Whether Filing Of A 'Statement Of Truth' In A Written Statement Is A Mandatory Requirement Under Commercial Courts Act, 2015?: Calcutta High Court Explains

The Calcutta High Court last week while adjudicating upon a commercial suit expounded in detail whether a 'statement of truth' in a written statement is a mandatory requirement under the Commercial Courts Act, 2015 and whether its absence warrants the disposal of the defence in the suit. In the instant case, the petitioner had contended that a written statement in the absence of a 'statement of truth' is an incurable defect while the respondent argued otherwise. The issue in consideration was the interpretation of Order VI Rule 15A of The Code of Civil Procedure, 1908 (CPC) as amended by the Commercial Courts Act, 2015.Subsequent to the amendments brought in by the Commercial Courts Act 2015, Order VI Rule 15A envisages the following, ''15A. Verification of pleadings in a Commercial Dispute.— (1) Notwithstanding anything contained in Rule 15, every pleading in a Commercial Dispute shall be verified by an affidavit in the manner and form prescribed in the Appendix to this Schedule. (2) An affidavit under sub-rule (1) above shall be signed by the party or by one of the parties to the proceedings, or by any other person on behalf of such party or parties who is proved to the satisfaction of the Court to be acquainted with the facts of the case and who is duly authorised by such party or parties. (3) Where a pleading is amended, the amendments must be verified in the form and manner referred to in sub-rule (1) unless the Court orders otherwise. (4) Where a pleading is not verified in the manner provided under sub-rule (1), the party shall not be permitted to rely on such pleading as evidence or any of the matters set out therein. (5) The Court may strike out a pleading which is not verified by a Statement of Truth, namely, the affidavit set out in the Appendix to this Schedule." Justice Moushumi Bhattacharya observed while opining on the changes brought in by the Commercial Courts Act 2015 vis-à-vis the particulars required in a 'statement of truth', "The changes brought into the CPC in 2015 in the form of Order VI Rule 15A relate to verification of pleadings in a commercial dispute. The requirements introduced under Rule 15A is that every pleading in a Commercial Dispute shall be verified by an affidavit as prescribed in the Appendix to the Schedule to the 2015 Act. Appendix I to the Schedule contains the "Statement of Truth" – a lofty directive – which has been made applicable not only to Order VI Rule 15A but also to the amendments to Order XI Rule 3 introduced by the 2015 Act" It was further noted that Rule 15A read with Appendix I to the Schedule had been implemented with the motive to expedite disposal of commercial disputes and effectively circumvent procedural barriers that could result in delay in the disposal of a commercial dispute. This is also evident from Order XI Rule 3 as amended by the 2015 Act, under which it has been directed that the plaint must contain a declaration on oath from the petitioner that all documents in his possession have been disclosed and annexed with the plaint, the Court further explained.Legislative intent Enumerating further on the legislative intent behind the specifications accompanying a 'statement of truth' as adopted vide the 2015 Act, the Court observed further, "The contents of Appendix I - Statement of Truth – read with some of the provisions introduced by the 2015 Act, for instance, Order VIII Rule 3A (Denial by the defendant in suits before the Commercial Division of the High Court or the Commercial Court), Order XIX Rule 4(1) (Court may control evidence), Order XIX Rule 6 (Format and guidelines of affidavit of evidence) are further indicators of the legislative intention to expedite the process of trial in commercial disputes by minimising the evidence at the stage of trial. The introduction of fixed forms of affirmation of pleadings, case management hearings and empowering a court to regulate the evidence as to the issues, reinforces the object of the Commercial Courts Act, which is to provide for speedy disposal of high-value commercial disputes involving complex facts and questions of law."Apparent inconsistency between Order VI Rule 15A Sub-Rules (4) and (5) In the instant case, the concerned parties had submitted that there lies a conflict between two provisions i.e. Sub-Rules (4) and (5) of Order VI Rule 15A of the CPC. The two provisions have been enumerated below for reference, "Order VI. 15. Verification of pleadings in a Commercial Dispute— (4) Where a pleading is not verified in the manner provided under sub-rule (1), the party shall not be permitted to rely on such pleading as evidence or any of the matters set out therein. (5) The Court may strike out a pleading which is not verified by a Statement of Truth, namely, the affidavit set out in the Appendix to this Schedule." The petitioner had placed reliance on the word 'shall' as contained under sub-rule (4) while the defendant had placed emphasis on the word 'may' as...

Whether Filing Of A 'Statement Of Truth' In A Written Statement Is A Mandatory Requirement Under Commercial Courts Act, 2015?: Calcutta High Court Explains

Aaratrika Bhaumik

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