'Raises Questions About Accountability', Supreme Court Rebukes Gujarat's Commercial Court For 17 Years Delay In Issue Framing

The Supreme Court recently expressed displeasure over the Gujarat Commercial Civil Court's inaction to frame the issues in the recovery suit for more than 17 years. Further, the Court criticized the commercial court's arbitrary manner of concluding the suit by closing the plaintiff's evidence, followed by a consequential dismissal order.

“What is shocking, however, is that the appellant had filed the suit for recovery in the year 2001. It took more than 17 years for the Commercial Civil Court to frame the issues and thereafter that Court thought it appropriate to summarily conclude the suit by closing the plaintiff's evidence followed by a consequential dismissal order. The manner in which the suit has been dealt with raises so many questions, including the accountability of the system, the steps we need to take to deliver timely justice and equally important is to sensitize the other stakeholders to provide requisite infrastructure for speedy disposal of the cases.”, the Court said.

The bench of Justices Surya Kant and N. Kotiswar Singh heard a case where the Commercial Court had delayed framing issues in the appellant's recovery suit and ultimately dismissed the suit without properly addressing those issues. In response, the appellant filed an appeal before the High Court, accompanied by an application seeking condonation of a 476-day delay in filing. However, the High Court dismissed both the appeal and the condonation application. Aggrieved by this, the appellant approached the Supreme Court.

Setting aside the High Court's decision, the Court said that greater sympathy and compassion should have been shown in considering the delay, especially since the appellant had waited over two decades for adjudication of his case.

“In the peculiar circumstances of this case where the plaintiff has been standing in queue for more than two decades, we are satisfied that the High Court too ought to have been sympathetic and compassionate while considering the application for condonation of delay of 476 days.”, the court observed.

Accordingly, the Appeal was allowed and the impugned order was set aside. The commercial court was directed “to accord two opportunities to the plaintiff to lead its remaining evidence. Both these opportunities must be granted before 31.07.2025.”

“If the plaintiff fails to lead evidence, the Commercial Court shall be at liberty to close the evidence.”, the court said.

Case Title: GUJARAT INDUSTRIAL INVESTMENT CORPORATION LTD. VERSUS VARANASI SRINIVAS & ORS.

Click here to read/download the order

Appearance:

For Petitioner(s) : Ms. Astha Sharma, Adv.[A.C.] Mr. Kabir Hathi, Adv. Ms. Jesal Wahi, AOR

For Respondent(s) :Mr. Rajiv Narula, Adv. Mr. Rohan Thawani, Adv. Ms. Pooja Dhar, AOR Ms. Aakriti Vikas, Adv. Mr. Anuj Kapoor, AOR Mr. Shivom Sethi, Adv.