Karnataka High CourtCivil Procedure and EvidenceCommercial and Corporate Law

Karnataka HC Lets Rent-Arrears Defendants File Written Statement, Counting 120 Days From Plaint Copies, Not Summons Marked “Not Claimed”

YAAHVI VENTURESv.SRI M L PRAKASH RAO

Karnataka HC Lets Rent-Arrears Defendants File Written Statement, Counting 120 Days From Plaint Copies, Not Summons Marked “Not Claimed”. YAAHVI VENTURES vs SRI M L PRAKASH RAO. Karnataka High Court. LawLens
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In brief

The question

1. Whether a postal endorsement of “not claimed,” by itself, constitutes service of suit summons that starts the 120-day period for filing a written statement in a commercial suit

The court held

The Court answered the issues in favour of the defendants and allowed the writ petition.

It also directed

It set aside the impugned order insofar as it denied them the right to file a written statement, permitted them to file it on or before 18 November 2026, and directed the Commercial Court to take it on record if filed within that time and proceed in accordance with law

01Facts

The respondent filed a commercial suit seeking arrears of rent.

pp. 3–8

Summons sent by RPAD were returned “not claimed,” and the Commercial Court subsequently ordered substituted service by affixture.

pp. 3–8

On 18 September 2025, it held service sufficient and placed the defendants ex parte.

pp. 3–8

The defendants later appeared and obtained relief under Order IX Rule 7 CPC, but the Commercial Court refused to accept their written statement, holding that the 120-day period had run from the earlier “not claimed” postal endorsement.

pp. 3–8

The defendants challenged that refusal under Article 227, contending that they became aware of the suit through substituted service and received the plaint and documents only on 11 November 2025

pp. 3–8

02Issues

i.1. Whether a postal endorsement of “not claimed,” by itself, constitutes service of suit summons that starts the 120-day period for filing a written statement in a commercial suit

pp. 11–12

ii.2. Whether, in the circumstances of this case, the period for filing the written statement should be reckoned from the date the defendants received copies of the plaint and accompanying documents

pp. 16–18

03Law Applied

Under Order VIII Rule 1 CPC, as applicable to commercial disputes, a defendant must ordinarily file a written statement within 30 days of service of summons; the court may allow an extension up to 120 days, after which the right is forfeited and the court cannot take the written statement on record (*SCG Contracts (India) (P) Ltd. v. K.S. Chamankar Infrastructure (P) Ltd.*)

p. 10

Service of a court summons is governed by Order V CPC; a postal endorsement of “not claimed” does not, without more, establish valid service for starting that period, as explained in *The New India Assurance Co. Ltd. v. Nasibunnisa Mohammed Israr Khan*

pp. 12–14

The purpose of summons includes notifying the defendant of the suit, furnishing the plaint, and informing the defendant when and where to appear (*Auto Cars v. Trimurti Cargo Movers (P) Ltd.*)

pp. 16–17

The Court distinguished *Ajeet Seeds Ltd. v. K. Gopala Krishnaiah*, which concerned a statutory demand notice under the Negotiable Instruments Act, not service of suit summons under Order V CPC

pp. 15–16

Provisions in the judgment · 2 · Linked ones open on LawLens

General Clauses Act, 1897 Section 27

Negotiable Instruments Act, 1881 Section 138

04Reasoning

The Commercial Court had itself ordered substituted service and held summons sufficient only on 18 September 2025. It therefore erred in treating the earlier “not claimed” endorsement as sufficient service and using it to calculate expiry of the 120-day period

pp. 14–15

Further, when the defendants appeared, the Commercial Court directed the plaintiff to provide the plaint and documents; the defendants’ stated receipt date was 11 November 2025. Applying the purpose of summons identified in *Auto Cars*, the High Court held that, on these facts, the filing period should be reckoned from the date those materials were furnished

pp. 17–18

05Holding

The Court answered the issues in favour of the defendants and allowed the writ petition.

pp. 18–19

It set aside the impugned order insofar as it denied them the right to file a written statement, permitted them to file it on or before 18 November 2026, and directed the Commercial Court to take it on record if filed within that time and proceed in accordance with law

pp. 18–19
Karnataka High Court

Original Court PDF

YAAHVI VENTURESvsSRI M L PRAKASH RAO

Karnataka High Court · November 03, 2026

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