PRAKASH CORPORATES versus DEE VEE PROJECTS LIMITED

PRAKASH CORPORATES versus DEE VEE PROJECTS LIMITED

The Supreme Court held that the period specified in its orders in SMWP No.3 of 2020 (ultimately excluding 15.03.2020 to 02.10.2021) must be excluded in computing the time for filing a written statement in the present commercial suit; coupled with the High Court administrative order curtailing court functioning, the 120-day statutory outer limit did not operate to forfeit the defendant’s right on 06.05.2021. Consequently the Trial Court and High Court orders refusing further time were set aside and the written statement notarised on 07.07.2021 was ordered to be taken on record.

Parties
Appellant: PRAKASH CORPORATES; Respondent: DEE VEE PROJECTS LIMITED
Jurisdiction
India
Judgment Date
14 February 2022
Procedural Posture
Civil Appeal / Admitted and Heard at Admission Stage
Outcome
Appeal allowed
Legal Topics
Extension of Time, Filing of Written Statement, Order V Rule 1, Order VIII Rule 1, Order VIII Rule 10, Effect of Suo Motu Writ Petition (civil) No. 3 of 2020, Administrative Court Functioning Orders

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Parties

PRAKASH CORPORATES

Appellant

DEE VEE PROJECTS LIMITED

Respondent

Procedural Posture

Civil Appeal / Admitted and Heard at Admission Stage

  1. 1 Whether the 120-day limit in Order VIII Rule 1 proviso (as amended by the Commercial Courts Act, 2015) operated to forfeit defendant’s right to file written statement on 06.05.2021
  2. 2 Whether orders of this Court in SMWP No.3 of 2020 excluding the period 15.03.2020 to 02.10.2021 apply to computation of time for filing a written statement in a Commercial Court matter
  3. 3 Whether the High Court administrative order curtailing court functioning and Section 4 Limitation Act principles affect computation of the 120-day period

Ratio Decidendi

The Supreme Court held that the period specified in its orders in SMWP No.3 of 2020 (ultimately excluding 15.03.2020 to 02.10.2021) must be excluded in computing the time for filing a written statement in the present commercial suit; coupled with the High Court administrative order curtailing court functioning, the 120-day statutory outer limit did not operate to forfeit the defendant’s right on 06.05.2021. Consequently the Trial Court and High Court orders refusing further time were set aside and the written statement notarised on 07.07.2021 was ordered to be taken on record.

Court Disposition

Appeal allowed

Orders

  • Order dated 22.06.2021 of the Commercial Court (District Level), Nava Raipur in Civil Suit No.01-B of 2021 set aside
  • Order dated 09.07.2021 of the High Court of Chhattisgarh in WP No.312 of 2021 set aside