What is a Case Management Hearing? Discuss the scope of Order XVA of the Code of Civil Procedure, 1908.....

Question: What is a Case Management Hearing? Discuss the scope of Order XVA of the Code of Civil Procedure, 1908 as applicable to commercial courts. [HPJS 2023]

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Answer

A Case Management Hearing is a procedural mechanism introduced to ensure the efficient and timely resolution of civil suits, particularly in commercial disputes. The objective is to streamline the trial process by identifying issues, fixing timelines, and reducing procedural delays. This hearing is governed by Order XVA of the Code of Civil Procedure, 1908 (CPC), which was inserted through the Commercial Courts Act, 2015 to facilitate expedited disposal of commercial cases.

A Case Management Hearing is a pre-trial procedural stage where the court exercises its power to actively manage the case by setting a structured framework for its progress. It allows the court to:

• Identify and frame issues for trial.
• Fix timelines for the submission of evidence and arguments.
• Encourage settlement or alternative dispute resolution (ADR) if possible.
• Limit the number of witnesses and control the volume of documents to avoid unnecessary delays.
• Ensure that parties comply with procedural requirements to avoid undue adjournments.

Order XVA was inserted by the Commercial Courts Act, 2015 to govern the procedure for case management hearings in commercial courts. The key provisions of Order XVA are:

1. Application to Commercial Courts: Order XVA applies exclusively to commercial suits of a specified value (₹3 lakhs or more) under the Commercial Courts Act, 2015. The provisions aim to address procedural inefficiencies and expedite the resolution of complex commercial disputes.

2. Power of the Court to Hold Case Management Hearings: The court is empowered to convene a case management hearing at any time after the completion of pleadings (plaint, written statement, and replication). The court may direct the parties to appear before it to settle procedural aspects of the case.

3. Court's Authority to Frame Timelines: The court has the authority to:

• Fix a schedule for the completion of evidence (including cross-examination).
• Direct the parties to produce documents within a specific timeframe.
• Set time limits for oral and written arguments.
• Limit the number of adjournments.

4. Consequences for Non-Compliance

If a party fails to comply with the court’s directions in a case management hearing, the court may:

• Close the party’s right to produce evidence.
• Strike out pleadings.
• Impose costs.

5. No Adjournments Without Just Cause: The court is empowered to restrict adjournments unless a party shows sufficient cause. The objective is to prevent unnecessary delays and ensure that the trial proceeds according to the fixed schedule.

6. Efficient Use of Court Time: Order XVA allows the court to consolidate issues, direct the use of electronic evidence, and suggest settlement through mediation or arbitration. This ensures that only relevant issues are argued, reducing the burden on the court.

In Ambalal Sarabhai Enterprises Ltd. v. K.S. Infraspace LLP [(2020) 5 SCC 410], the Supreme Court emphasized the importance of case management hearings in ensuring that commercial cases are disposed of within the statutory time frame of 6 months.

In Sundaram Finance Ltd. v. Abdul Samad [(2018) 3 SCC 622], the court highlighted that active case management reduces the complexity of disputes and ensures procedural efficiency.

A Case Management Hearing under Order XVA of the CPC plays a crucial role in expediting the resolution of commercial disputes. By empowering courts to fix timelines, limit adjournments, and control procedural delays, Order XVA ensures that commercial suits are conducted in a disciplined and time-bound manner.

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