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2024 Supreme(Online)(KAR) 20404

HIGH COURT OF KARNATAKA
MR JUSTICE RAVI V.HOSMANI, J
M/S KAVERI AGENCIES – Appellant
Versus
KARNATAKA BANK LTD – Respondent
WP 106594/2023



Advocates:
SRI SUBHASH J.BADDI, SRI PAVAN DODDATTI

The time limit for filing a written statement in a commercial suit is mandatory and cannot be extended beyond 120 days.

Headnote:(A) Code of Civil Procedure, 1908 - Order VIII Rule 1 and 10 - Commercial suit - Writ petition filed seeking to quash the order rejecting the application for permission to file written statement due to delay - The defendant's application was filed beyond the permissible period of 120 days as per the rule, thus rejection was justified. (Paras 7-9)

(B) Delay in filing written statement - The court emphasized that the time limit for filing a written statement in a commercial suit is mandatory and cannot be condoned beyond the specified period. (Para 7)

(C) Miscarriage of justice - The defendant argued that denial of the right to file a written statement would result in a miscarriage of justice, especially since he was represented by legal aid counsel. (Para 4)

Facts of the case:
The petitioner, a defendant in a commercial suit, sought to file a written statement after the deadline, citing lack of information and representation by legal aid counsel. The trial court rejected the application for delay in filing.

Findings of Court:
The court found that the application was filed beyond the permissible time frame, and there were no grounds to interfere with the trial court's rejection of the application.

Issues: The main issues included whether the trial court's rejection of the application for filing a written statement was justified given the defendant's circumstances and the mandatory nature of the filing timeline.

Ratio Decidendi: The court held that the time limit for filing a written statement in a commercial suit is mandatory and cannot be extended beyond 120 days, thus justifying the trial court's decision.

Result: Writ petition dismissed.

ORDER

This writ petition is filed seeking for following reliefs:

    a) Quash the impugned order passed by the learned Principal District and Sessions Judge and Designated Commercial Courts, Dharwad dated:

19.08.2023 in Com O.S.no.67/2022 vide Annexure-D.

b) The petitioner may please be permitted to file the written statement by condoning the delay.

2. Sri Subhash J.Baddi, learned counsel for petitioner submitted that, Commercial O.S.no.67/2022 was filed by respondent-plaintiff for recovery of money etc. In said suit, petitioner, who was defendant filed I.A.no.II under Order VIII Rule 10 Read with Section 151 of Code of Civil Procedure, 1908 (‘CPC’ for short) seeking for permission to file written statement. In affidavit filed in support of application, it was stated in said suit, defendant had entered appearance through legal aid counsel and due to lack of information, had not file written statement in time.

3. On 13.02.2023, taking written statement as not filed, trial Court posted suit for plaintiff’s evidence. Thereafter on 02.06.2023, defendant filed application for permission to file written statement. Though said application was opposed, under impugned order, trial rejected application on 19.08.2023. Aggrieved thereby petition was filed.

4. It was submitted, suit was filed for recovery of money, wherein defendant had entered appearance through legal aid counsel. Due to non availability of certain documents, he could not file written statement. Therefore he filed application for condonation of delay and permit him to file written statement. Without proper consideration, trial Court rejected application. Assailing same, it was submitted denial of right to file written statement would result in total miscarriage of justice, especially as he had entered appearance through legal aid counsel. On above grounds, sought to allow writ petition.

5. On other hand, Sri Pawan Doddatti, learned counsel for plaintiff sought to justify impugned order. It was submitted, admittedly suit was Commercial Suit requiring written statement to be filed within 30 days and extendable up to maximum of 120 days from date of service of summons.

Admittedly, defendant was served and represented and there was no justification for not filing written statement.

Admittedly, application was filed beyond permissible period of time as per proviso to Order VIII Rule 1 of CPC.

6. Heard learned counsel and perused writ petition records.

7. From above it is seen that, defendant has filed writ petition, challenging order rejecting application for permission to file written statement in Commercial suit. As per proviso to Order VIII Rule 1 of CPC, permission can be granted only if it is sought before expiry of 120 days. There being, no provision for condonation beyond 120 days, rejection would be justified.

Hon’ble Supreme Court in case of SCG Contracts (India) (P) Ltd. v. K.S. Chamankar Infrastructure (P) Ltd., reported in (2019) 12 SCC 210 held that time limit for filing written statement in Commercial suit is mandatory.

8. It is also seen that on 02.01.2024, this Court granted conditional interim order staying further proceedings in suit on submission that sum of Rs.3,50,000/- would be deposited within three weeks. Said order has not been complied, therefore there are no good grounds to interfere with impugned order.

9. Consequently, writ petition is dismissed.

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