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2020 (12) TMI 1311

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....ommercial Division on 15th November, 2019. (ii) The writ of summons was served on 2nd December, 2019. (iii) The 30 days expired on 2nd January, 2020. (iv) The 120 days time for filing the written statement under the amendment made to Order VIII Rule 1 of The Code of Civil Procedure after coming into force of The Commercial Courts Act, 2015, ended on 31st March, 2020. (v) The application for extension of time was filed by the defendant before the Master on 5th February, 2020 seeking 8 weeks time for preparing and filing the written statement. Mr. Zeeshan Haque, learned counsel appearing for the applicant/defendant relies on an Order passed by the Supreme Court on 23rd March, 2020 in which the difficulties faced by litigants by reaso....

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....ween "period of limitation" and "the period upto which delay can be condoned in exercise of discretion conferred by the statute". Counsel points to the prayer of the defendant for filing of its written statement within 8 weeks in the application made before the Master on 5th February, 2020. Upon hearing learned counsel appearing for the parties, Order VIII Rule 1 of The Code of Civil Procedure is required to be set out together with the Amendment to the Section pursuant to The Commercial Courts Act, 2015. Order VIII [1. Written Statement :- The Defendant shall, within thirty days from the date of service of summons on him, present a written statement of his defence: *Provided that where the defendant fails to file the written state....

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....has to be read in conjunction with the later order of the Supreme Court of 18th September, 2020. Paragraph 19 of the order of 18th September, 2020 clarifies the earlier order of 23rd March, 2020 in the following manner : 19. But we do not think that the appellants can take refuge under the above order. What was extended by the above order of this Court was only "the period of limitation" and not the period upto which delay can be condoned in exercise of discretion conferred by the statute. The above order passed by this Court was intended to benefit vigilant litigants who were prevented due to the pandemic and the lockdown, from initiating proceeding within the period of limitation prescribed by general or special law. It is needless to p....

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....r and unambiguous and to the effect that a defendant in a matter covered by The Commercial Courts Act, 2015 will not be permitted to file its written statement beyond 120 days. Two questions arise from this construction. First, whether the initial period of 30 days is the prescribed period for the purposes of limitation and second, whether the defendant can take refuge under the order of 23rd March, 2020 passed by the Supreme Court. With regard to the first question, the words of the amendment make it clear that the additional period allowed to a defendant comes into play only after the defendant has failed to file its written statement within the prescribed period under Order VIII Rule 1 which is 30 days. Hence, the 90 days additional win....

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....ue is whether the defendant showed promptness in pursuing its right of filing the written statement. The prescribed period of 30 days ended on 2nd January, 2020 and the additional 90 days (120 days under the Amendment) ended on 31st March, 2020. The application was filed by the defendant for extension of time on 5th February, 2020 seeking a further period of eight weeks for filing of its written statement thereby extending the time till 5th April, 2020. The prayer made therefore is clearly outside even the additional period of 90 days as prescribed by the Amendment. It should also be noted that paragraph 16 of the application filed by the defendant states that judicial functions and listing of urgent matters started in phases on and from Ju....