GS Marbles Vs Shree Granites (Delhi High Court)
Summary: The Delhi High Court, in the case of GS Marbles v. Shree Granites, upheld a trial court’s decision to decree a civil suit for the recovery of an advance payment. This judgment reaffirms the strict adherence required for filing a written statement under Order VIII Rule 1 of the Civil Procedure Code (CPC), stating that the 120-day period for submission is an absolute and non-negotiable bar, beyond which the court cannot accept the statement. The dispute originated from Shree Granites’ claim that they issued a purchase order to GS Marbles for granite slabs and paid the full advance amount, but the slabs were never supplied. Despite a demand letter for a refund, GS Marbles, through its proprietor Mr. Manoj Saini, denied receiving funds and alleged the firm was a front for GST fraud orchestrated by another individual, Mr. Rajaram Agarwal.
Crucially, GS Marbles failed to file their written statement within the stipulated 120 days after being served with summons. The Trial Court initially closed their right to file and proceeded ex-parte. Although the ex-parte order was later set aside, the court maintained its refusal to accept a written statement due to the lapse of the statutory period. Subsequently, the Trial Court decreed the suit in favor of Shree Granites under Order VIII Rule 10 CPC, relying on the plaintiff’s documentary evidence, including the signed purchase order and bank statements confirming the advance payment. The Delhi High Court affirmed this, observing that while a plaintiff must still prove their case, the absence of a written statement and compelling documentary evidence by the plaintiff, coupled with unsubstantiated defenses by the defendant (like the alleged GST fraud without any FIR or official record), justifies passing a decree. The Court found no material facts requiring further adjudication, reinforcing that the Trial Court’s discretion was properly exercised in upholding the original judgment.
