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        Companies Law

        2021 (2) TMI 1363 - HC - Companies Law

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        Commercial suit written statements face a strict 120-day outer limit; pandemic limitation orders do not revive the forfeited right. In commercial suits governed by the Commercial Courts Act, the written statement must be filed within 30 days, with a further period up to 120 days ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                          Commercial suit written statements face a strict 120-day outer limit; pandemic limitation orders do not revive the forfeited right.

                          In commercial suits governed by the Commercial Courts Act, the written statement must be filed within 30 days, with a further period up to 120 days available only on recorded reasons and costs; once that outer limit expires, the right to file is forfeited and the court cannot receive the pleading. The Supreme Court's pandemic-era limitation orders extended limitation periods but did not enlarge the statutory window for condoning delay beyond the 120-day cap. As the defendants had crossed the outer limit and offered no prompt or adequately supported explanation, the applications for extension of time to file written statements were rejected.




                          Issues: Whether the defendants in a commercial suit could be permitted to file written statements after expiry of the statutory period, and whether the Supreme Court's orders extending limitation during the pandemic enlarged the period for condoning delay beyond the prescribed outer limit.

                          Analysis: The scheme under the Commercial Courts Act, 2015 amends the Code of Civil Procedure, 1908 for commercial disputes and prescribes a 30-day period for filing written statement, with a further period up to 120 days being available only on reasons recorded in writing and on such costs as the Court deems fit. Beyond 120 days, the defendant forfeits the right to file the written statement and the Court has no power to receive it on record. The Supreme Court's orders on extension of limitation during the pandemic extended only the period of limitation and did not extend the period within which delay could be condoned in exercise of statutory discretion. The applying defendants had not filed written statements within 30 days, had crossed the 120-day outer limit, and had not shown promptness or supplied material particulars explaining the delay.

                          Conclusion: The applications for extension of time to file written statements were not maintainable and were rejected.

                          Final Conclusion: In commercial suits governed by the amended procedural regime, the statutory timeline for filing written statements is mandatory, and pandemic-related limitation orders do not revive a forfeited right after expiry of the outer limit.

                          Ratio Decidendi: In a commercial suit, the period up to 120 days for filing a written statement is mandatory and strictly enforced, and an extension of limitation ordered by the Supreme Court does not enlarge or revive the statutory period for condoning delay beyond that outer limit.


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