Case Note & Summary
The dispute arose from a commercial suit filed by the plaintiff-respondent against the defendant-appellant for recovery of Rs. 3,73,24,821/- with interest, alleging excess payment under sub-contracts for public road works. The defendant-appellant had been served with summons on 06.01.2021 and sought multiple adjournments to file its written statement, citing reasons such as illness of a partner, non-availability of senior counsel, and assistance from a Delhi-based law firm. The Trial Court granted extensions with costs, but the 120-day period from service of summons expired on 06.05.2021 under the proviso to Order VIII Rule 1 of the Code of Civil Procedure, 1908 as substituted by the Commercial Courts Act, 2015, which forfeits the right to file a written statement thereafter. On 22.06.2021, the Trial Court declined further time, upheld by the High Court on 09.07.2021, leading to this appeal. The core legal issue was whether the defendant should be granted additional time considering the COVID-19 pandemic and the Supreme Court's orders in Suo Motu Writ Petition (Civil) No. 3 of 2020 extending limitation periods. The defendant argued that the pandemic disrupted proceedings and that limitation had been extended, while the respondent opposed, asserting the forfeiture of rights after 120 days. The Supreme Court analyzed the proviso, the impact of COVID-19, including administrative orders curtailing court functioning, and the orders in SMWP No. 3 of 2020. It reasoned that the pandemic created exceptional circumstances justifying relaxation of strict time limits to ensure access to justice. The Court allowed the appeal, permitting the defendant to file its written statement, emphasizing the need for flexibility due to the pandemic's disruptions.
Headnote
A) Civil Procedure - Commercial Courts - Time Limit for Filing Written Statement - Proviso to Order VIII Rule 1 of Code of Civil Procedure, 1908 as substituted by Commercial Courts Act, 2015 - Defendant in commercial suit sought further time to file written statement beyond 120 days from service of summons - Trial Court and High Court declined prayer citing forfeiture of right under proviso - Supreme Court considered impact of COVID-19 pandemic and orders in Suo Motu Writ Petition (Civil) No. 3 of 2020 extending limitation periods - Held that time limit should be extended due to pandemic disruptions, allowing defendant to file written statement (Paras 2, 8, 32-35). B) Limitation Law - Extension Due to COVID-19 - Suo Motu Writ Petition (Civil) No. 3 of 2020 - Orders passed by Supreme Court extending period of limitation under general law or special laws - Defendant argued limitation extended due to pandemic challenges - Court examined operation and effect of these orders on filing deadlines - Held that COVID-19 circumstances justified extension, overriding strict application of time limits (Paras 2, 21, 35). C) Court Administration - Administrative Orders During Pandemic - High Court's curtailed functioning order - Trial Court adjourned matter due to administrative orders issued during second wave of COVID-19 - These orders disrupted normal court functioning - Court considered implication on procedural timelines - Held that administrative disruptions affected ability to comply with deadlines, supporting extension (Paras 29, 47).
Issue of Consideration
Whether the defendant-appellant should be granted further time to file its written statement in a commercial suit, considering the proviso to Order VIII Rule 1 of the Code of Civil Procedure, 1908 as substituted by the Commercial Courts Act, 2015 and the orders passed in Suo Motu Writ Petition (Civil) No. 3 of 2020 extending limitation periods due to COVID-19 pandemic
Final Decision
Supreme Court allowed the appeal, granting the defendant-appellant further time to file its written statement, considering the impact of COVID-19 pandemic and the orders in Suo Motu Writ Petition (Civil) No. 3 of 2020
Law Points
- Extension of limitation periods under general and special laws due to COVID-19
- interpretation of proviso to Order VIII Rule 1 of Code of Civil Procedure
- 1908 as substituted by Commercial Courts Act
- 2015
- forfeiture of right to file written statement after 120 days from service of summons
- effect of administrative orders on court functioning
