From 1,095 days to 306: Quicker disposal of commercial disputes

The number of days it takes in trial and judgment of commercial disputes has come down significantly in Delhi and Mumbai, according to the latest data of the Law Ministry.

According to the World Bank's 'doing business' report for India, it used to take 1,095 days in trial and judgment of commercial disputes in 2020.

But following a push for reforms, the number of days has come down to 424 in Delhi and 306 in Mumbai, according to the data put the in public domain by the Department of Justice in the Law Ministry.

The Code of Civil Procedure of 1908 provides time standards for case management.

According to it, the filing of written statement should be done within 30 days of the notice served on defendant and the judgment should be delivered within 30 days from hearing conclusion date.

Time standards are respected in more than 50 per cent of cases in dedicated commercial courts, the department said.

Fixing of time standards for key court events and streamlining of trial process have led to speeding up case disposal, it claimed.

Order XVII Rule (1) of the CPC provides for a maximum of three adjournments during the hearing of a suit.

Order XVII, Rule 2(b) of the CPC states that no adjournment will be granted at the request of a party, except where the circumstances are beyond control.

The Department of Justice had sent letters to the high courts of Delhi, Bombay, Calcutta and Karnataka to adhere to the three-adjournment rule.

The four high courts have issued advisory to all the dedicated commercial courts under their jurisdictions to strictly adhere to the timelines and three-adjournment rule.

The rule of maximum three adjournments is being actively enforced in more than 50 per cent of cases of dedicated commercial courts of Delhi, Mumbai, Kolkata and Bengaluru.

This has reduced the time taken for trial, arguments and final judgment, the department noted.

Besides, e-committee of the Supreme Court has ensured compliance with the three-adjournment rule by creating facility which is provided in "daily proceedings screen" to alert judge about the listing of case.

Green colour indicates that the case is listed on the same stage for less than three times.

Orange colour indicates that the case is listed on the same stage between three and six times.

Red colour shows the case is listed on the same stage for more than six times.