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2023 Supreme(Mad) 3297

IN THE HIGH COURT OF JUDICATURE AT MADRAS
SANJAY V. GANGAPURWALA, P.D. AUDIKESAVALU, JJ.
M. Maria Albert Stanly and Another – Plaintiffs
Versus
M/s. Diamond Hospital Equipments, Banadurgarh, Jhajjar - Defendant
C.S. (Comm. Div.) Nos. 14 and 48 of 2022, Tr. C.S. Nos. 912 to 914 and 916 of 2007, A. Nos. 395, 396, 984, 3751, 3758, 3759, 3877 and 4820 of 2022, A. No. 4 of 2023 and O.A. Nos. 142 to 146, 366, 367, 473 and 474 of 2022
Decided On : 22-12-2023

Headnote:

Written Statement - Commercial Dispute - Order VIII Rule 6-A(3) of CPC - Order VIII Rule 1 of CPC - Order V Rule 1 of CPC - Order VIII Rule 10 - Summary of Acts and Sections

Fact of the Case:

The court addressed the issue of the time limit for filing a Written Statement by a Plaintiff in response to a Counter-Claim made by a Defendant in a suit relating to a commercial dispute. The court considered conflicting views on the application of the time limit and sought clarification on the matter.

Finding of the Court:

The court held that the Commercial Courts Act, 2015 would have an overriding effect on inconsistent provisions of the Madras High Court Original Side Rules. It determined that a Plaintiff has 120 days to file a Written Statement in response to a Counter-Claim made by a Defendant, with the period commencing from the date of service of the Counter-Claim notice. The court also directed the Commercial Division and Commercial Courts to conduct scrutiny of Counter-Claims before taking them on file and to serve notice of the Counter-Claim along with its copy to the Plaintiff or their Advocate. The court further clarified the procedure for computation of limitation for filing a Written Statement by a Plaintiff in response to a Counter-Claim.

Issues: The issues involved the application of time limits for filing a Written Statement by a Plaintiff in response to a Counter-Claim made by a Defendant in a commercial dispute, the overriding effect of the Commercial Courts Act, 2015 on the Madras High Court Original Side Rules, and the procedure for computation of limitation for filing a Written Statement in response to a Counter-Claim.

Ratio Decidendi: The court determined that the Commercial Courts Act, 2015 would have an overriding effect on inconsistent provisions of the Madras High Court Original Side Rules. It established that a Plaintiff has 120 days to file a Written Statement in response to a Counter-Claim made by a Defendant, with the period commencing from the date of service of the Counter-Claim notice. The court also clarified the procedure for computation of limitation for filing a Written Statement by a Plaintiff in response to a Counter-Claim.

Final Decision: The court answered the reference on the terms outlined and directed all present suits along with connected applications to be placed before the Learned Judge presiding over the Commercial Division of the Court for decision.

ORDER :

(P.D. Audikesavalu, J.) :

The instant reference placed before this Division Bench of the Court raises the following questions of law for determination :-

    (i) Whether the outer time limit of 120 days for filing of Written Statement by a Defendant in a suit arising out of commercial dispute would also apply to filing of Written Statement by a Plaintiff in response to a Counter-Claim made by a Defendant in such suit?

(ii) If so, what would be the date from which the said period would have to be reckoned for filing of Written Statement by a Plaintiff to a Counter-Claim made by a Defendant?

2. A Learned Judge of this Court in M/s.CSCO LLC -vs- M/s.Lakshmi Saraswathi Spintex Limited (Order dated 28.01.2022 in A. No. 4791 of 2021 in C.S. No. 697 of 2017), who examined the said controversy, held as follows:-

    “22. In the considered view of this Court, when it comes to filing a Written Statement for a counter claim, the same is specifically dealt with under Order VIII Rule 6-A(3) of CPC. In such cases, a duty has been cast upon the Court to fix the time limit. While fixing such time limits, the Court is guided by Order VIII Rule 9 of CPC., wherein the Court can fix a time limit of not more than 30 days for presenting the Written Statement for a counter claim. Even though leave is not required for filing a Written Statement for the counter claim, since it is a matter of right for the Plaintiffs, the Court can always fix a time limit for filing such a Written Statement. Hence, when a counter claim is filed by the Defendants, the Court has to specifically pass an order while taking the counter claim on file, directing summons to be served on the Plaintiffs or if the Plaintiff is represented by a counsel, directing the counsel to accept service of summons on behalf of the Plaintiff. The time limit for filing the Written Statement for the counter claim will commence only thereafter.

23. This Court on the original side is governed by the Madras High Court Original Side Rules. Order V Rules 2 to 5 of the Original Side Rules speaks about the procedure for filing the Written Statement for the counter claim and the time limit within which it has to be filed. However even under these rules, there is no rigid time limit for filing the Written Statement for the counter claim and discretion is given to the Court to extend the time for filing the Written Statement. These rules must also be kept in mind since there is nothing available under the amended provisions of CPC., governing the Commercial Division running contrary to these rules and which specifically deals with the time limit for filing the Written Statement for a counter claim. Some clarity is required to be given for a Written Statement filed by the Plaintiffs for the counter claim made by the Defendants since Order VIII Rule 1 of CPC., does not apply and it is only Order VIII Rule 6-A (3) which specifically provides for the Court to fix such period for filing the Written Statement. The Court while fixing such a time limit for filing the Written Statement, can always keep in mind the object behind the Commercial Courts Act and ensure that the Written Statement is filed within the mandatory period fixed for the Defendants. It will always be open to the Court acting under the Commercial Courts Act, to forfeit the right of the Plaintiffs if the Written Statement for the counter claim is filed beyond the time limit fixed by the Court, without showing sufficient cause.

24. The judgment of the Hon’ble Supreme Court in SCG Contracts (India) (P) Ltd. -vs- K.S.Chamankar Infrastructure (P) Ltd. [(2019) 12 SCC 210] specifically dealt with the scope of Order VIII Rule 1 r/w Order VIII Rule 10 of CPC. Therefore, the Apex Court was only dealing with the mandatory period fixed for filing a Written Statement by the Defendants. The time period for filing a Written Statement for the counter claim was not within the scope of the said judgment.

25. In view of the above discussion, this Court holds that the Prov

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