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IN THE HIGH COURT OF DELHI
Amit Bansal, J.
Deepayan Mohanty - Appellant
Versus
Cargill India Pvt. Ltd. - Respondent
CS(OS) 1157 of 2014
Decided On : 29-03-2022




The court granted condonation of delay for filing written statements based on extraordinary circumstances, emphasizing the impact of a Supreme Court stay and the COVID-19 pandemic on limitation periods.

Headnote:(A) Code of Civil Procedure, 1908 - Order XXXVII and Order V Rule 1, Order VIII Rule 1 - Condonation of delay in filing of written statements - The court ruled that filing written statements could only commence once the requisite deposit was made, and the limitation period was affected by a stay from the Supreme Court. The court acknowledged the impact of the COVID-19 pandemic, allowing the late filing of written statements when sufficient cause was demonstrated. (Paras 2, 9, 10, 11, 13)

(B) Limitation - Exclusion of period - The Supreme Court's orders regarding limitation exclusions were instrumental in determining the timeline for the defendants, affirming the court's discretion to condone delays under circumstances dictated by the COVID-19 situation.

Facts of the case:
The defendants sought condonation of delay in submitting their written statements following a suit for recovery of substantial amounts, which was initially decreed. They contended that delay was due to a stay order from the Supreme Court and pandemic restrictions.

Findings of Court:
The court directed the written statements to be taken on record, subject to the payment of costs.

Issues: The principal issues included the rightful count of limitation periods for filing and justifications for delay due to external circumstances.

Ratio Decidendi: The court emphasized that the requirement of depositing a sum as a precondition for filing was pivotal, and any delay caused by extraordinary circumstances, such as the pandemic, could merit condonation.

Result: Written statements allowed to be taken on record upon payment of costs.

Table of Content
1. application for condonation of delay (Para 1 , 2 , 3)
2. arguments on limitation and delay (Para 4 , 5 , 6)
3. court's observations on delay and discretion (Para 7 , 8 , 9 , 10 , 11 , 12)
4. final decision and order (Para 13 , 14 , 15)

JUDGMENT

Amit Bansal, J. (Oral)

I.A. No.3108/2021 (of the defendant no.1 u/O-V R-1, O-VIII R-1 & S.151 CPC), I.A. No.3112/2021 (of the defendant no.3 u/O-V R-1, O-VIII R-1 & S.151 CPC) and I.A. No.3116/2021 (of the defendant no.2 u/O-V R-1, O-VIII R-1 & S.151 CPC)

1. The present application has been filed on behalf of the defendants seeking condonation of delay in filing of their written statements.

2. The present summary suit has been filed under Order XXXVII of the Code of Civil Procedure, 1908 (CPC) seeking recovery of Rs.3,25,56,496/- along with future and pendente lite interest.

3. Vide judgment dated 3rd August, 2018, the Single Judge of this Court dismissed the application of the defendants for grant of leave to defend and the suit was decreed. The said judgment was challenged by the defendants before a Division Bench of this Court in RFA(OS) 72/2018, whereby vide judgment dated 9th December, 2019, the defendants were granted conditional leave to defend. The condition was for the defendants to deposit a sum of Rs.3,25,56,496/- within eight weeks from the said date. Before the expiry of the said period of eight weeks, the defendants filed a Special Leave Petition before the Supreme Court, being SLP(C) No.2553/2020, challenging the judgment dated 9th December, 2019 to the extent it required the deposit of the aforesaid amount by the defendants. The Supreme Court vide order dated 31st January, 2020, while issuing notice in the SLP, stayed the deposit of the aforesaid amount.

4. Based on the above, it is contended on behalf of the counsel for the defendants that the limitation period for filing the written statements would commence from 31st January, 2020, when the Supreme Court passed the aforesaid order. Therefore, the thirty days' period for filing the written statements would have expired on 1st March, 2020 and before the condonable period of further sixty days expired, the Supreme Court order dated 23rd March, 2020 passed in Suo Motu Writ Petition (Civil) No.3/2020 titled In re: Cognizance for Extension of Limitation, (SMW No.3/2020) came into effect, whereby it was observed that the period with effect from 15th March, 2020 has to be excluded for the purposes of counting limitation. It is submitted that the aforesaid order of the Supreme Court was further clarified in the order dated 8th March, 2021 to include within the ambit of the excluded period the outer limit within which a Tribunal or Court could condone delay.

5. It is submitted that the written statements could only have been filed by the defendants upon the depositing of the amount as ordered by the Division Bench and the written statements could not have been accepted by the Registry before the deposit of the aforesaid amount.

6. Counsel for the plaintiff vehemently opposes the present application on the ground that the Division Bench order did not give the defendants eight weeks' time to file the written statements. Time of eight weeks was only given to deposit the aforesaid amount. Therefore, there was no reason why the written statements could not be filed by the defendants before the aforesaid period. He further states that no valid reasons have been given by the defendants in their present applications for seeking condonation of delay in filing of the written statements. He further submits that if the period for filing the written statements has to be counted from 9th December, 2019, the condonable period stood expired before 15th March, 2020 i.e., prior to the date from which exclusion was ordered by the Supreme Court.

7. I have heard the counsels for the parties.

8. In view of the dismissal of the leave to defend applications by the Single Judge, no written statements could be filed on be

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