"Malaise Of Delayed Commercial Justice": Delhi Court Settle 17-Year-Old Dispute

Settling a 17-year-old commercial dispute, a Delhi court has said its prolonged trial demonstrated the "malaise of delayed commercial justice", having an adverse impact on the country's economy.

District Judge Monika Saroha was hearing a suit filed in April, 2008 by a company against the Jammu and Kashmir Bank Ltd for recovery of around Rs 17.92 lakh paid to the bank as processing fee or upfront charges for processing of a loan.

In its order on May 26, Judge Saroha noted the plaintiff (company) failed to establish that it was entitled to a refund of processing fees, according to the original sanction letter.

"The defendant bank, having processed the loan application and undertaken significant efforts, is entitled to retain the processing fee as per the original written terms," the court said.

Despite the issues to be decided in the suit being settled within a few months of its filing, the court said, the trial dragged on due to repeated adjournments, the filing of miscellaneous applications, the frequent change of counsel by the plaintiff and other miscellaneous reasons.

"Such inordinate delays in the adjudication of commercial matters, while undeniably complex, tend to erode the confidence of stakeholders and impede the growth of the economy," it added.

The expeditious resolution of commercial disputes is not merely a procedural expectation but a vital necessity for ensuring certainty in business transactions and fostering a conducive economic environment, the verdict noted.

The order further highlighted the "substantial expenses" incurred by the government bank and the company in prosecuting and defending this litigation for over 17 years.

"This prolonged contest not only imposed a significant financial burden on the parties but also exemplifies the broader malaise of delayed commercial justice, which inevitably has adverse repercussions on the economy at large," the order said.

The case, the court opined, underlined the need for streamlining judicial processes, ensuring minimal adjournments, and fostering professional diligence by all stakeholders.

"Both parties, particularly the public sector bank, have undoubtedly borne significant financial and logistical burdens during the pendency of this suit." The court hoped that "lessons will be drawn from this experience to prevent similar delays in the future, so that commercial confidence is fortified and economic progress remains unimpeded".

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