M/S ANVITA AUTO TECH WORKS PVT. LTD.versusM/S AROUSH MOTORS & ANR.
- Citation
- 2025 INSC 1202
- Decided
- 8 October 2025
- Disposal
- Appeal(s) allowed
- Bench
- ARAVIND KUMAR
Holding
The Supreme Court held that the COVID‑19 exclusion order extends the limitation period for filing a written statement, and that a defendant's right to cross‑examine is not lost merely because the written statement was not filed within the original statutory period.
Summary
The case arose from a commercial dispute where the plaintiff, Aroush Motors, sued Anvita Auto Tech Works for recovery of monies after terminating a dealership agreement. The defendant failed to file its written statement within the statutory 120‑day period and sought multiple extensions, eventually filing the statement on 7 January 2022, well after the deadline. The trial court rejected the late statement and denied the defendant any cross‑examination of the plaintiff’s witnesses, leading to a decree in favour of the plaintiff. The defendant appealed, contending that the COVID‑19 exclusion order of the Supreme Court should extend the limitation period and that the right to cross‑examine survives even without a written statement. The Supreme Court held that the exclusion period (15 March 2020 to 28 February 2022) applies, obliging the lower court to admit the written statement and allow cross‑examination. Consequently, the appellate decree was set aside and the matter remanded for the trial court to hear the defence on merits, with costs awarded to the defendant.
Issues considered
- Whether the statutory 120‑day limitation for filing a written statement in a commercial suit can be extended under the Supreme Court's COVID‑19 exclusion order.
- Whether the defendant's right to cross‑examine the plaintiff's witnesses is forfeited by failure to file a written statement within the prescribed period.
Legislation cited
- Code of Civil Procedure, 1908s. 148, s. 151, s. Order VIII Rule 10, s. Order V Rule 1
- Commercial Courts Act, 2015
- General Clauses Act, 1897s. 9
Headnote
Issue for Consideration Whether the High Court was correct in observing that on account of non-filing of written statement by the defendant, his right to cross-examination is taken away. Headnotes† Commercial Courts Act, 2015 – Code of Civil Procedure, 1908 – Proviso to sub-rule Second Proviso to Sub- rule (1) of r.1 of Or.V – Written statement – General Clauses Act, 1897 – s.9 – Appellant-defendant No.1 filed Written Statement in commercial suit on 07.01.2022, beyond the statutory period of 120 days which had expired on 14.11.2021, in the
Subjects
Judgment
[2025] 10 S.C.R. 559 : 2025 INSC 1202
M/s Anvita Auto Tech Works Pvt. Ltd.
v.
M/s Aroush Motors & Anr.
(Civil Appeal No. 12539 of 2025)
08 October 2025
[Aravind Kumar* and N.V. Anjaria, JJ.]
Issue for Consideration
Whether the High Court was correct in observing that on account
of non-filing of written statement by the defendant, his right to
cross-examination is taken away.
Headnotes†
Commercial Courts Act, 2015 – Code of Civil Procedure, 1908 –
Proviso to sub-rule (1) of r.1 of Or.VIII; Second Proviso to Sub-
rule (1) of r.1 of Or.V – Written statement – General Clauses Act,
1897 – s.9 – Appellant-defendant No.1 filed Written Statement
in commercial suit on 07.01.2022, beyond the statutory period
of 120 days which had expired on 14.11.2021, in the light of
the COVID-19 pandemic – Rejected – Challenge to:
Held: 1.1 The statutory limitation period of 120 days for filing the
WS commenced on 17.07.2021 and ended on 14.11.2021 – Both
these dates fell at the time of global pandemic of COVID-19 – This
court in In Re: Cognizance for Extension of Limitation (2022) 3 SCC
117 in Suo Moto Writ Petition (C) No. 3 of 2020 passed orders to
exclude the period commencing from 15.03.2020 till 28.02.2022
for the purpose of computing the limitation period under any
general or special laws in respect of all judicial or quasi-judicial
proceedings. [Para 28]
1.2 Both the dates fell within the sweep of period between
15.02.2020 to 28.02.2022 – In fact, during this period itself, on
24.11.2021 itself defendant No.1 had sought enlargement of
time to file written submission and subsequently on 07.01.2022
had sought permission to file written submission enclosing the
written submission also – Therefore, the High Court ought to have
excluded the aforesaid period for the purpose of filing the written
statement and ought to have permitted the defendant No.1 to file
* Author
560 [2025] 10 S.C.R.
Supreme Court Reports
written statement on record and contest the suit on merits rather
than dismissing the appeal. [Para 30]
1.3 Furthermore, the order sheet of the trial court reveal that after
the examination-in-chief of PW1 was closed, the cross-examination
of Defendant no.1 was taken as “Nil” on the ground that defendant
had failed to file their written statement within stipulated time –
The said reason is absolutely perverse and is contrary to the right
of defence available to the defendant – The purpose of cross-
examination is to elicit the truth from the witness and impeach its
credibility – When the WS was not allowed to be taken on record,
the denial of the right to cross-examine cannot be taken away by
leaving the defendant in lurch. [Paras 30, 31]
1.4 Impugned judgment and the decree passed in commercial
suit qua appellant is set aside – Matter remanded back to the trial
court to dispose of the same after allowing the appellant to file the
Written Statement subject to payment of cost and to permit him
to exercise his right of cross-examination of plaintiff’s witnesses.
[Para 32]
Practice and Procedure – Procedural rules – Object:
Held: Is to advance the cause of justice and not to thwart it and
when the rigid adherence to technicalities of procedure causes
injustice – Courts have to adopt a liberal approach and cannot
countenance a situation where substantial justice is sacrificed at
the altar of procedural rigidity – Where substantial justice is at
stake, technicalities must give way to ensure that the litigant is
afforded sufficient opportunity to defend. [Para 2]
Case Law Cited
Babasaheb Raosaheb Kobarne & Anr. v. Pyrotek India Private
Limited and Ors., 2022 SCC SC 1315; Prakash Corporates v. Dee
Vee Projects Limited [2022] 8 SCR 889 : (2022) 5 SCC 112; Ranjit
Singh v. State of Uttarakhand, 2024 INSC 724; Aditya Khaitan &
Ors. v. IL & FS Financial Services Limited [2023] 12 SCR 803 :
2023 INSC 867 – relied on.
Asma Lateef v. Shabbir Ahmad [2024] 1 SCR 517 : (2024) 4
SCC 696; SCG Contracts (India) Pvt. Ltd. v. K.S. Chamankar
Infrastructure Private Limited and Ors. [2019] 3 SCR 1050 : (2019)
12 SCC 210 – referred to.
[2025] 10 S.C.R. 561
M/s Anvita Auto Tech Works Pvt. Ltd. v. M/s Aroush Motors & Anr.
List of Acts
Commercial Courts Act, 2015; Code of Civil Procedure, 1908;
General Clauses Act, 1897.
List of Keywords
Commercial suit; Written Statement; Limitation period for filing
Written Statement; Time period of 120 days; Mandatory statutory
period of 120 days; Delay due to COVID-19; COVID-19 pandemic;
Condonation of delay; Extension of time to file written statement;
Right to cross-examine; Non-filing of written statement by defendant,
Right to cross-examination taken away; Pleadings; Procedural
rules; Technicalities; Liberal approach.
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 12539
of 2025
From the Judgment and Order dated 20.05.2025 of the High Court
of Karnataka at Bengaluru in COMAP No. 19 of 2023
Appearances for Parties
Advs. for the Appellant:
Pb Suresh, Sr. Adv., Sughosh Subramanyam, Kartik Pant, Ms.
Sanskruti Samal, Ms. Deeksha Gupta, Yadhuvansh Gaurav, Chaitanya.
Advs. for the Respondents:
Balaji Srinivasan, Vishwaditya Sharma, Suraj Sampath.
Judgment / Order of the Supreme Court
Judgment
Aravind Kumar, J.
1. Heard. Leave Granted.
2. The present controversy can be encapsulated in words of the Hon’ble
Justice V.R. Krishna Iyer:
“Procedural law is not to be a tyrant but a servant, not
an obstruction but an aid to justice. It is the handmaid
of justice and not its mistress”
562 [2025] 10 S.C.R.
Supreme Court Reports
3. The object of the procedural rules is to advance the cause of justice
and not to thwart it and when the rigid adherence to technicalities
of procedure causes injustice, courts have to come to the rescue
by adopting a liberal approach. The courts cannot countenance a
situation where substantial justice is sacrificed at the altar of procedural
rigidity. Where substantial justice is at stake, technicalities must give
way to ensure that the litigant is afforded sufficient opportunity to
defend. The present controversy must be tested on the said principle.
4. The Appellant herein challenges the Impugned Judgement and
order dated 20.05.2025 passed by the High Court of Karnataka at
Bengaluru in Commercial Appeal No. 19 of 2023 which has affirmed
the Judgement and decree dated 15.11.2022 passed by the Additional
City Civil & Sessions Judge (Exclusive Commercial Court) in Original
Commercial Suit No. 372 of 2021 filed by the Respondent No. 1-M/s.
Aroush Motors for recovery of monies.
5. For convenience, we will be referring the parties as per their rank
before the Trial Court, as such, the Appellant herein being Defendant
No. 1 and Respondent No. 1 & 2, being Plaintiff and Defendant
No. 2, respectively.
6. The facts shorn of unnecessary details are summarized hereinunder:
7. The Defendant No. 1-M/s. Anvita Auto Tech Works Pvt. Ltd. (Appellant-
herein), launched a flagship motorcycle by the name of CFMOTO
in India in 2019 and invited applications for its dealership across
the country including Bengaluru City. Plaintiff-M/s. Aroush Motors
(Respondent No. 1-herein) applied and was provisionally appointed
dealer under a Letter of Intent dated 03.09.2019. In consideration of
the dealership, the plaintiff remitted a sum of Rs. 20,00,000/- (Rupees
Twenty Lakhs Only) towards security deposit to Defendant No. 1,
incurred expenditure of rent and interiors for setting up a showroom.
Further, the plaintiff paid sum amount to Rs. 70,00,000/- (Rupees
Seventy Lakhs Only) towards spare parts, software, equipment
and initial stock of motorcycles. Moreover, additional sum of Rs.
5,00,000/- (Rupees Five Lakhs Only) was remitted to Defendant
No. 1 and on the advice of Defendant No. 1, the plaintiff also remitted
Rs. 7,06,900/- (Rupees Seven Lakhs Six Thousand Nine Hundred
Only) to Defendant No. 2-Conair Equipment Pvt. Ltd (Respondent
No. 2-herein) for service centre equipment being its authorised
service provider.
[2025] 10 S.C.R. 563
M/s Anvita Auto Tech Works Pvt. Ltd. v. M/s Aroush Motors & Anr.
8. The Defendant No. 1 supplied Nineteen (19) motorbikes of
BS-IV Category to Plaintiff out of which the Eight (8) were sold. On
01.04.2020, the Government imposed ban on the sale of BS-IV
Category vehicles, as such, Defendant No. 1 imposed prohibition
upon sale of the such motorcycles but promised to supply Kits
and Equipment to upgrade the motorcycles to BS-VI Category.
Nevertheless, due to the inability of Defendant No. 1 to supply
the same, the plaintiff’s business was stalled and is said to have
sustained substantial loss, following which, the plaintiff terminated
the dealership of Defendant No. 1 on 14.09.2020 alleging breach of
obligations and sought recovery of monies invested by way of filing
the present Commercial Original Suit (Com. O.S.) No. 372 of 2021
claiming a sum of Rs. 1,78,03,090/- (Rupees One Crore Seventy-
Eight Lakhs Three Thousand Ninety Only) from Defendant No. 1 with
an Interest of 18% (Eighteen Percent) and Rs. 7,06,900/- (Rupees
Seven Lakhs Six Thousand Nine Hundred Only) from Defendant No.
2 with an Interest of 18% (Eighteen Percent) till the realization of
payments along with 3 (Three) Interim Applications (IAs) No. I to III.
9. After the service of summons, the Defendant No. 1 appeared on
07.08.2021 but did not file the Written Statement on the said date.
Later Defendant no. 1 preferred I.A. No. IV seeking extension of
time to file Written Statement on 07.09.2021. Meanwhile, the 3
(three) I.As which were filed with Com. OS No. 372 of 2021, came
to be decided by way of order dated 30.10.2021 wherein IA No. 1
which sought direction to defendant no. 1 to take back the remaining
motorcycles from possession of plaintiff was allowed, but the other
two IAs which had sought for mandatory injunction against Defendant
No. 1 & 2, respectively, to refund the monies were directed to be
kept in abeyance for consideration along with main suit since the
nature of relief was that of final in nature.
10. On 14.11.2021, the time period of 120 days as prescribed under
the law for filing Written Statement in a commercial suit expired and
Defendant No. 1 again preferred I.A. No. 5 under section 148 of the
Code of Civil Procedure, 1908 (hereinafter to be referred as “CPC”)
seeking extension of time to file Written Statement. The plaintiff filed
its objection to I.A. No. 5 on 06.12.2021 and preferred I.A. No. 6
under section 151 of CPC seeking to strike out the defence. However,
while the said IAs were pending objections, the defendant no. 1 on
07.01.2022 preferred I.A. No. VI/6A along with Written Statement
564 [2025] 10 S.C.R.
Supreme Court Reports
seeking permission to file the same by seeking condonation of
delay on the premise that the delay was due to non-residing of the
defendant no. 1 in Bengaluru and COVID-19.
11. The said IA came to be Rejected by order dated 22.03.2022 by the
Trial Court and consequently, the Written Statement also came to be
rejected. The Defendant No. 1 challenged the order of dismissal of IA
by way of Commercial Appeal bearing No. 189 of 2021. Meanwhile,
the Written Statement on behalf of Defendant No. 2 was also taken
as Nil. The suit progressed subsequently to the stage of recording
plaintiff’s evidence and on 30.07.2022, 10.08.2022 and on 19.08.2022
the examination-in-chief of PW1 was recorded and cross-examination
of the defendant was taken as Nil by the Trial Court on the ground that
defendant had failed to file their Written Statement within Stipulated
time and the matter was posted for defendant’s evidence.
12. Ultimately, the suit came to be partly decreed on 15.11.2022 wherein
Defendant No.1 was directed to pay sum of Rs. 1,78,03,090/- (Rupees
One Crore Seventy-Eight Lakhs Three Thousand Ninety Only) and
Defendant No. 2 was directed to pay Rs. Rs. 7,06,900/- (Rupees
Seven Lakhs Six Thousand Nine Hundred Only) with future interest
of 9% (Nine Percent) per annum each from the date of suit till
realization. Consequently, in the light of the judgement and decree,
the Commercial Appeal No. 189 of 2022 came to be dismissed as
withdrawn.
13. The Defendant No.1 being aggrieved by the judgement and decree
of the Trial Court preferred Commercial Appeal No. 19 of 2023 which
came to be dismissed by the Impugned Order dated 20.05.2025.
Hence, the present appeal.
14. We have heard the Learned Counsels appearing on behalf of the
parties and perused the material on record.
SUBMISSIONS ON BEHALF OF THE APPELLANT-DEFENDANT
NO. 1
15. Shri Pb. Suresh, Learned Senior Counsel appearing on the behalf
of the appellant submitted that court below erred in rejecting the
written statement dated 07.01.2022 which is in contravention of the
orders passed by this Court in Suo Moto Writ Petition (C) No. 3 of
2020 extending the limitation due to COVID-19 wherein the limitation
[2025] 10 S.C.R. 565
M/s Anvita Auto Tech Works Pvt. Ltd. v. M/s Aroush Motors & Anr.
period between 15.03.2020 to 28.02.2022 was waived off in all
cases including commercial disputes. To buttress his contention, the
learned senior counsel has relied upon the decisions of this court in
Babasaheb Raosaheb Kobarne & Anr. v. Pyrotek India Private
Limited and Ors. 2022 SCC SC 1315 and Prakash Corporates v.
Dee Vee Projects Limited (2022) 5 SCC 112.
16. The Learned Senior Counsel further submitted that failure on the
part of the defendant to file the Written Statement within the time
permitted by the court would not tantamount to pronouncement of
judgment against the defendant. To back the said contention, the
learned senior counsel relies upon the decision of this court in Asma
Lateef v. Shabbir Ahmad (2024) 4 SCC 696.
17. The Learned Senior counsel vehemently submitted while placing
reliance upon the decision of this court in Ranjit Singh v. State
of Uttarakhand, 2024 INSC 724 that even without filing of written
statement, the right to cross-examine survives and not permitting the
same has resulted in petitioner’s substantial rights being defeated
without adjudication on merits.
18. He further submitted that Order VIII Rule 10 CPC does not empower
the court to automatically pass a decree merely because a written
statement is not filed. The court must still assess whether a prima
facie case is made out and in the present case, the decree was
passed summarily without such satisfaction being recorded.
19. He lastly submitted that if the impugned decree is executed, it
would cause severe and irreparable loss to the petitioner despite
him not having had a fair opportunity to contest the claim and it is
settled principle that procedural rules must not be used to defeat
substantial justice.
SUBMISSION ON BEHALF OF THE RESPONDENT NO.
1-PLAINTIFF
20. Per contra, Shri Balaji Srinivasan, learned counsel appearing on behalf
of the respondent no. 1 submits that the right of cross-examination on
the part of defendant No. 1 stood forfeited on account of non-filing of
written statement. The High Court has rightly concluded that despite
repeated and adequate opportunities afforded to the defendant No. 1,
he wilfully chose not to exercise his right of cross-examination.
566 [2025] 10 S.C.R.
Supreme Court Reports
21. The Learned Counsel further submits that at no stage during the
proceedings before the trial court did the defendant no. 1 Company
chose to file an application for recall of the order closing the stage
for cross-examination of PW1 nor did it file any appeal or writ petition
challenging such order of closing the stage. Thus, defendant No.1
had acquiesced and is now estopped from raising such plea at this
belated stage especially when defendant no. 1 did not take such a
ground even in the memo of appeal.
22. The Learned counsel also submitted that Defendant No. 1 has
approached this Court with unclean hands. Its conduct before
the courts below reveal a consistent pattern of dilatory tactics,
false pleadings, and abuse of process. It failed to file the Written
Statement within the statutory period, allowed the opportunity of
cross-examination to lapse and never challenged the orders closing
its right to cross-examination at the first instance. Hence, the present
Special Leave Petition is only a last-ditch attempt to obstruct & delay
the lawful execution of the decree.
ISSUE FOR CONSIDERATION
23. This Court while issuing notice in the present special leave petition
on 18.05.2025 was of the view that the only issue that arises for
consideration is:
“Whether the High Court was correct in observing
that on account of non-filing of written statement by
the defendant, his right to cross-examination is taken
away?”
24. Before we delve into the merits of the case, it is apposite to lay down
the chronology of factual matrix pertaining to stage of suit especially
which are central to the determination of the present dispute as
emerges from the perusal of the material on record.
Sr. Stages of Commercial Suit COM. OS NO. 372 Date
No. of 2021
1. Institution of the Suit before the commercial court 18.06.2021
2. Suit summons issued to Defendant no. 1 & 23.06.2021
defendant no. 2
[2025] 10 S.C.R. 567
M/s Anvita Auto Tech Works Pvt. Ltd. v. M/s Aroush Motors & Anr.
3. Summons served upon the defendant no. 1 17.07.2021
4. Defendant No. 1 entered appearance through its 07.08.2021
counsel.
5. The Commercial Court directed the defendant No. 17.08.2021
1 to file WS by 07.09.2021
6. IA No. IV preferred by the Defendant No. 1 seeking 07.09.2021
extension of time to file WS.
INITIAL 30 DAYS PERIOD COMPLETED
7. Completion of Statutory period of 120 days as 14.11.2021
mandated under 2nd proviso to sub-rule (1) of Rule
1 of Order V and Proviso to sub-rule (1) of Rule 1
of Order VIII CPC as per the Special Amendment
under the Commercial Courts Act, 2015.
8. Defendant No. 1 files IA No. 5 under section 148 24.11.2021
CPC for enlargement of time for filing WS.
9. Plaintiff-Respondent No. 1 filed IA No. 6 to strike 06.12.2021
out defence under section 151 CPC and Defendant
No. 1 filed IA No. 7 under section 148 CPC for
extension of time to file WS.
10. IA No. VI/6A filed by the defendant no. 1 seeking 07.01.2022
permission to file WS along with WS.
11. Rejection of IA No. VI/6A and consequent rejection 22.03.2022
of WS to be taken on record.
12. Commercial Appeal No.189/2021 preferred 21.04.2022
challenging rejection of WS.
13. For recording of evidence of PW-1 adjourned at 30.07.2022
the instance of plaintiff on. to
10.08.2022
14. Meanwhile, PW1 examined-in-chief and cross 19.08.2022
examination of Defendant taken as “Nil” as they
failed to file their WS within stipulated time.
15. Suit came to be partly decreed. 15.11.2022
25. The aforesaid chart clearly reveals that though the summons was
served upon the defendant no. 1 company on 17.07.2021, they could
not file the Written Statement up till 07.01.2022 which was long after
the statutory period of 120 days had already expired on 14.11.2021.
568 [2025] 10 S.C.R.
Supreme Court Reports
26. The law regarding the mandatory filing of Written Statement in a
commercial dispute within the statutory period is clearly envisaged
under Proviso to sub-rule (1) of Rule 1 of Order VIII Code of Civil
Procedure, 1908 (CPC) and Second Proviso to Sub-rule (1) of Rule
1 of Order V CPC as amended by the Special Amendment under
the Commercial Courts Act, 2015. The said provisions impose an
absolute embargo upon the courts to accept the written statement
after the expiry of one hundred twenty (120) days. For easy reference,
the aforesaid bare provision of Proviso to sub-rule (1) of Rule 1 of
Order VIII CPC is extracted herewith:
“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 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.”
27. The mandatory nature of statutory period in filing WS in a commercial
dispute stood fortified by the decision of this court in SCG Contracts
(India) Pvt. Ltd. v. K.S. Chamankar Infrastructure Private Limited
and Ors. (2019) 12 SCC 210 wherein this court held that timeline of
120 days’ fixed by the statute is not directory but rather mandatory,
therefore, commercial courts cannot condone the delay beyond 120
days in filing the WS. On this very aspect the appeal could have
been dismissed nevertheless, there is something more vital to the
present issue which this court cannot lose sight of.
28. The meticulous scrutiny of the chronological chart as mentioned
supra shows that the limitation period for filing the WS commenced
on 17.07.2021 and ended on 14.11.2021. Both these dates fell at a
time when our nation was in garb of global pandemic of COVID-19
which affected the lives of millions of people around the world as
[2025] 10 S.C.R. 569
M/s Anvita Auto Tech Works Pvt. Ltd. v. M/s Aroush Motors & Anr.
well our judicial systems. This court was conscious of the fact as
to the difficulty faced by the litigants in approaching the courts
physically and was of the view that the said pandemic should not
become the reason to vandalise the rights of the litigants due to
expiry of period of limitation who could have approached the court
well within the time had it not been for the pandemic. Hence this
court In Re: Cognizance for Extension of Limitation (2022) 3 SCC
117 in Suo Moto Writ Petition (C) No. 3 of 2020 by exercise of its
powers under Article 142 of the Constitution of India passed series
of orders to exclude the period commencing from 15.03.2020 till
28.02.2022 for the purpose of computing the limitation period under
any general or special laws in respect of all judicial or quasi-judicial
proceedings. For the purpose of reference, the relevant portion of
the order is extracted below:
“…….
I. The order dated 23.03.2020 is restored and in
continuation of the subsequent orders dated 08.03.2021,
27.04.2021 and 23.09.2021, it is directed that the period
from 15.03.2020 till 28.02.2022 shall stand excluded for
the purposes of limitation as may be prescribed under
any general or special laws in respect of all judicial or
quasijudicial proceedings.
II. Consequently, the balance period of limitation remaining
as on 03.10.2021, if any, shall become available with effect
from 01.03.2022.
III. In cases where the limitation would have expired
during the period between 15.03.2020 till 28.02.2022,
notwithstanding the actual balance period of limitation
remaining, all persons shall have a limitation period of
90 days from 01.03.2022. In the event the actual balance
period of limitation remaining, with effect from 01.03.2022
is greater than 90 days, that longer period shall apply.
……”
29. This court in Aditya Khaitan & Ors. v. IL & FS Financial Services
Limited 2023 INSC 867 had encountered a similar situation wherein
the High Court had disallowed the appellant to file the Written
Statement in a commercial dispute on the premise that the same was
570 [2025] 10 S.C.R.
Supreme Court Reports
beyond the mandatory statutory period of 120 days. This Court while
relying upon the orders passed In Re: Cognizance for Extension
of Limitation (Supra) allowed the appeal and directed the Written
statement to be taken on record. Further this court in Babasaheb
Raosaheb Kobarne & Anr. v. Pyrotek India Private Limited &
Ors. 2022 SCC OnLine SC 1315 and Prakash Corporates v. Dee
Vee Projects Limited (2022) 5 SCC 112 had allowed the appellant
to file its written statement notwithstanding the fact that it was filed
beyond the period of 120 days in the light of the COVID-19 pandemic
wherein the period of limitation was extended as stated supra.
30. Relegating back to the facts of the instant case, the statutory period of
120 days commenced from date of service of summons on 17.07.2021
and as per section 9 of the General Clauses Act, 1897, the date
of service had to be excluded therefore, from 18.07.2021, the 120
days’ period commenced and it ended on 14.11.2021. In the light
of aforesaid discussion, it can be very well said that both the dates
fell within the sweep of period between 15.02.2020 to 28.02.2022.
In fact, during this period itself, to be precise on 24.11.2021 itself
defendant No.1 had filed I.A. No.5 seeking enlargement of time to
file written submission and subsequently on 07.01.2022 had filed IA
No.VI/ 6A seeking permission to file written submission enclosing
the written submission also. Therefore, the High Court ought to have
excluded the aforesaid period for the purpose of filing the written
statement and ought to have permitted the defendant No.1 to file
written statement on record and contest the suit on merits rather
than dismissing the appeal.
31. There is another consideration why the present appeal deserves to
be allowed. The perusal of the records particularly, the order sheet
of the trial court dated 19.08.2022 (Annexure P-17) clearly reveal
that after the examination-in-chief of PW1 was closed, the cross-
examination of Defendant no. 1 was taken as “Nil” on the ground that
defendant had failed to file their written statement within stipulated
time. The said reason is absolutely perverse and is contrary to the
right of defence available to the defendant. The purpose of cross-
examination is to elicit the truth from the witness and impeach its
credibility. When the WS was not allowed to be taken on record, the
denial of the right to cross-examine cannot be taken away by leaving
the defendant in lurch and this has acted as final nail in the coffin
to defendant’s right of defence. This court not long back in Ranjit
[2025] 10 S.C.R. 571
M/s Anvita Auto Tech Works Pvt. Ltd. v. M/s Aroush Motors & Anr.
Singh v. State of Uttarakhand, 2024 INSC 724 had held that even
when the defendant has not filed the Written statement, his right to
cross-examine the plaintiff witnesses is not foreclosed. The relevant
portion of the decision for easy reference is extracted herewith:
“5…….At this stage, we must clarify the legal position.
Even if a defendant does not file a written statement and
the suit is ordered to proceed ex-parte against him, the
limited defence available to the defendant is not foreclosed.
A defendant can always cross-examine the witnesses
examined by the plaintiff to prove the falsity of the plaintiff’s
case. A defendant can always urge, based on the plaint
and the evidence of the plaintiff, that the suit was barred
by a statute such as the law of limitation…..”
32. Thus, in the light of the aforesaid discussion, we are of the considered
view that the present appeal deserves to be allowed and accordingly,
the same stands Allowed. Consequently, the impugned judgment
dated 20.05.2025 in Commercial Appeal No. 19 of 2023 and
consequently the judgment and decree passed in commercial suit
No.372/2021 by the Addl. City Civil and Sessions Judge (Exclusive
Commercial Court) dated 15.11.2022 quo defendant No.1 (Appellant
herein) is set aside and the matter is remanded back to the trial
court to dispose of the same after allowing the appellant herein to
file the Written Statement subject to payment of cost to the tune of
Rs. 1,00,000/- (Rupees One Lakh Only) and to permit the appellant
to exercise his right of cross-examination of plaintiff’s witnesses.
The trial court is requested to dispose of the present commercial
suit expeditiously and preferably within a period of Six (6) months
from today.
Result of the case: Appeal allowed.
†
Headnotes prepared by: Divya Pandey
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