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2023 Supreme(P&H) 2542

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ALKA SARIN, J.
Radha Krishan – Petitioner
Versus
Shibba Chabbra – Respondent
CR NO. 1432 of 2023 (O&M)
Decided On : 15-03-2023

Advocates Appeared:
Mr. Vansh Chawla, Advocate; For the Petitioner
Mr. Aayush Gupta, Advocate; For the Respondent

Headnote:(A) Code of Civil Procedure, 1908 - Order VIII Rule 1 - Tenant's defense struck off for non-filing of written statement - Tenant granted opportunity to file written statement and ordered to pay costs - Provisions of Order VIII Rule 1 CPC held to be directory, allowing discretion for courts regarding filing timelines. (Paras 5, 7)

(B) Commercial Disputes - Judgment clarifies differing applications of CPC provisions in commercial versus non-commercial disputes. (Paras 12, 14)

Facts of the case:
Tenant-petitioner challenged the Rent Controller's order striking off its defense for failing to file a written statement despite multiple opportunities. The tenant claimed delay was due to settlement efforts in mediation.

Findings of Court:
The court ruled that the tenant should be given one chance to file the written statement while being ordered to pay costs to the landlord.

Issues: Whether the delay in filing the written statement warranted striking off the defense and the interpretation of Order VIII Rule 1 CPC.

Ratio Decidendi: The court held that the provisions of Order VIII Rule 1 CPC are directory and that discretion may be exercised by the courts in non-commercial disputes to allow filing of written statements despite delays.

Result: Revision petition allowed.

Table of Content
1. revision petition challenges order striking off defence. (Para 1)
2. arguments for and against tenant's request. (Para 2 , 3)
3. order viii rule 1 cpc is directory, not mandatory. (Para 5 , 6)
4. tenant granted opportunity to file written statement. (Para 7 , 8)

JUDGMENT

Mrs. Alka Sarin, J. (Oral)

The present revision petition has been preferred challenging the order dated 24.11.2022 passed by the Rent Controller whereby the defence of the tenant-petitioner has been struck off for not filing his written statement despite numerous opportunities.

2. Learned counsel for the tenant-petitioner would contend that the tenant-petitioner had put in appearance on 23.02.2022. It is further the contention that the matter was pending before the Mediation and Conciliation Centre, when an application was filed by the landlord-respondent for striking off the defence. Learned counsel has further contended that given one opportunity, he would file the written statement on the next date of hearing fixed before the Trial Court i.e 18.04.2023 and he is willing to compensate the landlord-respondent by ways of costs.

3. Per contra, learned counsel for the landlord-respondent has contended that delaying tactics are being adopted by the tenant-petitioner time and again and in fact there was also a delay in approaching this Court while filing the present revision petition.

4. Heard.

5. The provisions of Order VIII Rule 1 CPC have been held to be directory in nature and not mandatory. Hon'ble Supreme Court in the case of Desh Raj v. Balkishan (D) through proposed LR Ms. Rohini [(2020) RCR (Civil) 807] has held as under :

    "Analysis & Conclusion

    11. At the outset, it must be noted that the Commercial Courts Act, 2015 through Section 16 has amended the CPC in its application to commercial disputes to provide as follows:

    "16. Amendments to the Code of Civil Procedure, 1908 in its application to commercial disputes - (1) The provisions of the Code of Civil Procedure, 1908 (5 of 1908) shall, in their application to any suit in respect of a commercial dispute of a Specified Value, stand amended in the manner as specified in the Schedule.

    (2) The Commercial Division and Commercial Court shall follow the provisions of the Code of Civil Procedure, 1908 (5 of 1908), as amended by this Act, in the trial of a suit in respect of a commercial dispute of a specified value.

    (3) Where any provision of any Rule of the jurisdictional High Court or any amendment to the Code of Civil Procedure, 1908, by the State Government is in conflict with the provisions of the Code of Civil Procedure, 1908 (5 of 1908), as amended by this Act, the provisions of the Code of Civil Procedure as amended by this Act shall prevail."

    12. Hence, it is clear that post coming into force of the aforesaid Act, there are two regimes of civil procedure. Whereas commercial disputes [as defined under Section 2(c) of the Commercial Courts Act, 2015] are governed by the CPC as amended by Section 16 of the said Act; all other noncommercial disputes fall within the ambit of the unamended (or original) provisions of CPC.

    13. The judgment of Oku Tech (supra) relied upon the learned Single Judge is no doubt good law, as recently upheld by this Court in SCG Contracts India Pvt. Ltd. v. KS Chamankar Infrastructure Pvt. Ltd., AIR 2019 SC 2691, but its ratio concerning the mandatory nature of the timeline prescribed for filing of written statement and the lack of discretion with Courts to condone any delay is applicable only to commercial disputes, as the judgment was undoubtedly rendered in the context of a commercial dispute qua the amended Order VIII Rule 1 CPC.

    14. As regard the timeline for filing of written statement in a non-commercial dispute, the observations of this Court in a catena of decisions, most recently in Atcom Technologies Ltd. v. Y.A. Chunawala and Co., (2018) 6 SCC 639 holds the field. Unamended Order VIII Rule I, CPC continues to be directory and does not do away with the inherent dis

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