IN THE HIGH COURT OF DELHI AT NEW DELHI
TUSHAR RAO GEDELA, J.
Nayak Sanitation Pvt. Ltd. – Appellant
Versus
Anil Kumar Singh - Respondent.
CM(M) 611 of 2023
Decided on : 19-04-2023
CIVIL PROCEDURE CODE - Commercial Courts Act, 2015 - Order IX Rule 7, Order VIII Rule 1 - The court allowed exemption from filing certified copies of annexures/documents. The petitioner challenged an order under Order IX Rule 7 of the CPC, and the court found that the learned Trial Court had committed an error by not setting aside the ex parte proceedings. The court set aside the order and directed the petitioner to pay costs to the respondent.
Fact of the Case:
The petitioner challenged an order under Order IX Rule 7 of the Civil Procedure Code, 1908, and the court found that the learned Trial Court had committed an error by not setting aside the ex parte proceedings.
Finding of the Court:
The court found that the learned Trial Court had committed an error by not setting aside the ex parte proceedings and closing the right to file the written statement.
Issues: The issues revolved around the application under Order IX Rule 7 of the CPC, the ex parte proceedings, and the right to file the written statement.
Ratio Decidendi: The court held that the learned Trial Court had committed an error by not setting aside the ex parte proceedings and closing the right to file the written statement, and therefore set aside the order.
Final Decision: The court set aside the order dated 13.02.2023 and the order dated 10.01.2023 to the extent whereby the petitioner was proceeded ex parte, along with the order closing the right to file its written statement. The petitioner was directed to pay costs to the respondent before the next date of hearing against a proper receipt.
JUDGMENT :
Tushar Rao Gedela, J. (Oral):—
CM APPL. 18655/2023 (Exemption)
1. This is an application seeking exemption from filing certified copies of the annexures/documents.
2. Exemption is allowed, subject to all just exceptions.
3. The application stands disposed of.
CM(M) 611/2023 & CM APPL. 18912/2023 (Stay)
4. The petitioner challenges the order dated 13.02.2023. passed in CS (Comm) No. 554/2022 titled Anil Kumar Singh v. Nayak Sanitation Private Limited, whereby the application under Order IX Rule 7 of the Civil Procedure Code, 1908 (hereinafter “CPC”) filed on behalf of the petitioner/defendant was dismissed.
5. Mr. Sameer Dewan, learned counsel appearing for the petitioner fairly submits that though the learned Trial Court has correctly held that the summons were sought to be served upon the petitioner on 21.11.2022., which was refused by the employee of the petitioner, the refusal will be taken as service.
6. Learned counsel further submits that at the time of engagement of the counsel, the party had informed that the next date of hearing was 10.01.2023., however, which was entered in his diary as 11.01.2023. erroneously. Learned counsel however submits that when the counsel checked up the status of case on the evening of 10.01.2023., he found that the matter was already listed and petitioner proceeded exparte.
7. Learned counsel submits that an application under Order IX Rule 7 CPC seeking setting aside of the ex parte proceedings was sought to be filed immediately on 11.01.2023., however, the filing procedure being by way of e-portal, learned counsel had to first serve advance copy to the respondent and thereafter alone it could be accepted through the e-portal.
8. Learned counsel submits that the finally the application was served upon the respondent on 11.01.2023. and brought on record of the learned Trial Court on 13.01.2023. Learned counsel submits that these facts were mentioned in the application under Order IX Rule 7 CPC, however, were not considered by the learned Trial Court.
9. Learned counsel submits that the order dated 10.01.2023., whereby the petitioner was proceeded ex parte had also a drastic effect to the extent that the learned Trial Court had also closed the right to file the written statement simultaneously.
10. Learned counsel submits that the impugned order as well as the order dated 10.01.2023. now precludes the petitioner from raising his defence before the learned Trial Court and therefore, this Court ought to interfere under the Supervisory jurisdiction under Article 227 of the Constitution of India.
11. Per Contra, Mr. Prakash Kumar Singh, learned counsel appearing for the respondent/plaintiff invites attention of this Court to page 32 of the impugned order to submit that the learned Trial Court had considered the submissions made on behalf of the petitioner in detail and after appreciating the conduct of the party and the manner in which the party had not taken action even after having been served, the learned Trial Court was constrained, in such circumstances, to pass the order dated 10.01.2023. and there was no legal impediment in dismissing the application under Order IX Rule 7 CPC filed on behalf of the petitioner.
12. Learned counsel submits that this suit is filed under the Commercial Courts Act, 2015 and therefore the timelines are strictly to be adhered to. On that basis, learned counsel submits that the impugned order is sustainable in law and does not warrant any interference at all.
13. This Court has considered the rival submissions, the impugned order dated 13.02.2023. as also the order dated 10.01.2023. when the learned Trial Court proceeded the petitioner/defendant ex parte as also closed the right to file the written statement.
14. At the outset it has to be mentioned that this suit has been filed under Commercial Courts Act, 2015 and yet the fact still remains that the procedures are handmaid of justice and wherever the party has been precluded from exercising its rights to file its defe
The court emphasized the importance of adhering to procedural timelines and the rights conferred upon the parties under the Commercial Courts Act, 2015 and the Civil Procedure Code.
Each defendant in civil proceedings must fulfill their obligation independently. Persistent negligence cannot justify setting aside an ex parte order.
Extension of limitation period and effective service date for filing written statement under the Commercial Courts Act, 2015.
The non-filing of the written statement within the stipulated time could not be a ground for striking off the defence, considering the judgments exempting the limitation for filing pleadings.
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....
No limitation under Article 137 for Order IX Rule 7 CPC; ex parte parties may participate in ongoing proceedings if good cause shown.
Article 137 Limitation Act applies to Order IX Rule 7 CPC applications; over five-year unexplained delay despite prior knowledge of suit bars setting aside ex parte proceedings on grounds of laches a....
Defendants forfeiting their right to defend due to late filing may still retain the right to cross-examine witnesses, ensuring fairness in proceedings.
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