Delhi High Court: Courts Should Encourage Settlement and Condone Reasonable Delays in Filing Written Statement

Delhi High Court in VI-John Healthcare v. Dabur India held that courts should encourage settlement and condone reasonable delays in filing written statements, especially when within the 120-day limit under the Commercial Courts Act.

By Lex Horizon

In VI-John Healthcare India LLP v. Dabur India Limited (CM(M)-IPD 15/2025, decided on 31.07.2025), the Delhi High Court reiterated that courts should accommodate parties where there is a genuine possibility of settlement and should not penalize reasonable delays in procedural compliance.

The Court noted that the delay of 48 days in filing the written statement was well within the statutory outer limit of 120 days prescribed under the Commercial Courts Act, 2015. The delay was explained by the fact that the parties were actively exploring amicable settlement, which eventually materialized in related proceedings.

The Court emphasized that settlement efforts should be encouraged, and when the reasons for delay are bona fide and supported by the record, the same merits condonation. Consequently, the delay was condoned without imposing costs and the written statement was directed to be taken on record.

Key Takeaway: Courts should adopt a pragmatic approach, fostering settlement and permitting reasonable procedural delays where justified, rather than rigidly enforcing technical timelines to the detriment of substantive justice.