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IN THE HIGH COURT OF DELHI
Amit Bansal, J.
TPS Infrastructure Limited - Appellant
Versus
Ranchi MSW Pvt. Limited - Respondent
CS(COMM) 14 of 2020 & I.A. 12304 of 2021(u of S 151 of CPC)
Decided On : 23-11-2022




Headnote:CONDONATION OF DELAY - Condonation of Delay in Filing Written Statement - Order VIII Rule 1 of CPC, Section 8 of Arbitration & Conciliation Act, 1996 - The court discussed the provisions of Order VIII Rule 1 of the Code of Civil Procedure, 1908 (CPC) and Section 8 of the Arbitration and Conciliation Act, 1996. It interpreted the orders passed by the Supreme Court in Suo Motu Writ Petition (C) No.3/2020 to exclude the period from 15th March, 2020 till 28th February, 2022 for computing limitation periods. The court also considered precedents such as Babasaheb Raosaheb Kabarne v. Pyrotek India Private Limited and Relaxo Footwears Limited v. XS Brands Consultancy Private Limited to allow condonation of delay due to COVID-19 pandemic and exclusion of certain periods for calculating limitation.

Fact of the Case:

The defendant no.1 filed an application seeking condonation of delay in filing a written statement under Order VIII Rule 1 of CPC and another application under Section 8 of the Arbitration and Conciliation Act, 1996.

Finding of the Court:

The court allowed the application for condonation of delay in filing written statement based on the exclusion of certain periods for calculating limitation due to COVID-19 pandemic. It also referred the parties to arbitration based on an arbitration clause contained in purchase orders. ISSUES Condonation of delay in filing written statement, reference to arbitration under Section 8 of A&C Act.

Ratio Decidendi:

The court relied on Supreme Court orders excluding certain periods for calculating limitation due to COVID-19 pandemic and relevant case law to allow condonation of delay and refer parties to arbitration. FINAL DECISION The court allowed the application for condonation of delay in filing written statement and referred parties to arbitration while dismissing the suit against defendant no.2.

JUDGMENT

Amit Bansal, J. (Oral)

I.A. 4616/2021 (O-VIII R-1 of CPC)

1. The present application has been filed on behalf of the defendant no.1 under Order VIII Rule 1 of the Code of Civil Procedure, 1908 (CPC) seeking condonation of delay in filing written statement. Notice in this application was issued on 26th March, 2021. Reply has been filed on behalf of the plaintiff opposing the present application.

2. The relevant facts for deciding the present application are set out hereunder:

2.1. On 10th February, 2020, summons in the suit were served on the defendant no.1.

2.2. On 11th March, 2020, the 30 days period prescribed for filing of written statement expired.

2.3. On 9th June, 2020, the condonable period for filing written statement in terms of second proviso to Order VIII Rule 1 of the CPC expired.

2.4. On 17th October, 2020, the written statement was filed on behalf of the defendant no.1 along with affidavit of admission/denial of documents.

2.5. On 18nd March, 2021, the present application was filed seeking condonation of delay in filing written statement.

3. Counsel for the defendant no.1 relies upon various orders passed by the Supreme Court in Suo Motu Writ Petition (C) No.3/2020 to submit that the period from 15th March, 2020 till 28th February, 2022 is to be excluded for the purposes of calculating limitation. The defendant no.1 bona fide believed that the summons of the suit were served on the defendant no.1 on 20th February, 2020 and therefore, the period of thirty days would have expired on 20th March, 2020, when the operation of the order passed by the Supreme Court in the aforesaid writ petition came into effect. It was only on 10th February, 2021 when the defendant no.1 inspected the records of the present suit, it came to its knowledge that as per the records of the suit, the summons were served on the defendant no.1 on 10th February, 2020.

4. On merits, the counsel for the defendant no.1 submits that on account of onset of COVID-19 Pandemic, there were restrictions on movement in the NCR of Delhi that restricted its office functioning. Therefore, it was difficult for the defendant no.1 to meet its counsels and have the written statement prepared.

5. Per contra, the counsel for the plaintiff submits that no explanation has been given on behalf of the defendant no.1 for not filing written statement within the thirty days period that expired on 10th March, 2020. He further submits that even though the written statement was filed on behalf of the defendant no.1 on 17th October, 2020, the present application has been filed only on 18th March, 2021 and therefore, the written statement cannot be permitted to be taken on record in view of the judgment passed by this Court in OK Play India Pvt. Ltd. v. A.P. Distributors, 2021 SCC OnLine Delhi 4043.

6. I have heard the counsels for the parties and considered the rival contentions.

7. In the first order passed by the Supreme Court on 23rd March, 2020 in Suo Motu Writ Petition (C) No.3/2020, reported as Cognizance for Extension of Limitation, In Re, (2020) 19 SCC 10, it was held that the period of limitation in all proceedings, irrespective of the limitation prescribed under the general law or special law, whether condonable or not, shall stand extended w.e.f. 15th March, 2020 till further orders. The relevant observations are set out below:

    "2. To obviate such difficulties and to ensure that lawyers/litigants do not have to come physically to file such proceedings in respective courts/tribunals across the country including this Court, it is hereby ordered that a period of limitation in all such proceedings, irrespective of the limitation prescribed under the general law or special laws whether condonable or not shall stand extended w.e.f. 15-3-2020 till further order(s) to be passed by this Court in present proceedings."

8. In the subsequent order passed in the said writ petition on 8th March, 2021, reported as Cognizance for Extensio

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