IN THE HIGH COURT OF DELHI AT NEW DELHI
Tushar Rao Gedela, J.
Mukesh Kumar – Appellant
Versus
M/s. Mother Dairy Fruit Vegetable Pvt. Ltd. – Respondent
CM(M) 1370 of 2022
Decided On : 14-02-2023
Commercial Courts Act - Forfeiture of right to file written statement - Order VIII Rule 1 CPC, 1908 - SCG Contracts (India) Private Ltd. Vs. K. S. Chamankar Infrastructure Private Ltd. and Others, (2019) 12 SCC 210
Fact of the Case:
The petitioner challenges the order forfeiting the right to file a written statement due to failure to do so within the stipulated period, citing medical reasons for the delay.
Finding of the Court:
The court found that the time provided under Order VIII Rule 1 CPC, 1908 as amended by the Commercial Court's Act, 2015 is mandatory and no leverage can be given to the defaulting party. The medical records showed that the hospitalization due to the heart ailment was within the original 30 days period as provided under the Act, but no explanation was provided for the non-filing of the written statement for the rest of the period.
Issues: Forfeiture of right to file written statement, compliance with time stipulations under the Commercial Courts Act, 2015
Ratio Decidendi: The court held that the time stipulations under the Commercial Courts Act, 2015 are mandatory and no leverage can be given to the defaulting party. Lack of a bona fide explanation for not filing the written statement within the stipulated period led to the dismissal of the petition.
Final Decision: The petition is dismissed with no order as to costs.
JUDGMENT
Tushar Rao Gedela, J. (Oral)
[The proceeding has been conducted through Hybrid mode]
CM APPL. 52869/2022 & CM APPL. 52870/2022 (Exemption)
1. Exemption allowed subject to all just exceptions.
2. Applications stand disposed of.
CM(M) 1370/2022 & CM APPL. 52868/2022 (Stay)
3. With the consent of the parties, the present petition is taken up for final disposal.
4. The petitioner challenges the order dated 26.09.2022 in CS DJ No. 163/2019 titled "M/s. Mother Dairy Fruit and Vegetable Pvt. Ltd. Vs. Mukesh Kumar" whereby the learned Trial Court has forfeited the right of the petitioner/defendant to file its written statement on the basis that the stipulated period of 120 days from the date of service were already over as prescribed by the Commercial Courts Act, 2015 amending the Code of Civil Procedure, 1908.
5. Mr. Pandey, learned counsel appearing for the petitioner submits that the only ground on which the petitioner could not file the written statement was that the petitioner/defendant was a heart patient who had suffered a heart attack and is still under treatment and for that reason he was unable to give instructions to the advocate to file written statement on his behalf.
6. Mr. Pandey, learned counsel appearing for petitioner had filed certain medical documents along with the petition which this Court found to be deficient to explain the delay. Mr. Pandey, learned counsel appearing for the petitioner has handed over the Bench certain more medical documents purported to have been issued by the hospital where the petitioner is stated to have taken treatment in respect of his heart ailment.
7. On a perusal of the medical report including the discharge summary issued by the Moolchand hospital, it is revealed that the petitioner was admitted on 29.05.2022 and was discharged on 03.06.2022. The other medical documents which have been handed over are the prescriptions pertaining to the subsequent period right uptill 28.01.2023. On the aforesaid basis, Mr. Pandey, learned counsel appearing for the petitioner submits that petitioner may be granted one more opportunity to file his written statement which has been closed vide the impugned order.
8. Mr. Pramod Kumar, learned counsel appearing for the respondent/plaintiff supports the reasons stated in the impugned order and submits that even after the passage of 120 days, the petitioner has not filed the written statement till today though he was stated to have been served on 12.05.2022.
9. Mr. Kumar, learned counsel appearing for the respondent submits that this is a commercial suit, and in terms of the judgment of the Hon'ble Supreme Court in SCG Contracts (India) Private Ltd. Vs. K. S. Chamankar Infrastructure Private Ltd. and Others, (2019) 12 SCC 210, there is no way that the petitioner can be now permitted to file his written statement.
10. This Court has considered the aforesaid submissions made on behalf of the parties and perused the impugned order and the medical documents as filed and as handed over the Bench today by Mr. Pandey.
11. It is not disputed by petitioner that the petitioner was served with summons on 12.05.2022 and the 30 days period as stipulated under Commercial Courts Act, 2015 amending the Code of Civil Procedure, 1908 would expire on 11.06.2022. Admittedly, no written statement was filed within the aforesaid 30 days. The 90 days extension period subsequent to 30 days period, which is stipulated in the Order VIII Rule 1 CPC, 1908 as amended by the Commercial Courts Act, 2018 would have expired on 11.09.2022. It is also an undisputed fact that the petitioner/defendant did not file his written statement even within the extended period upto 11.09.2022.
12. It is only upon such failure of the petitioner to file his written statement within the stipulated period, that the impugned order was passed on 26.09.2022 forfeiting the right of the petitioner from filing his written statement.
13. This Court has perused the judgment of Hon'ble Supreme Court
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.
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 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 judgment emphasized the mandatory nature of the provisions of the Commercial Courts Act regarding the time period for filing a written statement in Commercial Suits, and the consequences of faili....
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 Court highlighted the strict adherence to statutory timelines under the Commercial Courts Act for filing written statements, referencing precedent that restricts granting extensions.
Cases should be considered and disposed of on merits rather than technicalities, and the delay in filing the written statement should not prevent the defendant from entitlement to file it.
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