No automatic vacation of stay. 3 CHIEF4 JUSTICE DY CHANDRACHUD: Yes, Asian Resurfacing.
No automatic vacation of stay 2023, The Supreme Court on Tuesday orally remarked that its order in Asian Resurfacing of Road Agency Pvt. The Supreme Court has acknowledged that its directive for automatic vacation of stay after 6 months, including in civil or criminal proceedings, needs to be seriously reconsidered as it is causing problems. Firstly, the judges observed that this process might negatively affect litigants without considering Today, a five-judge Constitution Bench of the Supreme Court led by Chief Justice D. Being The Court also went on to rely on the decision Deputy Commissioner of Income Tax vs. Catalog; For You; The Indian Express (Delhi Edition) ‘Automatic expiry of stay prejudices litigant’: Top court reverses its order 2023-12-14 - EXPRESS NEWS SERVICE . The Court orally said that the case of Asian Resurfacing of Road Agency Pvt. N. Tribunal’s power to grant stay The Appellate Tribunal (Tribunal) is the second appellate authority in the appellate mechanism under the IT Act. A. Court cannot use discretionary powers for automatic vacation of High Court orders. Central Bureau of Investigation directing automatic vacation of stay granted by any Automatic Vacation Of Stay Arbitrary & Discriminatory. No. Read more to know the details. 39. Justice Abhay S. Introduction: A five-judge Constitution Bench of the Hon’ble Supreme Court, vide its recent judgment in High Court Bar Association Allahabad v. 3 CHIEF4 JUSTICE DY CHANDRACHUD: Yes, Asian Resurfacing. Subscribe. Home; Rights. Supreme Court. Justice Pankaj Mithal wrote a separate but concurring judgement in the case. “We have, of course, held that there The Supreme Court refused to apply the dictum of automatic vacation of stay in Asian Resurfacing of Road Agency Private Limited and Another v. . B. Courtroom. Published on: ന്യൂഡൽഹി ∙ ഹൈക്കോടതി അനുവദിക്കുന്ന സ്റ്റേ 6 മാസം The Supreme Court today held that there cannot be an automatic vacation of stay orders granted by a lower court or high court in civil and criminal cases after six months. VS. 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. Only the legislature can provide that The five-judge bench of the Supreme Court underlined two crucial concerns stemming from the automatic vacation of stay orders. AUTOMATIC VACATION OF STAY – OVERRULED. , which overruled the 2018 judgment in Asian Resurfacing, the Supreme Court has held that if an interim The intention behind this provision was to expedite legal proceedings by preventing stay orders from causing indefinite delays. The top court had on December 13, There cannot be an automatic vacation of stay orders passed by trial courts and high courts only due to a lapse of time, the Supreme Court said on Thursday. Director V. We do not approve the direction issued to decide all the cases in which an interim stay has been granted on a day-to-day basis within a time frame. Central Bureau of Investigation 4 inter alia automatic vacation of stay orders granted by High Courts unless extended by a speaking order and day-to-day Writing for the CJI and Justices Pardiwala and Manoj Misra, Justice Oka said, “We framed two questions. The bench observed the automatic vacation of stay prejudices the litigant irrespective of the conduct of that litigant and there are circumstances over which a litigant has no control, During a day-long hearing, Senior advocate Rakesh Dwivedi argued that, "When an order of stay is automatically vacated, there is no application of mind involved and which is the essence of judicial decision In a most progressive, pragmatic, pertinent, persuasive and so also a path breaking judgment titled High Court Bar Association, Allahabad vs State of UP & Ors in Criminal Appeal No. , which overruled the 2018 judgment in Asian Resurfacing, the Supreme Court has held that if an interim protection order passed by a High Court stood automatically vacated pursuant to Asian Resurfacing but the trial has not been concluded, the vacation of stay shall be invalid and Observing that automatic vacation of stay can result in miscarriage of justice in some cases, a three-judge bench comprising Chief Justice of India DY Chandrachud, Justice JB Pardiwala and Justice The said proviso would result in the automatic vacation of a stay upon the expiry of 365 days even if the ITAT could not take up the appeal in time for no fault of the assessee. Even at the trial stage, the power of granting stay is to be used only in rare occasions. Overturning 2018 Asian Resurfacing case, Supreme Court held that there could be no automatic vacation of stay order of High Courts in six months. S. The The original judgment, delivered by a three-judge bench comprising Justices AK Goel, Navin Sinha, and Rohinton Nariman, mandated automatic stay vacation after six months unless extended by a speaking order 38. The hearing of the case concluded on December 13. Central Bureau of Investigation (2018) 16 SCC 299 had ruled that in all civil & criminal cases stay granted by a court shall automatically expire at the Answer: No, the automatic vacation of stay applies only to the trial of civil and criminal proceedings. _____to _____, whose appointment are on hold for about _____ years, interalia for Vacation of the stay order dated _____ (Expired on _____) passed by this Hon'ble Court obtained by the Petitioner by lying before this Hon'ble Court , Concealing the fact that the Applicants (Respondents In a landmark judgement, the Supreme Court has struck down the automatic vacation of stay orders. A stay order refers to a temporary pause on a proceeding or a ruling of a court in order to secure the rights of the party until the matter is finally adjudicated upon. Case details:-MA 1404/2022 in. Pepsi Foods, (2021) 7 SCC 413 which struck down a similar provision in Income Tax Act 1961, providing for automatic vacation of Appellate Tribunal's stay order if the Appeal was not decided within 365 days. Chandrachud unanimously held that High Court orders staying civil or criminal proceedings do not automatically lapse after six months. It added that the Supreme Court should not have directed automatic vacation of stays by HCs on expiry of 6 months, unless extended by the High Court. 38. This landmark judgment, which diverges from the precedent set in the Asian Resurfacing case of 2018, underscores the court's commitment to upholding judicial discretion The courts specifically held that there will be no automatic vacation of stay on proceedings before a court post the trial stage when the judgment and decree has been passed. and Another, 3 wherein the Hon'ble Allahabad High Court vide judgment dated 03. Without commenting upon the merits of the case, this apBHARWANI Before the Single Bench, it was contended that, the application for vacating of stay orders was served on the Counsel for the writ petitioners on 21. We clarify that in the cases in which trials have been concluded as a result of the automatic vacation of stay based only on the decision in the case of Asian Resurfacing MANU/SC/0308/2018 : 2018:INSC:282 : (2018) 16 SCC 299, the orders of automatic vacation of stay shall remain valid. The top court had on December 13, 2023, reserved its judgement in the case after A provision of automatic vacation of the Appellate Tribunal's stay order was incorporated in Section 254 (2A) of the Income Tax Act, 1961 (for short conditions leads to automatic vacation of this stay order. State Of Uttar Pradesh & Ors. 3589 of 2023 and cited in Neutral Citation No. State of U. 3589 Page of 2023 etc. It was argued by the Learned Counsel for the The Supreme Court has ruled that stay orders granted by trial courts and high courts in civil and criminal matters should be automatically vacationed after six months. 2020 and as such, 2 weeks would have expired The principle of automatic vacation of stay orders after six months, as laid down in the SC’s March 28, 2018 judgment in ‘Asian Resurfacing of Road Agency’ case, “is liable to result in India News: The Supreme Court reverses its own 2018 ruling on automatic vacation of stays on proceedings in civil and criminal cases after six months. In a significant judgement, the Supreme Court on Thursday held that there cannot be an automatic vacation of stay orders granted by a lower court or high court in civil and criminal cases after six months. Challenges and Concerns Raised. A constitutional bench of the Supreme Court of India ("SC") has held that there shall be no automatic vacation of stay orders granted by a High Court ("HC"), reversing the earlier position expressed in a 3-judge SC decision in Asian Resurfacing of Road Agency Private Limited & Anr v Central Bureau of Investigation 1 ("Asian Resurfacing"). RAKESH DWIVEDI: My Lord, this is1 about that automatic vacation of stay, My Lords, not only in criminal matters, but civil matters2 and across the board, My Lords. In a country like India where dockets of the courts are always overflowing, it is not always the litigants’ fault for The automatic vacation of stay orders after six months, as directed by the Supreme Court, raises the question of whether this is always fair to the litigants. We do not approve the direction issued to decide all the cases in which an interim stay has Various submissions were canvassed before the Supreme Court along the lines of an automatic vacation of interim relief being patently unjust, unfair and unreasonable. New Delhi, February 29 In a significant judgement, the Supreme Court (SC) on Thursday held that there cannot be an automatic vacation of stay orders granted by a lower court or high court in civil RAKESH DWIVEDI: My Lord, this is1 about that automatic vacation of stay, My Lords, not only in criminal matters, but civil matters2 and across the board, My Lords. The issue of prioritising the disposal of cases should be best left to the discretion of the concerned courts where the cases are pending," held the bench, which also comprised justices A S Oka, J B Pardiwala, Pankaj Mithal and Manoj Misra. LTD. Chandrachud reserved its judgement on whether a temporary stay granted by a Court in pending cases automatically ceases to operate after six months. Let’s explore this latest development in more detail. The Court must Observing that automatic vacation of stay can result in miscarriage of justice in some cases, a three-judge bench comprising Chief Justice of India DY Chandrachud, Justice JB Pardiwala and Justice "There cannot be an automatic vacation of stay," said Justice Oka, who wrote the judgement for himself, the CJI and justices J B Pardiwala and Manoj Misra. Report this article Akriti Seth Akriti Seth Subject Matter Expert-Law Published Mar 14, 2024 + Follow Since the object of the third proviso to Section 254(2A) of the Income Tax Act is the automatic vacation of a stay that has been granted on the completion of 365 days, whether or not the assessee Interpreting its decision in High Court Bar Association, Allahabad v. The Bench was reconsidering a March 2018 judgement in Asian Resurfacing of Road Agency Pvt Ltd and Another v Central Bureau A 5-judge bench of the Supreme Court is hearing today the reference against the 2018 judgment in Asian Resurfacing of Road Agency P. Thus the issue of automatic vacation of stay was referred to a five-judge constitution bench. Automatic vacation of a stay order which is granted after due application of mind prejudices a litigant, the Supreme Court said Wednesday as it examined the correctness of its 2018 judgement which held that stay granted in civil or criminal cases will automatically lapse upon expiry of 6 months unless extended by a court. Y. Writing the majority judgment, Justice Oka said “Constitutional courts should not fix timeline for disposal of cases pending in any court. 7of 47 stay, a Court subordinate to the High Court cannot pass any A three-judge bench had in its 2018 verdict in the case of Asian Resurfacing of Road Agency P Ltd Director Vs CBI held that the interim order of stay granted by courts, including high courts, will stand vacated automatically unless they are specifically extended. This order, initially given in Asian Resurfacing of Road Agency Pvt. first published: Feb 29, 2024 11:56 SC says no automatic vacation of stay orders of trial courts, HCs The court stated that trial courts, being familiar with grassroots situations, are better positioned to determine which cases should be heard on priority “It is in the interest of justice to provide that a reasoned stay order, once granted in any civil or criminal New Delhi: A five-judge constitution bench of the Supreme Court on Thursday revisited its earlier judgment of 2018 and held that the Supreme Court cannot ordinarily fix a time-bound schedule for the disposal of cases by lower courts and there cannot be an automatic vacation of a stay order after a lapse of six month’s time period. Stay by Supreme Court not vacated automatically Introduction: In a notable development, the Supreme Court has constituted a five-judge bench to review a ruling concerning the controversial issue of ‘automatic vacation of stay. During the proceedings, the Chief stated that the automatic vacation of stay Orders prejudiced litigants irrespective of their conduct. The five-judge bench did not The courts specifically held that there will be no automatic vacation of stay on proceedings before a court post the trial stage when the judgment and decree has been passed. Stay orders can be classified into two types: ‘stay of proceedings 142 of the Constitution (which allows the Supreme Court to pass any order to secure “complete justice”) can order automatic vacation of all interim orders of the HC of staying proceedings of Civil and Criminal cases on the expiry of a certain period? Since the object of the third proviso to Section 254(2A) of the Income Tax Act is the automatic vacation of a stay that has been granted on the completion of 365 days, whether or not the assessee is responsible for the delay caused in hearing the appeal, such object being itself discriminatory, was held liable to be struck down as violating Interpreting its decision in High Court Bar Association, Allahabad v. “There cannot be an automatic vacation of stay,” said Justice Oka, who wrote the judgement for himself, Chief Justice D Y Chandrachud and justices J B Pardiwala and Manoj Misra. Central Bureau of Investigation requires revisit. & Anr. The apex court emphasized that there can't be a direction for automatic vacation of stay after six months. Rule of law. This decision comes in light of concerns that automatic vacation of stay orders could lead to serious miscarriages of justice in certain cases. This proviso authorises automatic vacation of stay of demand after a certain period, even in cases where a delay in hearing of appeals is not attributable to the taxpayer. S. Areas. Central Bureau of Investigation in March 2018, was reiterated by In the 2018 judgment, the court had held that the stay granted by a lower court or high court in civil and criminal cases will automatically expire after six months unless extended specifically. : 2024 INSC 150 that was pronounced by the Criminal Appeal No. However, the Apex Court had later In its 2018 judgment, the top court had held that the stay granted by a lower court or high court in civil and criminal cases will automatically expire after six months unless extended specifically. 2024 overruled the directions issued in the case of “Asian Resurfacing of Road Agency Pvt. against the interim order passed by the learned Single Judge, application for 1 (2 of 2) [SAW-1169/2022] vacation of stay. 4. , adjudicated inter alia upon whether the court, A five-judge Constitution Bench headed by Chief Justice D Y Chandrachud overturned the 2018 judgment on the automatic vacation of stay orders on Thursday and emphasised that timeline for case In a pivotal ruling, the Indian Supreme Court, through a constitutional bench, has overturned its previous directive regarding the automatic vacation of stay orders in civil or criminal proceedings. Dwivedi underscored the arbitrary and discriminatory impact of the automatic vacation directive, emphasizing its general applicability across Eventually, the Constitution Bench of the Hon’ble Supreme Court of India vide its judgment dated 29. Oka wrote the majority judgment, which was We hold that there cannot be automatic vacation of stay granted by the High Court. Supreme Court overturns Asian Resurfacing judgment; no automatic vacation of stay orders after six months In Asian Resurfacing judgment, a three-judge bench of the top court had directed that all stay orders in The Supreme Court has ruled that stay orders granted by trial courts and high courts in civil and criminal matters should be automatically vacationed after six months. A five-judge Constitution Bench headed by Chief Justice D Y Chandrachud also ruled that the constitutional courts -- the Supreme Court and 6 months stay vacation judgement. in. Niches. the ground of automatic vacation of stay after the expiry of a period of six months, the learned Magistrate expressed a view that when the jurisdictional High Court had passed an order of . The jurisdiction of this Court cannot be exercised to make such a judicial legislation. A five-judge constitution bench, led by CJI DY An automatic vacation of stay after the expiry of six months caused a lot of inconvenience to the litigants and the entire judicial system. AUTOMATIC VACATION of a stay order which is granted after due application of mind prejudices a litigant, the Supreme Court said Wednesday as it examined the correctness "There cannot be an automatic vacation of stay," said Justice Oka, who wrote the judgement for himself, the CJI and justices J B Pardiwala and Manoj Misra. Debayan Roy. Criminal Appeal No. Once a decree is passed in a civil case, the trial ends, and execution proceedings initiated at the instance of decree-holder but later stayed by High Courts would not automatically vacate after the expiry of 6 months. Stay by Supreme Court not vacated automatically We hold that there cannot be automatic vacation of stay granted by the High Court. DIRECTOR Versus In a significant verdict, a five-judge bench of the Supreme Court today has held that a stay order granted in civil and criminal cases by the trial court and High Court does not automatically lapse after six months. Pardiwala and Manoj Misra. A provision of automatic vacation of the Appellate Tribunal's stay order was incorporated in Section 254 (2A) of None of the lawyers who appeared in the matter supported the automatic vacation of stay orders, according to Bar and Bench. State of U. Central Bureau of Investigation as per which Asian Resurfacing of Road Agency P. The Court acknowledged the drawbacks of prolonging stay orders, but also emphasized the need for application of judicial mind in vacating them. Interestingly, the matter concerning the adverse effects experienced by the litigants upon the automatic vacation of the stay order was brought before the Hon'ble Allahabad High Court in the matter of Chandrapal Singh vs. In the result, stay petition of the assessee is partly allowed . Vs Central Bureau of Investigation (Supreme Court of India) The Apex Court in the historic case of Asian Resurfacing of Road Agency Private Limited and Another v. P. The recent development suggests that there are concerns about the practical implications of the automatic vacation of stay orders after six months. I need not place those judgments, My Lords, the Asian SC refers a 2018 decision on automatic vacation of stay Orders to five-judge Bench In the 2018 judgment, the court had held that in all matters, civil or criminal, Orders of stay, once granted, should not continue beyond a period of six months The automatic vacation of stay orders after six months, as directed by the Supreme Court, raises the question of whether this is always fair to the litigants. ANDROID iOS. A bench of CJI DY Chandrachud, Justice Abhay S Oka, Justice JB Pardiwala, Justice Pankaj Mithal, and Justice Manoj Misra has reversed the 2018 A five-judge constitution bench headed by Chief Justice D Y Chandrachud made the observation while reserving its verdict on a plea seeking reconsideration of its 2018 judgment. While the intent behind such a directive is to expedite trials, there can be situations where litigants are caught in a Catch-22. Whether this court in exercises of its jurisdiction under Article 142 of the Constitution can order automatic vacation The Supreme Court never invoked such a blanket order i. The reference is answered accordingly. Page 8 of 47 would mean an automatic vacation of stay without application interim order; i. Oka pronounced the majority opinion on behalf of himself and CJI Chandrachud with Justices J. Now, when the contempt proceedings have been closed, learned Additional Advocate General prays that he may be permitted to press application for vacating stay order. 3589 of 2023 etc. Further details would be supplied soon. Eventually, the constitution bench of the Hon’ble Supreme Court of India vide its judgment dated 29. Ltd. putting cap on stay order and its automatic vacation after 6 months which set at naught a very huge number of interim orders lawfully passed by the High Courts and that without hearing the contesting parties, as jurisdiction of Article 142 can only be invoked in very extraordinary "There cannot be an automatic vacation of stay," said Justice Oka, who wrote the judgement for himself, the CJI and justices J B Pardiwala and Manoj Misra. We welcome your comments at letters@scroll. The bench led by CJI and comprising Justices Abhay S Oka, J B Pardiwala, Pankaj Mithal and Manoj Misra, had reserved the judgment, in December last year, on the petitions filed by the High Court Bar Association Allahabad and others. Thyagarajan. I need not place those judgments, My Lords, the Asian It was observed that the Hon’ble Supreme Court’s directions in Asian Resurfacing on automatic vacation of a stay order upon the expiry of a certain period virtually amounted to judicial The Supreme Court on February 29 held that there cannot be an automatic vacation of stay orders granted by a lower court or high court in civil and criminal cases after six months. We hold that such blanket directions cannot be issued in the exercise of the jurisdiction under Article 142 of the A constitutional bench of the Supreme Court of India ("SC") has held that there shall be no automatic vacation of stay orders granted by a High Court ("HC"), reversing the earlier position expressed in a 3-judge SC decision in Asian Resurfacing of Road Agency Private Limited & Anr v Central Bureau of Investigation 1 ("Asian Resurfacing"). 11. Consequently, no trial or proceedings can remain stayed after six months. This means that if a High Court grants a stay on a case, it won’t automatically expire after a certain period. e. We do not approve the direction issued to decide all the cases in which an interim stay has In a significant ruling, the Supreme Court on Thursday (February 29) overturned its 2018 judgment which mandated the interim orders passed by High Courts staying trials in civil and criminal cases We hold that there cannot be automatic vacation of stay granted by the High Court. The decision was made by a five-member On 29 February 2024, a five-judge Constitution Bench of the Supreme Court led by Chief Justice D. & Ors. 5 RAKESH DWIVEDI:6 Yes. ’ This decision follows growing concerns raised by legal experts and practitioners regarding the potential implications of the existing ruling. 02. The Leaflet explains the rationale and the significance of the five-judge Constitution Bench judgment that a stay granted by a high court cannot be vacated auto. Get the app. Held that,the third proviso to Section 254(2A) of the IT Act will now be read without the word “even” and “is not” after the words “delay in disposing of the The top court overturned a direction issued by a three-judge bench in Asian Resurfacing case in 2018, saying all interim orders of stay passed by all High Courts cannot be set at naught by a Thus, the directions of the Court that provide for automatic vacation of the order of stay and the disposal of all cases in which a stay has been granted on a day-to-day basis virtually amount to judicial legislation. The Supreme Court on Friday said that the principle laid down by a three-judge bench in 2018 judgment for automatic lifting of stay in all civil and criminal cases after six months even without application of mind, would cause Automatic vacation of stay orders after six months: Supreme Court refers issue to Constitution bench. “Vacation of stay is a judicial act and not an administrative act,” the Chief Justice observed, expressing further reservations about the Court’s earlier decision. The SC should not have directed automatic vacation of stays by HCs on expiry of 6 months, unless extended by the HC," a five-judge SC bench, headed by the Chief Justice of India (CJI) Dr Explained: The Supreme Court ruling against automatic vacation of stay granted by a high court. 2024 overruled the directions issued in the case of “Asian Resurfacing case (supra) i which provides for automatic vacation of stay orders granted by High Courts unless extended by a speaking order and day-to-day hearing of cases in which "The superior courts may issue directions for the timeout disposal of cases only in exceptional circumstances. vs. Crl. Central Bureau of Investigation (2018) 16 SCC 299 to PressReader. Right off the bat, he stated the Bench did not agree with the Asian Resurfacing judgement. 01. The pattern of cases pending in various courts That this Application is being filed by the Respondent No. 1375-1376/2013 ASIAN RESURFACING OF ROAD AGENCY P. 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