Schedule:4 Amendment of First Schedule

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Schedule:4 Amendment of First Schedule.

In the First Schedule to the Code,––

A.    in the Order V, in Rule 1, in sub-rule (1), for the second proviso, the following proviso shall be substituted, namely:––

“Provided further that where the defendant fails to file the written statement within the said period of thirty days, he shall be allowed to file the written statement on such other day, as may be specified by the Court, for reasons to be recorded in writing and on payment of such costs as the Court deems fit, but which shall not be later than one hundred twenty days from the date of service of summons and on expiry of one hundred twenty days from the date of service of summons, the defendant shall forfeit the right to file the written statement and the Court shall not allow the written statement to be taken on record.”;

B.    in Order VI,––

              i.        after Rule 3, the following Rule shall be inserted, namely:––

“3A. Forms of pleading in Commercial Courts––In a commercial dispute, where forms of pleadings have been prescribed under the High Court Rules or Practice Directions made for the purposes of such commercial disputes, pleadings shall be in such forms.”;

             ii.        after Rule 15, the following Rule shall be inserted, namely:––

‘‘15A. Verification of pleadings in a commercial dispute.—

1.     Notwithstanding anything contained in Rule 15, every pleading in a commercial dispute shall be verified by an affidavit in the manner and form prescribed in the Appendix to this Schedule.

2.     An affidavit under sub-rule (1) above shall be signed by the party or by one of the parties to the proceedings, or by any other person on behalf of such party or parties who is proved to the satisfaction of the Court to be acquainted with the facts of the case and who is duly authorised by such party or parties.

3.     Where a pleading is amended, the amendments must be verified in the form and manner referred to in sub-rule (1) unless the Court orders otherwise.

4.     Where a pleading is not verified in the manner provided under sub-rule (1), the party shall not be permitted to rely on such pleading as evidence or any of the matters set out therein.

5.     The Court may strike out a pleading which is not verified by a Statement of Truth, namely, the affidavit set out in the Appendix to this Schedule.”;

C.    in Order VII, after Rule 2, the following Rule shall be inserted, namely:—

“2A. Where interest is sought in the suit,—

1.     Where the plaintiff seeks interest, the plaint shall contain a statement to that effect along with the details set out under subrules (2) and (3).

2.     Where the plaintiff seeks interest, the plaint shall state whether the plaintiff is seeking interest in relation to a commercial transaction within the meaning of section 34 of the Code of Civil Procedure, 1908 and, furthermore, if the plaintiff is doing so under the terms of a contract or under an Act, in which case the Act is to be specified in the plaint; or on some other basis and shall state the basis of that.

3.     Pleadings shall also state—

a.     the rate at which interest is claimed;

b.    the date from which it is claimed;

c.     the date to which it is calculated;

d.    the total amount of interest claimed to the date of calculation; and

e.     the daily rate at which interest accrues after that date.”;

D.    in Order VIII,––

              i.        in Rule 1, for the proviso, the following proviso shall be substituted, namely:––

“Provided that where the defendant fails to file the written statement within the said period of thirty days, he shall be allowed to file the written statement on such other day, as may be specified by the Court, for reasons to be recorded in writing and on payment of such costs as the Court deems fit, but which shall not be later than one hundred twenty days from the date of service of summons and on expiry of one hundred twenty days from the date of service of summons, the defendant shall forfeit the right to file the written statement and the Court shall not allow the written statement to be taken on record.”;

             ii.        after Rule 3, the following Rule shall be inserted, namely:––

“3A. Denial by the defendant in suits before the Commercial Division of the High Court or the Commercial Court—

1.     Denial shall be in the manner provided in sub-rules (2), (3), (4) and (5) of this Rule.

2.     The defendant in his written statement shall state which of the allegations in the particulars of plaint he denies, which allegations he is unable to admit or deny, but which he requires the plaintiff to prove, and which allegations he admits.

3.     Where the defendant denies an allegation of fact in a plaint, he must state his reasons for doing so and if he intends to put forward a different version of events from that given by the plaintiff, he must state his own version.

4.     If the defendant disputes the jurisdiction of the Court he must state the reasons for doing so, and if he is able, give his own statement as to which Court ought to have jurisdiction.

5.     If the defendant disputes the plaintiff’s valuation of the suit, he must state his reasons for doing so, and if he is able, give his own statement of the value of the suit.”;

    iii.        in Rule 5, in sub-rule (1), after the first proviso, the following proviso shall be inserted, namely:––

‘‘Provided further that every allegation of fact in the plaint, if not denied in the manner provided under Rule 3A of this Order, shall be taken to be admitted except as against a person under disability.” ;

    iv.        in Rule 10, after the first proviso, the following proviso shall be inserted, namely:––

‘‘Provided further that no Court shall make an order to extend the time provided under Rule 1 of this Order for filing of the written statement.”;

E.    for Order XI of the Code, the following Order shall be substituted, namely:—

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