The Delhi High Court has stepped in to balance fairness and procedure in a commercial dispute between logistics companies Aaj Supply Chain Management Pvt. Ltd. and Skylark Express (Delhi) Pvt. Ltd. On Wednesday, Justice Girish Kathpalia set aside a trial court order that had rejected Aaj Supply Chain’s request to place its written statement on record. However, the relief came with a price - the company must pay ₹25,000 to the opposing side within a week.
Background
The case stemmed from a commercial suit where summons were first served on Aaj Supply Chain on 19 June 2024. According to court records, the defendant company tried to respond but faced difficulty because the plaint and annexures served to them were said to be illegible. Their counsel claimed that although assurances were given by Skylark's side, a proper, legible set of papers only reached them on 5 October 2024. The written statement was then filed a month later, on 5 November 2024.
But the commercial court wasn't convinced. It dismissed Aaj Supply Chain's application under Order VIII Rule 1 of the Civil Procedure Code (CPC), holding that the company should have taken proactive steps to obtain readable copies instead of waiting passively. This led Aaj Supply Chain to approach the High Court.
Court's Observations
Justice Kathpalia carefully weighed both sides. Counsel for Aaj argued that the plaintiff deliberately delayed supplying the papers so that the 120- day deadline would lapse, thereby blocking their right to defend.
''It would be fair and justifiable if the written statement, already filed, is taken on record,'' counsel said.
On the other hand, Skylark's lawyer pointed out that Aaj Supply Chain never wrote any letter or moved an application for proper copies despite being served in June 2024. Still, in a pragmatic turn, Skylark's side told the court it would not object to the plea being allowed, provided heavy costs were imposed to compensate for the delay.
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The judge agreed that justice should not be sacrificed on technical lapses.
''Disputes, as far as possible, should be decided on merits instead of defaults, especially where the defaulting party can be burdened with cost to compensate the other party,'' Justice Kathpalia observed.
Decision
In the end, the High Court allowed Aaj Supply Chain's petition and set aside the trial court's rejection order. The written statement will stay on record, but only if the company pays ₹25,000 to Skylark within one week. If the cost is not deposited in time, the court made it clear, the written statement will be struck off.
With that, the matter returns to the commercial court for further proceedings on merits.
Case Title: Aaj Supply Chain Management Pvt. Ltd. (formerly known as Aaj Enterprises Pvt. Ltd.) vs Skylark Express (Delhi) Pvt. Ltd.
Case Number: CM(M) 1827/2025, CM APPL. 58843/2025 & CM APPL. 58842/2025
