Supreme Court, fine must be imposed, the amount should be spent by the target of such litigations by way of case and lawyer fees.
In an important decision to discourage needless and unnecessary litigations, particularly in corporate matters where companies with deep pockets fight legal battles
The bench was particularly concerned over the corporates misusing judicial platforms for settling scores against rivals and said that the erring party should pay a cost to its rival for dragging it to litigation.
Settling the principles on calculating the cost will impose on a party. The bench said it is necessary that in commercial litigation, commercial interests be weighed. This would include consequences of the matter not receiving favorable consideration by the courts.
The court passed the verdict while imposing a cost of around Rs 31 lakh on two companies. They had challenged a TN government to decide to award a tender for the production. Also, supply of polyester-based hologram excise labels to their rival. He incurred The rival will repay 50% of the costs.
The companies had filed a PIL in Madras HC which had quashed the government decision, compelling the firm to move to Supreme Court. Senior advocates, Ranjit Kumar and Amit Anand Tiwari, appearing for the state, told the bench that the two companies had not even participated in the tender process and their filing PIL was an abuse of the process of law.
“Mindless appeals should not be the rule. We are conscious that in the given facts of the case the respondents have succeeded before the. Division Bench though they failed before the learned single Judge. Suffice to say that all the parties before us are financially strong. Also, took a commercial decision to carry this legal battle right up to this Court. They must, thus, face the consequences and costs of success or failure in the present proceedings,” the bench said,. Accepting the contentions of the state.
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