Whether filing amendment of plaint after 120 days will reset the clock and enable the Defendant to file his written statement, Commercial Courts Act 2015?

Under the Commercial Courts Act, 2015, the filing of a written statement by the defendant is governed by Order VIII Rule 1 of the Code of Civil Procedure, 1908 (CPC), as amended for commercial disputes. It mandates that a written statement must be filed within 30 days of service of summons and allows a maximum extension of 90 days, beyond which filing is not ordinarily permitted.

Key Points Regarding Amendment of the Plaint:

Effect of Amendment on Written Statement Timeline:

• When the plaintiff amends the plaint, it might introduce new facts or claims that require a response.
• The defendant has the right to file an additional or amended written statement only to the extent of the amendments in the plaint.
• The 120-day period stipulated under the Commercial Courts Act does not reset for the entire case. It is only applicable to the original plaint.

Supreme Court Ruling:

• In SCG Contracts India Pvt. Ltd. v. K.S. Chamankar Infrastructure Pvt. Ltd. & Ors. (2019), the Supreme Court held that the 120-day timeline for filing a written statement is mandatory. Once the time lapses, the right to file the written statement is forfeited.

Impact of Amendments on the 120-Day Clock:

• If the amendment introduces new issues or changes, the defendant may file a response specific to the amendments. However, the defendant cannot use the amendment as a pretext to reopen the timeline for filing the original written statement.

Discretion of the Court:

• Courts have limited discretion in commercial disputes because of the strict timelines imposed under the Act. The amendment of the plaint does not automatically grant the defendant an opportunity to refile the entire written statement beyond the prescribed period.

Conclusion

Amending the plaint after 120 days does not reset the clock for filing the original written statement. However, the defendant can file a written statement or reply only concerning the amendments made in the plaint. Courts will strictly enforce the timelines to maintain the objective of expeditious resolution under the Commercial Courts Act.