Any Interpretation Diluting Commercial Courts Act Defeats Its Purpose; No Leniency For Litigants Who Protract Proceedings: Delhi High Court

The Delhi High Court has observed that the Commercial Courts Act was enacted with a specific aim of expediting commercial disputes and the processes adopted by them can't be in such a casual manner, so as to convert them into general civil suit.“Any interpretation of any legal provision that dilutes the provision would militate against the basic philosophy behind creation of commercial courts,” said Justice Girish Kathpalia.The observation was made while dealing with a plea challenging a commercial court order which took off record the Written Statement filed by the Petitioner-defendant, on account of failure to pay requisite costs.The costs were imposed on account of delay in filing the Written Statement.The High Court observed that the Petitioner failed to pay the costs for two subsequent dates and when this issue was raised, Petitioner in a casual manner said “de denge”. This led the commercial court to strike off the Written Statement.Petitioner contended that there was confusion as to whom the cost had to be paid because the order was silent in this regard. The Court however found this excuse 'completely flimsy' as no effort was made by the Petitioner to get the doubt clarified. “In any case, where the order is silent as to whom the cost is to be paid, it is clear that the cost has to be paid to the opposite side which has suffered adjournment…It is a matter of compensating the other side who suffers due to default,” the Court said.To uphold the commercial court order, the High Court relied on Manohar Singh vs D.S. Sharma (2010) where the Supreme Court held that as a consequence of non-payment of cost, the defaulting party has to be prohibited from participating in further proceedings. As such the Court dismissed the petition, stating,“Where a litigant does not strictly adhere to the timelines and even thereafter, despite indulgence extended by the trial court, opts to somehow protract the proceedings, no further indulgence can be extended.”Appearance: Mr. Jatin Sapra and Ms. Jahanvi Paliwal, Advocates for Petitioner; Mr. Navneet Sharma, Advocate for RespondentCase title: M/S Om Fire Safety Company Pvt Ltd v. UmakantCitation: 2025 LiveLaw (Del) 1601Case no.: CM(M) 2252/2025Click here to read order

Any Interpretation Diluting Commercial Courts Act Defeats Its Purpose; No Leniency For Litigants Who Protract Proceedings: Delhi High Court

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