Introduction 

• This is a landmark judgment relating to the period of limitation for filing the written statement.     
• This judgment was delivered by a 2- judge bench comprising of Justice RF Nariman and Jstice Vineet Saran.  

Facts 

• A suit was filed on 10th March 2017 for claiming certain sum. 
• The Defendant no 1 was served with summons on 14th July 2017. 
• Since the period of 120 days expires on 11th November 2017 the written statement should have been filed by that time. 
• However, no such written statement was filed. 
• The counsel for the defendant prayed that seven days time should be granted to file the written statement. 
• The Court accordingly extended the time and allowed the written statement to be filed. 
• The same was objected to and hence a Special Leave Petition was filed in this regard.  

Issue Involved  

• Whether the time period for filing written statement in commercial suits be extended beyond the period of 120 days? 

Observations 

• The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 which came into force on 23rd October 2015 brought the following new provisions with regard to filing the written statement: 
  • Second Proviso to Order V Rule (1) of Civil Procedure Code, 1908 (CPC). 
  • New Proviso added in Order VIII Rule 1 of CPC 
  • Another Proviso added to Order VIII Rule 10 of CPC 
• All these provisions give rise to the following conclusions: 
  • A written statement is to be filed within a period of 30 days 
  • However, grace period of 90 days is granted which the Court may employ for reasons to be recorded in writing and payment of such costs as it deems fit to allow such written statement to come on record. 
  • Beyond the period of 120 days from the date of service of summons, the defendant shall forfeit the right to file the written statement and the Court shall not allow the written statement to be taken on record.  
  • proviso in Order VIII Rule 10 also added that the Court has no further power to extend the time beyond this period of 120 days. 
• The Court observed that several High Courts have held that the amended provisions of CPC have to be held to be mandatory. 
• The Court hence held that the written statement of Defendant no.1 should be taken off the record.  

Conclusion 

• The judgment discusses the timeline for filing written statement in commercial suits. 
• This judgment conclusively holds that the amendments made to CPC with respect to commercial suits are mandatory in nature.