Court Dismisses Late Application for Written Statement Filing in Veeline Holdings v. Khetawat Properties Case
In a significant ruling, the Calcutta High Court has reinforced the strict adherence to statutory timelines in commercial disputes, emphasizing the importance of procedural efficiency as envisioned by the Commercial Courts Act, 2025. The judgment was delivered by Justice Aniruddha Roy on December 17, 2025, in the case of Veeline Holdings Private Limited v. Khetawat Properties Limited.
The dispute centered around the defendant's failure to file a written statement within the prescribed 30-day period following the service of summons, as mandated by the amended provisions of Order VIII Rule 1 of the Code of Civil Procedure (CPC) under the Commercial Courts Act. Despite the defendant's attempt to submit the written statement within the extended 120-day period, the court found that the submission lacked a formal application showing sufficient cause for the delay.
Justice Roy underscored the statutory requirement that defendants must file a formal application for extension within 120 days, failing which they forfeit the right to file a written statement, and the court loses jurisdiction to entertain it. The judgment highlights the legislative intent to ensure expeditious disposal of commercial cases, discouraging procedural delays through a strict interpretation of timelines.
The court noted that merely submitting the written statement to the department, without a formal application and recorded reasons for the delay, does not constitute compliance with legal requirements. Consequently, the court directed the written statement to be taken off the file, treating the suit as undefended.
This decision reinforces the mandatory nature of timelines in commercial litigation and clarifies the procedural obligations of defendants, ensuring that the objectives of the Commercial Courts Act in fostering swift resolution of commercial disputes are met.
Legal practitioners have hailed the judgment as a critical reminder of the importance of adhering to statutory deadlines and procedural rigor in commercial matters.
Bottom Line:
Commercial disputes - Filing of written statement beyond the mandated timeline under the Commercial Courts Act, 2025 and amended provisions of Order VIII Rule 1 of CPC - Strict compliance required for timelines, mandatory filing of formal application for extension within 120 days, and forfeiture of right to file written statement beyond 120 days.
Statutory provision(s): Commercial Courts Act, 2025, Code of Civil Procedure, 1908 Order VIII Rule 1
