Delhi High Court Criticizes Unjustified Case Transfer, Upholds Judicial Integrity

Court Stays Order Transferring Commercial Suit Amid Allegations of Bias Without Proper Procedure

In a significant ruling, the Delhi High Court has stayed an order that transferred a commercial suit based on allegations of bias against the presiding judge. The court found that the transfer was ordered without adhering to the necessary guidelines, potentially undermining judicial morale.

The case in question involved Bull Value Incorporated VCC Sub-Fund as the petitioner and Delphi World Money Ltd as the respondent. The controversy began when the Principal District & Sessions Judge ordered the transfer of the suit without obtaining comments from the concerned judge and without following the established guidelines set forth in the precedent case of Directorate of Enforcement v. Ajay S. Mittal, 2024 DHC 4419.

Justice Girish Kathpalia, presiding over the matter, highlighted that allegations of bias must be supported by substantial evidence and cannot be entertained lightly. The court stressed that merely adjourning a matter with a direction to maintain the status quo does not create a reasonable apprehension of bias.

The court also addressed the grave allegation that a judicial officer had logged into a virtual court link to observe proceedings, which was later retracted with an expression of remorse by the respondent's counsel. Justice Kathpalia underscored the seriousness of such allegations and the necessity of immediate reporting if similar incidents occur.

The Delhi High Court's decision to stay the transfer order underscores the importance of following due process and maintaining the integrity of judicial officers. The case has been sent back to the court of District Judge Rakesh Pandit, where both parties are expected to appear and comply with the directions of the Division Bench.

The ruling serves as a reminder of the judiciary's commitment to upholding fairness and integrity in legal proceedings, ensuring that allegations of bias are thoroughly examined and substantiated before action is taken.

Bottom Line:

Transfer of a commercial suit based on allegations of bias against the presiding judge requires adherence to specific guidelines, and such orders without proper justification may undermine judicial morale.

Statutory provision(s): Civil Procedure Code, 1908 Section 24, Commercial Courts Act, 2015

Bull Value Incorporated VCC Sub-Fund v. Delphi World Money Ltd, (Delhi) : Law Finder Doc Id # 2821007