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Supreme Court of India 2022-02-14 allowed

Prakash Corporates vs Dee Vee Projects Limited

Bench: 2 — Dinesh Maheshwari

In Brief

In this commercial dispute, the defendant-appellant sought to file a written statement after the statutory 120-day deadline had expired from service of summons. The trial court and high court rejected this, holding that the defendant had forfeited its right under the Commercial Courts Act, 2015. The Supreme Court allowed the appeal. It held that the Supreme Court's COVID-19-related orders extending the period of limitation (from 15.03.2020 to 02.10.2021) apply to the prescribed time for filing written statements, not merely to general limitation periods. The orders passed under Article 142 in extraordinary circumstances must be given full effect according to their purpose. The trial court's reliance on the rigid 120-day rule was impermissible when the Supreme Court had excluded a broad period for pandemic-related difficulties. The written statement was ordered to be taken on record.

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