For the first time, the Supreme Court of India on realising the
fact that corporate entities are pleading for early hearings and
corporate matters consume a lot of judicial time, it ordered to
make pre-deposit for hearing their case on priority.
A Supreme Court bench headed by Chief Justice of India TS Thakur
directed Star India and BCCI, on 29th April 2016, to make a
pre-deposit of Rs 50 lakh each for an early hearing.
The bench observed that
People file cases and take chances here without
realising what will happen,".
Incidentally, it started with a day after Attorney General Mukul
Rohtagi suggested for direction of pre-deposits in corporate cases.
He suggested the same during the clarification sought from the
Governement of India, by Supreme Court of India, on the creation of
National Courts of Appeal in four regions.
It is interesting to note that the bench further observed on
quantum of pre-deposit
It should be ideally 10 times the fees charged by you
(senior advocates) for one hearing... it should be one crore
(rupees) since you take 10 lakh (rupees)."
even told the advocates that corporate matters were taking a
lot of time.
You must make some payment. We
will hear your case only after that,"
The senior advocate Abhishek Manu Singhvi, appearing for Star
India, suggested Rs 25 lakh, but the court agreed for Rs 50 lakh
only. The court directed to make deposit in 4 weeks time with SC
registry and said that the case will be heard in July provided the
payment is made by such time.
It is also not known as to what shall be done with such deposit.
However, such deposit are generally used for rendering pro
bono legal services to those litigants who cannot afford the legal
It is also pertinent to note that there are 26 judges including
the CJI in SC against the sanctioned strength of 31judges. Whereas,
till the date more than 60,000 appeals are awaiting for final
disposal in Supreme Court of India.
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The Ministry of Corporate Affairs notified on June 5, 2015 that certain provisions of the Companies Act, 2013 shall not apply to private limited companies or shall apply with such exceptions or modifications as directed in the notification.
Whilst trade and barter have existed since early times, the modern practice of forming business relationships through the means of contract has come into existence only since the industrial revolution in the West.
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