IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Hariom Gupta Prop. of Radha Madhav Packaging - Appellant
Versus
Multi Speciality Extrusions P. Ltd. - Respondent
CM(M) 993 of 2022 & CM Appl. 41353 of 2022
Decided On : 10-11-2022
| Table of Content |
|---|
| 1. respondent's application to close petitioner's right to file written statement. (Para 1 , 2 , 3 , 4) |
| 2. supreme court extension of limitation due to covid-19. (Para 5 , 6) |
| 3. procedural compliance regarding written statements. (Para 7 , 8) |
| 4. modification of commercial court's findings regarding written statements. (Para 9) |
| 5. disposition of the petition without costs. (Para 10) |
1. By the impugned order dated 18th August 2022 passed by the learned District Judge (Commercial Court) in CS (Comm.) 284/2020 (Multi Speciality Extrusions Pvt. Ltd. v. Hariom Gupta), the learned District Judge (Commercial Court) has allowed an application filed by the respondent, as the plaintiff in the suit, seeking closure of the right of the petitioner -- defendant to file a written statement.
2. A reading of the impugned order reveals that the petitioner filed two written statements. The first was filed on 27th October 2021 and the second was filed on 11th March 2022.
3. Summons in the suit instituted by the respondent were served on the petitioner on 27th August 2021. The first written statement came to be filed by the petitioner on 27th October 2021. The written statement was not accompanied by any application seeking condonation of delay.
4. The learned Commercial Court has directed striking off, from the record, of the written statement filed by the petitioner on 27th October 2021 for two reasons. The first is that the written statement was not in accordance with the provisions of the Code of Civil Procedure, 1908 (CPC) as amended by the Commercial Courts Act, 2015. The second was that the written statement was filed beyond the normal period of 30 days unaccompanied by any application for condonation of delay.
5. Insofar as the second objection is concerned, the issue stands settled by the Order dated 10th January 2022 of Supreme Court in Re: Cognizance for Extension of Limitation, Suo Motu Writ Petition (C) 3/2020, 2022 3 SCC 117 read with the decisions in Centaur Pharmaceuticals Pvt. Ltd. v. Stanford Laboratories Pvt. Ltd., MANU/SCOR/03428/2022, Babasaheb Raosaheb Kobarne v Pyrotek India Private Limited, MANU/SCOR/50600/2022 and Prakash Corporates v. Dee Vee Projects Ltd., (2022) 5 SCC 112.
6. A conjoint reading of the aforesaid judgments indicates that, where the time for filing pleadings expired during the currency of the COVID-2019 pandemic, that time stands extended by the Supreme Court till 28th February 2022. The normal period for filing written statement, consequent to service of summons on the petitioner, expired on or around 27th September 2021, which was during the amnesty period as fixed by the Supreme Court. As such, the said normal period would stand extended till 28th February 2022. The written statement, if filed prior to 28th February 2022, had, therefore, necessarily to have been treated as having been filed within the normal period of limitation available for filing the written statement. It could not, therefore, be treated as belated and, to that extent, therefore, the finding of the learned Commercial Court cannot sustain.
7. The learned Commercial Court, has, however, also found the written statement filed by the petitioner on 27th October 2021, not to be in conformity with the provisions of the Commercial Courts Act. It is not necessary for me to enter into that dispute, in view of the submission of learned Counsel for the respondent, that the said written statement may be taken on record subject to the reservation of his rights to challenge the said written statement as having not been filed in accordance with the provisions of the Commercial Courts Act before the learned Commercial Court. This Court, therefore, does not express any opinion on whether the written statement filed on 27th October 2021, was or was not, in accordance with the terms of the Commercial Courts Act or whether the petitioner could be entitled, to place reliance thereon. Insofar as the said written stateme
The written statement's filing deadline was extended due to the COVID-19 pandemic, and a written statement not timely filed without condonation can be accepted if filed during the extended period.
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....
The Supreme Court's orders extending the period of limitation in the wake of the COVID-19 pandemic applied to the filing of written statements, entitling the defendant to the relaxation available und....
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.
The right to file a written statement is forfeited after 120 days unless justifiable grounds for extension are shown, requiring substantive reasoning recorded by the court.
In commercial suits, a written statement filed beyond 30 days without a condonation application may not be accepted, emphasizing strict adherence to procedural timelines.
Cases should be considered and disposed of on merits rather than technicalities.
The court emphasized that the extension of time to file the written statement must be justified and recorded in writing, and the defendant cannot claim an extension of time as a matter of course.
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