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2022 (2) TMI 1268

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..... nt-Appellant has questioned the orders so passed by the Trial Court and by the High Court on various grounds, including those with reference to the orders passed by this Court in Suo Motu Writ Petition (Civil) No. 3 of 2020[3], for extension of the period of limitation prescribed under the general law of limitation or under any special law, in view of the challenges faced by the country and difficulties of the litigants due to COVID-19 pandemic. Relevant background aspects and proceedings in the suit 3. Looking to the questions arising in this appeal on the Appellant's prayer for an opportunity to file its written statement, dilation on all the factual aspects of the subject suit is not necessary and only a brief reference to the background would suffice. 3.1. It appears from the plaint averments and other submissions that the parties to this litigation and their associated entities were having business dealings, particularly in relation to the public contract works. The present litigation relates to two such contract works: one being the work awarded by the Chhattisgarh Road Development Corporation Limited for "Construction of Two Laning with Hard Shoulder of Tara-Premnagar .....

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..... d aspects as above, it would be worthwhile to take note of the relevant events pertaining to the proceedings in the suit so filed by the Plaintiff-Respondent, in their feasible chronology. 4.1. In the said suit instituted on 21.12.2020, the Plaintiff-Respondent had also filed an application Under Section 149 Code of Civil Procedure, seeking time for payment of court fees that was granted and the matter was taken up on 01.01.2021. On that date, the Trial Court found that the requisite court fees had been paid and also referred to the submissions made on behalf of the Respondent regarding urgency of matter in view of the said application seeking interim directions Under Order XXXVIII Rule 5 read with Section 151 Code of Civil Procedure. Taking note of the submissions so made, the Court granted another application moved by the Respondent for dispensing with the requirements of pre-institution mediation in terms of Section 12-A of the Act; and issued summons to the Defendant-Appellant for appearance and filing of written statement as also reply to the said interim application. 4.2. The Defendant-Appellant was served with summons in the subject suit on 06.01.2021. 4.3. The Appellant .....

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..... an administrative order dated 05.04.2021 issued by the jurisdictional High Court for curtailed functioning of Courts as also in view of its own administrative order dated 07.04.2021, the Trial Court adjourned the matter to 22.06.2021, for arguments on both the applications. Indisputably, the said administrative orders were issued under the force of circumstances created by the second wave of COVID-19 pandemic, when almost all the institutions suffered set-backs with disruption of their normal functioning due to ailments, lock-downs and containment measures. 4.8. It would be apposite to notice at this juncture that in the ordinary operation of the second proviso to Rule 1(1) of Order V and the proviso to Rule 1 of Order VIII Code of Civil Procedure, as substituted by the Commercial Courts Act, 2015, the Appellant was required to file the written statement within 30 days from the date of service of summons, i.e., within 30 days from 06.01.2021. Further, the Appellant could have been given time to file the written statement by 120th day from the date of service of summons, for reasons to be recorded in writing and on payment of such costs as deemed fit by the Trial Court but, upon ex .....

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..... of summons, the Defendant shall forfeit the right to file written statement and the Court shall not allow the written statement to be taken on record.     Therefore, the Defendant in this case has forfeited his right to submit written statement because more than 120 days have been passed after 06.01.2021 i.e. date of service of summons on the Defendants. Now the Defendants are not permitted to submit written statement in the case file.     Now to come up on 09.07.2021 for consideration on application Under Order 38 Rule 5 Code of Civil Procedure and on application Under Section 10 Code of Civil Procedure. Impugned order dated 09.07.2021: the High Court declines to interfere 6. Seeking to question the aforesaid order dated 22.06.2021, the Defendant-Appellant preferred a writ petition Under Article 227 of the Constitution of India before the High Court. 6.1. It was essentially submitted on behalf of the Appellant that on 06.05.2021, the Court was closed due to imposition of lockdown in pandemic control measures; and on 22.06.2021, the application was filed seeking time for filing written statement on medical ground as the counsel for the Appellant .....

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..... filed at all. Thus, the High Court found no reason to consider interference and proceeded to dismiss the writ petition while observing as under:     Taking into consideration the view settled by the Supreme Court and the applicability of the order of Supreme Court in Suo-moto Writ (Civil) No. 03 of 2020, the glaring fact present in this case is this, that the Petitioners have till date not filed any written statement, the prescribed time for filing written statement and the time which can be extended by the Court both have expired. The case was fixed for hearing on 22.06.2021 even on that date, the Petitioner was not ready and prepared to file the written statement, therefore, it appears to be a case in which the Petitioner is making a prayer for extension of limitation. No. Court can grant any extension of limitation against the provisions of the enactment under which the case is being considered and heard. Further, it is not a case of condonation of delay as the written statement is still not filed. Hence, I am of this view that the learned Commercial Court has not committed any error in rejecting the prayer made by the Petitioner for granting time to file writte .....

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..... nt where, apart from the entire district of Raipur having been declared a containment zone and restriction/lockdown having been imposed in the month of April, 2021, the fact of the matter had been that the partners of the Appellant firm as also their family members suffered from COVID-19 and they were either in quarantine or were attending on other family emergencies. Moreover, the Appellant's counsel and his mother were in quarantine and, in fact, the counsel's mother passed away due to health complications. According to the learned Counsel, in these trying and unfortunate times, when the rigour of limitation period had been under eclipse pursuant to the orders of this Court, the Trial Court and the High Court ought not to have closed the right to file the written statement. 9.4. The learned Counsel has also referred to the fact that as per its own administrative order dated 05.04.2021, the High Court of Chhattisgarh had provided for restricted functioning of the Courts, where only the matters of urgent nature were being taken up; and the suit in question was not falling under any of those categories. In this view of the matter too, it could not have been concluded that t .....

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..... ourt. The learned Counsel has emphasised on the submissions that in the orders passed in SMWP No. 3 of 2020, the extension of period of limitation commencing from 23.03.2020 to 02.10.2021 was for institution of suits or applications; and even when Section 12-A of the Act was brought within the purview of the extension of limitation period, there was no direction that the period to file the written statement before the Commercial Court would also be extended automatically, despite the Defendant appearing and participating in the proceedings. According to the learned Counsel, the Defendant cannot take blanket immunity by not filing the written statement and then, seeking cover of the orders passed in SMWP No. 3 of 2020. 10.3. With reference to the decision of this Court in the case of S. Kasi v. State Criminal Appeal No. 452 of 2020 decided on 19.06.2020, it has been argued on behalf of the Respondent that a 3-Judge Bench of this Court has specifically ruled that the said order dated 23.03.2020 in SMWP No. 3 of 2020 is not applicable to all the applications; and benefit of the order of extension of limitation cannot be taken by police while filing chargesheet Under Section 167(2) of .....

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..... th Section 16 thereof. Section 12-A of the Act has also come under reference in the orders passed in SMWP No. 3 of 2020. Thus, we may usefully reproduce Section 12-A and Section 16 of the Act as under:     12-A. Pre-Institution Mediation and Settlement. - (1) A suit, which does not contemplate any urgent interim relief under this Act, shall not be instituted unless the Plaintiff exhausts the remedy of pre-institution mediation in accordance with such manner and procedure as may be prescribed by Rules made by the Central Government.     (2) The Central Government may, by notification, authorise the Authorities constituted under the Legal Services Authorities Act, 1987 (39 of 1987), for the purposes of pre-institution mediation.     16. Amendments to the Code of Civil Procedure, 1908 in its application to commercial disputes. - (1) The provisions of the Code of Civil Procedure, 1908 (5 of 1908) shall, in their application to any suit in respect of a commercial dispute of a Specified Value, stand amended in the manner as specified in the Schedule.     (2) The Commercial Division and Commercial Court shall follow the provi .....

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..... e (1) may appear:             (a) in person, or             (b) by a pleader duly instructed and able to answer all material questions relating to the suit, or             (c) by a pleader accompanied by some person able to answer all such questions.         (3) Every such summons shall be signed by the Judge or such officer as he appoints, and shall be sealed with the seal of the Court.     Order VIII Rule 1         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, b .....

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..... the same was expiring during the period of such health emergencies and enforcement of the measures of containment. Having regard to the circumstances, this Court exercised its plenary powers Under Article 142 of the Constitution of India and passed an order on 23.03.2020 in the said SMWP No. 3 of 2020 that reads as under:     This Court has taken Suo Motu cognizance of the situation arising out of the challenge faced by the country on account of Covid-19 Virus and resultant difficulties that may be faced by litigants across the country in filing their petitions/applications/suits/appeals/all other proceedings within the period of limitation prescribed under the general law of limitation or under Special Laws (both Central and/or State).     To obviate such difficulties and to ensure that lawyers/litigants do not have to come physically to file such proceedings in respective Courts/Tribunals across the country including this Court, it is hereby ordered that a period of limitation in all such proceedings, irrespective of the limitation prescribed under the general law or Special Laws whether condonable or not shall stand extended w.e.f. 15th March 2020 .....

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..... own. The relevant parts of the order dated 10.07.2020 could also be usefully extracted as under:     I.A. No. 49221/2020 -Section 29A of the Arbitration and Conciliation Act, 1996     Taken on Board.     In Suo Moto Writ Petition (C) No. 3/2020, by our order dated 23.03.2020 and 06.05.2020, we ordered that all periods of limitation prescribed under the Arbitration and Conciliation Act, 1996 shall be extended w.e.f. 15.03.2020 till further orders.     Learned Attorney General has sought a minor modification in the aforesaid orders.     Section 29A of the Arbitration and Conciliation Act, 1996 does not prescribe a period of limitation but fixes a time to do certain acts, i.e. making an arbitral award within a prescribed time. We, accordingly, direct that the aforesaid orders shall also apply for extension of time limit for passing arbitral award Under Section 29A of the said Act. Similarly, Section 23(4) of the Arbitration and Conciliation Act, 1996 provides for a time period of 6 months for the completion of the statement of claim and defence. We, accordingly, direct that the aforesaid orders shall also .....

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..... nbsp; 2. We have considered the suggestions of the learned Attorney General for India regarding the future course of action. We deem it appropriate to issue the following directions:         1. In computing the period of limitation for any suit, appeal, application or proceeding, the period from 15.03.2020 till 14.03.2021 shall stand excluded. Consequently, the balance period of limitation remaining as on 15.03.2020, if any, shall become available with effect from 15.03.2021.         2. In cases where the limitation would have expired during the period between 15.03.2020 till 14.03.2021, notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 15.03.2021. In the event the actual balance period of limitation remaining, with effect from 15.03.2021, is greater than 90 days, that longer period shall apply.         3. The period from 15.03.2020 till 14.03.2021 shall also stand excluded in computing the periods prescribed Under Sections 23(4) and 29A of the Arbitration and Conciliation Act, 1996, Section 12A of th .....

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..... and thereafter, observed and directed as under:     Supreme Court Advocate on Record Association (SCAORA) has now through this Interlocutory Application highlighted the daily surge in COVID cases in Delhi and how difficult it has become for the Advocates-on-Record and the litigants to institute cases in Supreme Court and other courts in Delhi. Consequently, restoration of the order dated 23rd March, 2020 has been prayed for.     We have heard Mr. Shivaji M. Jadhav, President SCAORA in support of the prayer made in this application. Learned Attorney General and Learned Solicitor General have also given their valuable suggestions.     We also take judicial notice of the fact that the steep rise in COVID-19 Virus cases is not limited to Delhi alone but it has engulfed the entire nation. The extraordinary situation caused by the sudden and second outburst of COVID-19 Virus, thus, requires extraordinary measures to minimize the hardship of litigant-public in all the states. We, therefore, restore the order dated 23rd March, 2020 and in continuation of the order dated 8th March, 2021 direct that the period(s) of limitation, as prescribed un .....

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..... t from 03.10.2021.         II. In cases where the limitation would have expired during the period between 15.03.2020 till 02.10.2021, notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 03.10.2021. In the event the actual balance period of limitation remaining, with effect from 03.10.2021, is greater than 90 days, that longer period shall apply.         III. The period from 15.03.2020 till 02.10.2021 shall also stand excluded in computing the periods prescribed Under Sections 23(4) and 29A of the Arbitration and Conciliation Act, 1996, Section 12A of the Commercial Courts Act, 2015 and provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881 and any other laws, which prescribe period(s) of limitation for instituting proceedings, outer limits (within which the court or tribunal can condone delay) and termination of proceedings.         IV. The Government of India shall amend the guidelines for containment zones, to state.           &nb .....

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..... having 03 (three) or less than 03 (three) Courts all the Courts shall function. In other station 50% of HJS Courts and 50% of LJS Courts are allowed to function on rotational basis. 4. These Courts shall function only during the first half of the working hours meaning thereby that the Court shall function only from 11.00 am to 2.00 pm, excluding bail and remand matters, for which Court shall function during full working hours. 5. The following type of cases shall be taken up for hearing during the above restricted functioning of the Court: 1) Remand matters 2) Bail matters 3) Supardnama matters 4) Appeal & Revision (Both Civil & Criminal) 5) Matters relating to under trial prisoners 6) Cases pending for more than 05 (five) years (Both Civil & Criminal) 7) Motor Accident Claim Cases 8) Matters relating to payment of amount deposited in respect of Motor Accident Claim Cases 9) Matters Under Section 125 of the Code of Criminal Procedure 10) Matters directed to be disposed of within time limit by the Supreme Court or the High Court (Both Civil & Criminal) 11) Other extreme urgent nature of Civil & Criminal matters, which are found to be heard on urgent basis by the Cour .....

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..... ival submissions, in the first place, we need to take into account the time limits for filing written statement in a suit governed by the provisions of the Commercial Courts Act, 2015. As noticed, by virtue of Section 16 thereof, the Commercial Court is to follow the provisions of Code of Civil Procedure as amended by the Act in the trial of a suit in respect to a Commercial dispute of a Specified Value. The relevant provisions contained in Order V Rule 1, Order VIII Rule 1 and Order VIII Rule 10 Code of Civil Procedure, have been reproduced hereinabove; and it is manifest that the said provisions not only envisage strict timelines for filing of written statement but even provide for consequences of default, while restricting the powers of the Court to extend the time for filing written statement beyond the period prescribed. Tersely put, as per the mandate of the said provisions: (a) the Defendant is under an obligation to file the written statement of his defence within 30 days of service of summons; (b) if he fails to file the written statement within the said period of 30 days, he may be allowed to file the written statement on such other day as the Court may specify for reason .....

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..... by recourse to the inherent power Under Section 151 to do the opposite of what is stated therein." 17. If the aforesaid provisions and explained principles are literally and plainly applied to the facts of the present case, the 120th day from the date of service of summons came to an end with 06.05.2021 and the Defendant, who had earlier been granted time for filing its written statement on payment of costs, forfeited such right with the end of 120th day, i.e., 06.05.2021. However, it is required to be kept in view that the provisions aforesaid and their interpretation in SCG Contracts (supra) operate in normal and non-extraordinary circumstances with the usual functioning of Courts. It is also noteworthy that the above referred provisions of Code of Civil Procedure are not the only provisions of law which lay down mandatory timelines for particular proceedings. The relevant principles, in their normal and ordinary operation, are that such statutory timelines are of mandatory character with little, or rather no, discretion with the Adjudicating Authority for enlargement. The question in the present case is, as to whether the said provisions and principles are required to be appli .....

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..... ceedings, irrespective of the limitation prescribed under general or special laws, whether condonable or not, shall stand extended w.e.f. 15.03.2020 until further orders. This order was passed in exercise of plenary powers of this Court Under Article 142 of the Constitution of India, which are complementary to other powers specifically conferred by various statutes. Even if the above referred provisions of Code of Civil Procedure had not been stated in specific terms, the general mandate of the order dated 23.03.2020 was to extend the period of limitation provided in any law for the time being in force, irrespective whether the same was condonable or not, w.e.f. 15.03.2020 and until further orders. Noticeably, on 06.05.2020, when special periods of limitation under different enactments like the Act of 1996 were referred to, this Court further ordered that the limitation prescribed thereunder shall stand extended w.e.f. 15.03.2020 until further orders. It was a time when the country was under the grip of lockdown, and the Court provided that in case limitation had expired after 15.03.2020, the period between 15.03.2020 and lifting of lockdown in the jurisdictional area would be exte .....

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..... ble it is that on 27.04.2021, this Court restored the order dated 23.03.2020 and it was directed, in continuation of the order dated 08.03.2021, that the periods of limitation as prescribed under any general or special laws in respect of all judicial or quasi-judicial proceedings, whether condonable or not, shall stand extended. Ultimately, the said MA No. 665 of 2021 was disposed of on 23.09.2021 with this Court issuing directions similar to those contained in the order dated 08.03.2021 but while providing that in computing the period of limitation for any suit, appeal, application or proceeding, the period from 15.03.2020 till 02.10.2021 shall stand excluded. 19.6. We are not elaborating on other directions issued by this Court but, when read as a whole, it is but clear that the anxiety of this Court had been to obviate the hardships likely to be suffered by the litigants during the onslaughts of this pandemic. Hence, the legal effect and coverage of the orders passed by this Court in SMWP No. 3 of 2020 cannot be unnecessarily narrowed and rather, having regard to their purpose and object, full effect is required to be given to such orders and directions.[9] 20. As regards the .....

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..... It would be unrealistic and illogical to assume that while this Court has provided for exclusion of period for institution of the suit and therefore, a suit otherwise filed beyond limitation (if the limitation had expired between 15.03.2020 to 02.10.2021) could still be filed within 90 days from 03.10.2021 but the period for filing written statement, if expired during that period, has to operate against the Defendant. 20.3. Therefore, in view of the orders passed by this Court in SMWP No. 3 of 2020, we have no hesitation in holding that the time limit for filing the written statement by the Appellant in the subject suit did not come to an end on 06.05.2021. 21. It is also noteworthy that even before the scope of the orders passed in SMWP No. 3 of 2020 came to be further elaborated and specified in the orders dated 08.03.2021 and 23.09.2021, this Court dealt with an akin scenario in the case of SS Group Pvt. Ltd. (supra), decided on 17.12.2020. In that case, in terms of Section 38(2)(a) of the Consumer Protection Act, 2019, 30 days' time provided for filing the written statement expired on 12.08.2020 and the extendable period of 15 days also expired on 27.08.2020. Admittedly, .....

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..... said suo motu petition and the difficulties sought to be taken care of; and found that an investigating officer was not prevented from such difficulties as were faced by the lawyers and litigants; and the investigating officer could have submitted the charge-sheet before the Magistrate (Incharge). This Court observed and held as under:     17: The limitation for filing petitions/applications/suits/appeals/all other proceedings was extended to obviate lawyers/litigants to come physically to file such proceedings in respective Courts/Tribunals. The order was passed to protect the litigants/lawyers whose petitions/applications/suits/appeals/all other proceedings would become time barred they being not able to physically come to file such proceedings. The order was for the benefit of the litigants who have to take remedy in law as per the applicable statute for a right. The law of limitation bars the remedy but not the right. When this Court passed the above order for extending the limitation for filing petitions/applications/suits/appeals/all other proceedings, the order was for the benefit of those who have to take remedy, whose remedy may be barred by time because t .....

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..... t even while counting from 19.12.2019, the period of 45 days expired on 02.02.2020 and another period of 45 days, for which the Appellate Tribunal could have condoned the delay, also expired on 18.03.2020. To overcome this difficulty, the Appellants relied upon the aforesaid order dated 23.03.2020. This Court observed that the Appellants were not entitled to take refuge under the above order in SMWP No. 3 of 2020 because what was extended was only the period of limitation and not the period up to which delay could be condoned in exercise of discretion conferred by the statute. This Court said thus:     17. ... What was extended by the above order of this Court was only "the period of limitation" and not the period up to which delay can be condoned in exercise of discretion conferred by the statute. The above order passed by this Court was intended to benefit vigilant litigants who were prevented due to the pandemic and the lockdown, from initiating proceedings within the period of limitation prescribed by general or special law. It is needless to point out that the law of limitation finds its root in two Latin maxims, one of which is vigilantibus et non dormientibus .....

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..... . Then, on 27.04.2021, this Court restored the operation of the order dated 23.03.2020 in SMWP No. 3 of 2020. Putting all these factors together, we are unable to accept the submissions made on behalf of the Respondent that because of earlier appearance or prayer for adjournment, the Defendant-Appellant would not be entitled to the relaxation available under the extraordinary orders passed by this Court. Implication and effect of the administrative order issued by the High Court 24. Apart from the above, in our view, the impugned orders cannot be approved for yet another major factor, being that of the implication and effect of the administrative order issued by the jurisdictional High Court. 25. As noticed, on 15.04.2021, the Trial Court had specifically fixed the matter for arguments on two applications: one being the application of the Appellant seeking stay of suit proceedings in terms of Section 10 Code of Civil Procedure and another being the application moved by the Respondent seeking interim directions of attachment before judgment in terms of Order XXXVIII Rule 5 Code of Civil Procedure. However, on 15.04.2021, the Trial Court could not hear the parties on the said two .....

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..... 36). It is frequently said that Sunday is "die non juridicus", but this means only that process cannot ordinarily issue or be executed or returned, and Courts do not usually sit, on that day. It does not mean that no judicial action be had on that day. On the contrary, it is laid down in books of authority that warrants for treason, felony and breach of the peace may be issued and executed on that day, (State v. Ricketts, 74 N.C. 187, 193) 25.2. The concept of limitation not coming to an end on a day when the Court is closed, or is deemed to be closed, is precisely contained in Section 4 of the Limitation Act, 1963 that reads as under:     4. Expiry of prescribed period when court is closed. - Where the prescribed period for any suit, appeal or application expires on a day when the court is closed, the suit, appeal or application may be instituted, preferred or made on the day when the court reopens.     Explanation.- A court shall be deemed to be closed on any day within the meaning of this Section if during any part of its normal working hours it remains closed on that day.     (emphasis supplied) 25.2.1. It is thus beyond cavil t .....

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..... e of Civil Procedure for stay of the suit proceedings on the ground that proceedings between the parties relating to the subject matter of the suit were pending before the NCLT. The Respondent had earlier moved an application seeking directions of attachment before judgment in terms of Order XXXVIII Code of Civil Procedure. Both the applications as moved by the Appellant as also by the Respondent remained pending and, on 15.03.2021, the Trial Court adjourned the matter to 15.04.2021 for arguments on both these applications. On 15.04.2021, no business could be transacted and the matter was adjourned to 22.06.2021, again for arguments on these applications. Even when the matter was taken up on 22.06.2021 and the Trial Court declined the prayer of the Appellant for another opportunity for filing the written statement, it did not take up the said applications for consideration and adjourned the matter to 09.07.2021. We are not commenting on merits of the application moved by the Appellant Under Section 10 Code of Civil Procedure but, it cannot be gainsaid that such an application, by its very nature, required immediate consideration and before any other steps in the suit. It needs hard .....

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..... tions without further delay. 28. Accordingly, this appeal is allowed; the impugned orders dated 22.06.2021 as passed by the Commercial Court (District Level), Nava Raipur, Chhattisgarh in Civil Suit No. 01-B of 2021 as also the order dated 09.07.2021 as passed by the High Court of Chhattisgarh in WP No. 312 of 2021 are set aside; the written statement notarised by the Defendant-Appellant on 07.07.2021 is ordered to be taken on record. After taking the written statement on record, the Trial Court shall proceed with the suit in accordance with law; and for that matter, shall deal with the pending applications before taking any other steps in the suit.   [1] Hereinafter also referred to as 'CPC'. [2] Hereinafter also referred to as 'the Act'. [3]Hereinafter also referred to as 'SMWP No. 3 of 2020'. [4] Hereinafter also referred to as 'the Code'. [5] Hereinafter also referred to as 'the NCLT'. [6] Hereinafter also referred to as 'CrPC'. [7] Note: The provisos marked with asterisk (*) are the amended provisions, as applicable to Commercial dispute of Specified Value i.e., the suit tried by a Commercial Court. [8] Hereinafter also re .....

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