Calcutta High Court Orders Written Statement To Be Taken Off Record In Commercial Suit; Says No Extension Possible Beyond 120 Days

The Calcutta High Court on Wednesday refused to accept a written statement filed by a defendant in a commercial suit beyond the statutory timeline, holding that in the absence of a formal written application within 120 days of service of summons, the Court becomes functus officio and cannot extend time.Justice Aniruddha Roy directed that the written statement deposited in the department pursuant to Registrar's endorsement dated August 6, 2025 be taken off the suit record and that the suit be treated as undefended.Summons was served on the defendant on April 18, 2025. The mandatory 30-day period expired on May 17, 2025 and the 120-day outer limit ended on August 17, 2025. On August 6, while mentioning before a Coordinate Bench, the defendant submitted the written statement before the department, on which the following endorsement was made:“Leave granted to submit the written statement in the department in course of this day, subject to acceptance by this Court.”The defendant later filed the present application on August 19, 2025, seeking extension of time and acceptance of its written statement. The plaintiff opposed the plea, arguing that no formal application had been made within 120 days as required under the amended Order VIII Rule 1 CPC applicable to commercial disputes.The Court accepted the plaintiff's contention and emphasised that the statutory scheme requires strict compliance.Justice Roy observed that when the statute obliges the Court to record reasons in writing for granting extension beyond 30 days, the causes must be placed before the Court through a written application:“Such an application has to be, must be and should be a formal application in writing.”Holding that depositing the written statement in the department does not amount to taking it on record, the Court clarified:“Merely submitting the written statement with the department is not an acceptance by the Court… At the highest, it may be construed as depositing the written statement.”The Court further underlined the mandatory nature of the 120-day ceiling under the Commercial Courts Act:“Immediately upon expiry of the said mandated 120 days, the statute clearly specifies that the defendant shall forfeit its right to file written statement… the Court will lose its jurisdiction and becomes functus officio.”Finding that the application was filed after expiry of the statutory period, the Court dismissed it, directed the written statement to be taken off the file and ordered that the suit proceed as undefended.Case Title: Veeline Holdings Private Limited v. Khetawat Properties LimitedCase Number: IA No. GA-COM/2/2025Click here to read order

Calcutta High Court Orders Written Statement To Be Taken Off Record In Commercial Suit; Says No Extension Possible Beyond 120 Days

Srinjoy Das

Tags