Delhi High Court Mandates Proactive Approach in Imposing Costs at Every Stage of Commercial Suits

Landmark Judgment Law Insider (1)

Published on: May 12, 2024 16:15 IST

Court: High Court of Delhi

Case: Dolby International AB v. Das Telecom Private Limited 2018

Honourable High Court of Delhi has held that Section 35 of the Code of Civil Procedure, 1908 as amended to Commercial Courts Ac, 2015 requires that courts must adopt pro-active approach in imposition of costs with respect to every stage of a commercial suit.

It is held that the Commercial Courts have been in fact mandated and have been asked to be vigilant with respect to requirement of imposition of costs at different stages including stages of disposal of interim applications.

8. The subject suit is a commercial suit filed under the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 (hereinafter referred to as the ‘Commercial Courts Act’). Suits filed under the Commercial Courts Act are treated differently than ordinary suits which are filed in a civil court. In terms of various provisions of the Commercial Courts Act specific time lines are provided with respect to different aspects of completion of pleadings or admission/denial of documents or for case management hearing, etc.

The object of the provisions of the Commercial Courts Act read with amended provisions of CPC applicable to Commercial Courts is to ensure that there is no unnecessary delay in disposal of the commercial suit. Once specific time lines are fixed and there is a strict procedure provided in terms of the Commercial Courts Act, parties are by the statute put to notice that they have to very carefully contest the suits filed as commercial suits and that failing to comply with statutory timelines and a strict procedure, certain adverse consequences may flow on account of lack of application by a contesting party.

Drafted By Abhijit Mishra

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