Court Upholds Condonation of Delay in Filing Written Statements in Commercial Suit

Background

In a significant ruling, the District Judge-2 of Kalyan addressed a writ petition filed by Defendant Nos. 1 to 4 challenging a common order dated January 13, 2023. The order allowed the Plaintiffs and Defendant Nos. 5 to 13 to file their written statements to a counter-claim beyond the prescribed period of 120 days, which is a critical timeline under the Commercial Courts Act, 2015. The case revolves around Commercial Suit No. 02 of 2021, where the Plaintiffs sought a declaration and damages concerning certain properties.

Arguments

Defendant Nos. 1 to 4 contended that the written statements filed by the Plaintiffs and Defendant Nos. 5 to 13 were submitted after significant delays of 142 and 155 days, respectively. They argued that the court erred in condoning this delay, asserting that strict adherence to the 120-day limit for filing written statements in commercial suits is mandatory. Conversely, the Plaintiffs and Defendant Nos. 5 to 13 argued that the delay was justified due to procedural complexities, including the death of one of the Plaintiffs and the subsequent need to bring legal heirs on record.

Court's Analysis and Reasoning

The court analyzed the arguments presented by both sides, focusing on the interpretation of the Commercial Courts Act and the Civil Procedure Code (CPC). It emphasized that the counter-claim should be treated as a plaint, thus subjecting it to the same procedural rules. The court noted that the Defendant Nos. 1 to 4 had not properly served the counter-claim, which meant that the limitation period for the Plaintiffs and Defendant Nos. 5 to 13 had not commenced. The court found that the procedural lapses by Defendant Nos. 1 to 4 justified the condonation of delay.

Decision

Ultimately, the court upheld the impugned order, allowing the condonation of delay in filing the written statements. The decision reinforces the principle that procedural compliance is crucial in commercial litigation and that the courts may exercise discretion in condoning delays when justified by the circumstances. The writ petition was dismissed, and the court granted an eight-week period for the Petitioners to seek further recourse in the Supreme Court.