Delhi High Court
Ahluwalia Contracts India Ltd vs A A Nayak Constructions Pvt ... on 25 August, 2017
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ FAO (OS) 295/2016
Date of decision: 25th August, 2017
AHLUWALIA CONTRACTS INDIA LTD ..... Appellant
Through: Mr. Rishi Kapoor with Mr. Pankaj
Kapoor & Mr. Raunak Satpathy,
Advocates.
versus
A A NAYAK CONSTRUCTIONS PVT LIMITED .....Respondent
Through: Mr. Ashutosh Dubey, Advocate.
CORAM:
HON'BLE MR. JUSTICE SANJIV KHANNA
HON'BLE MR. JUSTICE NAVIN CHAWLA
SANJIV KHANNA, J. (Oral)
This intra court appeal impugns the order dated 12th July,
2016 whereby O.A. No.22/2015 filed by the appellant challenging
the order of the Joint Registrar closing its right to file written
statement, has been dismissed.
2. The respondent has filed the suit for recovery of
Rs.29,14,962/- on account of work of water proofing, construction,
etc. executed by them for the appellant.
3. The appellant was served with summons in the suit on 15th
May, 2014. Thirty days period for filing of the written statement
came to an end on 14th June, 2014, when the High Court was closed
on account of summer vacations. The written statement was not
filed on re-opening or within 90 days of service, which came to end
on 12th August, 2014. No application for extension of time was
made till 30th October, 2014 when the Joint Registrar closed the
right of the appellant to file written statement.
4. The appellant, on 7th November, 2014, filed an application
under Section 8 of the Arbitration and Conciliation Act.
5. The appellant in these circumstances filed O.A. No.22/2015
before the Single Judge for setting aside order dated 30 th October,
2014 by which right of the appellant to file written statement was
closed.
6. As already noticed above, the appellant has filed an
application under Section 8 of the Arbitration and Conciliation Act,
which is stated to be still pending before the District Judge on
transfer of suit in view of the change in pecuniary jurisdiction.
7. The present appeal has remained pending since October,
2016.
8. Noticing the factual matrix, we feel that the appellant can be
granted one opportunity to file its written statement with imposition
of costs. Accordingly, we allow the appellant to file written
statement within six weeks, subject to payment of costs of
Rs.35,000/- to the respondent. The said costs be paid to the
respondent on or before the next date of hearing before the District
Judge. We clarify that payment of costs and right to file written
statement does not mean that appellant has given up and is not
pressing its application under Section 8 of the Arbitration and
Conciliation Act. In fact, the counsel for the respondent has
submitted that the application under Section 8 of the Arbitration and
Conciliation Act may not be maintainable in case the appellant's
right to file written statement was closed. This order would also
take care of the said objection.
9. We may also note that the appellant has agreed to pay the
costs as stated above.
The appeal is disposed of.
SANJIV KHANNA, J.
NAVIN CHAWLA, J.
AUGUST 25, 2017
srb
