IN THE HIGH COURT OF DELHI
Rajiv Shakdher, Tara Vitasta Ganju, JJ.
Ambience Pvt. Ltd. - Appellant
Versus
Planet Advertising Pvt. Ltd. - Respondent
FAO (COMM) 81 of 2021, CM Appls. 11909 of 2021, 15866 of 2021 and 17776 of 2022
Decided On : 04-08-2022
Commercial Suit - Change of Track - Commercial Courts Act, 2015 - [DEFENCE] - [Commercial Suit] - [Commercial Courts Act, 2015] - The court discussed the provisions of the Commercial Courts Act, 2015 and the implications of treating a suit as a commercial action. The court highlighted the requirement for defendants to file a written statement within 120 days in commercial suits and the consequences of failing to do so. The court emphasized the importance of adhering to the procedural requirements and the need for a fair opportunity for the defendants to present their defense.
Fact of the Case:
The appellants' defense was struck off by the Learned District Judge, and their review application was rejected. The appellants argued that the suit was initially treated as an ordinary suit but later treated as a commercial suit, depriving them of the opportunity to seek condonation of delay in filing the written statement.
Finding of the Court:
The court found that the suit was initially treated as an ordinary suit and concluded that the appellants should have been given the opportunity to seek condonation of delay in filing the written statement.
Issues: The main issue was the change in the treatment of the suit from an ordinary suit to a commercial suit, affecting the appellants' right to file a written statement.
Ratio Decidendi: The court held that the appellants should have been given the opportunity to file a written statement within a defined timeline, and the suit action should proceed to trial after completion of pleadings and other necessary steps.
Final Decision: The appellants were granted ten days to file the written statement, and the suit action was directed to proceed to trial in accordance with the specified timeline.
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral)--This appeal is directed against order dated 19.02.2021 passed by the Learned District Judge (Commercial Court-02) South District, Saket, New Delhi.
2. The principal grievance of the appellants i.e., the original defendants, before us, is that their defence was struck off via order dated 10.07.2019, and the review application filed thereafter was also rejected via the impugned order i.e., order dated 19.02.2021.
3. A perusal of the order dated 10.07.2019 shows that the Learned District Judge treated the suit action filed by the respondent as a commercial suit action, under the Commercial Courts Act, 2015.
4. The record shows that the appellants/defendants were served in the suit action, which was concededly filed as an ordinary suit, on 01.02.2019.
5. It is also not in dispute that the time for filing written statement was accorded to the appellants/defendants on 20.03.2019. 5.1 The appellants/defendants, as is evident from the record, filed the written statement on 10.07.2019.
6. The Learned District Judge via order dated 10.07.2019, directed that the written statement filed by the appellants/defendants should be taken off the record. The reasoning furnished by the Learned District Judge, in that behalf, is contained in the following part of the order dated 10.07.2019:
"The defendants in the present case were served on 01.02.2019. Another Counsel appeared for the defendants on 20.03.2019 and sought time to file Written Statement on the ground of her in-health. The defendants were directed to file Written Statement within a week with copy to the other side. However, Written Statement has been filed only today. No application has been filed for seeking condonation of delay in filing the Written Statement. The present suit involves commercial dispute. The Commercial Courts Act, 2015 clearly provides that in commercial suits, the defendants are obliged to file the Written Statement within maximum 120 days. On expiry of 120 days from date of service of summons, the defendant shall forfeit the right to file Written Statement and court shall not allow the Written Statement to be taken on record. The present Written Statement has been filed beyond the period of 120 days and, therefore, cannot be taken on record. The defence of the defendants is ordered to be struck of."
7. As indicated above, the review application against the aforesaid order was filed by the appellants/defendants, albeit, with a delay of 44 days.
7.1. The review application came to be dismissed via the impugned order.
8. A perusal of the order dated 10.07.2019 shows that the Learned District Judge, while noticing the fact that the written statement filed on 10.07.2019 was not accompanied by an application for condonation of delay, proceeded to direct the removal of the written statement, on the ground that the suit action instituted by the respondent was a commercial action.
8.1. It is based on this understanding that the Learned District Judge concluded that after the expiry of 120 days from the date of service of summons, the appellants/defendants had forfeited the right to file a written statement.
9. Mr Kunal Kalra, who appears on behalf of the respondent/plaintiff, fairly concedes that the suit action was filed by the respondent/plaintiff as an ordinary suit.
9.1. Mr. Kalra says that this step was taken, as, at the relevant time, this High Court had not issued the necessary notification for constituting a Commercial Court in the concerned district.
9.2. This aspect of the matter has been noticed by the Learned District Judge in the impugned order i.e., order dated 19.02.2021. The relevant observations made by the Learned District Judge, in this behalf, are as follows:
"It is further submitted that the present suit has been filed on 12th September, 2018 and at that point of time, Commercial Courts provisions were not applicable in District Court. It is further
The main legal point established in the judgment is the importance of adhering to procedural requirements and providing a fair opportunity for the defendants to present their defense.
The main legal point established in the judgment is the requirement for the defendant to file the written statement within the prescribed period, the consequences of failing to do so, and the applica....
The mandatory nature of the amended provision of Order VIII Rule 1 of the Code of Civil Procedure, 1908, and the consequences of non-filing of the written statement, as well as the requirement for th....
The court emphasized the importance of complying with the provisions of the Code of Civil Procedure, 1908, and the Commercial Courts Act 2015, regarding the filing of written statements and the exten....
In commercial suits, a written statement filed beyond 30 days without a condonation application may not be accepted, emphasizing strict adherence to procedural timelines.
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....
The main legal point established in the judgment is that the time schedule in Order VIII Rule 1 of the CPC is to be followed as a rule, and departure therefrom would be by way of exception, permittin....
In commercial suits, written statements within 120 days from valid summons service (with plaint copy) must be accepted; extensions lean towards condonation if justified; procedural timelines subservi....
The main legal point established in the judgment is that in commercial suits, the court does not have the power to condone the delay in filing the written statement beyond 120 days from the date of s....
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....
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