A Bench of Justices MR Shah and BV Nagarathna said that pendency of such execution applications and commercial disputes affects the ease of doing business.
“Time has come to take corrective measures and for that purpose the concerned High Court has to prepare a road map and take a call how to handle the problem to execution proceedings to execute the award passed under the Arbitration and Conciliation Act, 1996 and application under Section 34 decided and disposed of at the earliest so that the ultimate objective of arbitration and the Commercial Courts Act is achieved. If such cases are not disposed of at the earliest, it will ultimately affect the economy of the country and spoil business relations between the parties. It may also affect ease of doing business,” the Court observed.
The Supreme Court further said that commercial disputes in general should be disposed of at the earliest so that litigants faith in judiciary remains.
The Court, therefore, ordered the Allahabad High Court Chief Justice to present a road map towards early disposal of execution petitions under the Arbitration Act as well as commercial cases.
Towards this end, it directed the Chief Justice of Allahabad High Court to constitute a special committee of judges to prepare a road map to tackle the arrears of commercial disputes.
“We direct the registrar General of Allahabad High Court to present the current case status before the Chief Justice of the High Court. We request the Chief Justice of Allahabad High Court to constitute a special committee comprising of judges of High Court and invite suggestions to prepare a road map to tackle the arrears. High Court has to present to us before next date of hearing how it will deal with such large number of commercial dispute case pendency,” the Court ordered.
The status report has to be submitted by High Court Registrar General and not any other officer, the Court clarified.
The matter was listed for further hearing on May 18.
Source: Barandbench
