Commercial Courts Act| Non-Filing Of Statement Of Truth At The Time Of Filing Written Statement Is Curable Defect: Karnataka HC
The Karnataka High Court held that non filing of statement of truth under Order VI Rule 15A of CPC as amended by the Commercial Courts Act, 2015, at the time of filing the written statement is a curable defect.
The Court permitted filing of the statement of truth after Petitioner failed to comply with the Order VI Rule 15-A of the CPC, as amended by the Commercial Courts Act, 2015 while observing that early resolution of commercial disputes will create a positive image about India to the Investor abroad.
The Court said that while interpreting the provisions of the Commercial Courts Act, 2015, the Courts have to keep in mind, whether the decision is likely to prolong the litigation and does it has the effect of causing injustice to either of the parties.
The bench of Justice M.I. Arun observed, “Under the given facts and circumstances of the case, I am of the opinion that the trial court (Commercial Court) should have considered non filing of statement of truth as a curable defect and should have allowed the same in the interest of justice."
Advocate Harish Kumar M.S. appeared for the Appellant and Advocate Geetha M.S. appeared for the Respondent.
Brief Facts-
The defendant filed a written statement within the stipulated time but failed to comply with Order VI Rule 15-A of the CPC, as amended by the Commercial Courts Act, 2015 as it was not properly verified. The trial Court barred the defendant from leading his evidence. The defendant filed applications seeking to recall the order, file a statement of truth, and condone the delay, but the trial Court dismissed these applications. Aggrieved by the impugned order the defendant approached the Court with the present Writ Petition.
The Court considered the question of whether the non-filing of a statement of truth or not complying with the mandatory provisions of Order VI Rule 15A of CPC as amended by the Commercial Courts Act, 2015, at the time of filing the written statement is a curable defect or not.
The Court perused Order VI Rule 15A of CPC and observed, “provision makes it clear that the intention of the legislature is that when a pleading is not verified by a statement of truth as specified, the party cannot be permitted to rely on such pleading. Hence, filing of statement of truth along with the pleadings is mandatory.”
The Court said that allowing the application would not have the effect of delaying the proceedings before the Commercial Court. However, not allowing the same, has the effect of striking off the pleadings of the defendant which would cause injustice to the petitioner.
Accordingly, the Court allowed the Petition.
Cause Title: N. Babu Reddy v. M/S. EIT Services India Private Ltd. (Neutral Citation: 2024:KHC:28750)
