India: Supreme Court Mandates Pre-Deposit For Early Hearing

Last Updated: 6 May 2016
Article by AMLEGALS  

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)."

The bench 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 fees.

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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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