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IN THE HIGH COURT OF DELHI
Tushar Rao Gedela, J.
Managing Committee Delhi University Co-operative Store Ltd. - Appellant
Versus
Asian Enterprises - Respondent
CM(M) 1205 of 2022 & CM Appl. 48371 of 2022
Decided On : 08-12-2022




The court emphasized the importance of allowing parties to file their written statements to uphold justice, particularly when procedural rights have been unjustly forfeited.

Headnote:(A) Commercial Courts Act, 2015 - Right to file written statement - The Court set aside the Trial Court’s order forfeiting the petitioners’ right to file their written statement and directed that the pending application for extension of time be decided on merits. Key considerations were the statutory period for condonation of delay being open and the pending application for extension filed post the impugned order. (Paras 6, 7, 9)

(B) Interest of justice - The court emphasized that the focus should be on furthering justice and allowing parties to substantiate their case by ensuring that procedural prerogatives are not unfairly forfeited. (Para 7)

Facts of the case:
Petition challenging the Trial Court’s order which forfeited the petitioners' right to file a written statement based on limited rights for cross-examination. Subsequent application seeking extension was pending with the Trial Court.

Findings of Court:
The trial court must adjudicate the petitioners' application for extension of time. The petition was allowed with costs imposed.

Issues: Whether the Trial Court's forfeiture of the right to file a written statement is sustainable when an application for extension is pending.

Ratio Decidendi: The high court determined that the statutory time for filing an application was still open, warranting a reassessment of the forfeited rights to allow justice.

Result: Petition allowed and disposed of with costs.

Table of Content
1. overview of the initial trial procedures (Para 1 , 2 , 3)
2. consent to hear pending application (Para 4 , 5)
3. court's directive to reconsider application (Para 6 , 7 , 8)
4. conclusion and order of costs (Para 9 , 10)

JUDGMENT

Tushar Rao Gedela, J. (ORAL)

1. With the consent of parties, the present petition is taken up for final disposal.

2. Learned counsel appearing for the petitioner impugns the order dated 15.09.2022, whereby the right to file the written statement on behalf of defendant Nos. 1 to 3, before the learned Trial Court, was forfeited.

3. Vide the same order the learned Trial Court had listed the matter further for plaintiff's evidence and simultaneously, permitted the defendants to cross examine the witnesses on very limited rights.

4. Mr. Randhir Kumar, learned counsel appears for the respondents submits that subsequent to the impugned order, the petitioner herein filed an application seeking extension of time to take the written statement on record, which is still pending adjudication and, no orders have been passed thereon.

5. Learned counsel appearing for the respondents submits that he would have no objection, if the pending application is taken up for hearing and decided on its own merits. Learned counsel appearing for the petitioner is also agreeable to that.

6. In view the above, the impugned order, whereby the learned Trial Court has directed forfeiture of the rights of the petitioners to file their written statement is set aside.

7. Since it is informed that on the date when the impugned order was passed, the statutory time period for condonation of delay in filing the application under the provisions of Commercial Courts Act, 2015, was still open to the petitioners and coupled with the fact that an application for seeking extension of time was also filed subsequently and is pending, this Court is of the opinion that the interest of justice would be sub-served in directing the learned Trial Court to take up the application seeking extension of time for filing the written statement and decided on its own merits.

8. It is further informed that the next date before the learned Trial Court is fixed for 12.12.2022. It is requested that the learned Trial Court takes up the application seeking extension of time and decide the same on its own merits, in accordance with law.

9. In view of the above directions, the petition is allowed and disposed of, subject to costs of Rs. 10,000/- to be paid to the respondent by the petitioner within two days. This is without prejudice to the rights and contentions of the petitioners.

10. Petition is disposed of in the above terms.

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