IN THE HIGH COURT OF DELHI AT NEW DELHI
TUSHAR RAO GEDELA, J.
M/s Shivam Corporation India - Petitioner
Versus
M/s Kalyani India Pvt Ltd & Ors. - Respondents
CM(M) No. 388 of 2023
Decided On : 13-03-2023
Written Statement - Commercial Suit - Order VIII Rule 1 CPC - Summary judgment, SCG Contractors (India) (P) Ltd. Vs. K. S. Chamankar Infrastructure (P) Ltd. (2019) 12 SCC 210, Prakash Corporates Vs. Dee Vee Projects Ltd. (2022) 5 SCC 112, Machine Tools Aids India Vs. M/s GNC Infra LLP & Anr. Neutral Citation No. 2023/DHC/000160 - Order VIII Rule 1 CPC, 1908 - The court discussed the rigors of filing pleadings on time in commercial suits and cited relevant judgments. It emphasized 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. The court found that the impugned order was unsustainable in law and quashed it, directing the written statement to be taken off the record and the trial court to proceed with the suit in accordance with the law.
Fact of the Case:
The petitioner challenged the dismissal of the application under Order VIII Rule 10 CPC, 1908 and the acceptance of the written statement filed beyond the stipulated period. The respondents were served with the summons and the copy of the plaint, but the copy was supplied after a significant delay. The main contention was the timeliness of the written statement filing.
Finding of the Court:
The court found that the impugned order was unsustainable in law and quashed it, directing the written statement to be taken off the record and the trial court to proceed with the suit in accordance with the law.
Issues: The issues revolved around the timeliness of filing the written statement and the validity of the impugned order in accepting the written statement beyond the stipulated period.
Ratio Decidendi: The court emphasized the importance of serving the copy of the plaint along with the summons, the need for cogent reasons to extend the time for filing the written statement, and the rigors of filing pleadings on time in commercial suits.
Final Decision: The impugned order was unsustainable in law and was quashed, directing the written statement to be taken off the record and the trial court to proceed with the suit in accordance with the law.
JUDGMENT :
Tushar Rao Gedela, J.
[The proceeding has been conducted through Hybrid mode]
CM APPL. 11596/2023 (Exemption)
1. Exemption allowed subject to all just exceptions.
2. Application stands disposed of.
CM(M) 388/2023 & CM APPL. 11595/2023 (Stay)
3. The petitioner challenges the orders dated 13.10.2022 and 29.11.2022 in CS (COMM) No. 616/2019 titled ‘M/s. Shivam Corporation India Vs. M/s. Kalyani India Pvt. Ltd.’ whereby the learned Trial Court while dismissing the application under Order VIII Rule 10 CPC, 1908 filed by the petitioner/plaintiff simultaneously took on record the written statement which was stated to be filed beyond time.
4. Learned counsel appearing for the petitioner/plaintiff submits that respondents were admittedly served on 05.04.2022 and 14.04.2022. Learned counsel submits that on 19.04.2022, the respondents had entered appearance and sought a copy of the plaint to which the learned counsel appearing for the petitioner/plaintiff assured that would be supplied with an hour. It was only on 06.07.2022, the petitioner/plaintiff supplied a copy of the plaint to the defendants. Learned counsel submits that time was again sought by the respondents/defendant on 13.09.2022 to file the written statement. He submits that it was only on 13.10.2022 that the written statement was filed.
5. Learned counsel further submits that since the written statement was filed way beyond the 120 days period as stipulated in under Order VIII Rule 1 CPC, 1908 as amended by Commercial Courts Act, 2015, it ought not to have been taken on record.
6. Learned counsel appearing for the petitioner also submits that an application under Order VIII Rule 10 CPC, 1908 for passing of the summary judgment was also filed by the petitioner.
7. It was only by way of the impugned order that the learned Trial court has permitted the written statement to be taken on record while dismissing the application under Order VIII Rule 10 CPC, 1908 filed by the petitioner/plaintiff.
8. Per contra, learned counsel appearing for the respondents/defendants submits that no doubt that the respondents were served on 05.04.2022 and 14.04.2022, however, no copy of the plaint was served simultaneously.
9. Learned counsel submits that on 19.04.2022 the request was made and the counsel for the petitioner had assured to supply a copy of plaint on the very same day. Learned counsel submits that the petitioner failed to furnish a copy of the plaint 19.04.2022 and furnished a copy of the plaint on 06.07.2022.
10. Learned counsel submits that the if time period is reckoned from 06.07.2022, the filing of the written statement is well within the period of 120 days outer limit as stipulated under order VIII Rule 1 CPC.
11. In rebuttal, learned counsel draws attention of this Court to page 59 which is the service report of the process server, who effected service upon Mr. Naresh Kumar, the director of the respondent, on 05.04.2022, to submit that there is a specific endorsement of having supplied a copy of the plaint along with the summons to the said Mr. Naresh Kumar. Thus, he submits the submission that plaint was supplied on 06.07.2022 for the first time is without any basis.
12. This Court has heard the rival submissions of the parties as well as considered the record and the impugned order.
13. It is an admitted case of the parties that the two directors of the respondents were served on 05.04.2022 and 14.04.2022 respectively.
14. The petitioner, despite assuring to supply a copy of the plaint on 19.04.2022, supplied it only on 06.07.2022. The time period so far as the respondent is concerned, in the submission of learned counsel for the respondents, commenced on 06.07.2022 and keeping in view that the said fact, the written statement ought to have been treated as filed on time.
15. This Court is unable to agree with the contention of the learned counsel appearing for the respondents for the following reasons:-
SCG Contractors (India) (P) Ltd. Vs. K.S. Chamankar Infrastructure (P) Ltd.
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 requirement for the defendant to file the written statement within the prescribed period, the consequences of failing to do so, and the applica....
The main legal point established in the judgment is the interpretation and application of the time period for filing pleadings as per the Commercial Courts Act, 2015, and the relevance of the judgmen....
Filing of a written statement in civil suits must adhere strictly to the timelines stipulated under the Code of Civil Procedure, with no allowance for delay beyond 120 days under the Commercial Court....
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