Bombay High Court Dismisses Condonation of Delay in Filing Written Statement in Commercial IP Suit — Delay of 410 Days Not Sufficiently Explained. Policy Changes and Preoccupation of Legal Team Held Not to Constitute Sufficient Cause Under Order VIII Rule 1 CPC.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The case involves a commercial IP suit filed by Metro Shoes Ltd (Plaintiff) against Flipkart India Pvt. Ltd. and Tech-Connect Retail Pvt. Ltd. (Defendants) seeking to restrain infringement, passing off, and unfair trade practice concerning the 'METRO' marks. The suit was filed in 2018, and summons were served in October 2018. The Defendants failed to file written statements within the prescribed period, resulting in a delay of 410 days. They filed Interim Applications seeking condonation of delay or, alternatively, to treat their affidavits in reply filed in a related notice of motion as written statements. The Defendants argued that the delay was due to drastic policy changes by the Union Government affecting their business strategy and that their legal team was preoccupied. The Court examined whether the reasons constituted 'sufficient cause' under Order VIII Rule 1 of the CPC. The Court held that the reasons were not sufficient, as the policy changes were not shown to have directly prevented filing, and preoccupation of legal team is not a valid ground. The Court also rejected the alternative prayer, stating that affidavits in reply do not contain the necessary particulars of a written statement and cannot substitute for one. Consequently, the applications were dismissed, and the Defendants were not permitted to file written statements or treat the affidavits as such.

Headnote

A) Civil Procedure - Condonation of Delay - Sufficient Cause - Order VIII Rule 1 of Code of Civil Procedure, 1908 - Delay of 410 days in filing written statement - Defendants cited policy changes and preoccupation of legal team as reasons - Held that such reasons do not constitute sufficient cause for condonation of delay (Paras 1-8).

B) Commercial Law - Written Statement - Treatment of Affidavit in Reply as Written Statement - Section 16 of Commercial Courts Act, 2015 - Defendants sought to treat affidavits in reply filed in notice of motion as written statements - Held that affidavits in reply do not meet the requirements of a written statement and cannot be treated as such (Paras 9-12).

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Issue of Consideration

Whether the delay of 410 days in filing written statements should be condoned and whether the affidavits in reply filed in the notice of motion can be treated as written statements.

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Final Decision

The Interim Applications are dismissed. The delay of 410 days in filing written statements is not condoned, and the affidavits in reply cannot be treated as written statements.

Law Points

  • Condonation of delay
  • Written statement
  • Sufficient cause
  • Commercial suit
  • Order VIII Rule 1 CPC
  • Section 16 of Commercial Courts Act
  • 2015
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Case Details

2020 LawText (BOM) (05) 19

Interim Application No. 1 of 2019 and Interim Application No. 2 of 2019 in Commercial IP Suit No. 1112 of 2018

2020-05-26

S.C. Gupte, J.

2019:BHC-OS:1267

Mr. Amit Jamsandekar with Mr. Jay Vora and Mr. Vignesh Kamat for Plaintiff; Mr. Venkatesh Dhond, Senior Advocate with Mr. Rohan Kadam, Mr. Sanjay Kadam, Ms. Apeksha Sharma and Ms. Sanjeel Kadam for Defendant No.1; Mr. Ashish Kamat with Mr. Shrinivas Bobde, Mr. Mohanish Chaudhari and Ms. Sayalee Rajpurkar for Defendant No.2

Flipkart India Pvt. Ltd. and Tech-Connect Retail Pvt. Ltd.

Metro Shoes Ltd

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Nature of Litigation

Commercial IP suit for infringement, passing off, and unfair trade practice.

Remedy Sought

Condonation of delay of 410 days in filing written statements or leave to treat affidavits in reply as written statements.

Filing Reason

Defendants failed to file written statements within time due to policy changes and preoccupation of legal team.

Issues

Whether the delay of 410 days in filing written statements should be condoned. Whether the affidavits in reply filed in the notice of motion can be treated as written statements.

Submissions/Arguments

Defendants argued that delay was due to drastic policy changes by the Union Government affecting business strategy and preoccupation of legal team. Defendants alternatively sought to treat affidavits in reply as written statements. Plaintiff opposed the applications, contending that reasons were not sufficient and affidavits in reply cannot substitute written statements.

Ratio Decidendi

The reasons cited by the Defendants, namely policy changes and preoccupation of legal team, do not constitute 'sufficient cause' for condonation of delay under Order VIII Rule 1 CPC. Affidavits in reply filed in a notice of motion do not contain the necessary particulars of a written statement and cannot be treated as such.

Judgment Excerpts

The Defendants claim that they were, in any event, contesting the Plaintiff’s application for temporary injunction ... by filing affidavits in reply. The reasons cited by the Defendants ... do not constitute 'sufficient cause' for condonation of delay.

Procedural History

The suit was filed in 2018. Summons served in October 2018. Written statements due within 30 days. Delay of 410 days occurred. Defendants filed Interim Applications in 2019 seeking condonation or alternative relief. The applications were heard and dismissed on 26 May 2020.

Acts & Sections

  • Code of Civil Procedure, 1908: Order VIII Rule 1
  • Commercial Courts Act, 2015: Section 16
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