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2024 DIGILAW 250 (BOM)

Amba Shipping & Logistics Pvt. Ltd. v. M. V. Thera

2024-02-01

R.I.CHAGLA

body2024
ORDER : R.I.Chagla, J. - By this Interim application the Applicants/Original Defendants have sought condonation of delay in filing Written Statement and for directions to the Registry to take the Written Statement on record. 2. The Applicants/Original Defendants have in the Interim Application stated that the Writ of Summons had been served on 9th June, 2023, though the present Suit was instituted on 9th December, 2022 as per records available on the Bombay High Court website. The copy of the Writ of Summons duly served on the Applicants is annexed at Exhibit-A to the Interim Application. 3. The Applicants have further stated in Paragraph 6-8 of the Interim Application that upon service of Writ of Summons, Applicant No.2 being the owner of Applicant No.1 had to gather all documents pertaining to the Suit. Thereafter, the Applicants upon collection of the relevant documents, E-mails and Bank Statements pertaining to the subject matter of the present Suit had taken time to understand and prepare the defence which involves reading and understanding voluminous documents. A draft Written Statement was prepared for the Applicants' comments and perusal. Thereafter, the Advocates for the Applicants had to obtain multiple documents pertaining to the contracts entered into by the Plaintiff viz. Bank Statements for financial years from 2020-2021 till 2022-2023, relevant E-mails from the year 2019 till 2023, various Invoices raised by the Plaintiff towards the Applicants. Accordingly, in view of the aforementioned, there has been delay in filing of the Written Statement. 4. The Applicants have stated in Paragraph 9 of the Interim Application that the Written Statement was lodged on 5th October, 2023, being the 118th day from service of Writ of Summons. 5. The Applicants further state that they were prevented by bonafide reasons from filing the Written Statement within the prescribed period of 30 days. However, the Written Statement was affirmed and the present Interim Application is preferred within the permissible 120 days from date of service of Writ of Summons. 6. Mr.Kamat, learned Counsel appearing for the Applicants/Original Defendants states that the Written Statement having been lodged within 120 days, this Court may exercise its powers under Order VIII Rule 1 read with the Amendments brought in by the Commercial Courts Act, 2015 to condone the delay which is not beyond the permissible 120 days from service of Writ of Summons. Mr.Kamat, learned Counsel appearing for the Applicants/Original Defendants states that the Written Statement having been lodged within 120 days, this Court may exercise its powers under Order VIII Rule 1 read with the Amendments brought in by the Commercial Courts Act, 2015 to condone the delay which is not beyond the permissible 120 days from service of Writ of Summons. He has accordingly, submitted that the delay in filing the Written Statement be condoned. 7. Ms.Isha Sawant, the learned Counsel appearing for the Plaintiff has tendered an Affidavit-in-Reply dated 1st February, 2024 which is taken on record. There is an objection to the grant of relief sought for in the Interim Application on the ground that no proper reasons have been furnished by the Applicants/Original Defendants for delay in filing of the Written Statement. 8. Ms.Sawant has submitted that the statutory period for filing of the Written Statement is 30 days after service of Writ of Summons and further 90 days is upon exercise of discretion of this Court in condoning the delay. She has submitted that the Defendants were aware in December 2022 when the Order of Arrest of the Defendant-Vessel was passed on 9th December, 2022 that the above Suit had been filed. The Applicants had filed an Application for allowing the Defendant-Vessel to ply under arrest on 15th December, 2022. This was allowed by order dated 23rd December, 2022 on the Defendants furnishing security by way of Demand Draft. The Defendants have merely stated that they were instructing their Advocates, providing E-mails and Bank Statements which are not sufficient grounds for condonation of delay. He has accordingly submitted that the Defendants should have taken steps for filing their Written Statement within the mandatory period of 30 days from service of Writ of Summons as they would have been aware of the documents which they have now sought lack of awareness for the delay in filing the Written Statement. 9. Ms.Sawant has placed reliance upon decision of the Delhi High Court in Ok Play India Pvt. Ltd. Vs. 9. Ms.Sawant has placed reliance upon decision of the Delhi High Court in Ok Play India Pvt. Ltd. Vs. A.P.Distributors & Anr., 2021 SCC OnLine Del 4043 wherein the Delhi High Court has held that in the event the Written Statement is not filed within 30 days of service of Writ of Summons but filed before the expiry of further 90 days, the filing of Written Statement must be accompanied with a written Application setting out the reasons for delay to allow the Court to consider the reasons so given, to condone delay and receive the belated Written Statement giving reasons for granting such leave and enabling the Court to impose the appropriate costs. No Application can be filed, seeking condonation of delay in filing the Written Statement after 120 days have elapsed from the date of service of Writ of Summons. 10. Ms.Sawant has not disputed that the Written Statement was filed within 120 days i.e. 118 days from service of Writ of Summons. However, she has submitted that the Written Statement was not filed alongwith the present Interim Application and that the Written Statement was not served upon the Plaintiffs. 11. The learned Counsel for the Plaintiffs has accordingly opposed grant of condonation of delay in filing the Written Statement. 12. Having considered the submissions, in my view the decision relied upon by the Plaintiffs viz. Ok Play India Pvt. Ltd. (supra) is inapplicable in the present case, as the Delhi High Court (Original side), Rules, 2018 applied to that case. The Rules of this Court are otherwise. This Court has taken a view that in the event the Written Statement is filed within 120 days, and there are reasons for the delay in filling the Written Statement, the defence cannot be shut out on a technical view and rather, the Court should advance substantial justice. 13. I have considered the averments in the Interim Application and in particular Paragraphs 5 to 8 which give reasons, although not entirely satisfactory, but there is a justifiable explanation for the delay in filing of the Written Statement. The Written Statement has been lodged on the 118th day from service of Writ of Summons. 13. I have considered the averments in the Interim Application and in particular Paragraphs 5 to 8 which give reasons, although not entirely satisfactory, but there is a justifiable explanation for the delay in filing of the Written Statement. The Written Statement has been lodged on the 118th day from service of Writ of Summons. By exercising the discretionary power of this Court as provided in Order VIII Rule 1 read with the Amendment brought in by the Commercial Courts Act, 2015, the delay in filing of the Written Statement is required to be condoned. 14. However, there has been a gross delay in filing the Written Statement, albeit within the permissible 120 days from service of the Writ of Summons. The Defendants should have been aware of the above Suit in that they had taken out an Application in the above Suit for permission to ply the Defendant-Vessel under arrest on 15th December, 2022. Thus, the Defendant should have attempted to file the Written Statement within the statutory period i.e. 30 days from service of Writ of Summons which they have failed to do so. 15. In that view of the matter, the delay in filing the Written Statement is condoned subject to payment of costs of Rs.20,000/- which shall be paid by the Defendants to a Charitable Institute viz. "Deeds for Needs Foundation" situated at Row No.C/4, Clover Highlands, Kondhwa, SN. 25/1 to 4, NIBM Road, Pune - 411 048, within a period of two weeks from the date of this order. 16. The Registry is directed to accept the filing of the Written Statement. 17. The Interim Application is accordingly disposed of. Order accordingly.