IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Classico Brands (India) Pvt. Ltd. - Appellant
Versus
MIS Stella Industries Limited - Respondent
CM(M) 946 of 2022 & CM Appl. 40086 of 2022, CM Appl. 40087 of 2022 and CM Appl. 40088 of 2022
Decided On : 12-09-2022
| Table of Content |
|---|
| 1. service of summons and written statement timelines. (Para 1) |
| 2. cpc rules on written statement filing periods. (Para 2 , 3 , 4) |
| 3. court's rejection of recall application and implications of delay. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11) |
| 4. case remanded for reconsideration of filing date. (Para 12 , 13) |
| 5. conclusion and final orders. (Para 14) |
JUDGMENT
1. CS (Comm) 89/21 was filed by the respondent against the petitioner under the Code of Civil Procedure, 1908 (CPC) as amended by the Commercial Courts Act, 2015. Learned Counsel are ad idem that summons in the suit were served on the petitioner on 16th February 2022.
2. Oder VIII Rule 1 of the CPC stipulates 30 days from the date of service of summons as the time within which written statement may be filed in response to the suit. The proviso to Order VIII Rule 1 of the CPC, as substituted by the Commercial Courts Act, reads as under:
"Provided that where the defendant fails to file the written statement within the said period of thirty days, he shall be allowed to file the written statement on such other day, as may be specified by the Court, for reasons to be recorded in writing and on payment of such costs as the Court deems fit, but which shall not be later than one hundred twenty days from the date of service of summons and on expiry of one hundred twenty days from the date of service of summons, the defendant shall forfeit the right to file the written statement and the Court shall not allow the written statement to be taken on record."
3. As such, while the normal period for filing a written statement in response to the suit would expire 30 days from the date of service of summons, the written statement may be filed within a further period of 90 days, subject to reasons to be recorded in writing by the Court. Needless to say, it would be for the defendant to seek condonation of delay.
4. In commercial suits, no power vests in the Court to condone the delay beyond 120 days.
5. The first order under challenge in the present petition, passed by the learned Commercial Court on 11th May 2022, records that, on 16th February 2022, the petitioner entered appearance and undertook to file written statement within 15 days. No written statement having been filed till 11th May 2022, the learned Commercial Court struck off the defence of the petitioner.
6. The petitioner applied, under Section 151 of the CPC for recall of the aforesaid order dated 11th May 2022. It was contended, in the said application, that learned Counsel for the petitioner had, in fact, not been able to virtually join the proceedings on 11th May 2022 and that, by the time learned Counsel for the petitioner reached the Court, the matter already stood adjourned.
7. The learned District Judge ("learned DJ") in its order dated 13th July 2022 has, after noting the aforesaid submission, rejected the petitioner's recall application, holding thus:
"Intriguingly, the defendant has nowhere explained in the entire application as to why it had not filed written statement within 15 days from 16.02.2022 as undertaken by its counsel on that day or atleast, before 11.05.2022. It may be noted here at the cost of repetition that the defence of the defendant was struck off on 11.05.2022 not because of the nonappearance of the defendant or its counsel on that day but because of nonfiling of the written statement within the stipulated period of time.
In view of the same, no case has been made out for recalling of the said order dated 11.05.2022. The application is found to be without any merit. Therefore, the same is hereby dismissed.
It also needs note here that the defendant has itself stated in para 16 of the above application that it had been served with the plaint in this case on 16.02.2022 and, therefore, the statutory time period for filing written statement expired on 16.06.2022.
The defendant has filed written statement on 02.07.2022 along with an application u/s 151 CPC for condonation of delay in fi
Filing of a written statement in civil suits must adhere strictly to the timelines stipulated under the Code of Civil Procedure, with no allowance for delay beyond 120 days under the Commercial Court....
Timeliness in filing written statements is crucial; any delay beyond prescribed limits without an accompanying application for condonation is impermissible.
The main legal point established in the judgment is the requirement for the defendant to file the written statement within the prescribed period, the consequences of failing to do so, and the applica....
Point of Law : Delay in filing Written statement - Commercial Court dealing with a commercial suit had no discretion to condone delay and could not allow the written statement to be taken on record b....
Cases should be considered and disposed of on merits rather than technicalities.
The court reinforced that adherence to statutory timelines for filing written statements is crucial, and extensions must be justified with proper applications and reasons.
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.
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....
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