M/S SCG CONTRACTS INDIA PVT. LTD. V. K.S. CHAMANKAR INFRASTRUCTURE PVT. LTD. & ORS.
Bench : Justice V Saran and Justice R F Nariman
Issue:
Whether a written statement can be filed after 120 days by the Defendant in a commercial suit ?
Facts:
• The appellant had filed a suit against the defendant for recovery of Rs. 6,94,63,114. The summons was served on the defendant on 14 July, 2017. However, within a time period of 120 days, no written statement was filed by the defendant.
• Subsequently, the defendant filed an application under Order VII, Rule 11 of CPC for rejection of the plaint which was rejected on 5 December, 2017. Then, the defendant asked for 7 days period to file the written statement which was granted by the court till 15 December,2017.
• The plaintiff filed an application on 6 August 2018 that the defendant shouldn’t be permitted to file a written statement after the period of 120 days as per the provisions of CPC. However, the court held on 24 September,2018 that the previous order has attained finality and since the defendant has filed its written statement, it should be taken on record.
• The special leave petition is filed by the appellant against the orders dated 5 December, 2017 and 24 September,2018.
Appellant’s contentions:
• It was contended that the amendments in CPC provides for the consequence of non-filing of the written statement by the defendant in the prescribed time period. Therefore, the other party shouldn’t be allowed to file the statement after 120 days.
Respondent’s contentions :
• It was contented that it is the inherent powers of the court to ignore a procedural provision which may lead to unjust consequences according to the facts of the case.
Judgement:
The Supreme Court allowed the appeal. The impugned orders were set aside and the statements filed by the defendant were taken off record. It was held that the time period of 120 days is mandatory in nature subsequent to the amendment in Order VIII Rule 1, CPC and a court in a commercial court cannot extend this time period beyond 120 days after the service of summons.
