IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. SATHISH KUMAR, J.
M/s.K.M.Plastics - Appellant
Versus
M/s.Sh Trading haCorporation - Respondent
C.R.P.No.5241 of 2024 and C.M.P.No.29285 of 2024
Decided on : 05-06-2025
| Table of Content |
|---|
| 1. factual basis of the case and delays. (Para 1 , 2) |
| 2. arguments regarding right to participate. - What rights do defendants have in ex parte proceedings? (Para 3 , 4) |
| 3. court's observations on procedural conduct. - What is the court's view on the mandatory filing of written statements? (Para 5 , 6) |
| 4. right to cross-examination despite ex parte. - How does the Ranjit Singh case impact this judgment? (Para 7 , 8) |
| 5. order for cross-examination and case management. - What was the final outcome of this Civil Revision Petition? (Para 9 , 10) |
JUDGMENT :
Challenging the order of the Commercial Court, Coimbatore, dated 21.09.2024, made in I.A.No.5 of 2024 in C.O.S.No.62 of 2023, dismissing the application under Section 5 of the LIMITATION ACT to condone the delay of 157 days in filing an application to set aside the ex parte decree passed against the 2nd petitioner, the present revision has been filed.
2. The suit has been originally filed by the respondent in February, 2021, as Commercial Suit before the Principal District Court, Coimbatore, for recovery of a sum of Rs.1,55,28,089/-. The 2nd petitioner herein is the 2nd defendant in the suit, representing the 1st defendant Company. In fact, after establishment of the Commercial Court, the suit has been transferred to the Commercial Court on 14.03.2023. Prior to such transfer, the defendants had not filed written statement within 120 days as required under the Commercial Courts Act, 2015. However, they had filed written statement only in the month of November, 2021, i.e., beyond the period of 120 days as mandated under the Act. When the matter stood thus, the case has been transferred to the Commercial Court on 14.03.2023. Before the Commercial Court, as the defendants did not file their written statement, they were set ex parte on 27.07.2023 and ex parte evidence was recorded on 02.08.2023 and judgment was pronounced on 16.08.2023. Thereafter, the present application has been taken out by the petitioners to condone the delay of 157 days in filing the application to set aside the ex parte decree, contending inter alia that the 2nd petitioner met with an accident and received a bullet injury accidentally and was admitted in Kovai Medical Centre on 04.12.2022 and discharged on 10.12.2022. Even thereafter, he was not in a position to appear before the Court physically. Therefore, there was a delay of 157 days in filing the application to set aside the ex parte decree. The said application has been dismissed by the trial Court. Challenging the same, the present revision has been filed.
3. Learned counsel appearing for the revision petitioners would fairly submit that, though the written statement was not filed within the period as mandated under the Commercial Courts Act, even then, the petitioners' right to participate in the trial cannot be taken away. In any event, the petitioners/defendants ought to have been given an opportunity to cross- examine the plaintiff, which has not been done in this case. Therefore, it is his contention that, though ex parte decree cannot be set aside as written statement has not been filed, the fact remains that the right of the petitioners to participate in the trial cannot be taken away. In respect of his submission, he has placed reliance on the judgment of the Hon'ble Apex Court in Ranjit Singh and another v. State of Uttarakhand and others reported in 2024 SCC OnLine SC 2932.
4. Whereas, the learned counsel for the respondent would submit that the reasons assigned in the petition to condone the delay of 157 days, cannot be accepted for the simple reason that, even at the relevant point of time, the 2nd petitioner had appeared before the criminal Courts in the same campus and the said fact has been taken note of by the trial Court.
5. Heard the learned counsel on either side and perused the materials available on record.
6. It is pertinent to note that the suit itself was laid as a Commercial Suit and was pending before
Defendants forfeiting their right to defend due to late filing may still retain the right to cross-examine witnesses, ensuring fairness in proceedings.
Court affirmed defendants' right to contest after setting aside ex parte decree, conditional on providing security for the decree amount.
The court affirmed that mere lack of knowledge due to negligence does not justify condoning an extensive delay in responding to an ex parte decree.
Timelines for filing written statements in commercial disputes may be adjusted by the court during transfer, rather than mandating strict adherence to previous civil procedure timelines.
Written Statement – Insofar as normal Civil Courts are concerned, it is proviso to Order VIII Rule 1 CPC which applies – Proviso to Rule 1 of Order VIII CPC is directory and not mandatory.
The court emphasized a liberal approach toward condoning delays, prioritizing substantial justice over technicalities.
The sufficiency of the cause for delay is the primary criterion for condoning delay under the Limitation Act, not merely the length of the delay.
The court emphasized that the sufficiency of the cause for delay, rather than its length, is the key criterion for condonation under Section 5 of the Limitation Act.
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