Bravo Sponge Iron Private Limited vs Birat Chandra Dagara on 3 March, 2025

Date:

Calcutta High Court

Bravo Sponge Iron Private Limited vs Birat Chandra Dagara on 3 March, 2025

 OC-6 & 7
                                  ORDER SHEET

                      IN THE HIGH COURT AT CALCUTTA
                               ORIGINAL SIDE
                           [COMMERCIAL DIVISION]

                               IA NO. GA-COM/3/2024
                                         In
                                  CS-COM/564/2024

                   BRAVO SPONGE IRON PRIVATE LIMITED
                                  VS
                        BIRAT CHANDRA DAGARA

                                        &

                  IA NO: GA-COM/1/2024, GA-COM/3/2024
                                   In
                             CS-COM/565/2024

                  SHAKAMBARI ISPAT AND POWER LIMITED
                                  VS
                        BIRAT CHANDRA DAGARA


  BEFORE:
  The Hon'ble JUSTICE KRISHNA RAO

Date : 3rd March, 2025.

Appearance:

Mr. Kumarjit Banerjee, Adv.

Ms. Sanchari Chakraborty, Adv.

Ms. Akanksha Chowdhury, Adv.

…for the plaintiff

Mr. Ratnanko Banerjee, Sr. Adv.

Mr. Jayanta Sengupta, Adv.

Mr. Saurodip Banerjee, Adv.

Mr. Rahul Auddy, Adv.

Mr. Aditya Goopta, Adv.

…for the defendant

The Court:- Mr. Kumarjit Banerjee, learned Senior Advocate, is

appearing for the plaintiff.

Mr. Ratnanko Banerjee, learned Senior Advocate, is appearing for the

defendant.

2

In Re: GA-COM/3/2024

The defendant has filed the present application being GA-

COM/3/2024 praying for extension of time to file written statement. The

defendant says that the writ of summons along with plaint was served upon

the defendant on 16th May, 2024. The defendant says that defendant has

already entered appearance in the interlocutory application and contesting

the same.

Counsel for the defendant submits that after receipt of writ of

summons, the advocate-on-record of the defendant had duly brief the

counsel for drafting the written statement by holding conferences. He

submits that during the conference it transpires that for drafting written

statement certain papers, information and documents for the purpose dealing

with allegation made in the plaint are required accordingly, the advocate-on-

record of the defendant had directed that the defendant to submit the

required information and documents to prepare written statement. He

submits that many of the employees of the defendant company have either

left the employment or retired from the service and accordingly the present

employee of the defendant have taken some time to collect the document and

to provide the same to the advocate-on-record.

Learned Counsel for the defendant submits that as per the service

report of the Deputy Sheriff of Calcutta relied by the plaintiff dated 22 nd May,

2024 the writ of summons was served through the District Court, Cuttack,

Orissa on 16th May, 2024. The writ of summons was served through the

postal service by speed post on 30th March, 2024. He relied upon Order V,

Rule 9, Sub-rules (3),(4) and (21) of the Code of Civil Procedure and submits
3

that no order passed by this Court for sending the writ of summons through

speed post and as such the service through the speed post upon the

defendant on 30th March, 2024 is not in accordance with law.

Defendant says that if the date of service of writ of summons is taken

as 16th May, 2024, the defendant has affirmed written statement within the

outer period of 120 days.

Learned Counsel for the defendant has relied upon the judgment in the

case of A.P. Distributer and Another vs. OK Play India Pvt. Ltd. reported

in 2022 SCC OnLine SC 1512 and submits that the Hon’ble Supreme Court

has held that the High Court was not justified in setting aside the order

passed by the learned Commercial Court directing to take written statement

on record. Learned Counsel for the defendant further relied upon unreported

judgment passed by this Court in the case of Raijada Marbles and Ors. vs.

Royalbuilt Infrastructure Private Limited and Ors. in GA-COM/4/2024

(CS-COM/429/2024) dated 4th October, 2024 wherein this Court has not

accepted the written statement on the ground that the defendant has not

filed the application within the outer period of 120 days for acceptance of the

written statement but in the present case the defendant has filed the present

application within outer period of 120 days.

Learned Counsel for the defendant has further relied upon the

judgment in the case of Paras Ram Milkhi Ram vs. Sudarshan Tea. Pvt.

Ltd. and Another reported in 2022 SCC OnLine P&H 4365 wherein the

Hon’ble High Court of Punjab and Haryana has dealt with Order V, Rule 9,

Rule 21 and held that if the defendant resides outside the territorial

jurisdiction of the Court, the service sought to be effected upon the defendant
4

by way of registered post with acknowledgement due directly by the Court

where the suit was instituted cannot be deemed to be proper service and the

procedure adopted by the Trial Court was contrary to the law laid down in

Order V, Rules 9 and 21 of the C.P.C.

Per contra, learned Advocate appearing for the plaintiff, draws the

attention of this Court to the service report dated 22nd May, 2024 issued by

the Deputy Sheriff of Calcutta wherein it has been certified that the writ of

summon was duly served upon the defendant by personal service through

the District Court, Cuttack, Orissa on 16th May, 2024 and the said fact was

admitted by the defendant in paragraph 3 of the present application.

Counsel for the plaintiff submits that the writ of summon sent to the

defendant through speed post was also received by the defendant on 30 th

March, 2024. The plaintiff has relied upon the Chapter VI, Rule 12 of the

Original Side Rules of this Court and submits that in terms of the Original

Side Rules of this Court, the Registrar or Master may all such business and

exercise all such authority and jurisdiction under this Rule may be

transacted or exercised by the Judge in Chambers, except where otherwise

prescribed. Accordingly, the writ of summons upon the defendant was sent

as per the order of learned Master by both the ways and thus it cannot be

said that the writ of summons sent to the defendant through the speed post

is not good service.

Counsel for the plaintiff further submits that though the plaintiff has

raised the point that the writ of summons sent to the defendant not in

accordance with law has not been pleaded in the application.
5

Learned Counsel for the defendant submits that in terms of the service

report of the Deputy Sheriff of Calcutta it is crystal and clear that the notice

was duly served upon the defendant on 30th March, 2024 and 16th May, 2024

which was duly admitted by the defendant but the defendant failed to file the

written statement either within the prescribed period of 30 days or within the

outer period of 120 days. He submits that only affirmation of written

statement without filing in the Court or in the department, it cannot be said

that the written statement is filed by the defendant.

In the case of A.P. Distributer and Another (supra) the defendant has

filed the written statement on 34th day of the service of notice of summons

and the learned Trial Court has accepted the same but the High Court had

set aside the said order. Accordingly, the Hon’ble Supreme Court has held

that the High Court has taken the technical view in setting aside the order of

Commercial Court.

In the case of Raijada Marbles and Ors. (supra) this Court has

categorically held that the defendant has affirmed the affidavit of written

statement on 28th August, 2024 that is within period of outer limit of 120

days but the written statement was not placed on record and mere

affirmation of affidavit of written statement without filing in the Court or the

Department it cannot be said that written statement is filed within the

prescribed period of limitation.

The Deputy Registrar (Legal) by his report dated 22nd August, 2024

certified that the defendant has not filed the written statement till 22nd

August, 2024 that is even after the outer period of 120 days.
6

In paragraph 3 of the application, the defendant has admitted that he

received the writ of summons on 16th May, 2024.

In paragraph 8 of the said application, the defendant has further

admitted that filing of the written statement within 30 days as expired on 16 th

June, 2024.

In paragraph 9 of the said application, the defendant has made an

averment with the written statement has been made ready and is ready to be

affirmed.

Counsel for the defendant has stated that the written statement has

also affirmed within the outer period of 120 days if the date is taken from

16th May, 2024. If the defendant affirmed the written statement within the

outer period of 120 days at the time of filing of the present application, but

the defendant has not annexed the said written statement along with the

present application.

The High Court of Punjab and Haryana in the case of Paras Ram

Milki Ram (supra) held that if the defendant is residing outside the

territorial jurisdiction of the Court where the suit is instituted, service

effected upon the defendant by way of registered post directly by the Court

where the suit was instituted cannot be deemed to be proper service and

contrary to the law laid down in Order 5, Rule 9 and 21 of C.P.C.

This Court is having the Ordinary Original Civil Jurisdiction and

having Original Side Rules. Chapter VI, Rule 5, provides for service and

return of summons which reads as follows:-

“5. Service and return of summons.- Unless otherwise ordered,
such summons, not being an originating summons, shall be served
two clear days before the return thereof. A summons may be made
returnable in a shorter time, by leave of the Registrar or Master,
7

which shall be endorsed on it. In case of summons for time only,
the summons may be served on the day previous to the return
thereof.”

Rule 12 of Chapter VI reads as follows:-

“12. Business which may be transacted by Registrar or Master.-
The Registrar or Master may transact all such business and
exercise all such authority and jurisdiction as under these rules
may be transacted or exercised by a Judge in Chambers, except
where otherwise prescribed, or in respect of the following
proceedings and matters, that is to say:-

Exceptions

(a) All contested applications except with the consent of the parties
concerned or their Advocates acting on the Original Side;

(b) All applications under rule 11, clauses 1 to 8, 11 and 15 to 17;

(c) The making of an order for the issue of a warrant of committal;
and also.

(d) Applications, matters and proceedings under Chapter XII, rr.1
and 6.

In terms of the provisions of Original Side Rules, the Registrar or

Master of this Court exercising all such authority and jurisdiction under this

Rule. Accordingly, the Master has issued writ of summons upon the

defendant through the District Judge of Cuttack, Orissa and also sent

through speed post. Thus the Judgment relied by the defendant is not

applicable in the present case.

Order VIII Rule 1 of the Code of Civil Procedure, 1908 as amended

under the Commercial Courts Act read as follows:-

“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”.

8

In the case of [SCG Contracts India (P) Ltd. v. K.S. Chamankar

Infrastructure (P) Ltd.] reported in (2019) Vol.12 SCC 210, the Hon’ble

Supreme Court has categorically held that this Court cannot accept the

written statement after the outer period of 120 days.

In the present case the writ of summons was served upon the

defendant through the process server of the District Court, Cuttack, Odisha

on 16th May, 2024 and the writ of summons through the speed post was

served upon the defendant on 30th March, 2024. Admittedly, no written

statement is filed even within the outer period of 120 days. Merely by

submitting that written statement is affirmed will not serve the purpose,

unless it is filed in Court or in department. If this Court taking into

consideration of service of writ of summons on 30th March, 2024, the outer

period of filing written statement by the defendant expires on 29th July, 2024

and if the service is not taking into consideration on 16th May, 2024 outer

period of filing written statement of 120 days expired on 15th September,

2024, but neither on or before 29th July, 2024 nor on or before 15th

September, 2024, the written statement is filed by the defendant and no

written statement is on record.

In view of the above this Court finds that the defendant failed to file the

written statement within outer period of 120 days, thus time to file written

statement cannot be extended. GA-COM/3/2024 is dismissed.

(KRISHNA RAO, J.)

S. A.
AR(CR)



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related