Court dismisses appeal challenging closure of defendant's right to file written statement beyond statutory period in commercial dispute
The Delhi High Court has reinforced the mandatory timeline for filing written statements in commercial disputes, dismissing an appeal by Avon Enterprises against the judgment of the Saket District Judge, which decreed a recovery suit in favor of Chibba Agro Pvt. Ltd. The bench comprising Justices Anil Kshetarpal and Amit Mahajan emphasized that the courts lack discretionary power to condone delays beyond the statutory period of 120 days as per the Commercial Courts Act, 2015.
The case stemmed from a business relationship between Avon Enterprises and Chibba Agro Pvt. Ltd., which soured over an unpaid amount of Rs. 12,45,778/- for goods supplied between 2019 and 2021. Despite reminders, the defendant failed to clear the dues, prompting the plaintiff to file a suit for recovery.
The timeline for filing the written statement expired on November 9, 2023, following which the defendant's right to file was closed on December 7, 2023. The defendant argued for condonation of delay on medical grounds and cited precedents from non-commercial suits, which the court deemed inapplicable.
The court's decision underscores the importance of procedural discipline in commercial cases, ensuring expediency and certainty. It was noted that the defendant had multiple opportunities to file the written statement but failed to do so within the prescribed period.
The judgment also highlighted the unchallenged evidence presented by the plaintiff, affirming that the defendant's failure to cross-examine the plaintiff's witness did not vitiate the proceedings. The court concluded that the defendant's conduct reflected a lack of diligence, affirming the legislative intent to maintain strict timelines in commercial litigation.
Bottom line:-
Filing of written statement in commercial suits - Strict adherence to the statutory timeline of 120 days as per the Commercial Courts Act, 2015 is mandatory, and courts lack the discretionary power to condone delays beyond this period.
Statutory provision(s): Commercial Courts Act, 2015, Section 16, Code of Civil Procedure, 1908 - Order V Rule 1, Order VIII Rules 1 and 10
Avon Enterprises v. Chibba Agro Pvt. Ltd., (Delhi)(DB) : Law Finder Doc id # 2893558
