PSA NITROGEN LIMITED Vs. MAEDA CORPORATION

JUDGEMENT

(1.) The present petition challenges order dated 25th October 2018 by which the application of the Petitioner/Plaintiff (hereinafter, "Plaintiff") seeking condonation of delay in filing the written statement to the counter- claim of the Respondents/Defendants (hereinafter, "Defendants") has been rejected by the ld. Trial Court.

(2.) The Plaintiff had filed a suit for recovery against the Defendants. The same was filed as an ordinary suit prior to the enactment of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 ("Commercial Courts Act"). The Defendants filed a counter-claim, seeking adjustment in the form of set off, as also compensation for losses. Vide order dated 17th January, 2018, it was directed that the right of the Plaintiff to file the written statement to the counter claim was closed. In fact, it is submitted that a perusal of the order sheet reveals that there is no order registering the counter-claim. On 16th February, 2018, the Plaintiff filed an application under Order VIII Rule 1 CPC seeking permission to file its written statement to the counter claim. The Court has proceeded on the presumption that since the proceedings are governed by the Commercial Courts Act, the time limit of 120 days for filing written statement is mandatory. The ld. Trial Court has thereafter proceeded to frame issues in the matter.

(3.) In order for the 120 days' time to be triggered under Order VIII Rule 1 CPC, the date of registration of the counter-claim is important, inasmuch as that would be the date on which the Plaintiff would be deemed to be served in the counter-claim. Though the Plaintiff may have copies of the same, technically, the counter-claim cannot be taken to be registered.