M/S SCG CONTRACTS INDIA PVT. LTD. versus K. S. CHAMANKAR INFRASTRUCTURE PVT. LTD. & ORS.

M/S SCG CONTRACTS INDIA PVT. LTD. versus K. S. CHAMANKAR INFRASTRUCTURE PVT. LTD. & ORS.

The amended provisions of the Code of Civil Procedure (post-Commercial Courts Act, 2015) mandatorily require that written statements in commercial suits must be filed within 120 days from service of summons. Courts have no power to accept written statements or extend the time period beyond 120 days. Orders permitting written statements beyond this period are unsustainable and must be set aside, irrespective of res judicata or invocation of inherent powers under Section 151 CPC.

Parties
Appellant: M/S SCG Contracts India Pvt. Ltd.; Respondent: K. S. Chamankar Infrastructure Pvt. Ltd. & Ors.
Jurisdiction
India
Judgment Date
12 February 2019
Procedural Posture
Civil Appeal / Civil Appellate Jurisdiction; Appeal From Two Orders of the High Court (dated 05.12.2017 and 24.09.2018) in Civil Suit (comm.) No. 199 of 2017
Outcome
Appeal allowed
Legal Topics
Written Statement, Res Judicata, Statutory Mandatory Provisions, Inherent Powers of Court
Civil Procedure Commercial Law Written Statement Res Judicata Statutory Mandatory Provisions Inherent Powers of Court

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Parties

M/S SCG Contracts India Pvt. Ltd.

Appellant

K. S. Chamankar Infrastructure Pvt. Ltd. & Ors.

Respondent

Procedural Posture

Civil Appeal / Civil Appellate Jurisdiction; Appeal From Two Orders of the High Court (dated 05.12.2017 and 24.09.2018) in Civil Suit (comm.) No. 199 of 2017

Legal Issues

  1. 1 Whether the written statement filed beyond the 120-day period prescribed by amended CPC can be taken on record in a commercial suit?
  2. 2 Whether the doctrine of res judicata bars challenge to an order permitting written statement beyond statutory period?
  3. 3 Can inherent powers under Section 151 CPC override mandatory statutory provisions regarding written statement?

Ratio Decidendi

The amended provisions of the Code of Civil Procedure (post-Commercial Courts Act, 2015) mandatorily require that written statements in commercial suits must be filed within 120 days from service of summons. Courts have no power to accept written statements or extend the time period beyond 120 days. Orders permitting written statements beyond this period are unsustainable and must be set aside, irrespective of res judicata or invocation of inherent powers under Section 151 CPC.

Court Disposition

Appeal allowed

Orders

  • Order dated 05.12.2017 extending time for written statement set aside.
  • Order dated 24.09.2018 permitting written statement to be taken on record set aside.