The Commercial Court Act, 2015 introduced
amendments to the CPC applicable to commercial disputes:
- Written statement must be filed within 30 days of service of
summons.
- Extension may be granted for reasons recorded, but not beyond
120 days.
- After 120 days, the defendant loses the right to file
the written statement, and the Court cannot accept it.
- Supreme Court in SCG Contracts India Pvt. Ltd. v. K.S. Chamankar Infrastructure Pvt. Ltd. (2019) affirmed that the 120-day limit is mandatory.
Why Was This
Change Introduced?
The primary objective of the Commercial Courts Act
is to ensure speedy resolution of commercial disputes. Earlier,
defendants could delay proceedings by repeatedly seeking extensions. With the
new framework:
- Litigation timelines are predictable.
- Courts have no discretion beyond 120 days.
- Commercial suits progress faster, benefiting businesses and
commerce.
Comparison
Between CPC and Commercial Courts Act
|
Aspect |
CPC
(Pre-Amendment) |
Commercial
Courts Act (Post-Amendment) |
|
Time Limit |
30 days, extendable up to 90/120 days |
30 days, extendable up to maximum 120 days |
|
Judicial Discretion |
Wide discretion; delays could be condoned |
No discretion beyond 120 days |
|
Objective |
Justice-oriented, flexible |
Speed and efficiency in commercial disputes |
|
Consequence of Delay |
Written statement may still be accepted |
Right to file forfeited after 120 days |
Judicial
Approach
- Pre-Commercial Courts Act: Courts
leaned towards flexibility to ensure fair opportunity (Kailash v.
Nanhku).
- Post-Commercial Courts Act: Courts
enforce strict compliance; no indulgence after 120 days (SCG Contracts).
Key
Takeaways for Litigants
- Defendants: Must remain vigilant and
file the written statement promptly; delay beyond 120 days is fatal.
- Plaintiffs: Can be assured that
commercial suits won’t be indefinitely delayed due to defendants’ tactics.
- Lawyers: Must advise clients on the strict timelines
to avoid forfeiture of defence.
FAQs
1. Can a
written statement be filed after 120 days in a commercial suit?
No. The Commercial Courts Act makes the 120-day
timeline mandatory. Courts have no power to condone delay beyond this period.
2. What
happens if the defendant fails to file the written statement in time?
The defendant forfeits the right to file the
written statement, and the court proceeds with the case based on the
plaintiff’s pleadings.
3. Does the
120-day limit apply to all civil cases?
No. It applies only to commercial disputes
under the Commercial Courts Act. In other civil suits, courts still have
discretion under the CPC.
Conclusion
The Commercial Courts Act, 2015 marks a
clear shift from the flexible approach of the CPC to a strict, time-bound
regime. By making the 120-day limit mandatory, the law ensures discipline,
certainty, and efficiency in commercial litigation. For defendants, this
means greater responsibility to act quickly; for plaintiffs, it means faster
progress in suits.
In short, the Act balances justice with
efficiency—meeting the needs of modern commercial dispute resolution.
About the Author
This article has
been written by Advocate
Ranjan Kumar Dwivedi,
a practicing lawyer at the Bombay High Court with over 15 years of experience.
He is a well-known legal expert specializing in both the original and appellate
sides of the Bombay High Court. Advocate Dwivedi is also a respected member of
the Bombay Bar Association.
