High CourtDivision BenchAppeal allowed

ADITYA HOTELS (P) LTD. v. BOMBAY SWADESHI STORES LTD. AND ORS.

Case / Petition Number:Civil Appeal No. 1572 of 2007

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Dr. ARIJIT PASAYAT
  • Lokeswar Singh Panta
Judgment Date
2007-03-26
Court Decision / Holding
Appeal allowed; the trial Court’s and High Court’s orders are set aside. The matter is remitted to the Trial Court for fresh consideration in light of Kailash v. Nanhku and Ors. (2005) 4 SCC 480.
Final Disposition
Appeal allowed

Parties to the Case

Appellants / Petitioners

  • ADITYA HOTELS (P) LTD.

Respondents

  • BOMBAY SWADESHI STORES LTD.
  • Others

Legal Representation & Advocates

Counsels for Petitioners

  • • Seema Bangari
  • • Anshul Singh
  • • Dr. Kailash Chand

Counsels for Respondents

  • • S.R. Mishra
  • • Vimal Chandra S. Dave
  • • Neelam Kalsi

Case Synopsis & Summary

Aditya Hotels (P) Ltd. filed a civil suit in the Pune Small Causes Court seeking vacant possession of the suit premises. The summons were served on 22 March 2005. Despite repeated requests, a written statement was filed only on 12 August 2005, i.e., 142 days after service. The Trial Court admitted the written statement subject to payment of costs of Rs. 2,000. The appellant challenged this order in a writ petition under Article 227 of the Constitution; the Bombay High Court dismissed the petition, holding that the Trial Court had exercised discretionary power. On appeal, the Supreme Court held that after the 2002 amendment to Order VIII CPC, a defendant has 30 days from service of summons to present a written statement, and any extension is permissible only as an exception with reasons recorded in writing. Neither the Trial Court nor the High Court indicated any reasons justifying the extension. The Court reiterates Kailash v. Nanhku and Ors. (2005) 4 SCC 480, that extensions must be exceptional and supported by written reasons, and not merely routine. Accordingly, the orders of both lower courts were set aside and the matter remitted for fresh consideration in light of Kailash. The appeal is allowed.

Provisions of Law Cited

Code of Civil Procedure, 1908; Order VIII Rule 1Proviso to Order VIII Rule 1Constitution of India, Article 227

Legal Doctrines & Maxims

  • Extension of time under Order VIII Rule 1 CPC can be granted only as an exception and for reasons recorded in writing; such extensions are not to be granted as a routine matter. This principle is derived from Kailash v. Nanhku and Ors.

Submissions & Arguments

Contentions of Appellants / Petitioners

The defendant is entitled to 30 days from service of summons to file a written statement under the amended Order VIII CPC; extensions require exceptional circumstances and must be supported by reasons recorded in writing. Neither court below gave reasons, rendering the orders unsustainable; relief should be granted by remitting to the trial court for fresh consideration.

Contentions of Respondents

The period of extension was justified by the circumstances on record and the discretion exercised by the courts is permissible; no interference is warranted in the discretionary order.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Kailash v. Nanhku and Ors.[2005] 4 SCC 480PositiveCited to delineate the standard for extending time under Order VIII Rule 1 CPC; extensions must be exceptional and properly reasoned in writing.

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Extracted Judgment Text

Exact text extracted from official judgment records.

~ ~ ~ # _MIS_ ADITY A HOTELS (P) LTD. _v._ # BOMBAY SWADESHI STORES LTD. AND ORS. ## MARCH 26, 2007 [DR.ARinTPASAYAT ANDLOKESHWARSINGHPANTA,JJ.] B ...i. ## _Code of Civil Procedure, 1908:_ _0.8, r.1-Written statement-Filing of, beyond limitation period-Held, Court to accept same only by way of exception and for reasons recorded in_ c _writing._ -... ~ In a civil suit filed by Appellant, the defendant-Respondents filed written statement 142 days after the date of service of summons. The Trial Court accepted the written statement subject to payment of costs of Rs. 2,000/-. The D order of Trial Court was challenged before the High Court in a writ petition filed under Art.227 of the Constitution. High Court summarily dismissed the writ petition on the ground that discretionary power had been exercised by the Trial Court. > In appeal to this Court, it was contended that after amendment to Order E VIII, CPC with effect from 1st July, 2002, the defendant is granted 30 days time to present the written statement which period is to be reckoned from the date of service of summons and that though the proviso to the said provision permits extension of time when the Court is satisfied about the existence of reasons to be recorded in writing, in the instant case neither the Trial Court nor the High Court indicated any reason justifying the extension of time. F F ## Allowing the appeal, the Court -:<' HELD: 1.1. The parameters for extending the time granted by Order VIII Rule 1, CPC have been delineated by this Court in several cases. Ordinarily, the time schedule prescribed by Order VIII Rule 1 has to be[G ] honoured. The defendant should be vigilant No sooner the writ of summons is served on him he should take steps for drafting his defence and filing the written statement on the appointed date of hearing without waiting for the arrival of the date appointed in the summons for his appearance in the Court. H 471 472 ""'1 SUPREME COURT REPORTS [2007] 4 S.C.R. A The extension of time sought for by the defendant from the Court whether wilhin 30 days or 90 days, as the case may be, should not be granted just as a matter of routine and merely for the asking, more so, when the period of 90 days bas expir~d. The extension can be only by way of an exception and for reasons assigned by the defendant and also recorded in writing by the Court B to its satisfaction. (Para 6) (473-G-H; 474-A-B) C 1.2. Since neither the Trial Court nor the High Court have indicated any reason to justify the acceptance of the written statement after the expiry of the time fixed, the orders of the Trial Court and that of the High Court are set aside. The matter is remitted to the Trial Court for fresh consideration. (Para 7) (474-D-E] _Kai/ash_ v. _Nanhku and Ors.,_ (2005) 4 SCC 480, relied on. CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1572 of2007. D From the Final Judgment and Order dated 07.03 2006 of the High Court of Judicature of Bombay in Writ Petition No. 8574 of 2005. Seema Bangari, Anshul Singh and Dr. Kailash Chand for the Appellant. S.R. Mishra, Vimal Chandra S. Dave and Neelam Kalsi for the E Respondents. The Judgment of the Court was delivered by ## DR. ARIJITPASAYAT,~. I. Leave granted. 2. Challenge in this appeal is to the order passed by a learned Single F Judge of the Bombay High Court dismissing the Writ Petition filed by the appellant holding that the order passed by the tJ:ial Com~ was a discretionary one. The trial Court by its order dated 9 _.92005_ gran.ted permission to the respondents to file written statement subject to payment of costs of Rs.2000/-. The said order was passed in Civil Suit No.59/2005 by the sniall G Cause Judge, Pune. " · ._ ' ~· 3. Background facts in a· nutshelrare as foII6ws;. ·· . ·.\ ~ - .. ··~ -~ ' . ! ·Appellant filed Civil Suit No.59 of zoo~ in the Co?rt of ~mall CauseJudge, Pune, inter-alia seeking vacant and ·peaceful possession of the suit H premises. The suit was filed on 24. 12.2004. The Small Cause Judge, Pune, > ADITYAHOTELS(P)LTD. v.BOMBAYSWADESHI STORES LTD. [PASAYAT,J.] 473 _r_ ~ .. _,, issued summons to the respondents in the suit which were served on 22.3.2005. A On 25.4.2005 counsel for the respondents filed vakalatnama and prayed for time to get information from his client and to file written statement, if any. On 20.6.2005 the matter was fixed for filing of the written statement. However, no written statement was filed. The Advocate requested for further time. The trial Court granted time to the respondents to file written statement at tneir own B risk. Again, the matter-Was fixed for 14.7.2005. On that date also written statement was not filed. Again time was granted at the risk of the respondents. The written statement in fact was filed on 12.8.2005. Appellant sought for time to file the objections regarding the acceptability of the written statement which was filed after 142 days. By a cryptic order dated 9.9.2005 as noted above written statements were permitted to be filed and taken on record c subject to payment of costs of Rs.2,000/-. The order of the trial Court was challenged before the High Court in a writ petition filed under Article 227 of the Constitution of India, 1950 (in short the 'Constitution'). The High Court summarily dismissed the writ petition on 'the ground that discretionary power has been exercised. D ~ """ ~ .. ·< 4. In support of the appeal, learned counsel for the appellant submitted that after amendment to Order VIII of the Code of Civil Procedure, 1908 (in short the 'Code') w.e.f. 1.7.2002, the defendant is granted 30 days time to present the written statement. The period is to be reckoned from the date of service of summons. However, the proviso to the said provision permits E extension of time when the Court is satisfied about the existence of reasons to be recorded in writing. It is submitted that neither the trial Court nor the High Court indicated any reason justifying the extension of time. 5. Learned counsel for the respondents on the other hand submitted that the reason for excuse was shown for filing of the written statement. F Though elaborate reasonings have not been indicated, the order being a discretionary one, no interference is called for. 6. The parameters for extending the time gr;mted by Order VIII Rule 1 of the Code have been delineated by this Court in several cases. In _Kai/ash_ v. _Nanhku and Ors.,_ [2005] 4 SCC 480, it was noted as follows: G "42. Ordinarily, the time schedule·prescribed by Order 8 Rule'l has to be honoured. The defendant should be vigilant. No sooner the writ of summons is served on him he should take steps for drafting his defence and filing the written statement on the appointed date of hearing without waiting for the arrival of the date appointed in the[H ] 474 [2007) 4 S.C.R. ## SUPREME COURT REPORTS A B c summons for his appearance in the Court. The extension of time sought for by the defendant from the Court whether within 30 days or 90 days, as the case may be, should not be granted just as a matter of routine and merely for the asking, more so, when the period of 90 days has expired. The extension can be only by way of an exception and for reasons assigned by the defendant and also recorded in writing by the court to _it$_ satisfaction. It must be spelled out that a departure from the time schedule prescribed by Order 8 Rule I of the Code was being allowed to. be made because the circumstances were exceptional, occasioned by reasons beyond the control of the defendant and such extension was required in the interest of justice, and grave injustice would be occasioned if the time was not extended. D 44. The extension of time shall be only by way of exception and for reasons to be recorded in writing, howsoever brief they may be, by the court. In no case, shall th~ defendant be permitted to seek extension of time when the court is satisfied that it is a case of laxity or gross negligence on the part of the defendant or his counsel. The court may impose costs for dual purpose: (i) to deter the defendant from seeking any extension of time just for the asking, and (ii) to compensate the plaintiff for the delay and inconvenience caused to him." 7. Since neither the trial Court nor the High Court have indicated any E reason to justify the acceptance of the written statement after the expiry of the time fixed, we set aside the orders of the trial Court and that of the High Court. The matter is remitted to the trial Court to consider the matter afresh in the light of what has been stated in _Kai/ash's_ case (supra). The appeal is allowed to the aforesaid extent with no order as to costs. F B.B.B. Appeal allowed.