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IN THE HIGH COURT OF DELHI
Asha Menon, J.
Superior Aircon Pvt. Ltd. - Appellant
Versus
National Building Construction Corporation - Respondent
CM (M) 335 of 2021 & CM Appl. 14646 of 2021 (of petitioner u of S 151 CPC for stay)
Decided On : 27-09-2021




A delayed written statement may be accepted if condoned by the court; however, errors in earlier decisions cannot be challenged without timely objection.

Headnote:(A) Constitution of India - Article 227 - Commercial Courts Act, 2015 - Order VIII Rule 1 of CPC - Delay in filing written statement - The petitioner contended that the respondent's written statement filed beyond the 30-day limit could not be accepted without a condonation application, raising jurisdiction issues - The Court emphasized that an erroneous decision does not act as res judicata if challenged in time. (Paras 3, 4, 8)

(B) Res Judicata - The learned Commercial Court's decision regarding the condonation of delay and acceptance of the written statement was not erroneous and could not be re-agitated after compliance - The petitioner's late challenge was dismissed for lack of merit, emphasizing the need for timely objections. (Paras 5, 10)

Facts of the case:
The petition arose from the Commercial Court's allowance of a delayed written statement without prior application for condonation, resulting in an appeal on jurisdiction grounds.

Findings of Court:
The petition was dismissed with no error found in the lower court's allowance for the delay.

Issues: The main issues were whether the court's acceptance of a delayed written statement was valid, and if subsequent decisions could unsettle earlier competent court orders.

Ratio Decidendi: The court ruled that previous orders could not be unsettle by new decisions; jurisdiction must be properly claimed from the start.

Result: Petition dismissed.

Table of Content
1. petition filed under article 227 challenging court orders. (Para 1 , 2)
2. argued delay in filing written statement without prior condonation. (Para 3 , 4)
3. respondent's argument refuting applicability of cited judgments. (Para 5 , 6)
4. court notes no error in the dismissal of delay re-agitation. (Para 7 , 8)
5. subsequent decisions do not unsettle prior competent rulings. (Para 9 , 10)
6. petition dismissed, judgment to be uploaded. (Para 11)

JUDGMENT

Asha Menon, J. The petition has been filed under Article 227 of the Constitution of India against the order dated 22nd May, 2019 and the order dated 16th January, 2021 passed by the learned Commercial Court, South-East District, Saket.

2. The grievance of the petitioner is that the respondent though had been served with the summons in the suit on 16th July, 2019, failed to file the written statement within thirty days of the receipt of the summons, which fact was recorded by the learned Commercial Court in its order dated 12th September, 2018. A written statement was filed on 15th November, 2018, which was the 120th day from the date of receipt of the summons.

3. According to Ms. Amrita Sarkar, learned counsel for the petitioner this filing was incomplete filing since without the leave of the Court, a delayed written statement could not be filed and the respondent had not filed such an application for condonation of delay, while filing the written statement. The application for condonation of delay was filed only on 31st January, 2019. Learned counsel submits that the learned Trial Court on 22nd May, 2019 allowed the application for condonation of delay as a "procedural omission" but imposed costs of Rs.9,000/-. Subsequently, on 11th September, 2020, the petitioner sought striking off the written statement on the ground that the same had been filed beyond the mandate of law as prescribed under the Commercial Courts Act, 2015.

4. Relying on the judgment of the Supreme Court in SCG Contracts (India) Pvt. Ltd. Vs. K.S. Chamankar Infrastructure Pvt. Ltd. (2019) 12 SCC 210 and the judgment dated 15th January, 2020 of a Co-ordinate Bench of this Court in CS(COMM) 140/2019 titled Friends Motel Vs. Shreeved Consultancy LLP, it was submitted that in the absence of an application seeking condonation of delay, the written statement could not be taken on record, particularly after a lapse of 120 days from the date of receipt of summons. It was further submitted that questions relating to the jurisdiction of the Court remain open and a jurisdiction cannot be conferred by parties through their consent. It was also submitted that such a decision of a Court without powers/jurisdiction, could not be said to be final. Thus, the learned counsel submitted that the initial order dated 22nd May, 2019 being erroneous though complied with, would not act as res judicata. It was submitted that therefore, when an application under Order VIII Rule 1 of the Code of Civil Procedure, 1908 (CPC) was moved by the petitioner for striking off the written statement from the record, the learned Commercial Court ought to have allowed that application instead of holding that when the delay had been condoned vide order dated 22nd May, 2019, the question of delay could not be re-agitated by means of the application under Order VIII Rule 1 CPC. What was an erroneous decision, according to the learned counsel could not prevail and the learned Commercial Court, in the light of the cited case law, particularly Friends Motel supra, ought to have taken off the written statement from the record.

5. Mr. Kartik Nagarkatti, learned counsel for the respondent submitted that the judgment of this Court in Friends Motel (supra) was not applicable, as in that case no application had been filed at all, whereas in the instant case, it was on the permission granted by the Joint Registrar of this Court that the application was filed, seeking condonation of delay. Thereafter, the suit was transferred to the Commercia

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