MIRA GEHANI AND ORS. Vs. AXIS BANK LIMITED AND ORS.
LAWS(BOM)-2019-2-266
HIGH COURT OF BOMBAY
Decided on February 27,2019

Mira Gehani And Ors. Appellant
VERSUS
AXIS BANK LIMITED And ORS. Respondents

JUDGEMENT

- (1.) I. QUESTION OF LAW: The present Order deals inter alia with the interpretation of an amendment to Order VIII of the CPC introduced by the Commercial Courts Act, 2015 ("Commercial Courts Act"). The amended Order VIII Rule 1 is in respect of taking on record a written statement of the Defendant in a Commercial Suit after the expiry of 120 days from the date of service of summons. Order VIII Rule 1 as amended by the Commercial Courts Act is reproduced hereunder : "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.] "
(2.) In the various Commercial Suits filed before the Commercial Division of this Court, various Defendants failed to file their written statement(s) within the stipulated period of 120 days. Subsequently, these Defendants have taken out various Notice(s) of Motion seeking condonation of delay in filing their respective written statements. At the hearing of these motions, Counsel appearing for the Plaintiffs opposed the taking on record of any written statement in view of inter alia the newly introduced proviso to Order VIII Rule 1 by the Commercial Courts Act.
(3.) Consequently, an open court notice was published by this Court on 28thAugust, 2018, framing the following question of law in order to settle the controversy in all such matters : "Whether in view of the amendment to the Code of Civil Procedure, 1908 by 'The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 (4 of 2016)', the Defendant/s can be allowed to file the Written Statement/s after 120 days from the date of service of the Writ of Summons in a Commercial Suit?";


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