Supreme Court Refers Automatic Stay Order Vacation Issue to Five-Judge Bench for Review

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The Supreme Court of India, led by Chief Justice DY Chandrachud, has decided to refer the issue of automatic vacation of stay orders after six months to a larger five-judge bench. This decision comes in light of concerns that automatic vacation of stay orders could lead to serious miscarriages of justice in certain cases.

The bench, which also includes Justices JB Pardiwala and Manoj Misra, acknowledged the problems caused by prolonged stay orders in delaying trials. However, they emphasized the necessity of applying judicial mind in vacating these orders. The Court expressed,

“While there is no gainsaying in fact that prolonging of stay delays trial unduly, it needs to be factored in that the delay can also be by the inability of the court to take up the case expeditiously. Thus the principle laid down that stay shall be automatically vacated, which would mean automatic vacation of stay without application of judicial mind, would result in serious miscarriage of justice.”

This referral stems from a 2018 judgment by a three-judge bench led by Justice Adarsh Goel in the ‘Asian Resurfacing of Road Agency’ case. The judgment, which attempted to address long delays in court trials due to indefinite stay orders, stated,

“We consider it appropriate to direct that in all pending cases where stay against proceedings of a civil or criminal trial is operating, the same will come to an end on expiry of six months from today unless in an exceptional case by a speaking order such stay is extended.”

Senior advocate Rakesh Dwivedi, representing the Allahabad HC Bar Association, argued that the issue of affixing an expiry period on stay orders was not debated before the court in 2018. The CJI-led bench noted,

“When a high court grants stay in a criminal or civil case, it can’t be automatically vacated. The delay cannot always be attributed to the parties. Sometimes, it is because the cases do not get listed before the courts for a variety of reasons.”

The principle of automatic vacation of stay orders after six months, as laid down in the 2018 judgment, is now under scrutiny for potentially resulting in serious miscarriages of justice. The earlier judgment, authored by Justices Adarsh Goel and Navin Sinha, with Justice RF Nariman concurring, had aimed to remedy long delays in court trials caused by indefinitely operating stay orders.

This move by the Supreme Court to refer the matter to a larger bench reflects a cautious approach towards a complex issue that balances the need for expeditious trials with the principles of justice and fair play.

author

Vaibhav Ojha

ADVOCATE | LLM | BBA.LLB | SENIOR LEGAL EDITOR @ LAW CHAKRA

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