IN THE HIGH COURT OF DELHI AT NEW DELHI
Tushar Rao Gedela, J.
Wisdom Pet Shop – Appellant
Versus
Gnv Commodities Pvt. Ltd. – Respondent
CM(M) 683 of 2023
Decided On : 28-04-2023
Costs - Extension of Time for Filing Written Statement - Summary
Fact of the Case:
The petitioner challenged the imposition of costs by the Trial Court and the First Appellate Court, citing financial incapacity due to the pandemic and seeking extension of time for filing the written statement.
Finding of the Court:
The Court referred to previous judgments granting extension of time for filing written statements in civil suits and held that delay may be condoned with reasonable compensatory costs to ensure litigation on merits rather than technicalities. The costs were reduced from Rs. 20,000 to Rs. 10,000, with specific directions for payment and filing of receipts.
Issues: Challenge to Imposition of Costs, Financial Incapacity, Extension of Time for Filing Written Statement
Ratio Decidendi: Delay in filing written statements in civil suits may be condoned with reasonable compensatory costs to promote litigation on merits rather than technicalities.
Final Decision: The petition and pending application were disposed of, with the costs reduced to Rs. 10,000 and specific directions for payment and filing of receipts.
JUDGMENT
Tushar Rao Gedela, J. (Oral)
[The proceeding has been conducted through Hybrid mode]
CM APP No. 21321/2023 (for exemption)
1. Exemption is allowed, subject to all just exceptions.
2. Application stands disposed of.
CM(M) 683/2023 & CM APP No. 21320/2023 (for stay)
3. Petitioner challenges the order dated 10.01.2023 in CS SCJ 130/21 titled as "GNV Commodities Pvt. Ltd. vs. Wisdom Pet Shop", whereby the learned Trial Court had imposed a cost of Rs. 15,000/-, out of which Rs. 5,000/- was to be deposited with the DLSA, South East and Rs. 10,000/- was to be paid to the respondent/plaintiff.
4. The petitioner challenged the same by an appeal bearing MCA DJ No. 7/23 titled as "Wisdom Pet Shop vs. GNV Commodities Pvt. Ltd." whereby vide the impugned order 13.04.2023, the learned First Appellate Court imposed a further amount of Rs. 5,000/- as costs apart from the costs of Rs. 15,000/- that was to be paid under the orders of the learned Trial Court.
5. Mr. Aggarwal, learned counsel appearing for the petitioner submits that after the pandemic, the business of the petitioner was in dole-drums and the petitioner is incapacitated to pay such high amount.
6. Learned counsel submits that this Court as well the Supreme Court in a catena of judgments have granted extension of time for the purpose of filing the written statement in ordinary civil suits and thus on that basis prays that the costs of Rs. 15,000/- as well as Rs. 5,000/- additionally as imposed by the First Appellate Court, may be set aside.
7. This Court as also the Division Bench of this Court in Jamaluddin vs. Nawabuddin & Ors. Neutral Citation Number - 2023/DHC/001211 as also the Hon'ble Supreme Court in Bharat Kalra vs. Raj Kishan Chabra, reported as 2022 SCC Online SC 613, have categorically held that delay in filing of written statements, so far as ordinary civil suits cases are concerned, the same may be condoned and the written statement taken on record, subject however to some reasonable compensatory costs.
8. It goes without saying that the rationale behind the judgments obviously was that the parties should litigate on merits rather than on technicalities.
9. In view of the fact that the other side needs to be compensated for such delay, this Court is of the considered opinion that it would be in the interest of justice to reduce the costs of Rs. 20,000/- to Rs. 10,000/-, out of which the petitioner is directed to pay Rs. 5000/- to the DLSA, South East District and balance Rs. 5,000/- to respondent/plaintiff on or before 20.05.2023 against a proper receipt. The receipt be filed before the learned Trial Court under a proper index.
10. Upon such deposit and valid receipt shown against such costs having been paid, the learned Trial Court shall take the written statement, on record and proceed in accordance with law.
11. In view of the aforesaid, the present petition along with pending application is disposed of.
Delay in filing written statements in civil suits may be condoned with reasonable compensatory costs to promote litigation on merits rather than technicalities.
The court affirmed the principle that discretionary orders regarding costs by lower courts should not be interfered with unless shown to be excessive or unjust.
The court emphasizes the importance of imposing costs to ensure fairness in civil proceedings, modifying previous orders to enhance justice.
The procedure is a handmaid to justice, and the court may permit the parties to file the written statement on compensatory costs, as held in relevant judgments and based on the provisions of the Code....
The quality of the cause shown to explain the delay is the main consideration for condonation of delay, and undue emphasis on the length of the delay should be avoided.
In ordinary civil suits, the merits of the case should be considered and technicalities should not come in the way of the parties. Delay in filing written statements can be compensated with costs.
The central legal point established in the judgment is the justification for condoning delay in filing written statements under Order 8 Rule 1 of CPC, 1908, and the need to resolve disputes on merits....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.