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2025 Supreme(Mad) 4590

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


Advocates:
Advocate Appeared:
For the Appellant : Mr.N.C.Ashok Kumar
For the Respondent: Mr.N.Nithianandam

Defendants forfeiting their right to defend due to late filing may still retain the right to cross-examine witnesses, ensuring fairness in proceedings.

Headnote:(A) Commercial Courts Act, 2015 - Section 5 of the Limitation Act - Application to condone delay - Ex parte decree - Right to cross-examine witnesses - Defendants failed to file written statement within 120 days as mandated - Forfeiture of right to defend occurs upon failure to comply, but opportunity to cross-examine must be provided - High Court found that failure to allow cross-examination constituted a violation of principles of natural justice. (Paras 6, 8, and 9)

(B) Right to be heard - The court emphasized that even if an ex parte decree is passed, the defendant retains a limited right to a defense, specifically the right to cross-examine the plaintiff's witnesses. (Paras 7 and 8)

Facts of the case:
The petitioners challenged a Commercial Court order dismissing their application to condone a 157-day delay in filing to set aside an ex parte decree, resulting from non-filing of a written statement within the prescribed timeframe due to medical issues of the 2nd petitioner.

Findings of Court:
The High Court determined the trial Court's failure to grant an opportunity for cross-examination constituted a breach of natural justice, necessitating the setting aside of both the order dismissing the application and the ex parte decree.

Issues: Whether the failure to file a written statement within 120 days resulted in the loss of the right to participate in the trial, and the obligation to provide an opportunity to cross-examine witnesses.

Ratio Decidendi: The court ruled that while the failure to file a written statement could forfeit the right to a full defense, defendants should still be permitted to cross-examine witnesses to ensure fair trial rights.

Result: Impugned order and ex parte decree set aside; defendants granted opportunity to cross-examine the plaintiff’s witness.

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 :

N. SATHISH KUMAR, J.

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

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