverse, or vary the trial court's order.
Fact of the Case:
The defendant sought condonation of delay to file their written statement, 17 years after the suit was filed. The trial judge refused the application, leading to the appeal. The defendant argued lack of diligence and intention to delay, while the plaintiff emphasized the defendant's failure to file the written statement within the stipulated time.
Finding of the Court:
The court analyzed the facts and legal provisions, concluding that the defendant should be given an opportunity to contest the suit, citing the aim of substantial justice and the need to adjudicate matters on merits rather than technicalities. The impugned judgment was set aside, and the defendant was allowed to file their written statement by a specified date.
Issues: The main issue was whether the delay in filing the written statement should be condoned, considering the long period elapsed since the suit was filed and the defendant's explanation for the delay.
Ratio Decidendi: The court held that an opportunity should be given to the defendant to contest the suit, emphasizing the aim of substantial justice and the need to adjudicate matters on merits rather than technical grounds, unless a party is guilty of gross negligence or error.
Final Decision: The impugned judgment was set aside, and the defendant was allowed to file their written statement by a specified date. The appeal was allowed, and the defendant was directed to pay costs to the plaintiff for defending the proceedings.
JUDGMENT :
I.P. Mukerji, J.
1. Leave sought by the appellant defendant (the defendant) to file their written statement, after condonation of delay was refused by the learned single judge by the impugned judgment and order dated 12th June, 2023. The defendant appeals to this court.
2. The suit is of 1999. It was filed on 30th September, 1999. The writ of summons was served on the defendant on 28th January, 2000. They entered appearance on 3rd February, 2000. Although it is referred to in the impugned judgment and order that the defendant contested various interlocutory applications, the details are not forthcoming. What is on record is a status of the report of the suit dated 1st March, 2000 to the effect that the suit was “disposed of” on 1st March, 2000. According to them, having learnt that the suit was disposed of they did not feel it necessary to show any further interest in it.
3. It is common ground that the suit did not progress any further till 2017. On 17th January, 2017 the suit came up for trial.
4. Meanwhile, the advocate on record for the defendant changed. The present advocate on record noticed the matter in the list and informed his client. It seems to have been mentioned before the court that according to the status report the suit was disposed of on 1st March, 2000. The learned judge directed an inquiry into the matter. He sought a report from the Registrar (Listing). On 30th January, 2017 the report came. It confirmed the earlier report that the suit was according to the records disposed of on 1st March, 2000.
5. On 23rd February, 2017 the defendant made an application before the court to permit them to file their written statement. After condonation of delay in making the application it was dismissed by the impugned judgment and order dated 12th June, 2023.
6. The fact is that the application for condonation of delay to file the written statement was made more than 17 years after filing of the suit.
7. So was the learned judge right in dismissing the application or should he have, after about 25 years of institution of the suit given permission to the defendant to file their written statement?
8. The learned judge proceeded to narrate the facts with regard to progress of the suit after filing of the plaint and the authorities dealing with condonation of delay in filing the written statement.
9. The reasons why the delay was uncondonable are not forthcoming in the impugned judgment. It only says that there is “no justifiable delay”; the delay is “of 23 years”. Why the explanation of the defendant was not being accepted by the court is not forthcoming in the judgment. The learned judge has only expressed his inability to condone “23 years delay”.
10. After disposal of the application the suit was directed to appear on 5th July, 2023 as an undefended suit.
11. Mr. Abhrajit Mitra, learned senior advocate, appearing for the appellant/defendant contended that there was no lack of diligence on the part of his client. Neither was there any intention to delay the suit or to defeat the claim of the plaintiff. His client had all along proceeded on the basis of the status report that the suit had been disposed of on 1st March, 2000. Hence, they did not take any steps.
12. Mr. Surajit Nath Mitra, learned senior advocate, appearing for the respondent/plaintiff (the plaintiff) submitted that the status report may have been generated on 1st March, 2000 but the fact was that in spite of entering appearance on 3rd February, 2000, the defendant did not file their written statement by the stipulated time which was 21 days from the date of issue of the writ of summons (28th January, 2000) i.e. by 18th February, 2000. At that time there was no existence of the status report.
13. Before proceeding any further, it is important to discuss the law and the authorities on the subject.
14. Chapter IX Rule 2 of the Original Side Rules states that no written statement shall be filed unless appearance has been first entered. Furthermore, no written state
Atcom Technologies Limited vs. Y.A. Chunawala and Company and Ors. reported in (2018) 6 SCC 639
Basawaraj and Anr. vs. Special Land Acquisition Officer reported in (2013) 14 SCC 81
Collector L.A. Anantnag & Anr. vs. Mst. Katiji & Ors. (AIR 1987 SC 1353)
Howrah Motor Co. Ltd. Vs. Exide Industries Ltd. reported in (2006) 4 CHN 271)
Mohd. Mehtab Khan and Ors. vs. Khushnuma Ibrahim Khan & Ors. reported in (2013) 9 SCC 221
The main legal point established in the judgment is that the time limit for filing a written statement under the Civil Procedure Code should be treated as directory, and the court should balance the ....
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The Commercial Courts Act brings about a substantial change in the provisions relating to the period of filing of the written statement and the power of the Court to condone the delay in filing of th....
Point of Law : Delay in filing Written statement - Commercial Court dealing with a commercial suit had no discretion to condone delay and could not allow the written statement to be taken on record b....
The court established that the timeline for filing a written statement under the CPC is directory but requires sufficient justification for any delays, which was not demonstrated in this case.
Substantial justice prevails over technicalities; delay in filing Written Statement within 120 days can be condoned if justified.
Timeliness in filing written statements is crucial; any delay beyond prescribed limits without an accompanying application for condonation is impermissible.
Point of Law : provisions of the Commercial Courts Act, 2015 have to be strictly construed and if the provisions are given liberal interpretation, the object behind the enactment, of speedy disposal,....
The court affirmed that procedural rules regarding the filing of written statements can be interpreted flexibly to ensure justice, allowing extensions in exceptional circumstances.
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