In Brief
Atcom Technologies sued for recovery of dues of Rs. 11.9 crores allegedly owed by respondents for failure to deliver flats in 'Emerald Court', Mumbai, or refund money paid under an arrangement. The respondents filed a Notice of Motion seeking condonation of over 5 years' delay in filing their written statement (or over 13 years if counted from the suit filing date), arguing the writ of summons was not served until 2009. The High Court condoned the delay by 'balancing equities,' reasoning that the plaintiff also took 9 years to serve summons. The Supreme Court held the High Court's reasoning erroneous: Order VIII Rule 1, CPC mandates written statements within 30 days (extendable to 90 days), and delay beyond that requires exceptionally hard circumstances and satisfactory explanation. Mere plaintiff delay cannot justify condonation of such inordinate defendant delay. Appeal allowed."
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