The Delhi High Court addressed a petition challenging a Trial Court order that had dismissed the petitioners-defendants’ application for condonation of delay and ordered their written statement to be taken off the record in a commercial recovery suit. The High Court observed that the Trial Court failed to conclusively determine the exact date of service of summons—which is critical for calculating the strict limitation periods under the Commercial Courts Act, 2015—and prematurely disposed of the matter solely on the ground of non-filing of an affidavit of admission/denial. Consequently, the High Court set aside the impugned order and remanded the matter back to the Trial Court to first ascertain the definitive date of service, compute the limitation period, and re-adjudicate the procedural compliance in accordance with the law.
- Underlying Dispute: The respondent/plaintiff instituted a commercial suit seeking the recovery of Rs. 23,75,000/- with interest arising from a Flipkart gift-voucher facilitation arrangement.
- Trial Court Proceedings & Impugned Order:
- The petitioners filed their written statement alongside an application for condonation of delay on November 16, 2022.
- The Trial Court dismissed the application and removed the written statement from the record not because it exceeded the 120-day limit, but because the petitioners failed to file an accompanying affidavit of admission/denial of documents, relying on precedents such as Unilin Beheer B.V. and Mayank Gupta.
- Contentions of the Parties:
- Petitioners: Argued that the Trial Court acknowledged the delay as condonable, erred in dismissing the application solely for missing the admission/denial affidavit without hearing arguments, and pointed out conflicting judicial views on whether such a defect is curable.
- Respondent: Contended that the written statement was filed past the 120-day limit (computed from the postal delivery date of July 12, 2022), no admission/denial affidavit has been filed to date, and timelines under the Commercial Courts Act are mandatory.
- High Court’s Observations & Findings:
- The High Court noted that calculations varied significantly depending on the service date used (yielding 127 days from July 12, 2022; 130 days from July 9, 2022; or within 120 days if counted from September 7, 2022).
- The Trial Court had failed to record a definitive finding on the exact date when the summons were legally served.
- Final Directions:
- The High Court set aside the order dated August 10, 2023.
- The matter was remanded to the Trial Court to establish the exact date of service of summons, compute the 120-day statutory period properly, and subsequently evaluate the consequence of the missing admission/denial affidavit afresh.
2026 DHC 6310
Prajna Insuretech Pvt. Ltd. & Ors. v. Payvorite India OPC Pvt. Ltd. (D.O.J. 05.08.2026)



