IMPORTANT POINT
The main legal point established in the judgment is that in commercial suits, the court does not have the power to condone the delay in filing the written statement beyond 120 days from the date of service of summons.

JUDGMENT

SHALINDER KAUR, J.

1. The present petition under Article 227 of the Constitution of India read with Section XIII (1A) of the Commercial Courts Act, 2015 (hereinafter "the Act") arises out of the order dated 30.08.2022 passed by the court of the learned District Judge, Commercial Court-03, Central District, New Delhi (hereinafter "Commercial Court") in CS(COMM) No.3614/2021 titled as "ICICI Bank Ltd vs Anirudh Chauhan" (hereinafter "Impugned Order"). Vide the impugned order, the learned Commercial Court allowed the application filed by the respondent/defendant seeking a condonation of delay in filing their written statement.

2. The facts relevant for the disposal of the present petition are that the respondent herein approached the petitioner bank, requesting a grant of a personal loan for the amount Rs. 10,00,000/- vide a credit facility application. Upon execution of the credit facility application, along with the terms and conditions for the loan agreement, the loan was granted to the respondent herein. As per the terms of agreement, the respondent agreed to repay the loan in 60 equated monthly instalments of Rs. 21,965.00/- each, with an interest rate of 11.50% per annum. The loan agreement was executed on 08.08.2019.

3. As per the loan account maintained by the petitioner till 31.07.2021, the respondent has paid an amount of Rs. 3,90,412.00/- towards the monthly equated instalments and had defaulted in the payment of Rs. 1,14,783.00/- along with late payment and cheque bouncing charges of Rs. 22,891.00/- amounting to Rs. 1,37,674/-. Other than this, the respondent is yet to pay the equated monthly instalment amount of Rs. 8,12,686/- as on 31.07.2021.

4. Owing to the defaults by the respondent, the petitioner, as per terms of the loan agreement, recalled the loan facility availed by the respondent vide notice dated 25.06.2021 and the respondent was asked to pay the total outstanding amount, failing which the credit facility extended to the respondent would be withdrawn and he would be liable to pay the total aggregate sum of Rs. 8,70,286/- within 07 days.

5. As the notice was not complied with by the respondent, the petitioner then proceeded to file a civil suit bearing CS(COMM) No.3614/2021 for the recovery of Rs. 8,64,111.00/- along with interest at the rate of 11.50% per annum. The suit along with an application under section 12(A) of the Act and an application under Order XXXVIII Rule 5 of the Code of Civil Procedure, 1908 (hereinafter "CPC") was listed before the learned District Judge (Commercial) on 25.09.2021, whereby the learned Commercial Court heard submission on both the applications. The application under section 12(A) of the Act was allowed and disposed of while on the application under Order XXXVIII Rule 5 of the CPC, notice was to be issued to the respondent. Thereafter, the respondent was directed to file written submissions within 30 days of service.

6. Summons were issued as per the order dated 25.09.2021. Thereafter, the matter was adjourned to 04.02.2022, however, due to the presiding officer being on leave, the matter was further adjourned to 08.04.2022. On 08.04.2022, both parties requested that the matter be sent to mediation. The mediation was to take place in the Mediation cell, Tis Hazari Courts on 19.04.2022. Thereafter, the matter was adjourned to 09.05.2022 for settlement and on 09.05.2022, the counsel for the respondent sought time to file written statement owing to which the matter was further adjourned to 06.07.2022.

7. The learned Commercial Court on 06.07.2022 dismissed the petitioner's application under Order XXXVIII Rule 5 of the CPC for attachment of property of respondent due to insufficiency of material on record. Further, the court directed the petitioner to file its reply to the application under Order VIII Rule 1 moved by the respondent along with affidavit of Admission/Denial and put up the matter for disposal on 30.08.2022.

8. Vide the impugned order, while allowing the responden