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SUPREME COURT OF INDIA
M.R. SHAH, B.V. NAGARATHNA, JJ.
M/s Chopra Fabricators And Manufacturers Pvt. Ltd. – Appellant
Versus
Bharat Pumps And Compressors Ltd. & Anr. - Respondents
Petition(s) for Special Leave to Appeal (C) No(s). 4654 of 2022
Decided on : 18-05-2022
Court Order - High Court of Judicature at Allahabad - The court directed the High Court to prepare a road-map for early disposal of commercial disputes and to address the pending execution petitions and Section 34 applications arising from arbitration proceedings.
Fact of the Case:
The Court directed the High Court to prepare a road-map for early disposal of commercial disputes and address the pending execution petitions and Section 34 applications arising from arbitration proceedings.
Finding of the Court:
The High Court failed to provide the required report and road-map despite the earlier order, and the Court expressed dissatisfaction with the response from the High Court.
Issues: Failure of the High Court to comply with the earlier order and provide a report and road-map for addressing the pending commercial disputes.
Ratio Decidendi: The Court emphasized the need for the High Court to take proactive measures to address the pending commercial disputes and directed the Chief Justice to constitute a Special Arrears Committee and formulate a mechanism to tackle the problem of arrears.
Final Decision: The Court directed the High Court to provide the required report and road-map before the next date of hearing and expressed dissatisfaction with the response received.
ORDER :
1. This Court, on 28.04.2022, passed a detailed order directing the High Court of Judicature at Allahabad/The Registrar General of the High Court of Judicature at Allahabad and the Lucknow Bench emphasizing the need for the High Court of Judicature at Allahabad and the Lucknow Bench to prepare a road-map for early disposal of the commercial disputes.
2. We have also directed the Registrar General of the High Court of Judicature at Allahabad and the Lucknow Bench to place the earlier status report in which it was found that approximately 40,000 execution petitions arising out of the arbitration proceedings are pending in the entire State of U.P. Hence approximately 12,000 Section 34 applications are pending, before the Chief Justice of the High Court.
3. We requested the Chief Justice of the High Court to constitute a Special Arrears Committee of the Judges of the High Court and invite suggestions and formulate a mechanism to tackle with the problem of arrears. We also requested the Chief Justice of the High Court to prepare a road-map and make suggestions to this Court on or before the next date of hearing on how the High Court proposes to deal with such a situation and huge pendency in disposing of the applications under Section 34 in the State of U.P.
4. We also directed that the suggestions and road-map, so formulated/suggested, be placed before this Court through the Registrar General of the High Court of Judicature at Allahabad and the Lucknow Bench on or before the next date of hearing.
5. Despite the fact that the said order was passed on 28.04.2022 till today, no report from the High Court was sent to this Court. Only when the present case is called out, learned counsel appearing for the High Court of Allahabad has placed on record the report on affidavit without giving any sufficient time to us to look into the suggestions/road-map. It was expected from the High Court to see that the report/road-map/suggestions were required to be placed before this Court well in advance so as to enable this Court to pass further orders and directions. We have cursorily gone through the counter/road-map/suggestions. There is nothing on record whether any Special Arrears Committee has been constituted or not. Nothing is on record whether periodical video conferencing with the Principal District Judges/Commercial Courts are done by the Members of the Arrears Committee or not. As we have no sufficient time to go through the report, put up tomorrow i.e. 19.05.2022.
Proactive measures and road-map required for early disposal of commercial disputes and addressing pending execution petitions and Section 34 applications arising from arbitration proceedings.
The legislative intent behind the Arbitration Act and the Commercial Courts Act is to ensure the expeditious resolution of commercial disputes, and corrective measures must be taken to address the ba....
The court's decision emphasizes the importance of addressing arrears in commercial matters and directs specific actions to be taken to tackle the issue, including the reconstitution of the Special Ar....
The court established that the statutory requirement for expeditious disposal of arbitration applications under Section 34(6) of the Arbitration and Conciliation Act is paramount, and delays in such ....
Timely execution of arbitration awards is essential to uphold the purpose and object of the Arbitration Act and the Commercial Courts Act.
The judgment emphasizes the need for measures to facilitate the early disposal of cases under the NI Act and the establishment of special courts in states with high pending cases.
The court directs timely disposal of pending cases amidst established backlogs, emphasizing efficient judicial proceedings.
The limitation period for filing an application under Section 34 of the Arbitration and Conciliation Act, 1996, commences from the date of disposal of an application filed under Section 33, provided ....
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