Case Note & Summary
The dispute arose from a writ petition filed by M/s. K.C. Construction Company and others against the order of the Commercial Court allowing the respondents to file their written statement beyond the stipulated 120 days. The petitioners, original plaintiffs in a suit for specific performance and damages, challenged the Commercial Court's jurisdiction to condone the delay in filing the written statement. The suit was initially filed in the Civil Court and later transferred to the Commercial Court, where the respondents sought to file their written statement after the 120-day period. The petitioners argued that the Commercial Court lacked jurisdiction to accept the written statement beyond this period, citing the Supreme Court's ruling in M/s. SCG Contracts India Private Limited v. K. S. Chamankar Infrastructure Limited. The respondents contended that the Supreme Court's interpretation in Raj Process Equipments and Systems Pvt. Ltd. v. Honest Derivatives Pvt. Ltd. allowed for discretion in such cases. The court analyzed the provisions of the Commercial Courts Act and the Code of Civil Procedure, concluding that the 120-day timeline does not apply to suits transferred from Civil Courts to Commercial Courts. The court emphasized that the Commercial Court has the discretion to set new timelines for filing written statements in transferred suits. Ultimately, the court dismissed the writ petition, affirming the Commercial Court's decision to allow the written statement despite the delay.
Headnote
A) Commercial Law - Written Statement Timeline - Applicability of 120-day timeline for filing written statement - Commercial Courts Act, 2015, Section 15 - Court held that the mandatory timeline of 120 days for filing a written statement does not apply to suits transferred from Civil Courts to Commercial Courts, allowing the court discretion to prescribe new timelines (Paras 10-20).
Issue of Consideration
Whether defendants in a Civil Suit transferred to a Commercial Court are obligated to follow the 120-day timeline for filing a written statement from the date of service of notice by the Commercial Court.
Final Decision
The High Court dismissed the writ petition, affirming the Commercial Court's order allowing the written statement despite the delay, and held that the 120-day timeline does not apply to suits transferred from Civil Courts to Commercial Courts.
Law Points
- Commercial Courts Act
- Code of Civil Procedure
- 1908
- written statement timeline
- jurisdiction of Commercial Court
- condonation of delay
