Dream And Love Hospitality PVT LTD vs. Zoladel Impex Private Limited

Facts

The petitioner, Dream and Love Hospitality Pvt. Ltd., filed a Civil Revision Petition challenging an order dated January 27, 2025, by the Additional District Judge-cum-Special Judge, Commercial Court, Gurugram. This order held that the petitioner's written statement, filed after 120 days from the date of service, could not be considered part of the pleadings. The petitioner argued that an earlier order dated December 20, 2024, granted them an extension to file the written statement by January 27, 2025, subject to costs. They also contended that service at Rewari was not due service as their business was in Gurugram. The respondent argued that the revision petition was not maintainable under Section 8 of the Commercial Courts Act, 2015, and that the petitioner was deliberately delaying proceedings in a suit for recovery of possession and arrears of rent amounting to over Rs. 1 crore. The respondent highlighted that the petitioner's registered office was in Rewari, making service there valid, and that the 120-day period for filing the written statement had elapsed on January 16, 2025.

Held

The High Court held that the impugned order dated January 27, 2025, passed by the Commercial Court was in accordance with the law and deserved to be upheld. The Court found the revision petition to be meritless. Although the petition was technically barred under Section 8 of the Commercial Courts Act, 2015, as it challenged an interlocutory order, the Court heard the matter on merits to do substantial justice. The Court found no merit in the petitioner's contention regarding improper service at Rewari, stating that since the petitioner had a registered office there, service at that address was valid. The Court reiterated that the maximum period for filing a written statement in a commercial case is 120 days from the date of service, and the Court has no discretion to grant further time. As the 120-day period had elapsed on January 16, 2025, and the written statement was not filed by then, the Commercial Court rightly passed the order. The Court also noted the petitioner's failure to deposit the assessed rent and other dues as directed by previous orders, and their continued indulgence in frivolous litigation, which was not appreciated. Therefore, the revision petition was dismissed.

Key Issues

1. Whether the written statement filed by the petitioner after 120 days from the date of service can be taken on record, considering the provisions of the Commercial Courts Act, 2015, and the prior orders of the Court? Petitioner's arguments: The petitioner contended that an order dated December 20, 2024, granted them an opportunity to file the written statement by January 27, 2025, subject to costs. They also argued that service at Rewari was not proper as their business operations were in Gurugram, and therefore, the 120-day period should not be counted from that date. They sought to have the written statement placed on record to contest the case. Respondent's arguments: The respondent argued that the revision petition was not maintainable under Section 8 of the Commercial Courts Act, 2015. They asserted that the petitioner's registered office was in Rewari, making service there valid. The 120-day period for filing the written statement expired on January 16, 2025, and the Commercial Court correctly passed the impugned order. They also pointed out the petitioner's failure to pay rent and arrears, and their attempts to delay the proceedings.