Judgement to Interim Stay in Writ Proceedings for Asian Restructuring: the Supreme Court refuses to Apply Automatic Stay Vacation Direction

The Supreme Court in the case Asian Resurfacing of Road Agency Private Limited vs Central Bureau of Investigation observed in an order passed by the High Court in the Writ Petition to apply an automatic vacation of stay for Asian Restructuring.

where order of stay of civil or criminal proceedings is produced The trial court not beyond six months of the order of stay so that on expiry of period of stay may fix a date order of extension of stay is produced Further the court observed the speaking order must show that the case was of such exceptional nature that continuing the stay was more important than having the trial finalized unless the proceedings can commence the same will end on expiry of six months from the date of such order unless similar extension is granted by a speaking order, in the cases where stay is granted in future and on expiry of six months from today unless in an exceptional case by a speaking order such stay is extended the same will come to an end In the Asian Resurfacing judgment the Supreme Court directed for proceedings of a civil or criminal trial is operating to grant a stay against all the pending cases.

the miscellaneous application for clarification is disposed of by clarifying that the order of stay granted by the Division Bench in the High Court cannot be treated as having no force. Further more the bench said we leave it open to the applicant to seek early disposal of the applicant to draw inspiration from the above directions as referred to above cannot succeed in view that this Court cannot be understood as having intended to apply the principle to the fact situation which is presented in this case, we are afraid of that the attempt.

the Asian Resurfacing case revolved around the questions arising out of the pendency of civil and criminal cases, i.e., of trial being halted and the tendency towards procrastination on the strength of the orders of stay granted, the bench in the present case noted. The court further said that the result was that cases were not being taken to their logical conclusion with the speed with which they should have been done.

the 6 months cap on interim stay orders is not applicable to orders passed by it earlier the Supreme Court held.

The Division Bench comprising of a High Court stayed operation of the order passed by the Single Judge in a writ petition in the case of Asian Resurfacing of Road Agency Private Limited and Another v. Central Bureau of Investigation the writ petitioner sought clarification that the order passed in the said judgment would apply to the facts of this case by filing a miscellaneous application before the Supreme Court.