20 May 2024 Business Laws >> Business & Commercial Law  

A commercial lawsuit between Cargo Private Limited (Cargo) and Deccan Edibles Private Limited (Deccan) has landed in court due to a dispute over the validity of Deccan's initial complaint.

The crux of the issue lies in the mandatory "Statement of Truth" required for commercial lawsuits in India. This affidavit verifies the pleadings within the complaint. According to Cargo, Deccan's complaint lacked a proper Statement of Truth, specifically for paragraphs 24-38.

Cargo argued that without proper verification, these paragraphs should be struck from the record and the suit filing date should be considered the day a complete Statement of Truth was submitted. This would make Cargo's written statement timely.

Deccan countered that the missing verification was a minor mistake, rectified on the same day by filing a complete Statement of Truth. They argued Cargo's objections were a ploy to manipulate the lawsuit and cause delays.

The court, referencing a similar case (A.V. Industries v. Neo Neon Electrical Pvt. Ltd.), acknowledged the mandatory nature of the Statement of Truth but also recognized the ability to cure minor defects. In this instance, the court deemed Deccan's rectification effort sufficient and dismissed Cargo's petition.

This case highlights the importance of proper procedures in commercial lawsuits. While minor errors can be corrected, failing to comply with mandatory requirements like the Statement of Truth can have consequences.

  COMMERCIAL COURTS ACT, 2015    Code of Civil Procedure, 1908