SCG Contracts India Pvt. Ltd Vs K.S. Chamankar Infrastructure Pvt. Ltd. & Ors. (Supreme Court of India)
The Supreme Court allowed the appeal and held that the written statement filed by Defendant No.1 beyond the statutory period of 120 days could not be taken on record in a commercial suit governed by the amended provisions of the Code of Civil Procedure introduced through the Commercial Courts Act, 2015. The Court directed that the written statement be removed from the record.
The suit was filed on 10.03.2017 claiming Rs. 6,94,63,114/-. Defendant No.1 was served with summons on 14.07.2017. The statutory period of 120 days for filing a written statement expired on 11.11.2017, but no written statement had been filed by that date. Instead, Defendant No.1 had filed an application under Order VII Rule 11 CPC, which was rejected by a Single Judge on 05.12.2017. While rejecting the application, the Court granted seven additional days to file the written statement subject to payment of costs of Rs.25,000/-. The written statement was thereafter filed on 15.12.2017.
Subsequently, an application dated 06.08.2018 was filed contending that due to amendments made to the CPC under the Commercial Courts Act, the written statement could not legally be taken on record after expiry of 120 days from service of summons. On 24.09.2018, another Single Judge held that since the earlier order dated 05.12.2017 had attained finality, the written statement filed on 15.12.2017 should remain on record. The petitioner challenged both orders before the Supreme Court.
