Supreme Court of India
Digital Supreme Court Reports
The Official Law Report Fortnightly ISSN: 3048-4839 (Online)
Home
Full Text

PRAKASH CORPORATES vs. DEE VEE PROJECTS LIMITED

SCR Citation: [2022] 8 S.C.R. 889
Year/Volume: 2022/ Volume 8
Date of Judgment: 14 February 2022
Petitioner: PRAKASH CORPORATES
Disposal Nature: Appeal Allowed
Neutral Citation: 2022 INSC 180
Judgment Delivered by: Hon'ble Mr. Justice Dinesh Maheshwari
Respondent: DEE VEE PROJECTS LIMITED
Case Type: CIVIL APPEAL /1318/2022
Order/Judgment: Judgment
1. Headnote

Code of Civil Procedure, 1908: O.V r.1, O.VIII r.1, O.VIII r.10 – Extension of time period for filing written statement in view of the orders passed and issued in the wake of COVID-19 pandemic – On 21.12.2020 plaintiff-respondent instituted a money suit against appellant-defendant – On 22.06.2021, trial court refused the prayer of the appellant for extension of time for filing written statement by virtue of O.VIII r.1 and held that appellant had forfeited its right to file written statement – Held: By virtue of s.16 of Commercial Courts Act, 2015, the Commercial Court is to follow the provisions of CPC as amended by the Act in the trial of a suit in respect to a Commercial dispute of a Specified Value – The amended provisions contained in O.V r.1, O.VIII r.1, O.VIII r.10 state that defendant is to file written statement within 30 days of service of summons – If he fails to do so, he may be allowed to file on other day by the Court, however, it cannot go beyond 120 days from the date of service of summons, otherwise right to file the written statement would be forfeited – In the instant case, the 120th day came to end on 06.05.2021, however, these provisions operate in normal and non-extraordinary circumstances with the usual functioning of courts – In view of COVID-19 Pandemic, this Court provided in Suo Moto Writ Petition that in computing the period of limitation in all proceedings, prescribed in general or special laws, whether condonable or not, the period from 15.03.2020 till 02.10.2021 shall stand excluded – Hence, applicability of orders passed by this court cannot be denied in relation to the period prescribed for filing of written statement – Therefore, the time limit for filing the written statement by the appellant in the subject suit did not come to end on 06.05.2021 – Written statement notarized by the appellant on 07.01.2021 is ordered to be taken on record – Commercial Courts Act, 2015.


Allowing the appeal, the Court:


HELD: 1. By virtue of Section 16 thereof, the Commercial Court is to follow the provisions of CPC as amended by the Act in the trial of a suit in respect to a Commercial dispute of a Specified Value. Order V Rule 1, Order VIII Rule 1 and Order VIII Rule 10 CPC not only envisage strict timelines for filing of written statement but even provide for consequences of default, while restricting the powers of the Court to extend the time for filing written statement beyond the period prescribed. As per the mandate of the said provisions: (a) the defendant is under an obligation to file the written statement of his defence within 30 days of service of summons; (b) if he fails to file the written statement within the said period of 30 days, he may be allowed to file the written statement on such other day as the Court may specify for reasons to be recorded in writing and on payment of such costs as the Court may impose but this other day, in any case, cannot go beyond 120 days from the date of service of summons; (c) on expiry of 120th day from the date of service of summons, the defendant forfeits the right to file the written statement and no Court can make an order to extend such time beyond 120 days from the date of service of summons. [Para 16] [916-A-D].



2. If the aforesaid provisions and explained principles are literally and plainly applied to the facts of the present case, the 120th day from the date of service of summons came to an end with 06.05.2021 and the defendant, who had earlier been granted time for filing its written statement on payment of costs, forfeited such right with the end of 120th day, i.e., 06.05.2021. However, the provisions aforesaid and their interpretation in SCG Contracts operate in normal and non-extraordinary circumstances with the usual functioning of Courts. The above referred provisions of CPC are not the only provisions of law which lay down mandatory timelines for particular proceedings. The relevant principles, in their normal and ordinary operation, are that such statutory timelines are of mandatory character with little, or rather no, discretion with the Adjudicating Authority for enlargement. [Para 17][917-D-F]



3. Having regard to the purpose for which this Court had exercised the plenary powers under Article 142 of the Constitution of India and issued necessary orders from time to time in SMWP No. 3 of 2020, the period envisaged finally in the order dated 23.09.2021 is required to be excluded in computing the period of limitation even for filing the written statement and even in cases where the delay is otherwise not condonable. It gets perforce reiterated that the orders in SMWP No. 3 of 2020 were of extraordinary measures in extraordinary circumstances and their operation cannot be curtailed with reference to the ordinary operation of law. [Para 20.1][921-C-E]



4. In other words, the orders passed by this Court on 23.03.2020, 06.05.2020, 10.07.2020, 27.04.2021 and 23.09.2021 in SMWP No. 3 of 2020 leave nothing to doubt that special and extraordinary measures were provided by this Court for advancing the cause of justice in the wake of challenges thrown by the pandemic; and their applicability cannot be denied in relation to the period prescribed for filing the written statement. It would be unrealistic and illogical to assume that while this Court has provided for exclusion of period for institution of the suit and therefore, a suit otherwise filed beyond limitation (if the limitation had expired between 15.03.2020 to 02.10.2021) could still be filed within 90 days from 03.10.2021 but the period for filing written statement, if expired during that period, has to operate against the defendant. Therefore, in view of the orders passed by this Court in SMWP No. 3 of 2020, the time limit for filing the written statement by the appellant in the subject suit did not come to an end on 06.05.2021. [Paras 20.2, 20.3][921-E-H; 922-A]



2. Case referred
3. Act
      No Data Found!!!!!
4. Keyword
  • Code of Civil Procedure
  • 1908: O.V r.1
  • O.VIII r.1
  • O.VIII r.10
5. Equivalent citation
    Citation(s) 2022 (5) SCC 112 = 2022 (5) Suppl. SCC 112 = 2022 (3) SCALE 415