IN THE HIGH COURT OF DELHI
Amit Bansal, J.
Rachna Overseas - Appellant
Versus
MS Printech System - Respondent
CM(M) 1096 of 2021 & CM No. 43076 of 2021 (for stay)
Decided On : 09-12-2021
JUDGMENT
Amit Bansal, J. (Oral)--The present petition under Article 227 of the Constitution of India impugns the order dated 11th October, 2021 passed by the Commercial Court South East, Saket Court, Delhi in CS(Comm.) No. 219/2019, whereby the application filed on behalf of the petitioner (hereinafter defendant) under Section 151 of the Code of Civil Procedure, (CPC), 1908, seeking to file statement of truth in support of written statement, has been dismissed and the written statement filed by the defendant has been taken off the record.
2. The facts leading to the filing of the present petition are as follows:
2.1 The respondent (hereinafter plaintiff) is in the business of supplying printing plates and chemicals.
2.2 The plaintiff had supplied materials to the defendant to the tune of Rs. 2,56,61,744/- against which a part payment of Rs. 2,44,76,921/- was made by the defendant and an outstanding amount of Rs. 11,84,823/- was due to be paid by the defendant to the plaintiff.
2.3 The defendant issued 2 cheques dated 8th August 2018 and 1st September, 2018 in the amount of Rs. 2,00,000/- and Rs. 84,249/- respectively in favour of the plaintiff.
2.4 The aforesaid cheques when presented to the bank by the plaintiff, were dishonoured with remarks "stop payment" and "accounts closed".
2.5 On 5th August 2019, commercial suit for recovery of Rs. 11,84,823/- along with interest pendente lite and future interests was filed by the plaintiff against the defendants.
2.6 Summons were issued and were served upon the defendant on 11th September, 2019.
2.7 The defendant filed written statement on 23rd November, 2019, beyond the period of thirty days from the service of the summons.
2.8 The written statement filed on behalf of the defendant was objected by the plaintiff on the ground that the same is not accompanied with an application under Order VIII Rule 1 of the CPC seeking condonation of delay and was filed without statement of truth.
2.9 The Commercial Court vide order dated 23rd November, 2019, granted two weeks' time to the defendant to file appropriate applications along with supporting documents in accordance with the Commercial Courts Act, 2015 and a cost of Rs. 2,000/- was also imposed on the defendant for the discrepancies in the written statement on account of which pleadings could not be completed.
2.10 The defendant filed an application under Section 151 of the CPC on 24th September, 2021 seeking to file statement of truth in support of the written statement.
3. The Commercial Court vide the impugned order dismissed the aforesaid application filed on behalf of the defendant by holding/observing:
(i) The defendant upon request was granted two weeks' time to rectify the deficiency in filing the written statement. The said deficiency has not been rectified within the period allowed by the Commercial Court.
(ii) Till date application under Order VIII Rule 1 of the CPC seeking condonation of delay in filing the written statement has not been filed despite permission given by the Commercial Court on 23rd November, 2019 to file the same within two weeks;
(iii) In terms of the judgment of this Court in Ok Play India Pvt. Ltd. vs. A P Distributors and Anr. 2021, SCC OnLine Del 4043, written statement which is filed beyond the period of 30 days in a commercial suit, can only be taken on record, if it is accompanied by an application under Order VIII Rule 1 of the CPC for condonation of delay within the maximum permissible period of 120 days.
4. The counsel for the defendant contends that, there is no requirement under Order VIII Rule 1 of the CPC of filing an application for condonation of delay. He further states that technicalities should not come in the way of substantial justice and accordingly, he may be allowed to put his defence on merits.
5. Reliance has been placed by the counsel for the defendant on the following judgments:
(i) Ganesh Trading Co. vs. Moji Ram, (1978) 2 SCC 91;
(ii) Jai Jai Ram Manohar Lal vs.
In commercial suits, a written statement filed beyond 30 days without a condonation application may not be accepted, emphasizing strict adherence to procedural timelines.
Delay in filing a written statement can be condoned when within the overall condonable limits, prioritizing justice over technicalities.
A written statement filed beyond the statutory period requires a timely condonation application, and failure to provide sufficient grounds renders it inadmissible.
Point of Law : provisions of the Commercial Courts Act, 2015 have to be strictly construed and if the provisions are given liberal interpretation, the object behind the enactment, of speedy disposal,....
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 s....
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.
A delayed written statement may be accepted if condoned by the court; however, errors in earlier decisions cannot be challenged without timely objection.
The Commercial Courts Act brings about a substantial change in the provisions relating to the period of filing of the written statement and the power of the Court to condone the delay in filing of th....
The interpretation of procedural rules regarding the filing of written statements and the discretion of the court to permit filing beyond the stipulated period based on sufficient cause.
Timeliness in filing written statements is crucial; any delay beyond prescribed limits without an accompanying application for condonation is impermissible.
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