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2022 Supreme(Del) 1068

IN THE HIGH COURT OF DELHI AT NEW DELHI
Anup Jairam Bhambhani, J.
Cosco International Private Limited - Appellant
Versus
Jagat Singh Dugar - Respondent
CS (Comm) 1052 of 2018
Decided On : 06-04-2022

Advocates appeared:
Mr. Nishant Dutta, Advocate, for the Appellant; Ms. Renuka Arora, Advocate, for the Respondent.

The main legal point established in the judgment is the distinction between filing a written statement and bringing it on record, and the consequences of not filing an affidavit of admission/denial of documents.

Headnote:

Written Statement - Filing Defects - Order V Rule 1(1), Order VIII Rules 1 & 10, Chapter IV Rule 3, Delhi High Court (Original Side) Rules, 2018 - The court discussed the provisions of Order V Rule 1(1), Order VIII Rules 1 & 10 of the Civil Procedure Code, 1908, and Chapter IV Rule 3 of the Delhi High Court (Original Side) Rules, 2018. The court emphasized the distinction between filing a written statement and bringing it on record, and highlighted the consequences of not filing an affidavit of admission/denial of documents along with the written statement. The court also referred to relevant case law to support its interpretation of the legal provisions.

Fact of the Case:

The defendant sought setting aside of an order declining to take the defendant's written statement on record, citing the delay in filing the affidavit of admission/denial of documents.

Finding of the Court:

The court found that the written statement was filed within the prescribed period, and the defect of non-filing of the affidavit of admission/denial was cured within the permissible time period, thus allowing the written statement to be taken on record.

Issues: The main issue was whether the delay in filing the affidavit of admission/denial of documents rendered the written statement non-est and defective.

Ratio Decidendi: The court held that the filing of a written statement within the prescribed time but without an accompanying affidavit of admission/denial of documents does not amount to non-est filing, but rather a curable defect.

Final Decision: The impugned order declining to take the written statement on record was set aside, and the written statement was allowed to be taken on record.

JUDGMENT

Anup Jairam Bhambhani, J. (Oral). - By way of the present appeal filed under Chapter II Rule 5 of the Delhi High Court (Original Side) Rules, 2018 read with section 151 of the Civil Procedure Code1908, the defendant/applicant seeks setting aside of order dated 23.10.2020 passed by the learned Joint Registrar, declining to take the defendant's written statement on record.

2. A brief timeline of the dates that are relevant to decide the present O.A. is as follows:

    22.09.2018: Defendant was served summons in the suit.

    16.10.2018: Counsel for the defendant appeared and was granted a week's time to file written statement.

    01.11.2018: The format for affidavit of admission/denial was notified.

    16.10.2018: Written Statement was attested by the defendant.

    18.01.2019: Written Statement was filed for the first time vide Diary No.83763 of 2019; however, without filing the affidavit of admission/denial of documents along with it.

    19.01.2019: Period of 120 days from service upon the defendant expired.

    29.05.2019: Affidavit of admission/denial of documents filed.

    3. Ms. Renuka Arora, learned counsel appearing for the appellant/defendant, submits that, as is seen from the foregoing timeline, the defendant's written statement duly supported by affidavit was filed within 120 days of the receipt of summons; however, the affidavit of admission/denial of documents, which had also been directed to be filed along with the written statement, was not filed along therewith.

    4. Counsel points-out that in this backdrop, the learned Joint Registrar has taken the view that since there was delay of at least 03 months in filing of the affidavit of admission/denial of documents, over-and-above the prescribed period of 120 days stipulated for filing of the written statement, which period is sacrosanct and cannot be extended, the written statement itself cannot be taken on record.

    5. Attention is drawn in this behalf to the following provisions of law contained in the Code of Civil Procedure, 1908 ('CPC') as amended by the Commercial Courts Act, 2015 and of the Delhi High Court (Original Side) Rules 2018, which are material to the present decision:

      Order V Rule 1(1) and Proviso, CPC

      '1. Summons.----- (1) When a suit has been duly instituted, a summons may be issued to the defendant to appear and answer the claim and to file the written statement of his defence, if any, within thirty days from the date of service of summons on that defendant:

      Provided further that where the defendant fails to file the written statement within the said period of thirty days, he shall be allowed to file the written statement on such other day, as may be specified by the court, for reasons to be recorded in writing and on payment of such costs as the court deems fit, but which shall not be later than one hundred twenty days from the date of service of summons and on expiry of one hundred twenty days from the date of service of summons, the defendant shall forfeit the right to file the written statement and the court shall not allow the written statement to be taken on record.' (emphasis supplied)

      Order VIII Rules 1 & 10 & Provisos, CPC

      '1) Written statement.-The defendant shall, within thirty days from the date of service of summons on him, present a written statement of his defence:

      Provided that where the defendant fails to file the written statement within the said period of thirty days, he shall be allowed to file the written statement on such other day, as may be specified by the court, for reasons to be recorded in writing and on payment of such costs as the court deems fit, but which shall not be later than one hundred twenty days from the date of service of summons and on expiry of one hundred twenty days from the date of service of summons, the defendant shall forfeit the right to file the written statement and the court shall not allow the written statement to be taken on record.'

      '10) Procedure when party fails to present written statement called for by Court.-Where any party from

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