IN THE HIGH COURT OF DELHI AT NEW DELHI
Tushar Rao Gedela, J.
M/s Wave – Appellant
Versus
M/s Ddex – Respondent
CM(M) 836 of 2023 & CM APPL. 26211 of 2023 (Stay)
Decided On : 18-05-2023
Reopening - Written Statement - The court dismissed the application seeking reopening of the right to file a written statement in a suit filed under the Commercial Courts Act, 2015, emphasizing the strict application of time lines specified in the Act and the failure of the petitioner to demonstrate taking appropriate steps to safeguard its interest.
Fact of the Case:
The petitioner challenges the order dismissing the application seeking reopening of the right to file a written statement in a suit filed under the Commercial Courts Act, 2015.
Finding of the Court:
The court found that the petitioner failed to demonstrate taking appropriate steps to safeguard its interest and did not avail of the opportunity provided by the Supreme Court for completion of pleadings.
Issues: The issues revolved around the service of summons, the starting point for filing a written statement, and the petitioner's failure to demonstrate taking effective steps to file the written statement.
Ratio Decidendi: The court emphasized the strict application of time lines specified in the Commercial Courts Act, 2015 and the failure of the petitioner to demonstrate taking appropriate steps to safeguard its interest.
Final Decision: The petition was dismissed with no order as to costs.
JUDGMENT
Tushar Rao Gedela, J. (Oral)
[The proceeding has been conducted through Hybrid mode]
1. The petitioner challenges the order dated 16.02.2023 in CS DJ No. 1540/2018 titled M/s. DDEX, A proprietorship Firm Through Deepak Dhawan Vs. M/s. Wave Through Its Proprietor Kumar Chugani whereby the application seeking reopening of the right to file a written statement in a suit filed under the Commercial Courts Act, 2015 was dismissed.
2. Learned counsel appearing for the petitioner submits that though the petitioner was served in the month of July, 2021, however, no copy of the suit or documents appended thereto were served upon the defendant.
3. Learned counsel submits that on 16.08.2021, learned counsel on behalf of the petitioner had appeared, however, due to the disturbance on the video conferencing facilities, could not appropriately address the Court. Learned counsel submits that thereafter on 30.09.2021 till 05.08.2022 learned erstwhile Presiding Officer had superannuated and no new Judicial Officer was appointed to the particular court till 05.08.2022.
4. Learned counsel submits that even on 05.08.2022, learned Presiding Officer was on leave. Learned counsel further submits that it was only on 07.09.2022 when the matter was taken up and in the absence of learned counsel for the petitioner, the learned Trial Court has passed the impugned order closing the right to file the written statement.
5. Learned counsel submits that the absence of learned counsel for the petitioner on 07.09.2022 was purely for the reason that there was a bereavement in the family of the counsel.
6. Learned counsel further submits that the learned Trial Court did not consider any of the aforesaid submissions while passing the impugned order.
7. Learned counsel vehemently submits that till date, the copy of the suit along with its annexures have not been supplied and therefore, the petitioner was unable to file its written statement. Learned counsel also relies upon the judgment of Rajesh Kathpal Vs. M/s. Shubh Steel passed by this Court on 12.10.2022 in CM (M) 991/2022 Neutral Citation No. 2022: DHC:4247 to submit that this Court had held that service of the summons in a suit, in order to constitute a starting point for the time available for filing of written statement, has to be read as meaningful service and unless the service of the summons to a particular suit, the plaint alongwith the documents is furnished, such service is incomplete for such purposes.
8. Basing thereon, learned counsel submits that the starting point of written statement has not even commenced in this case.
9. This Court has considered the submissions of learned counsel appearing for the petitioner and perused the impugned order as also the judgment relied upon by the petitioner.
10. Though the petitioner has candidly submitted that the service was effected in July, 2021, however, this Court is aware that at least uptill 28.02.2022, the petitioner was under the umbrella of the judgment of the Supreme Court in `Suo Moto Writ Petition (C) No.3/2020 `In Re: Cognizance for Extension of Limitation' which had granted amnesty from the application of limitation to the period. Thereafter, with effect from 01.03.2022, 90 days were further provided by the Supreme Court, for completion of pleadings. It is not disputed that the petitioner did not avail of the aforesaid opportunity even uptill the expiry of 90 days period as granted by the Supreme Court with effect from 01.03.2022.
11. That apart, learned counsel appearing for the petitioner has not been able to show even a single letter or notice or even an application under Section 151 CPC or any provision of CPC, 1908 issued to the respondent/plaintiff or its counsel or even to the learned Trial Court to demonstrate that the petitioner/defendant had in fact taken all effective steps to file the written statement. Not only that the petitioner had failed to demonstrate any such steps being taken even uptill 30.05.2022, it had f
Strict application of time lines specified in the Commercial Courts Act, 2015 and the requirement for the petitioner to demonstrate taking appropriate steps to safeguard its interest.
Cases should be considered and disposed of on merits rather than technicalities.
The central legal point established in the judgment is the discretion of the courts to permit defendants to file their written statements and the need to decide suits on merits rather than technicali....
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 court ruled that a party's right to file a written statement should not be denied due to delay, provided costs are imposed, emphasizing the importance of a fair trial.
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.
The main legal point established is that the right to file a written statement in a civil suit may extend beyond the prescribed period, as supported by the Code of Civil Procedure, 1908 and relevant ....
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