Supreme Court Slams Delay In 23-Year-Old Civil Suit, Revives Dismissed Case With Deadline For Verdict

The Bench of Justice Surya Kant and Justice NK Singh allowed an Appeal filed against a Division Bench judgment of the Gujarat High Court dated April 25, 2024, which had dismissed the plaintiff’s appeal under Section 13 of the Commercial Courts Act, 2015 on grounds of delay as well as on merits.

The Court, however, found the High Court's approach lacking compassion and legal prudence, especially considering the history of the matter.

“The appellant had filed the suit in 2001. It took more than 17 years for the Commercial Civil Court to frame the issues,” the Court noted, terming the manner in which the suit was dealt with “shocking” and raising questions about judicial accountability and systemic delay.

In the underlying case, the plaintiff’s evidence was closed abruptly on September 26, 2022, and the suit was dismissed on December 15, 2022. A delay of 476 days ensued in filing the Appeal before the High Court, which the Court declined to condone.

The Court observed that in the peculiar facts of the case, where the plaintiff had waited over 20 years for justice, the High Court should have taken a more sympathetic and compassionate view. The Bench emphasized that procedural defaults can often be compensated by imposing costs rather than completely foreclosing the right to a hearing.

“It goes without saying that wherever the courts are satisfied that the litigant is negligent, the opposite party can be suitably compensated with costs. Such a recourse would have enabled the plaintiff to seek adjudication on merits,” the Court said.

Accordingly, the Court set aside both the High Court’s judgment and the orders passed by the Commercial Court in 2022. It directed the City Civil Court, Ahmedabad, to grant the plaintiff two opportunities to lead its evidence, both of which must be exercised before July 31, 2025. If the plaintiff fails, the Court may again proceed to close the evidence.

The respondent-defendant will then be granted an opportunity to lead its evidence, and the case is to be decided on merits by December 31, 2025.

The Court made it clear that it had not expressed any view on the merits of the case and also directed both parties to appear before the Commercial Court on June 16, 2025.

Notably, the Bench has already initiated suo motu proceedings regarding systemic delay in commercial litigation, and listed the matter for further hearing on August 4, 2025.