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August 2010

SC wants a break from frivolous pleas

By Raman Jokhakar
Tarunkumar G. Singhal
Chartered Accountants
Reading Time 2 mins

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48 SC wants a break from frivolous pleas

The Supreme Court has called for effective laws to stop
frivolous litigants. It asked the Legislature and Law Commission to revisit laws
relating to imposition of cost meant to curb the menace of frivolous litigation.
There are more than 3 crore cases pending in the country. The Apex Court,
however, set aside an innovative order of the Delhi High Court, which directed
the litigant to give an undertaking to pay a huge sum to the other party in
event of rejection of the case. “The lack of appropriate provisions relating to
costs has resulted in a steady increase in malicious, vexatious, false,
frivolous and speculative suits, apart from rendering S. 89 of the Code (Civil
Procedure Code) ineffective. Any attempt to reduce the pendency or encourage
alternative dispute resolution processes or to streamline the civil justice
system will fail in the absence of appropriate provisions relating to costs.
There is therefore an urgent need for the Legislature and the Law Commission of
India to re-visit the provisions relating to costs and compensatory costs
contained in S. 35 and S. 35A of the Code,” said a bench comprising Justice R.
V. Raveendran and Justice R. M. Lodha.

(Source : The Economic Times, dated 8-7-2010)

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