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TUSHAR RAO GEDELA, TUSHAR RAO GEDELA
Machine Tools Aids India – Appellant
Versus
GNC Infra LLP – Respondent


Counsel for the Parties:
For the Petitioner:Mr. Jay Savla, Senior Advocate with Ms. Shilpi Chowdhary, Mr. R.C. Tiwari, Mr. Yogesh Sharma and Mr. Vikrant Choudhary, Advocates
For the Respondent No.1:Mr. Alok Bhachawat, Advocate with Ms. Saloni Jagga, Advocate
For the Respondent No.2:Mr. Mohit Arora, Advocate

Judgement Key Points

Key Points: - The judgment holds that in commercial suits under the Commercial Courts Act 2015, the 30-day requirement for filing a written statement is strict and extension is limited to up to 120 days with reasons recorded; failure beyond that can lead to forfeiture of the right to file (proviso to Order VIII Rule 1 and related provisions) (!) (!) (!) (!) . - The court emphasizes that summons service is a crucial procedural step and there cannot be laxity; failure to serve summons cannot be detrimental to the defendant, and procedures are to be construed as handmaid of justice (!) (!) . - The impugned order was set aside because summons were never issued, and the defendant’s liability to file within 30/120 days could not be imposed; the written statement was directed to be taken on record (!) (!) (!) . - The judgment directs that the endorsement on summons requiring the defendant to file within 30 days should be mandatorily included to ensure proper adherence to timelines in commercial suits (!) . - The decision references conflicting precedents and clarifies that where summons were not issued, the failure to file a written statement cannot be prejudicial to the defendant; the court must proceed in accordance with law and take the WS on record (!) (!) (!) (!) . - The Registrar is directed to ensure endorsement as mandatory on summons under Order V Rule 5 CPC for commercial suits (!) .

What is the effect of the amended proviso to Order VIII Rule 1 CPC in Commercial Courts Act 2015 on the right to file a written statement beyond 30 days?

What are the implications of the absence or invalidity of summons issuance on the defendant’s obligation to file a written statement?

What is the court’s guidance on taking written statements on record when summons were not properly issued or when service of summons is deemed to have been waived?


JUDGMENT

Tushar Rao Gedela, J.—Petitioner impugns order dated 15.10.2022, passed by the Trial Court in CS (Comm) - 350/2020 titled as M/s. GNC Infra vs. M/s Machine Tools Aids (India) & Anr., whereby, while allowing the application under Order VIII Rule 10 of Civil Procedure Code, 1908 filed by the respondent/plaintiff, the Court had simultaneously dismissed the application under Order VIII Rule 1 of the Code of Civil Procedure, 1908 (hereinafter referred to as “CPC”) filed by the Petitioner/ Defendant no.1, foreclosing the right of Petitioner to file Written Statement.

Brief Background of the Case:

2. Shorn of unnecessary details on merits of the case, which is yet to be adjudicated by the Trial Court, this Court, confines its consideration only to the facts which led to the impugned order. The relevant facts as culled out from Trial Court records are as follows:—

(a) A Commercial Suit, CS (Comm) 350/2020 titled as M/s GNC INFRA VS. M/s Machine Tools Aids (India) & Anr., is laid by the Respondent/Plaintiff seeking recovery of Rs. 1,48,73,337/- along with future and pendente lite interest @ 24% p.a. on the said sum till realization and other ancillary reliefs.

(b) Proceedings we

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