IN THE HIGH COURT OF DELHI AT NEW DELHI
Tushar Rao Gedela, J.
Parmeshwar Jana – Petitioner
Versus
Lakhan Singh - Respondents
CM(M) 89 of 2023
Decided On : 20-01-2023
Commercial Courts Act, 2015 – Code of Civil Procedure, 1908 - Order VIII Rule 1 - Right to file written statement - Service of summons - Challenges order passed by learned Trial Court closing right to file written statement since same was not filed within 120 days as prescribed under law – Held, This Court in the case of Machine Tools Aids India Vs. M/s. GNC Infa LLP & Anr. has categorically held that 120 days period from date of service of summons upon defendant is mandatory and cannot be extended further by virtue of any provision of Code of Civil Procedure - In that view of matter, this Court does not find any jurisdictional error, illegality or material irregularity exercised by Trial Court while passing impugned order and same is upheld - In view of facts of case, cost of Rs. 10,000 as imposed upon defendant is set aside while operational part of orders remains untouched - Petition dismissed.
JUDGMENT :
Tushar Rao Gedela, J.
[The proceeding has been conducted through Hybrid mode] CM APPL. 2947/2023 (Exemption)
1. Exemption is allowed, subject to all just exceptions.
2. Application stands disposed of.
CM(M) 89/2023 & CM APPL. 2946/2023
3. Petitioner challenges the order dated 20.10.2022 in CS (COMM.) No. 393/2021 titled as “Shri Lakhan Singh vs. Shri Parmeshwar Jana”, passed by the learned Trial Court closing the right to file the written statement since the same was not filed within 120 days as prescribed under the law.
4. Mr. Gautam, submits that the impugned order does not take into consideration the fact that the Hon’ble Supreme Court in Prakash Corporates Vs. Dee Vee Projects Limited reported as (2022) 5 SCC 112 has granted liberty to the similarly situated persons to file their written statement even beyond 120 days as contemplated under the Commercial Courts Court, for the reason of pandemic situation as prevailed in the country.
5. Learned Counsel further submits that the learned Trial Court did not consider the fact that even as on 04.03.2022, it had granted 4 weeks to the petitioner to file the written statement.
6. Learned counsel further submits that the learned Trial Court could and ought to have granted further time to the petitioner to file his written statement even though the period fell beyond the period of 120 days.
7. This Court is heard the arguments addressed by learned counsel Mr. Gautam and finds the same unsustainable and untenable in law.
8. The judgement of Prakash Corporates (supra) covered a period when the covid pandemic was having its sway all over the country and keeping in view the observation made by the Hon’ble Supreme Court in Suo Moto Writ Petition (C) 3/2020 “In Re: Cognizance for Extension of Limitation”, the Hon’ble Supreme Court in Prakash Corporates (Supra) held that the same benefit ought to be extended even in the cases of suits falling within the Commercial Courts Act.
9. The other fallacy of the argument is that the time could be extendable even beyond 120 days. This Court in the case of Machine Tools Aids India Vs. M/s. GNC Infa LLP & Anr. (Neutral Citiation No. 2023/DHC/000160) has categorically held that the 120 days period from the date of service of summons upon the defendant is mandatory and cannot be extended further by virtue of any provision of Code of Civil Procedure.
10. The learned Trial Court has also taken into consideration the judgement rendered by the Hon’ble Supreme Court in SCG Contracts (India) Private Limited Vs. K. S. Chamankar Infrastructure Private Ltd. & Ors., 2019 (12) SCC 210 whereby it was held that the provision of the Order VIII Rule 1 CPC as applicable to the Commercial Courts are mandatory.
11. In that view of the matter, this Court does not find any jurisdictional error, illegality or material irregularity exercised by the Trial Court while passing the impugned order and same is upheld.
12. In view of the facts of the case, the cost of Rs. 10,000 as imposed upon the defendant is set aside while the operational part of the orders remains untouched.
13. In view of the above, the petition is dismissed with no order as to costs.
Prakash Corporates Vs. Dee Vee Projects Limited
SCG Contracts (India) Private Limited Vs. K. S. Chamankar Infrastructure Private Ltd. & Ors.
The Court highlighted the strict adherence to statutory timelines under the Commercial Courts Act for filing written statements, referencing precedent that restricts granting extensions.
The importance of serving the copy of the plaint along with the summons and the need for cogent reasons to extend the time for filing the written statement in commercial suits.
Cases should be considered and disposed of on merits rather than technicalities.
The court emphasized that the extension of time to file the written statement must be justified and recorded in writing, and the defendant cannot claim an extension of time as a matter of course.
The right to file a written statement is forfeited after 120 days unless justifiable grounds for extension are shown, requiring substantive reasoning recorded by the court.
The main legal point established in the judgment is the strict adherence to time limits for filing written statements in commercial suits as mandated by the Commercial Court Act and the amendments to....
Time stipulations under the Commercial Courts Act, 2015 are mandatory and lack of a bona fide explanation for non-compliance can lead to forfeiture of the right to file a written statement.
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