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Monday, February 14, 2022

Whether the extension of period of limitation by Apex court applies to the filing of Written Statements ?

 Whether the extension of period of limitation by Apex court applies to the filing of Written Statements ?

declining the prayer of the defendant-appellant for granting further time to file its written statement. 

The prayer of the defendant-appellant came to be declined on the ground that in view of the proviso to Order VIII Rule 1 of the Code of Civil Procedure, 19081 , as substituted by the Commercial Courts Act, 20152 , such a right of the defendant to file the written statement stood forfeited with expiry of 120 days from the date of service of summons.- Covid =

Apex court held that  It is true that the appellant had indeed caused appearance in the Court in response to the summons and sought time for filing its written statement but at the same time, it is also undeniable that at the relevant point of time, the second wave of pandemic was simmering and then, it engulfed the country with rather unexpected intensity and ferocity. Then, on 27.04.2021, this Court restored the operation of the order dated 23.03.2020 in SMWP No. 3 of 2020. 

Putting all these factors together, we are unable to accept the submissions made on behalf of the respondent that because of earlier appearance or prayer for adjournment, the defendant-appellant would not be entitled to the relaxation available under the extraordinary orders passed by this Court.


REPORTABLE

IN THE SUPREME COURT OF INDIA

 CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO(s). 1318 of 2022

(Arising out of SLP(C) Nos. 13751 of 2021)

PRAKASH CORPORATES ……. APPELLANT(S)

VERSUS

DEE VEE PROJECTS LIMITED …… RESPONDENT(S)

JUDGMENT

Dinesh Maheshwari, J.

Contents

Preliminary.................................................................................................................................2

Relevant background aspects and proceedings in the suit.........................................................3

Order of the Commercial Court dated 22.06.2021.....................................................................8

Impugned order dated 09.07.2021: the High Court declines to interfere.................................10

Rival Submissions....................................................................................................................12

Relevant statutory provisions...................................................................................................18

Impact of COVID-19:..............................................................................................................21

Orders passed in SMWP No.3 of 2020.................................................................................21

Administrative order issued by the High Court....................................................................29

Time limit for filing written statement and consequences of default.......................................32

Operation and effect of the orders passed in SMWP No. 3 of 2020........................................35

Implication and effect of the administrative order issued by the High Court..........................47

Another error of procedure by the Trial Court.........................................................................51

Conclusion................................................................................................................................54

1

Preliminary

Leave granted.

2. By way of this appeal, the appellant has challenged the order

dated 09.07.2021, as passed by the High Court of Chhattisgarh at

Bilaspur in WP No. 312 of 2021, whereby the High Court has upheld the

order dated 22.06.2021, as passed by the Commercial Court (District

Level), Nava Raipur, Chhattisgarh in Civil Suit No. 01-B of 2021, in

declining the prayer of the defendant-appellant for granting further time to

file its written statement. The prayer of the defendant-appellant came to

be declined on the ground that in view of the proviso to Order VIII Rule 1

of the Code of Civil Procedure, 19081

, as substituted by the Commercial

Courts Act, 20152

, such a right of the defendant to file the written

statement stood forfeited with expiry of 120 days from the date of service

of summons.

2.1. The defendant-appellant has questioned the orders so passed by

the Trial Court and by the High Court on various grounds, including those

with reference to the orders passed by this Court in Suo Motu Writ

Petition (Civil) No. 3 of 20203

, for extension of the period of limitation

prescribed under the general law of limitation or under any special law, in

1 Hereinafter also referred to as ‘CPC’.

2 Hereinafter also referred to as ‘the Act’.

3 Hereinafter also referred to as ‘SMWP No. 3 of 2020’.

2

view of the challenges faced by the country and difficulties of the litigants

due to COVID-19 pandemic.

Relevant background aspects and proceedings in the suit

3. Looking to the questions arising in this appeal on the appellant’s

prayer for an opportunity to file its written statement, dilation on all the

factual aspects of the subject suit is not necessary and only a brief

reference to the background would suffice.

3.1. It appears from the plaint averments and other submissions that

the parties to this litigation and their associated entities were having

business dealings, particularly in relation to the public contract works. The

present litigation relates to two such contract works: one being the work

awarded by the Chhattisgarh Road Development Corporation Limited for

“Construction of Two Laning with Hard Shoulder of Tara-PremnagarRamanunjnagar Road Section in the State of Chhattisgarh”; and the other

being the work awarded by the Public Works Department of the

Government of Chhattisgarh for “Rehabilitation and Upgradation of NH

111 in the State of Chhattisgarh”. It appears that certain portions of these

works were sub-contracted by the plaintiff-respondent to the defendantappellant under two work orders bearing Nos. DV/HW/03 dated

01.04.2017 and DV/HW/08 dated 01.07.2017 respectively. There might

be some divergence in the stand of the parties as to the manner of

awarding these contract works and as to the reasons for which certain

3

portions of these works came to be sub-contracted to the appellant but,

all those aspects are not of relevance for the present purpose.

3.2. The litigation pertains to the monetary liabilities arising from and

under the sub-contracts awarded to the appellant. It appears that the

appellant had raised various running account bills and the respondent

had made various running account payments but, each of the parties has

its own version of its claim against the other. It appears that on

01.07.2020, the appellant sent a demand notice to the respondent in

terms of the Insolvency and Bankruptcy Code, 20164

, demanding

payment of an alleged unpaid operational debt of Rs. 17,94,11,835/-.

The respondent sent a reply to the said notice on 13.07.2020, denying

the claim so made by the appellant and conversely making a claim of Rs.

3,73,24,821/- against the appellant on account of excess payment.

3.3. It appears further from the submissions sought to be made in this

appeal that on 11.09.2020, the appellant approached the National

Company Law Tribunal, Cuttack Bench5

 seeking initiation of corporate

insolvency resolution process against the respondent under Section 9 of

the Code with the allegations that the respondent (corporate debtor) had

failed to make payment of its unpaid operational debt. On the other hand,

on 21.12.2020, the plaintiff-respondent instituted the suit aforesaid

against the defendant-appellant for recovery of the said sum of

4 Hereinafter also referred to as ‘the Code’.

5 Hereinafter also referred to as ‘the NCLT’.

4

Rs.3,73,24,821/- along with interest @ 12% p.a., allegedly being the

excess payment made to the appellant. The plaintiff-respondent also filed

an application under Order XXXVIII Rule 5 read with Section 151 CPC,

seeking interim directions of attachment before judgment.

4. After a glance at the background aspects as above, it would be

worthwhile to take note of the relevant events pertaining to the

proceedings in the suit so filed by the plaintiff-respondent, in their feasible

chronology.

4.1. In the said suit instituted on 21.12.2020, the plaintiff-respondent

had also filed an application under Section 149 CPC, seeking time for

payment of court fees that was granted and the matter was taken up on

01.01.2021. On that date, the Trial Court found that the requisite court

fees had been paid and also referred to the submissions made on behalf

of the respondent regarding urgency of matter in view of the said

application seeking interim directions under Order XXXVIII Rule 5 read

with Section 151 CPC. Taking note of the submissions so made, the

Court granted another application moved by the respondent for

dispensing with the requirements of pre-institution mediation in terms of

Section 12-A of the Act; and issued summons to the defendant-appellant

for appearance and filing of written statement as also reply to the said

interim application.

5

4.2. The defendant-appellant was served with summons in the subject

suit on 06.01.2021.

4.3. The appellant did appear before the Trial Court in response to the

said summons on the date fixed, i.e., 18.01.2021 but filed an application

under Section 10 read with Section 151 CPC for stay of suit proceedings

on the ground that the proceedings between the parties were pending

before the NCLT. The appellant also sought time to file reply to the said

interim application. The Trial Court granted time to the parties to file

replies to the respective applications and adjourned the matter to

02.02.2021.

4.4. On 02.02.2021, the appellant sought time for filing written

statement and reply to the interim application on the ground of illness of

the partner of the firm. On the other hand, the respondent also sought

time for filing reply to the application moved on behalf of the appellant for

stay of suit proceedings. While adjourning the matter to 24.02.2021, the

Court directed the parties to file their respective replies to the pending

applications and also directed the appellant to file its written statement on

the next date.

4.5. On 24.02.2021, while the respondent filed its reply to the

application for stay of suit proceedings but, the appellant sought another

opportunity to file the written statement because of non-availability of the

senior counsel. The respondent raised an objection but, the Trial Court

6

granted another opportunity on costs of Rs. 200/-; and the appellant was

directed file its written statement as also reply to the application for

interim directions positively by the next date.

4.6. On the next date, i.e., on 15.03.2021, though a reply to the

application seeking interim directions was filed on behalf of the appellant

but, further time was sought for filing the written statement. It was

submitted that assistance of a Delhi-based Law Firm was being taken and

the necessary documents had been sent to Delhi for drafting the written

statement. In view of these submissions, the Trial Court granted yet

further time to the appellant for filing the written statement but, on costs of

Rs. 500/-. The Trial Court adjourned the matter to 15.04.2021 for

arguments on both the above-noted applications, moved respectively by

the appellant seeking stay of suit proceedings and by the respondent

seeking attachment before judgment.

4.7. In the ordinary and normal course, the matter would have

proceeded for the slated purpose on 15.04.2021 but, in view of an

administrative order dated 05.04.2021 issued by the jurisdictional High

Court for curtailed functioning of Courts as also in view of its own

administrative order dated 07.04.2021, the Trial Court adjourned the

matter to 22.06.2021, for arguments on both the applications.

Indisputably, the said administrative orders were issued under the force of

circumstances created by the second wave of COVID-19 pandemic, when

7

almost all the institutions suffered set-backs with disruption of their normal

functioning due to ailments, lock-downs and containment measures.

4.8. It would be apposite to notice at this juncture that in the ordinary

operation of the second proviso to Rule 1(1) of Order V and the proviso to

Rule 1 of Order VIII CPC, as substituted by the Commercial Courts Act,

2015, the appellant was required to file the written statement within 30

days from the date of service of summons, i.e., within 30 days from

06.01.2021. Further, the appellant could have been given time to file the

written statement by 120th day from the date of service of summons, for

reasons to be recorded in writing and on payment of such costs as

deemed fit by the Trial Court but, upon expiry of 120 days from the date of

service of summons, the right of the defendant-appellant to file the written

statement was to stand forfeited and the Court could not have allowed the

written statement to be taken on record. It is not in dispute that 120th day

from the date of service of summons expired on 06.05.2021.

Order of the Commercial Court dated 22.06.2021

5. Reverting to the suit proceedings, on 22.06.2021, when the Trial

Court took up the matter for consideration, another prayer for

adjournment was made on behalf of the appellant for filing the written

statement with the submission that limitation had been extended by this

Court in Suo Motu Writ Petition (Civil) No. 3 of 2020. This prayer was

opposed on behalf of the respondent with the submission that more than

8

120 days had expired since service of summons. The Trial Court referred

to the order-sheets of the case as also to the applicable proviso to Order

VIII Rule 1 CPC; and held that the appellant had forfeited its right to file

the written statement. The Trial Court, thereafter, adjourned the matter to

09.07.2021 for consideration of the aforesaid applications moved by the

parties.

5.1. This order dated 22.06.2021, being the bone of contention in this

appeal, could be usefully reproduced in extenso as under: -

“ 22.06.2021

Present: Shri Rishabh Garg Advocate for the Plaintiff.

Shri Neeraj Zaveri Advocate for the Defendant.

The counsel for the defendant prayed to grant an adjournment

for submission of written statement on the ground that Hon'ble

Apex Court in Suo Moto case has extended the limitation. The

prayer is vehemently opposed by the counsel for the Plaintiff on

the ground that more than 120 days has expired since the service

of summons on the defendants.

As per order-sheet of the present case, service of summons

was effected on the defendant by hand on 06.01.2021 and the

defendants firstly appeared before this Court on 18.01.2021. The

defendants have moved an application under Section 10 of CPC

on 18.01.2021 and filed reply of the application under Order 38

Rule 5 on 15.03.2021.

The proviso of Order 8 Rule 1 of CPC as incorporated by

Commercial Courts Act says that on expiry of 120 days from date

of service of summons, the defendant shall forfeit the right to file

written statement and the Court shall not allow the written

statement to be taken on record.

Therefore, the defendant in this case has forfeited his right to

submit written statement because more than 120 days have been

passed after 06.01.2021 i.e. date of service of summons on the

defendants. Now the defendants are not permitted to submit

written statement in the case file.

Now to come up on 09.07.2021 for consideration on application

under Order 38 Rule 5 CPC and on application under Section 10

CPC.”

9

Impugned order dated 09.07.2021: the High Court declines to

interfere

6. Seeking to question the aforesaid order dated 22.06.2021, the

defendant-appellant preferred a writ petition under Article 227 of the

Constitution of India before the High Court.

6.1. It was essentially submitted on behalf of the appellant that on

06.05.2021, the Court was closed due to imposition of lockdown in

pandemic control measures; and on 22.06.2021, the application was filed

seeking time for filing written statement on medical ground as the counsel

for the appellant was in quarantine. It was yet further submitted with

reference to the orders passed by this Court in Suo Motu Writ Petition

(Civil) No. 3 of 2020 that, while computing the period of limitation

prescribed under the general law or under special laws, the period

between 15.03.2020 to 14.03.2021 would stand excluded; and on

27.04.2021, the suspension of limitation was further extended by this

Court. Thus, it was contended that counting of limitation by the Trial Court

without taking into consideration the period of lockdown was erroneous.

Reference was made to various decisions of this Court, including those in

SCG Contracts (India) Private Limited v. K.S. Chamankar

Infrastructure Private Limited and Ors.: (2019) 12 SCC 210 and SS

Group Pvt. Ltd. v. Aaditiya J. Garg and Anr.: 2020 SCC OnLine SC

1050.

10

6.2. The petition so filed by the appellant was opposed on behalf of the

respondent with two-fold submissions. In the first place, it was urged that

the impugned order being an appealable one, the same could not have

been challenged by way of a petition under Article 227 of the Constitution

of India. Then, with reference to the decision in SCG Contracts (supra), it

was submitted that the Commercial Court had no power to extend the

time beyond the period of 120 days. Further, a decision of this Court in

the case of Sagufa Ahmed and Ors. v. Upper Assam Polywood

Products Private Limited and Ors.: (2021) 2 SCC 317 was cited in

support of the submission that the order in SMWP No. 3 of 2020 was only

for the purpose of extension of period of limitation and not for condonation

of delay. It was contended that the time for filing written statement was

that of prescribed period and, being not a matter of limitation, was not

covered under the order passed in SMWP No. 3 of 2020.

6.3. After having heard learned counsel for the parties, the High Court

held in the first place that the order passed in terms of Order VIII Rule 1

was not an appealable one under Order XLIII CPC and hence, the

petition was indeed maintainable. However, as regards challenge to the

order passed by the Trial Court, the High Court referred to the aforesaid

decisions in SCG Contracts and Sagufa Ahmed and held that the

limitation provided in the enactment cannot be extended by any Court.

The High Court also observed that the present one was not a case for

11

condonation of delay as the written statement had not been filed at all.

Thus, the High Court found no reason to consider interference and

proceeded to dismiss the writ petition while observing as under: -

“Taking into consideration the view settled by the Supreme

Court and the applicability of the order of Supreme Court in Suomoto Writ (Civil) No. 03 of 2020, the glaring fact present in this

case is this, that the petitioners have till date not filed any written

statement, the prescribed time for filing written statement and the

time which can be extended by the Court both have expired. The

case was fixed for hearing on 22.06.2021 even on that date, the

petitioner was not ready and prepared to file the written statement,

therefore, it appears to be a case in which the petitioner is making

a prayer for extension of limitation. No Court can grant any

extension of limitation against the provisions of the enactment

under which the case is being considered and heard. Further, it is

not a case of condonation of delay as the written statement is still

not filed. Hence, I am of this view that the learned Commercial

Court has not committed any error in rejecting the prayer made by

the petitioner for granting time to file written statement.

Accordingly, no substance is found to be present in this petition,

hence, this petition is dismissed at motion stage.”

7. Seeking to challenge the order so passed by the High Court, the

defendant-appellant has approached this Court. The plaintiff-respondent

has appeared in caveat. Having regard to the subject-matter, we have

heard the learned counsel for parties finally at the admission stage itself.

Rival Submissions

8. While assailing the order dated 09.07.2021 as passed by the High

Court and the order dated 22.06.2021 as passed by the Trial Court,

learned senior counsel for the defendant-appellant has referred to the

record of proceedings in the subject suit as also various orders passed in

SMWP No. 3 of 2020 by this Court; and has contended that in the given

12

set of peculiar circumstances, prayer of the appellant for granting time for

filing the written statement ought to have been granted.

9. The main plank of submissions of the learned senior counsel for

the appellant has been that the impugned orders are flawed, being

contrary to the mandate and directions of this Court in SMWP No. 3 of

2020.

9.1. The learned counsel would submit that the subject suit itself was

filed by the respondent at the time when the order dated 23.03.2020

passed by this Court in SMWP No. 3 of 2020 was in operation; and

summons was also served on the appellant during that period. With

reference to various other orders passed in SMWP No. 3 of 2020, the

contention has been that the entire period from 15.03.2020 until

02.10.2021 stands excluded while computing the period of limitation and

that, obviously, covers the prescribed period for filing written statement in

the present case.

9.2. The learned senior counsel has contended that the intention

behind the orders in SMWP No. 3 of 2020 had been to protect the

litigants from complications stemming from the pandemic and to do away

with the need of explaining the individual circumstances in each and

every case; and no delay could be imputed in this matter on the appellant

because, any such question of delay in filing the written statement would

13

have arisen only after expiry of the extended period of limitation, as

provided by this Court in SMWP No. 3 of 2020.

9.3. The learned senior counsel would also submit that the Trial Court

and the High Court have failed to consider the adverse circumstances

faced by the appellant where, apart from the entire district of Raipur

having been declared a containment zone and restriction/lockdown

having been imposed in the month of April, 2021, the fact of the matter

had been that the partners of the appellant firm as also their family

members suffered from COVID-19 and they were either in quarantine or

were attending on other family emergencies. Moreover, the appellant’s

counsel and his mother were in quarantine and, in fact, the counsel’s

mother passed away due to health complications. According to the

learned counsel, in these trying and unfortunate times, when the rigour of

limitation period had been under eclipse pursuant to the orders of this

Court, the Trial Court and the High Court ought not to have closed the

right to file the written statement.

9.4. The learned counsel has also referred to the fact that as per its

own administrative order dated 05.04.2021, the High Court of

Chhattisgarh had provided for restricted functioning of the Courts, where

only the matters of urgent nature were being taken up; and the suit in

question was not falling under any of those categories. In this view of the

matter too, it could not have been concluded that the right to file the

14

written statement conclusively came to an end by the operation of statute.

In other words, when such rigorous provisions in the statute were not in

full operation, the right of filing the written statement could not have been

taken as closed.

9.5. It has also been contended on behalf of the appellant that the Trial

Court has erred in not taking up and deciding the application filed by the

appellant under Section 10 CPC for stay of suit proceedings because the

proceedings as regards the subject-matter of the suit were already

pending before the NCLT. It has yet further been submitted that the

appellant had got the written statement prepared and notarised on

07.07.2021; and the same deserves to be taken on record.

10. While countering the submissions above-noted and while

supporting the orders impugned, learned senior counsel for the plaintiffrespondent has contended, with all emphasis, that the appellant cannot

claim the extension of period of limitation by reference to the orders

passed in SMWP No. 3 of 2020, particularly when its right to file the

written statement stands forfeited by operation of law.

10.1. With elaborate reference to the record of proceedings of the

subject suit, it has been submitted on behalf of the respondent that the

appellant, despite having appeared on 18.01.2021, did not choose to file

the written statement within 30 days of service of summons, as

permissible by law; and twice over, sought further time to file the written

15

statement during the extendable period of 90 days; and the Trial Court

indeed extended the time on 24.02.2021 and 15.03.2021. According to

the learned senior counsel for the respondent, the extendable period of

limitation for filing the written statement was available to the appellant

until 06.05.2021 but not beyond. The learned counsel would submit that

in the given fact situation, the alleged notarised written statement dated

07.07.2021 had been well beyond the extendable period of 90 days and

thus, no relaxation could be granted to the appellant when its right to file

the written statement stands forfeited.

10.2. Learned senior counsel for the respondent would submit that the

orders passed in SMWP No. 3 of 2020 cannot be of any aid or help to the

appellant because no indefeasible right accrues to claim in the

discretionary extendable period to be determined by the Court. The

learned counsel has emphasised on the submissions that in the orders

passed in SMWP No. 3 of 2020, the extension of period of limitation

commencing from 23.03.2020 to 02.10.2021 was for institution of suits or

applications; and even when Section 12-A of the Act was brought within

the purview of the extension of limitation period, there was no direction

that the period to file the written statement before the Commercial Court

would also be extended automatically, despite the defendant appearing

and participating in the proceedings. According to the learned counsel,

the defendant cannot take blanket immunity by not filing the written

16

statement and then, seeking cover of the orders passed in SMWP No. 3

of 2020.

10.3. With reference to the decision of this Court in the case of S. Kasi

v. State: Criminal Appeal No. 452 of 2020 decided on 19.06.2020

[(2020) SCC OnLine SC 529], it has been argued on behalf of the

respondent that a 3-Judge Bench of this Court has specifically ruled that

the said order dated 23.03.2020 in SMWP No. 3 of 2020 is not applicable

to all the applications; and benefit of the order of extension of limitation

cannot be taken by police while filing chargesheet under Section167(2) of

the Code of Criminal Procedure, 19736

. Further, with reference to the

decision in the case of Sagufa Ahmed (supra), it has been argued that

what was extended in SMWP No. 3 of 2020 was only the period of

limitation and not the period upto which delay could be condoned in

exercise of discretion conferred by the statute. The learned counsel would

also submit with reference to the decision of this Court in SCG Contracts

(supra) that where a defendant fails to file the written statement within

permissible time, it is beyond the Court’s power to condone the delay.

11. In his rejoinder submissions, the learned senior counsel for the

appellant has contended that S. Kasi’s case (supra) related to the

fundamental right of liberty, referable to Article 21 of the Constitution of

India read with Section 167(2) CrPC; and the observations of this Court in

the said case cannot operate in relation to the procedural law concerning

6 Hereinafter also referred to as ‘CrPC’.

17

civil litigation and more particularly, in relation to the right of filing written

statement in a civil suit. The learned counsel would further submit that the

decision in the case of Sagufa Ahmed (supra) is of no application to the

present case because the observations therein came to be made in the

setup of the facts that time for filing the appeal had expired even prior to

the order dated 23.03.2020 passed by this Court in SMWP No. 3 of 2020.

12. We have given anxious consideration to the rival submissions and

have examined the record with reference to the law applicable.

Relevant statutory provisions

13. The principal question calling for determination in this matter is as

to whether the opportunity of filing written statement in the subject suit

has rightly been declined or the appellant could be extended further

relaxation in view of the orders passed and issued in the wake of COVID19 pandemic. However, before proceeding further, worthwhile it would be

to take note of the relevant provisions of law, particularly those dealing

with the right of filing written statement and default stipulations in that

regard, as applicable to the subject suit.

13.1. The suit in question answers to the description of ‘Commercial

dispute of a Specified Value’ and in its regard, the relevant applicable

provisions of CPC are those as amended by the Schedule to the

Commercial Courts Act, 2015 read with Section 16 thereof. Section 12-A

of the Act has also come under reference in the orders passed in SMWP

18

No. 3 of 2020. Thus, we may usefully reproduce Section 12-A and

Section 16 of the Act as under: -

“12-A. Pre-Institution Mediation and Settlement. – (1) A suit,

which does not contemplate any urgent interim relief under this

Act, shall not be instituted unless the plaintiff exhausts the remedy

of pre-institution mediation in accordance with such manner and

procedure as may be prescribed by rules made by the Central

Government.

(2) The Central Government may, by notification, authorise the

Authorities constituted under the Legal Services Authorities Act,

1987 (39 of 1987), for the purposes of pre-institution mediation.”

“16. Amendments to the Code of Civil Procedure, 1908 in its

application to commercial disputes. – (1) The provisions of the

Code of Civil Procedure, 1908 (5 of 1908) shall, in their application

to any suit in respect of a commercial dispute of a Specified Value,

stand amended in the manner as specified in the Schedule.

(2) The Commercial Division and Commercial Court shall follow

the provisions of the Code of Civil Procedure, 1908 (5 of 1908), as

amended by this Act, in the trial of a suit in respect of a

commercial dispute of a Specified Value.

(3) Where any provision of any Rule of the jurisdictional High

Court or any amendment to the Code of Civil Procedure, 1908, by

the State Government is in conflict with the provisions of the Code

of Civil Procedure, 1908 (5 of 1908), as amended by this Act, the

provisions of the Code of Civil Procedure as amended by this Act

shall prevail.”

13.2. By virtue of sub-clauses A, D(i) and D(iv) of Clause 4 of the

Schedule to the Commercial Courts Act, 2015, respectively the provisions

of CPC in Order V Rule 1(1), Order VIII Rule 1 and Order VIII Rule 10,

concerning the time period within which written statement could be filed

as also the consequences of default, stand amended in their application

to the suit of present nature. While incorporating these amendments, the

applicable provisions of CPC would read as under7

: -

7 Note: The provisos marked with asterisk (*) are the amended provisions, as applicable to

Commercial dispute of Specified Value i.e., the suit tried by a Commercial Court.

19

Order V Rule 1

“1. Summons. - (1) When a suit has been duly instituted, a

summons may be issued to the defendant to appear and answer

the claim and to file the written statement of his defence, if any,

within thirty days from the date of service of summons on that

defendant:

Provided that no such summons shall be issued when a

defendant has appeared at the presentation of plaint and admitted

the plaintiff’s claim:

*Provided further that where the defendant fails to file the

written statement within the said period of thirty days, he shall be

allowed to file the written statement on such other day, as may be

specified by the Court, for reasons to be recorded in writing and on

payment of such costs as the Court deems fit, but which shall not

be later than one hundred twenty days from the date of service of

summons and on expiry of one hundred twenty days from the date

of service of summons, the defendant shall forfeit the right to file

the written statement and the Court shall not allow the written

statement to be taken on record.

(2) A defendant to whom a summons has been issued under

sub-rule (1) may appear:-

(a) in person, or

(b) by a pleader duly instructed and able to answer all material

questions relating to the suit, or

(c) by a pleader accompanied by some person able to answer

all such questions.

(3) Every such summons shall be signed by the Judge or such

officer as he appoints, and shall be sealed with the seal of the

Court.”

Order VIII Rule 1

“1. Written statement.-The defendant shall, within thirty days from

the date of service of summons on him, present a written

statement of his defence:

*Provided that where the defendant fails to file the written

statement within the said period of thirty days, he shall be allowed

to file the written statement on such other day, as may be specified

by the Court, for reasons to be recorded in writing and on payment

of such costs as the Court deems fit, but which shall not be later

than one hundred twenty days from the date of service of

summons and on expiry of one hundred twenty days from the date

of service of summons, the defendant shall forfeit the right to file

the written statement and the Court shall not allow the written

statement to be taken on record.”

20

Order VIII Rule 10

“10. Procedure when party fails to present written statement

called for by Court.- Where any party from whom a written

statement is required under rule 1 or rule 9 fails to present the

same within the time permitted or fixed by the Court, as the case

may be, the Court shall pronounce judgment against him, or make

such order in relation to the suit as it thinks fit and on the

pronouncement of such judgment a decree shall be drawn up.

*Provided that no Court shall make an order to extend the time

provided under rule 1 of this Order for filing of the written

statement.”

Impact of COVID-19:

Orders passed in SMWP No.3 of 2020

14. The major deal of arguments in the present case has revolved

around the orders passed by this Court in Suo Motu Writ Petition (Civil)

No. 3 of 2020 and the effect thereof on the prayer of the appellant for

another opportunity to file its written statement. Having regard to the

questions involved, it shall be apposite to take note of all the relevant

orders passed by this Court.

14.1 The said suo motu petition was taken up by this Court in rather

peculiar and extraordinary circumstances in the wake of the outbreak of

COVID-19 pandemic, where the normal functioning of almost all the

institutions got disrupted due to serious illness of a large populace and

due to various containment measures taken by the administrative

authorities, including lockdowns. The functioning of Courts and other

juridical institutions also suffered set-backs and, in fact, with regular spike

21

in COVID-19 cases, when the Governments announced lockdowns in the

interest of public safety and health, it was obvious to this Court that the

litigants and their authorised agents would be facing serious hardships

and difficulties in relation to their litigations and more particularly, in

relation to the period of limitation when it would be well-nigh impossible

for them to file the proceedings within the prescribed period of limitation, if

the same was expiring during the period of such health emergencies and

enforcement of the measures of containment. Having regard to the

circumstances, this Court exercised its plenary powers under Article 142

of the Constitution of India and passed an order on 23.03.2020 in the said

SMWP No. 3 of 2020 that reads as under:-

“This Court has taken Suo Motu cognizance of the situation

arising out of the challenge faced by the country on account of

Covid-19 Virus and resultant difficulties that may be faced by

litigants across the country in filing their

petitions/applications/suits/ appeals/all other proceedings within

the period of limitation prescribed under the general law of

limitation or under Special Laws (both Central and/or State).

 To obviate such difficulties and to ensure that lawyers/litigants

do not have to come physically to file such proceedings in

respective Courts/Tribunals across the country including this

Court, it is hereby ordered that a period of limitation in all such

proceedings, irrespective of the limitation prescribed under the

general law or Special Laws whether condonable or not shall

stand extended w.e.f. 15th March 2020 till further order/s to be

passed by this Court in present proceedings.

We are exercising this power under Article 142 read with Article

141 of the Constitution of India and declare that this order is a

binding order within the meaning of Article 141 on all

Courts/Tribunals and authorities.

This order may be brought to the notice of all High Courts for

being communicated to all subordinate Courts/Tribunals within

their respective jurisdiction.

Issue notice to all the Registrars General of the High Courts,

returnable in four weeks.”

22

14.2. Apart from the aforementioned order passed in general terms, this

Court also passed various orders from time to time in SMWP No. 3 of

2020 in relation to the specific classes and categories of cases. On

06.05.2020, this Court dealt with an interlocutory application and directed

that the limitation prescribed under the Arbitration and Conciliation Act,

19968

 and under Section 138 of the Negotiable Instruments Act, 1881

shall stand extended with effect from 15.03.2020 until further orders. It

was also provided that in case limitation had expired after 15.03.2020, the

period between 15.03.2020 and lifting of lockdown in the jurisdictional

area would be extended for a period of 15 days after the lifting of

lockdown. Then, on 10.07.2020, this Court took note of the submissions

made by the learned Attorney General as regards the proceedings in

terms of Section 29-A of the Act of 1996, which does not prescribe a

period of limitation but fixes the time for making an arbitral award. This

Court directed that the aforementioned orders dated 23.03.2020 and

06.05.2020 shall also apply for extension of time limit for passing of

arbitral award. This Court further dealt with the requirements of Section

23(4) of the Act of 1996, which provides for a time period of six months for

completion of the statement of claim and defence; and it was directed that

the aforesaid orders shall apply for extension of the time limit prescribed

under the said Section 23(4) too. Yet further, this Court also examined the

8 Hereinafter also referred to as ‘the Act of 1996’

23

requirements of Section 12-A of the Commercial Courts Act, 2015, which

prescribes the time limit for completing the process of compulsory prelitigation mediation and directed that the said time limit would also stand

extended from time to time and for 45 days after lifting of lockdown. The

relevant parts of the order dated 10.07.2020 could also be usefully

extracted as under:-

“I.A. No. 49221/2020 -Section 29A of the Arbitration and

Conciliation Act, 1996

Taken on Board.

In Suo Moto Writ Petition (C) No. 3/2020, by our order dated

23.03.2020 and 06.05.2020, we ordered that all periods of

limitation prescribed under the Arbiration and Conciliation Act,

1996 shall be extended w.e.f. 15.03.2020 till further orders.

Learned Attorney General has sought a minor modification in

the aforesaid orders.

Section 29A of the Arbitration and Conciliation Act, 1996 does

not prescribe a period of limitation but fixes a time to do certain

acts, i.e. making an arbitral award within a prescribed time. We,

accordingly, direct that the aforesaid orders shall also apply for

extension of time limit for passing arbitral award under Section

29A of the said Act. Similarly, Section 23(4) of the Arbitration and

Conciliation Act, 1996 provides for a time period of 6 months for

the completion of the statement of claim and defence. We,

accordingly, direct that the aforesaid orders shall also apply for

extension of the time limit prescribed under Section 23(4) of the

said Act.

The application is disposed of accordingly.

Pre-Institution Mediation and Settlement under Section 12A of the

Commercial Courts Act, 2015.

Under Section 12A of the Commercial Courts Act, 2015, time is

prescribed for completing the process of compulsory pre-litigation,

mediation and settlement. The said time is also liable to be

extended. We, accordingly, direct that the said time shall stand

extended from the time when the lockdown is lifted plus 45 days

thereafter. That is to say that if the above period, i.e. the period of

lockdown plus 45 days has expired, no further period shall be

liable to be excluded.”

24

14.3. The above-referred orders remained in operation for almost a year

but, when there had been some reduction in the severity of pandemic and

when normalcy was being gradually restored, this Court considered it

appropriate to dispose of the said suo motu petition by its order dated

08.03.2021, while making specific provisions concerning the future course

of action in relation to different eventualities, particularly those pertaining

to the period between 15.03.2020 to 14.03.2021. This order dated

08.03.2021 reads as under: -

“1. Due to the onset of COVID-19 pandemic, this Court

took suo motu cognizance of the situation arising from difficulties

that might be faced by the litigants across the country in filing

petitions/applications/suits/appeals/all other proceedings within the

period of limitation prescribed under the general law of limitation or

under any special laws (both Central or State). By an order dated

23.03.2020 this Court extended the period of limitation prescribed

under the general law or special laws whether compoundable or

not with effect from 15.03.2020 till further orders. The order dated

23.03.2020 was extended from time to time. Though, we have not

seen the end of the pandemic, there is considerable improvement.

The lockdown has been lifted and the country is returning to

normalcy. Almost all the Courts and Tribunals are functioning

either physically or by virtual mode. We are of the opinion that the

order dated 23.03.2020 has served its purpose and in view of the

changing scenario relating to the pandemic, the extension of

limitation should come to an end.

2. We have considered the suggestions of the learned

Attorney General for India regarding the future course of action.

We deem it appropriate to issue the following directions: -

1. In computing the period of limitation for any suit,

appeal, application or proceeding, the period from

15.03.2020 till 14.03.2021 shall stand excluded.

Consequently, the balance period of limitation remaining

as on 15.03.2020, if any, shall become available with

effect from 15.03.2021.

2. In cases where the limitation would have expired during

the period between 15.03.2020 till 14.03.2021,

notwithstanding the actual balance period of limitation

remaining, all persons shall have a limitation period of 90

25

days from 15.03.2021. In the event the actual balance period

of limitation remaining, with effect from 15.03.2021, is greater

than 90 days, that longer period shall apply.

3. The period from 15.03.2020 till 14.03.2021 shall also

stand excluded in computing the periods prescribed

under Sections 23 (4) and 29A of the Arbitration and

Conciliation Act, 1996, Section 12A of the Commercial

Courts Act, 2015 and provisos (b) and (c) of Section 138

of the Negotiable Instruments Act, 1881 and any other

laws, which prescribe period(s) of limitation for

instituting proceedings, outer limits (within which the

court or tribunal can condone delay) and termination of

proceedings.

4. The Government of India shall amend the guidelines for

containment zones, to state.

“Regulated movement will be allowed for medical`

emergencies, provision of essential goods and services, and

other necessary functions, such as, time bound applications,

including for legal purposes, and educational and job-related

requirements.”

3. The Suo Motu Writ Petition is disposed of accordingly.”

(emphasis supplied)

14.4. Even when it appeared to almost all the concerned that normalcy

was around the corner, the sneaky spread of virus continued for one

reason or the other or in one way or the other; and this led to a huge

surge in COVID-19 cases across the country. This phenomenon came to

be generally known as the second wave of pandemic. In the given

scenario, the Supreme Court Advocates-on-Record Association moved

an application in SMWP No. 3 of 2020, seeking restoration of the order

dated 23.03.2020 while highlighting the surge of COVID-19 cases in

Delhi and the difficulties being faced by the lawyers and litigants to

institute their cases. This application was registered as Miscellaneous

Application No. 665 of 2021 in SMWP No. 3 of 2020 and was considered

by this Court on 27.04.2021. This Court took judicial notice of steep rise

26

in COVID-19 cases that had engulfed the entire country and found that

the situation required extraordinary measures to minimise the hardship of

litigant-public. Therefore, the order dated 23.03.2020 was restored and in

continuation of the order dated 08.03.2021, it was directed that the

period(s) of limitation, as prescribed under any general or special laws in

respect of all judicial or quasi-judicial proceedings, whether condonable

or not, shall stand extended until further orders. Further clarification was

also made for exclusion of the period from 14.03.2021 in regard to the

other period(s) prescribed under different laws. In this order dated

27.04.2021, this Court took note of the orders earlier passed in the

matter and thereafter, observed and directed as under: -

 “Supreme Court Advocate on Record Association (SCAORA) has

now through this Interlocutory Application highlighted the daily

surge in COVID cases in Delhi and how difficult it has become for

the Advocates-on-Record and the litigants to institute cases in

Supreme Court and other courts in Delhi. Consequently,

restoration of the order dated 23rd March, 2020 has been prayed

for.

We have heard Mr. Shivaji M. Jadhav, President SCAORA in

support of the prayer made in this application. Learned Attorney

General and Learned Solicitor General have also given their

valuable suggestions.

We also take judicial notice of the fact that the steep rise in

COVID-19 Virus cases is not limited to Delhi alone but it has

engulfed the entire nation. The extraordinary situation caused by

the sudden and second outburst of COVID-19 Virus, thus, requires

extraordinary measures to minimize the hardship of litigant–public

in all the states. We, therefore, restore the order dated 23rd March,

2020 and in continuation of the order dated 8th March, 2021 direct

that the period(s) of limitation, as prescribed under any general or

special laws in respect of all judicial or quasi-judicial proceedings,

whether condonable or not, shall stand extended till further orders.

 It is further clarified that the period from 14th March, 2021 till

further orders shall also stand excluded in computing the periods

prescribed under Sections 23 (4) and 29A of the Arbitration and

27

Conciliation Act, 1996, Section 12A of the Commercial Courts Act,

2015 and provisos (b) and (c) of Section 138 of the Negotiable

Instruments Act, 1881 and any other laws, which prescribe

period(s) of limitation for instituting proceedings, outer limits (within

which the court or tribunal can condone delay) and termination of

proceedings. We have passed this order in exercise of our powers

under Article 142 read with Article 141 of the Constitution of India.

Hence it shall be a binding order within the meaning of Article 141

on all Courts/Tribunals and Authorities.

This order may be brought to the notice of all High Courts for

being communicated to all subordinate courts/Tribunals within

their respective jurisdiction.

Issue notice to all the Registrars General of the High Courts,

returnable in 6 weeks.

List the Miscellaneous Application on 19th July, 2021.”

14.5. The aforesaid order dated 27.04.2021 remained in operation for a

few months in view of the prevalence of COVID-19 virus but, when the

situation again started returning to near normal, this Court found it

expedient to restore the aforesaid order dated 08.03.2021. Accordingly,

this Court passed the order dated 23.09.2021 in disposal of MA No.665 of

2021, while taking into account the previous orders passed in the matter

and while also taking into account the submissions made by the learned

Attorney General for India and the other learned counsel appearing in the

matter. The relevant part of this order dated 23.09.2021 could also be

profitably reproduced as under: -

“8. Therefore, we dispose of the M.A. No.665 of 2021 with the

following directions: -

I. In computing the period of limitation for any suit, appeal,

application or proceeding, the period from 15.03.2020 till

02.10.2021 shall stand excluded. Consequently, the balance

period of limitation remaining as on 15.03.2020, if any, shall

become available with effect from 03.10.2021.

II. In cases where the limitation would have expired during the

period between 15.03.2020 till 02.10.2021, notwithstanding the

actual balance period of limitation remaining, all persons shall

28

have a limitation period of 90 days from 03.10.2021. In the event

the actual balance period of limitation remaining, with effect from

03.10.2021, is greater than 90 days, that longer period shall apply.

III. The period from 15.03.2020 till 02.10.2021 shall also stand

excluded in computing the periods prescribed under Sections

23 (4) and 29A of the Arbitration and Conciliation Act, 1996,

Section 12A of the Commercial Courts Act, 2015 and provisos

(b) and (c) of Section 138 of the Negotiable Instruments Act,

1881 and any other laws, which prescribe period(s) of

limitation for instituting proceedings, outer limits (within

which the court or tribunal can condone delay) and

termination of proceedings.

IV. The Government of India shall amend the guidelines for

containment zones, to state.

“Regulated movement will be allowed for medical emergencies,

provision of essential goods and services, and other necessary

functions, such as, time bound applications, including for legal

purposes, and educational and job-related requirements.”

 (emphasis supplied)

Administrative order issued by the High Court

15. In another part of the arguments in the present case, an

administrative order dated 05.04.2021 issued by the High Court of

Chhattisgarh has also come under reference. That order was issued by

the High Court in the wake of alarming number of COVID-19 cases in the

State of Chhattisgarh; and, in the given circumstances, the High Court

was rather forced to provide for limited and curtailed functioning of the

Courts in its jurisdiction. The relevant parts of the said order dated

05.04.2021 could also be extracted as under: -

“HIGH COURT OF CHHATTISGARH, BILASPUR

ORDER

 No. 66 (Mis.) / 11-14-1/2021

Bilaspur,

dated 05th April, 2021

Hon'ble High Court of Chhattisgarh has been pleased to make the

following arrangements in respect of functioning of the High Court

29

and Subordinate Courts of the State of Chhattisgarh in view of the

alarming and mounting number of COVID-19 cases in the State of

Chhattisgarh until further orders as under: -

**** **** ****

B-SUBORDINATE COURTS [District and Sessions Judge /

Principal Judge / Judge of the Family Court / Judge Commercial

Court / Special Judge (SC/ ST), Member Judge (Industrial Court),

Judge (Labour Court) etc.] - w.e.f. 06.04.2021:-

1. Filing of fresh cases shall continue.

2. In Durg, Raipur & Bilaspur, 02 (two) Courts of Higher

Judicial Service (HJS) Level and 04 (four) Courts of

Lower Judicial Service (LJS) Level are allowed to

function on rotational basis.

3. In station having 03 (three) or less than 03 (three) Courts

all the Courts shall function. In other station 50% of HJS

Courts and 50% of LJS Courts are allowed to function on

rotational basis.

4. These Courts shall function only during the first half of

the working hours meaning thereby that the Court

shall function only from 11.00 am to 2.00 pm, excluding

bail and remand matters, for which Court shall function

during full working hours.

5. The following type of cases shall be taken up for hearing

during the above restricted functioning of the Court:

1) Remand matters

2) Bail matters

3) Supardnama matters

4) Appeal & Revision (Both Civil & Criminal)

5)Matters relating to under trial prisoners

6) Cases pending for more than 05 (five) years (Both Civil

& Criminal)

7) Motor Accident Claim Cases

8) Matters relating to payment of amount deposited in

respect of Motor Accident Claim Cases

9) Matters under Section 125 of the Cr.P.C.

10) Matters directed to be disposed of within. time limit by

the Supreme Court or the High Court (Both Civil &

Criminal)

11) Other extreme urgent nature of Civil & Criminal

matters, which are found to be heard on urgent basis by

the Court

12) Trial of the cases concerning sexual assault against

women and children.

30

6. The number of cases to be taken up by each Court shall be

so decided, which would ensure less congestion in the

Court rooms while maintaining social and individual

distancing.

7.

to

10

**** **** ****

11. If the Court premises or the area in which the Court

premises is falling, has been declared Containment Zone

or the District Magistrate effects lockdown then the

functioning of Courts shall be bare minimal with minimum

support staff to be deputed on rotational basis, to deal with

only extremely urgent cases, as to be decided by the

District and Sessions Judge / Principal Judge / Judge of

the Family Court / Judge Commercial Court / Special

Judge (SC / ST), Member Judge (Industrial Court), Judge

(Labour Court) etc. under intimation to the High Court.

There will not be any regular listing of the cases during the

aforesaid period, however, as regards cases of utmost

importance / urgency, the District and Sessions Judge /

Principal Judge / Judge of the Family Court / Judge

Commercial Court / Special Judge (SC/ST), Member Judge

(Industrial Court), Judge (Labour Court) etc. shall decide as

to whether urgency exists or not and to take action as per

convenience. Remands and Bails of the arrested person

shall be done as per holiday practice……

12. Other COVID-19 related guidelines issued by the Supreme

Court, High Court, Central Govt., State Govt., and Local

authority, other competent Authorities shall be followed in

its letter and spirit.

13. The District & Sessions Judges / Judges concerned are

authorized to make any suitable charges according any

court in the prevailing situation of their jurisdiction for

smooth functioning of courts and also for management for

preventing the spread of Corona Virus in the matter of

entry and sitting of the advocates, litigants etc. in court

premises.

All the above arrangements shall be subject to further

modification, if any issued from time to time.

By order of Hon'ble the High Court

 Sd/-

 05.04.21

 (Sanjay Kumar Jaiswal)

I/c. Registrar General

Bilaspur.”

(emphasis supplied)

31

Time limit for filing written statement and consequences of default

16. For dealing with the rival submissions, in the first place, we need

to take into account the time limits for filing written statement in a suit

governed by the provisions of the Commercial Courts Act, 2015. As

noticed, 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. The relevant

provisions contained in Order V Rule 1, Order VIII Rule 1 and Order VIII

Rule 10 CPC, have been reproduced hereinabove; and it is manifest that

the said provisions 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. Tersely put, 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

32

extend such time beyond 120 days from the date of service of summons.

These aspects were underscored by this Court in the case of SCG

Contracts (supra) in no uncertain terms. In that case, the Single Judge of

the High Court, after rejecting an application made by the defendant

under Order VII Rule 11 CPC, proceeded to grant some time to the

defendant for filing his written statement beyond the aforesaid mandatory

period of 120 days. Later on, the plaintiff’s prayer for not taking the written

statement on record was rejected by the High Court on the ground that

the earlier order permitting such filing of written statement had attained

finality. This Court disapproved the orders so passed by the High Court

with reference to the aforesaid amended provisions of Order V Rule 1(1),

Order VIII Rule 1 and Order VIII Rule 10 CPC. While explaining the

sweep and mandate of these provisions, this Court said, -

“8……...A perusal of these provisions would show that ordinarily a

written statement is to be filed within a period of 30 days.

However, grace period of a further 90 days is granted which the

Court may employ for reasons to be recorded in writing and

payment of such costs as it deems fit to allow such written

statement to come on record. What is of great importance is the

fact that beyond 120 days from the date of service of summons,

the Defendant shall forfeit the right to file the written statement and

the Court shall not allow the written statement to be taken on

record. This is further buttressed by the proviso in Order VIII Rule

10 also adding that the Court has no further power to extend the

time beyond this period of 120 days.”

This Court also made it clear that these mandatory provisions cannot

be circumvented even by recourse to inherent powers under Section 151

CPC while observing as under: -

33

“16……Clearly, the clear, definite and mandatory provisions of

Order V read with Order VIII Rule 1 and Rule 10 cannot be

circumvented by recourse to the inherent power under section 151

to do the opposite of what is stated therein.”

17. 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, it is required to be kept in view that the

provisions aforesaid and their interpretation in SCG Contracts (supra)

operate in normal and non-extraordinary circumstances with the usual

functioning of Courts. It is also noteworthy that 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. The question in the present case

is, as to whether the said provisions and principles are required to be

applied irrespective of the operation and effect of other orders

passed/issued by the Courts under the force of aberrant, abnormal and

extraordinary circumstances? In our view, the answer to this question

cannot be in the affirmative for a variety of reasons, as indicated infra.

34

Operation and effect of the orders passed in SMWP No. 3 of 2020

18. It is not a matter of much debate that, starting from or around the

month of December, 2019, the entire humanity faced a situation which

was unprecedentedly unfavourable and unpleasant to almost all the

persons and the institutions. It was the outbreak of COVID-19 pandemic

that engulfed practically the entire globe; and the highly contagious virus

called SARS-CoV-2 started playing havoc with its rapid transmission from

one person to another. COVID-19 carried with it the scary possibilities of

irretrievable damage to the respiratory systems, even leading to deaths.

In fact, the number of fatalities due to this infection had been beyond

imagination with survivors also living under a constant threat. The

unprecedented health emergencies due to highly transmissible COVID-19

virus led the administrations to take various containment measures,

including those of travel restrictions and lockdowns as also of isolating the

infected persons while putting their close contacts in quarantine.

18.1. We need not elaborate on the havoc created by COVID-19 but the

relevant aspect for the present purpose is that with COVID-19, the

movement of persons and working of almost all the institutions landed in

such difficulties which were neither foreseen nor guarded against.

19. When the movements and gatherings of persons were fraught

with dangers and when lockdowns became inevitable, the institutions

related with the task of administration of justice were also required to

35

respond to the challenges thrown by this pandemic. In this regard, this

Court, apart from taking various measures of containment, also took note

of the practical difficulties of the litigants and their lawyers; and this led to

the suo motu order dated 23.03.2020 in SMWP No. 3 of 2020.

19.1. In the consciously worded order dated 23.03.2020, this Court,

while taking note of the difficulties likely to be faced by the litigants in filing

their petitions/applications/suits/appeals/proceedings within the period of

limitation, ordered that the period of limitation in all such proceedings,

irrespective of the limitation prescribed under general or special laws,

whether condonable or not, shall stand extended w.e.f. 15.03.2020 until

further orders. This order was passed in exercise of plenary powers of

this Court under Article 142 of the Constitution of India, which are

complementary to other powers specifically conferred by various statutes.

Even if the above referred provisions of CPC had not been stated in

specific terms, the general mandate of the order dated 23.03.2020 was to

extend the period of limitation provided in any law for the time being in

force, irrespective whether the same was condonable or not, w.e.f.

15.03.2020 and until further orders. Noticeably, on 06.05.2020, when

special periods of limitation under different enactments like the Act of

1996 were referred to, this Court further ordered that the limitation

prescribed thereunder shall stand extended w.e.f. 15.03.2020 until further

orders. It was a time when the country was under the grip of lockdown,

36

and the Court provided that in case limitation had expired after

15.03.2020, the period between 15.03.2020 and lifting of lockdown in the

jurisdictional area would be extended for a period of 15 days after lifting of

lockdown.

19.2. Further, on 10.07.2020, this Court enlarged the scope of initial

order in relation to the timelines fixed in Section 29-A and Section 23(4) of

the Act of 1996. Significantly, Section 23(4) of the Act of 1996 mandates

that the statement of claim and defence shall be completed within a time

period of six months. Yet further, it was also provided that the time for

completing the process of compulsory pre-litigation mediation under

Section 12-A of the Commercial Courts Act, 2015 shall stand extended for

45 days after lifting of lockdown.

19.3. On 08.03.2021, suggestions were made before this Court about

lifting of lockdowns and likely return of normalcy and, therefore, this Court

considered it proper to dispose of the said suo motu petition with specific

directions that while computing the period of limitation for any suit,

appeal, application or proceeding, the period from 15.03.2020 to

14.03.2021 would stand excluded. Though the said order dated

08.03.2021 was passed with a belief that the adverse effects of the

pandemic were receding and normalcy was returning but, the spread of

virus continued and this led to an exponential surge in COVID-19 cases;

and to the second wave of pandemic in the country around the months of

37

March-April, 2021. In this turn of events, this Court again took up the

matter in SMWP No. 3 of 2020 on MA No. 665 of 2021, as moved by the

Supreme Court Advocate-on-Record Association and passed the

necessary order on 27.04.2021 in revival of the previous orders.

19.4. At this juncture, we are impelled to refer to the fact that much

before passing of the order dated 27.04.2021 by this Court, the alarming

scenario due to the second wave of pandemic was indeed taken note of

by the High Court of Chhattisgarh; and that High Court issued the abovereferred administrative order dated 05.04.2021 for curtailed/truncated

functioning of the High Court as also the subordinate Courts. We shall

elaborate on this aspect in the next segment of discussion but, have

indicated the same at this juncture to highlight the fact that even before

passing of the order dated 27.04.2021 by this Court in SMWP No. 3 of

2020, the Trial Court dealing with the subject suit was already under

containment measures; and could not have functioned normally.

19.5. Reverting to the orders passed by this Court, noticeable it is that

on 27.04.2021, this Court restored the order dated 23.03.2020 and it was

directed, in continuation of the order dated 08.03.2021, that the periods of

limitation as prescribed under any general or special laws in respect of all

judicial or quasi-judicial proceedings, whether condonable or not, shall

stand extended. Ultimately, the said MA No. 665 of 2021 was disposed of

on 23.09.2021 with this Court issuing directions similar to those contained

38

in the order dated 08.03.2021 but while providing that in computing the

period of limitation for any suit, appeal, application or proceeding, the

period from 15.03.2020 till 02.10.2021 shall stand excluded.

19.6. We are not elaborating on other directions issued by this Court

but, when read as a whole, it is but clear that the anxiety of this Court had

been to obviate the hardships likely to be suffered by the litigants during

the onslaughts of this pandemic. Hence, the legal effect and coverage of

the orders passed by this Court in SMWP No. 3 of 2020 cannot be

unnecessarily narrowed and rather, having regard to their purpose and

object, full effect is required to be given to such orders and directions.9

20. As regards the operation and effect of the orders passed by this

Court in SMWP No. 3 of 2020, noticeable it is that even though in the

initial order dated 23.03.2020, this Court provided that the period of

limitation in all the proceedings, irrespective of that prescribed under

general or special laws, whether condonable or not, shall stand extended

w.e.f. 15.03.2020 but, while concluding the matter on 23.09.2021, this

Court specifically provided for exclusion of the period from 15.03.2020 till

02.10.2021. A look at the scheme of the Limitation Act, 1963 makes it

9 To complete the scenario, we may indicate in the passing that even after we had heard this

matter, there had been re-surge of COVID-19 cases with spread of a new variant of the virus.

The drastic re-surge in the number of COVID cases has led this Court to again deal with the

matter in SMWP No. 3 of 2020 on an application bearing No. 21 of 2022; and by the order dated

10.01.2022, this Court again restored the principal order dated 23.03.2020 and in continuation

of the previous orders, has further directed that the period from 15.03.2020 till 28.02.2022 shall

stand excluded for the purposes of limitation as may be prescribed under any general or special

laws in respect of all judicial or quasi-judicial proceedings. Be that as it may, the fresh order in

SMWP No.3 of 2020 need not be elaborated for the present purpose.

39

clear that while extension of prescribed period in relation to an appeal or

certain applications has been envisaged under Section 5, the exclusion of

time has been provided in the provisions like Sections 12 to 15 thereof.

When a particular period is to be excluded in relation to any suit or

proceeding, essentially the reason is that such a period is accepted by

law to be the one not referable to any indolence on the part of the litigant,

but being relatable to either the force of circumstances or other

requirements of law (like that of mandatory two months’ notice for a suit

against the Government10). The excluded period, as a necessary

consequence, results in enlargement of time, over and above the period

prescribed.

20.1. 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, we

are clearly of the view that 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.

10 Vide Section 15 of the Limitation Act, 1963.

40

20.2. 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.

20.3. Therefore, in view of the orders passed by this Court in SMWP

No. 3 of 2020, we have no hesitation in holding that 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.

21. It is also noteworthy that even before the scope of the orders

passed in SMWP No. 3 of 2020 came to be further elaborated and

specified in the orders dated 08.03.2021 and 23.09.2021, this Court dealt

with an akin scenario in the case of SS Group Pvt. Ltd. (supra), decided

on 17.12.2020. In that case, in terms of Section 38(2)(a) of the Consumer

Protection Act, 2019, 30 days’ time provided for filing the written

41

statement expired on 12.08.2020 and the extendable period of 15 days

also expired on 27.08.2020. Admittedly, the written statement was filed on

31.08.2020, which was beyond the permissible period of 45 days. The

Constitution Bench of this Court has held in the case of New India

Assurance Co. Ltd. v. Hill Multipurpose Cold Storage (P) Ltd.: (2020)

5 SCC 757 that the Consumer Court has no power to extend the time for

filing response to the complaint beyond 45 days. After taking note of the

applicable provisions of law as also the mandate of Constitution Bench,

this Court referred to the orders until then passed in SMWP No. 3 of 2020

and held that the limitation for filing written statement would be deemed to

have been extended. This Court, inter alia, observed and held as follows:

-

“12: In the present matter, it is an admitted fact that the period of

limitation of 30 days to file the written statement had expired on

12.08.2020 and the extended period of 15 days expired on

27.08.2020. This period expired when the order dated 23.03.2020

passed by this Court in SMW(C) No. 3 of 2020 was continuing.

13: In view of the aforesaid, in our opinion, the limitation for filing

the written statement in the present proceedings before the

National Commission would be deemed to have been extended as

it is clear from the order dated 23.03.2020 that the extended

period of limitation was applicable to all

petitions/applications/suits/appeals and all other proceedings. As

such, the delay of four days in filing the written statements in the

pending proceedings before the National Commission deserves to

be allowed, and is accordingly allowed.”

22. The enunciations aforesaid do not support the case of the

respondent but, the learned senior counsel appearing for the respondent

has relied upon two other decisions in support of his contentions. We may

42

refer to the same to find out if they would apply and make out any case in

favour of the respondent.

22.1. The case of S. Kasi (supra) related to default bail plea of the

accused-appellant for the reason that the charge-sheet had not been filed

within the time permitted by Section 167(2) CrPC. The High Court took

the view that the said order dated 23.03.2020 in SMWP No. 3 of 2020

would eclipse all the provisions prescribing the period of limitation,

including that prescribed under Section 167(2) CrPC. This Court referred

to the reasons for passing the orders in the said suo motu petition and the

difficulties sought to be taken care of; and found that an investigating

officer was not prevented from such difficulties as were faced by the

lawyers and litigants; and the investigating officer could have submitted

the charge-sheet before the Magistrate (Incharge). This Court observed

and held as under: -

“17: The limitation for filing petitions/applications/suits/appeals/all

other proceedings was extended to obviate lawyers/litigants to

come physically to file such proceedings in respective

Courts/Tribunals. The order was passed to protect the

litigants/lawyers whose petitions/applications/suits/appeals/all

other proceedings would become time barred they being not able

to physically come to file such proceedings. The order was for the

benefit of the litigants who have to take remedy in law as per the

applicable statute for a right. The law of limitation bars the remedy

but not the right. When this Court passed the above order for

extending the limitation for filing

petitions/applications/suits/appeals/all other proceedings, the order

was for the benefit of those who have to take remedy, whose

remedy may be barred by time because they were unable to come

physically to file such proceedings. The order dated 23.03.2020

cannot be read to mean that it ever intended to extend the period

of filing charge sheet by police as contemplated under Section

43

167(2) of the Code of Criminal Procedure. The Investigating

Officer could have submitted/filed the charge sheet before the

(Incharge) Magistrate. Therefore, even during the lockdown and

as has been done in so many cases the charge-sheet could have

been filed/submitted before the Magistrate (Incharge) and the

Investigating Officer was not precluded from filing/submitting the

charge-sheet even within the stipulated period before the

Magistrate (Incharge).”

22.1.1. In fact, in the said case, this Court also noticed that a co-ordinate

Bench of the same High Court had already held that the said order dated

23.03.2020 did not cover the offences for which Section 167 CrPC was

applicable but, in the order impugned, the other learned Single Judge of

the same High Court took a view contrary to the earlier decision of the coordinate Bench; and that was found to be entirely impermissible. In any

case, the said decision, concerning the matter of personal liberty

referable to Article 21 of the Constitution of India and then, relating to the

proceedings to be undertaken by an investigating officer, cannot be

applied to the present case relating to the matter of filing written

statement by the defendant in a civil suit.

22.2. So far as the decision of this Court in Sagufa Ahmed (supra) is

concerned, a few relevant factors related with the said case need to be

noticed. In that case, the appellants had moved an application before

Guwahati Bench of the National Company Law Tribunal for winding up of

the respondent company. The petition was dismissed on 25.10.2019. The

appellants applied for a certified copy of the order dated 25.10.2019 only

on 21 or 22.11.2019 and received the certified copy of the order through

44

their counsel on 19.12.2019. However, the appellants filed the statutory

appeal before the National Company Law Appellate Tribunal only on

20.07.2020 with an application for condonation of delay. The Appellate

Tribunal dismissed the application for condonation of delay on the ground

that it had no power to condone the delay beyond a period of 45 days.

Consequently, the appeal was also dismissed. In that case, it was

indisputable that even while counting from 19.12.2019, the period of 45

days expired on 02.02.2020 and another period of 45 days, for which the

Appellate Tribunal could have condoned the delay, also expired on

18.03.2020. To overcome this difficulty, the appellants relied upon the

aforesaid order dated 23.03.2020. This Court observed that the

appellants were not entitled to take refuge under the above order in

SMWP No. 3 of 2020 because what was extended was only the period of

limitation and not the period up to which delay could be condoned in

exercise of discretion conferred by the statute. This Court said thus: -

“17. …… What was extended by the above order of this Court was

only “the period of limitation” and not the period up to which delay

can be condoned in exercise of discretion conferred by the statute.

The above order passed by this Court was intended to benefit

vigilant litigants who were prevented due to the pandemic and the

lockdown, from initiating proceedings within the period of limitation

prescribed by general or special law. It is needless to point out that

the law of limitation finds its root in two Latin maxims, one of which

is vigilantibus et non dormientibus jura subveniunt which means

that the law will assist only those who are vigilant about their rights

and not those who sleep over them.”

22.2.1. One of the significant facts to be noticed is that the said decision

in Sagufa Ahmed case was rendered by a 3-Judge Bench of this Court

45

much before the aforesaid final orders dated 08.03.2021 and 27.09.2021

in SMWP No. 3 of 2020 by another 3-Judge Bench of this Court. In those

final orders, this Court not only provided for the extension of period of

limitation but also made it clear that in computing the period of limitation

for any suit, appeal, application or proceeding, the period from

15.03.2020 to 02.10.2021 shall stand excluded. Such proposition of

exclusion, which occurred in the later orders, was not before this Court in

the case of Sagufa Ahmed (supra), which was decided much earlier i.e.,

on 18.09.2020.

22.2.2. Moreover, the extendable period in the case of Sagufa Ahmed

(supra) was up to 18.03.2020; and this Court found that lockdown was

imposed only on 24.03.2020 and there was no impediment in filing the

appeal on or before 18.03.2020. The present one is a case where the

prescribed extendable time for filing of the written statement expired on

06.05.2021. It is not the case of the respondent nor there is any

observation in the orders impugned that at the relevant point of time, the

area in question was not a containment zone or that such a normalcy was

available where the appellant could have filed its written statement.

22.2.3. Having regard to the orders subsequently passed by the 3-Judge

Bench of this Court in SMWP No. 3 of 2020 (and MA No. 665 of 2021

therein), as also having regard to the fundamental difference of facts and

46

the surrounding factors, the said decision in Sagufa Ahmed, in our view,

is also of no application to the present case.

23. On behalf of the respondent, much emphasis has been laid on the

submission that the appellant was regularly appearing in the Court and,

therefore, cannot take advantage of the orders passed in SMWP No. 3 of

2020. It is true that the appellant had indeed caused appearance in the

Court in response to the summons and sought time for filing its written

statement but at the same time, it is also undeniable that at the relevant

point of time, the second wave of pandemic was simmering and then, it

engulfed the country with rather unexpected intensity and ferocity. Then,

on 27.04.2021, this Court restored the operation of the order dated

23.03.2020 in SMWP No. 3 of 2020. Putting all these factors together, we

are unable to accept the submissions made on behalf of the respondent

that because of earlier appearance or prayer for adjournment, the

defendant-appellant would not be entitled to the relaxation available

under the extraordinary orders passed by this Court.

Implication and effect of the administrative order issued by the

High Court

24. Apart from the above, in our view, the impugned orders cannot be

approved for yet another major factor, being that of the implication and

effect of the administrative order issued by the jurisdictional High Court.

47

25. As noticed, on 15.04.2021, the Trial Court had specifically fixed

the matter for arguments on two applications: one being the application of

the appellant seeking stay of suit proceedings in terms of Section 10 CPC

and another being the application moved by the respondent seeking

interim directions of attachment before judgment in terms of Order

XXXVIII Rule 5 CPC. However, on 15.04.2021, the Trial Court could not

hear the parties on the said two applications and adjourned the matter to

22.06.2021 with reference to its own administrative order dated

07.04.2021 as also the High Court’s administrative order dated

05.04.2021. We have reproduced the relevant part of the said

administrative order of the High Court hereinbefore and it is but clear that

its effect was of providing truncated/curtailed functioning of subordinate

Courts in view of the pandemic; and the directions had been of limited

court functioning, even in terms of hours of working, essentially for the

purpose of the cases of urgent nature. The proceedings in the subject suit

were neither of urgent nature nor were considered so by the Trial Court. It

was for this reason that on 15.04.2021, the Trial Court simply adjourned

the matter beyond two months.

25.1. It is absolutely clear that during the operation of the said order

dated 05.04.2021, the subordinate Courts under the superintendence of

the High Court of Chhattisgarh (which include the Trial Court related with

the subject suit) could not have been considered functioning in a normal

48

manner and for the whole of normal working days and hours. The period

during which the said order dated 05.04.2021 was operative, could have

only been considered dies non juridicus, i.e., the days on which the

Courts do not ordinarily sit or carry-on business, particularly in regard to

any period of limitation. In P. Ramanatha Aiyar’s Law Lexicon11 the

concept of dies non juridicus is explained, inter alia, in the following

terms: -

“Dies non. (Lat.) A day which is regarded by the law as one on

which no judicial act can be performed, or legal diligence used.

(Trayner)

(Shortened form of Dies non juridicius). A day not juridical, a day

exempt from Court proceedings, such as a holiday or a Sunday.

A day on which the Courts do not ordinarily sit or carry on

business; a day on which general business may not lawfully be

transacted.

A day on which a Law-Court is not held.

A day that is not counted for some purpose. For example,

Saturday and Sunday are not counted as days of the working

week.

xxx xxx xxx

An abbreviation of the phrase “dies non juridicus”, non-judicial

days-days during which the Courts do not transact any businessas Sunday or the legal holidays. (Havens v. Stiles, 56 LRA 736). It

is frequently said that Sunday is “die non juridicus”, but this means

only that process cannot ordinarily issue or be executed or

returned, and Courts do not usually sit, on that day. It does not

mean that no judicial action be had on that day. On the contrary, it

is laid down in books of authority that warrants for treason, felony

and breach of the peace may be issued and executed on that day,

(State v. Ricketts, 74 N.C. 187, 193)”

11 5th Ed., Vol. 2, p. 1505

49

25.2. The concept of limitation not coming to an end on a day when the

Court is closed, or is deemed to be closed, is precisely contained in

Section 4 of the Limitation Act, 1963 that reads as under: -

“4. Expiry of prescribed period when court is closed. - Where

the prescribed period for any suit, appeal or application expires on

a day when the court is closed, the suit, appeal or application may

be instituted, preferred or made on the day when the court

reopens.

Explanation.- A court shall be deemed to be closed on any

day within the meaning of this section if during any part of its

normal working hours it remains closed on that day.”

(emphasis supplied)

25.2.1. It is thus beyond cavil that if the prescribed period for any

suit/appeal/application expires on day when the Court is considered

‘closed’, such proceedings may be instituted on the re-opening day.

Significantly, the Explanation to Section 4 of the Limitation Act, 1963

makes it clear that a day when the Court may not as such be closed in

physical sense, it would be ‘deemed’ to be closed, if during any part of its

normal working hours, it remains closed on that day for any particular

proceedings or work.

25.3. As noticed from the relevant parts of the order dated 05.04.2021

(vide paragraph 15 hereinabove) that at the relevant time, limited number

of Courts were to function on rotational basis in Raipur and that too, with

curtailed working hours from 11:00 a.m. to 2:00 p.m.; and they were to

function during full working hours only for bail and remand matters.

Having regard to the situation prevalent at the relevant time and the

contents as also spirit of the administrative order issued by the

50

jurisdictional High Court, there is nothing to doubt that w.e.f. 06.04.2021,

the Court in question could not have been considered functioning

normally; and that period of operation of the said administrative order

dated 05.04.2021 could have only been considered dies non juridicus for

the purpose of the prescribed period for doing anything in the

proceedings in that Court. It has not been pointed out if, as on

06.05.2021, the said order dated 05.04.2021 had been withdrawn and the

situation had returned to such normalcy that the appellant should have

attended the Trial Court and should have filed the written statement. Quite

contrary to any such proposition, the submission on behalf of the

appellant, even on 22.06.2021, had been about the ailments of the

partners of the appellant firm as also their lawyer and their families, where

the lawyer lost his mother due to health complications. Any proposition,

which suggests that during such non-regular-business days of the Trial

Court, and rather bleak days for the humanity, the written statement ought

to have been filed, could only be disapproved as being impractical and

rather preposterous.

Another error of procedure by the Trial Court

26. Apart from the above, yet another significant feature is that on the

very first day of appearance, i.e., on 18.01.2021, the appellant moved an

application under Section 10 read with Section 151 CPC for stay of the

suit proceedings on the ground that proceedings between the parties

51

relating to the subject matter of the suit were pending before the NCLT.

The respondent had earlier moved an application seeking directions of

attachment before judgment in terms of Order XXXVIII CPC. Both the

applications as moved by the appellant as also by the respondent

remained pending and, on 15.03.2021, the Trial Court adjourned the

matter to 15.04.2021 for arguments on both these applications. On

15.04.2021, no business could be transacted and the matter was

adjourned to 22.06.2021, again for arguments on these applications.

Even when the matter was taken up on 22.06.2021 and the Trial Court

declined the prayer of the appellant for another opportunity for filing the

written statement, it did not take up the said applications for consideration

and adjourned the matter to 09.07.2021. We are not commenting on

merits of the application moved by the appellant under Section 10 CPC

but, it cannot be gainsaid that such an application, by its very nature,

required immediate consideration and before any other steps in the suit. It

needs hardly any emphasis that if the prayer made in the application

moved under Section 10 were to be granted, the trial of the subject suit

was not to be proceeded with at all. We find it rather intriguing that on one

hand, the Trial Court itself posted the matter for consideration of that

application along with the other application moved by the respondent but

did not take them up on 22.06.2021 and adjourned the matter after

declining the prayer for filing written statement. Even when the Trial Court

52

considered the step of filing the written statement to be of importance in

view of the time limit and consequences stated in the statute, there was

no justification that the Trial Court did not simultaneously take up the

application under Section 10 CPC for consideration.

26.1. We are constrained to reiterate the unquestionable principles that

the rules of procedure are essentially intended to subserve the cause of

justice and are not for punishment of the parties in conduct of the

proceedings. Of course, in the ordinary circumstances, the mandates of

Rule 1(1) of Order V, Rule 1 of Order VIII as also Rule 10 of Order VIII, as

applicable to the Commercial dispute of a Specified Value, do operate in

the manner that after expiry of 120th day from the date of service of

summons, the defendant forfeits the right to submit his written statement

and the Court cannot allow the same to be taken on record but, these

provisions are intended to provide the consequences in relation to a

defendant who omits to perform his part in progress of the suit as

envisaged by the rules of procedure and are not intended to override all

other provisions of CPC like those of Section 10. These comments are

necessitated for the reason that the Trial Court seems to have simply

ignored the requirements of dealing with the pending applications with

requisite expedition. We say no more.

53

Conclusion

27. For what has been discussed hereinabove, we are unable to

approve the order dated 22.06.2021 as passed by the Trial Court and the

order dated 09.07.2021 as passed by the High Court. In our view, the

written statement already prepared and notarised by the defendantappellant deserves to be taken on record and the Trial Court deserves to

be directed to proceed with the matter in accordance with law thereafter;

and for that matter, to deal with the pending applications without further

delay.

28. Accordingly, this appeal is allowed; the impugned orders dated

22.06.2021 as passed by the Commercial Court (District Level), Nava

Raipur, Chhattisgarh in Civil Suit No. 01-B of 2021 as also the order dated

09.07.2021 as passed by the High Court of Chhattisgarh in WP No. 312

of 2021 are set aside; the written statement notarised by the defendantappellant on 07.07.2021 is ordered to be taken on record. After taking the

written statement on record, the Trial Court shall proceed with the suit in

accordance with law; and for that matter, shall deal with the pending

applications before taking any other steps in the suit.

……….……………………J.

 (DINESH MAHESHWARI)

…………………………. J.

(VIKRAM NATH)

New Delhi;

Dated: 14th February, 2022

54