SCHEDULE (See section17)
1. In section 26 of the Code of Civil Procedure, 1908 (hereafter referred to as the Code), in sub-section (2), the following proviso shall be inserted, namely:—
“Provided that such an affidavit shall be in the form and manner as prescribed under Order VI Rule 15A"
2. For section 35 of the Code, the following section shall be substituted, namely:—
“35.(l) In relation to any commercial dispute, the Court,
notwithstanding anything contained in any other law for the time being in force or Rule, has the discretion to determine:
(a) whether costs are payable by one party to another;
(b) the quantum of those costs; and (e) when they are to be paid.
Explanation.—— For die purpose of clause (a), the expression “costs” shall mean reasonable costs relating to—
(i) the fees and expenses of the witnesses incurred; (ii) legal and expenses incurred;
(iii) any other expenses incurred iri connection with the proceedings.
(2) If the Court decides to make an order for payment of costs, the general rule is that the unsuccessful party will .be ordered to pay the costs of the successful party:
Provided that the Court may make an order deviating from the general rule for reasons to be recorded in writing.
Illustration: The Plaintiff, in his suit, seeks a money decree for breach of contract, and damages. The Court holds that the Plaintiff is entitled to the money decree. However, it returns a finding that the claim for damages is frivolous and vexatious.
In such circumstances the Court may impose costs on the Plaintiff,
despite the Plaintiff being the successful party, for having raised frivolous claims for damages.
3 In making an order. for the payment of costs the court shall have regard to the following circumstances, including .—
3 In making an order. for the payment of costs the court shall have regard to the following circumstances, including .—
(a) the conduct of the parties;
(b) whether a, party has succeeded on part of its case, even if that party has not been wholly successful;
- (e) whether the party had made a frivolous counter-claim leading to delay in the disposal of the case;
(d) whether any reasonable offer to settle is made by a party and unreasonably refused by the other party; and
(e) whether the party had made a frivolous claim and instituted a vexatious proceeding wasting the time of the Court.
(4) The orders which the Court may make under this provision include an order that a party must pay——
(a) a proportion of another party’s costs;
(b) a stated amount in reSpect of another party’s costs;
(c) costs from or until a certain date ;
((1) costs incurred before proceedings have begun;
(e) costs relating to particular steps taken in the proceedings;
(0 costs relating to a distinct part of the proceedings; and (g) interest on costs from or until a certain date.
3. in section 35A of the Code, sub-section (2) shall be omitted.
4. 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. 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) \Vhere 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 sub-
rules (2) and (3).
(2) Where the plaintiffs 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. 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:—-—
(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 adrnits.
(.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”;
(B) for Order XI of the Code, the following Order shall be substituted, namely:—
. “ORDER XI DISCLOSURE, DISCOVERY AND INSPECTION OF DOCUMENTS IN SUITS BEFORE THE COMMERCIAL DIVISION OF A HIGH COURT OR
A COMMERCIAL COURT
1.(l) Plaintiff shall file a list of all docur‘nents and photocopies of all documents, in its power, possession, control or custody, pertaining to the suit, along with the plaint, including:
I (a) Documents referred to and relied on by the plaintiff in the
plaint;
(b) Documents relating to any matter in question in 'the proceedings, in the power, possession, control or custody of the plaintiff, as on the date of filing the plaint, irrespective of whether the same is in support of or adverse to the plaintiff‘s case;
(c) nothing in this Rule shall apply to documents produced by plaintiffs and relevant only——
