Supreme Court of India

SCG Contracts India Pvt Ltd v K.S. Chamankar Infrastructure Pvt Ltd

AIR 2019 SC 2691; (2019) 12 SCC 21020191 min read
The case in brief30-second read
Facts
In a commercial suit, the trial court by order dated 5 December 2017 allowed the first defendant to file a written statement beyond 120 days from service of summons, and a later order relied on the first order having become final.
Issue
Whether a court can allow a written statement in a commercial suit after 120 days.
Held
After the amendments by the Commercial Courts Act 2015, the defendant forfeits the right to file after 120 days and the court cannot extend time; the inherent power under S.151 cannot be used to do the opposite of what the rule states. Res judicata does not apply to an erroneous decision on a statutory prohibition. The appeal was allowed and the written statement taken off the record.
Principle
In commercial suits, the 120-day limit for filing a written statement is mandatory and cannot be extended under S.151 CPC
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Facts

  • In a commercial suit, the trial court by order dated 5 December 2017 allowed the first defendant to file a written statement beyond 120 days from service of summons, and a later order relied on the first order having become final.

Issue

  1. Whether a court can allow a written statement in a commercial suit after 120 days.

Held

  • After the amendments by the Commercial Courts Act 2015, the defendant forfeits the right to file after 120 days and the court cannot extend time; the inherent power under S.151 cannot be used to do the opposite of what the rule states. Res judicata does not apply to an erroneous decision on a statutory prohibition. The appeal was allowed and the written statement taken off the record.

Ratio decidendi

The 120-day limit in commercial suits is mandatory.

Exam use

How to use it in an answer

Contrast with Kailash v Nanhku for ordinary suits.

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Citation

SCG Contracts India Pvt Ltd v K.S. Chamankar Infrastructure Pvt Ltd AIR 2019 SC 2691; (2019) 12 SCC 210

Reported: https://indiankanoon.org/doc/135625260/. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.