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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Sudhakar Singh - Appellant
Versus
Webkul Software Pvt. Ltd. - Respondent
CM(M) 50 of 2020 and CM Appl. 2249 of 2020, 2250 of 2020
Decided On : 28-01-2020




The affidavit of admission/denial is not mandatory for commercial disputes under the Commercial Courts Act, as per the summons issued by district courts.

Headnote:(A) Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 - Order VIII CPC - The court set aside the striking off of defendants' defense due to the failure to file an affidavit of admission/denial, finding that such an affidavit is not compulsory per the Commercial Courts Act. The written statement was acknowledged as timely, but the requirement for an affidavit stems from the Delhi High Court Rules, not applicable in this case. (Paras 4, 5)

(B) The court emphasized the need for clarity regarding court summons and the requirements for commercial disputes to ensure fairness and compliance. The order directed the defendants to file the necessary documents within a specified time frame. (Paras 1, 5)

Facts of the case:
The defendants' defense was struck off due to an alleged failure to comply with procedural requirements regarding the filing of written statements and accompanying documents. The defendants argued that the summons did not request affidavits of admission/denial.

Findings of Court:
The court determined the earlier order striking off defense as incorrect due to procedural misapplication of requirements. The court emphasized that proper summons and awareness of rules must be ensured for fairness in commercial litigation.

Issues: Whether the striking off of the defendants' defense was justified due to the non-filing of affidavit of admission/denial and whether such a requirement is compulsory in this context.

Ratio Decidendi: The court ruled that under the Commercial Courts Act, the affidavit of admission/denial was not a mandatory requirement for the filing of the written statement in this case, contrary to the lower court's conclusion.

Result: The petition was disposed of with directions for the defendants to file the affidavit within two weeks and for the earlier defense to be taken on record.

Table of Content
1. defendants' defense struck off for procedural non-compliance. (Para 1)
2. defendants argue summons inadequately required affidavits. (Para 2)
3. court highlights deficiencies in affidavit requirements. (Para 3 , 5)
4. rejection of defense based on affidavit deficiencies incorrect. (Para 4)
5. order for legal process amendments. (Para 6)

JUDGMENT

Prathiba M. Singh, J. (Oral)--The present petition impugns order dated 14th August, 2019 by which the defence of the Defendants/Petitioners (hereinafter, "Defendants") has been struck off by the ld. ADJ. The said order reads as under:

    "Application u/S. 151 CPC alongwith Court fees was filed by plaintiff on 01.04.2019. As the Court fees has been filed in compliance of Order dated 16.03.2019, application is allowed and Court fees is taken on record.

    Written statement was filed by defendants on 07.06.2019 alongwith application seeking condonation of delay. Copy stated to be supplied. Submissions heard on the application. It is argued by Ld. Counsel for defendants that the issue in the present dispute pertains to functioning of computers, especially software and coding which require specialised/technical understanding as well as research on copyright issues. Hence, there has been a slight delay in the filing of the written statement which is bona fide and hence application may be allowed and written statement may be taken on record.

    In rebuttal, counsel for plaintiff has argued that the defendants have failed to disclose the date of service.

    Further, the reason advanced is not cogent as paucity of knowledge of law or technical issues is no ground to seek condonation of delay. Even otherwise, the written statement as filed cannot be taken on record for want of affidavit of admission/denial.

    I have given careful consideration to the submissions advanced in the light of judicial record.

    At the outset, summons were not received back either served or unserved through ordinary process and hence it is not possible to make any observations as to the date of service of summons. Further, the defendants have also failed to disclose on affidavit as to in what manner/by which mode, they were served. Be that as it may, as the PF was filed on 18.03.2019, the defendants are deemed to be served within week of the issuance of summons i.e. on or before 25.03.2019. Further, the written statement has been filed on 07.06.2019. As per the Commercial Courts Act, period of 120 days has been prescribed for filing written statement, hence, WS is within prescribed period of limitation. However, the Act also prescribes that written statement must be mandatorily accompanied with affidavit of admission/denial of documents if any, annexed with the plaint. The defendants have failed to comply with the aforesaid mandatory requirement. More than 120 days have elapsed since service of the summons.

    Accordingly, application seeking condonation of delay is dismissed as written statement though filed in the prescribed period of limitation is not accompanied with affidavit of admission/denial and mandatory period of 120 days has already elapsed. Accordingly, defence of defendants is struck off.

    Matter now be listed for plaintiff evidence on 23.10.2019."

2. Ld. counsel for the Defendants submits that neither the summons which were issued to the Defendants called for affidavit of admission/denial to be filed, nor was there an order to the said effect. He submits that the written statement was filed within the 120 days' period, but the defence has been struck off on the ground that the affidavit of admission/denial has not been filed.

3. A perusal of the various orders passed by the Trial Court shows that summons were issued in the suit on 23rd February, 2019. The Plaintiff initially did not take steps to serve the Defendants and fresh summons were issued on 16th March, 2019. Thereafter, on 1st May, 2019, the Defendants were directed to file their written statement along with an affidavit disclosing the date of ser

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