In Brief
A suit claiming Rs. 6.94 crores was filed in 2017. The defendant was served in July 2017 but failed to file a written statement within the statutory 120-day deadline. A Single Judge granted extension beyond 120 days despite the Commercial Courts Act 2015 amendments. The Supreme Court held that the amended Code of Civil Procedure makes the 120-day deadline mandatory, not directory. Once 120 days elapse, a defendant forfeits the right to file a written statement and courts cannot allow it on record. The Court rejected the defendant's reliance on finality of prior orders and the Court's inherent powers, holding that statutory prohibitions cannot be circumvented by res judicata or Section 151 powers. The appeal was allowed and the written statement was struck off the record.
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