Delhi Court Wraps Up 17-Year Loan Fee Dispute, Calls for Faster Commercial Case Resolution

A Delhi court has finally settled a legal fight that lasted 17 years, underlining the serious problem of delayed justice in business-related cases.

The case began in April 2008, when a private company filed a suit against Jammu and Kashmir Bank Ltd. The company claimed that the bank had wrongly taken ₹17.92 lakh from it as processing charges for a loan and demanded a refund.

On May 26, the court gave its final verdict and ruled in favor of the bank. The judge said the company failed to prove that it deserved a refund of the processing fee. The court relied on the original loan sanction letter, which clearly mentioned the processing charges.

District Judge Monika Saroha, who heard the case, noted that the bank processed the loan application and did significant work, so it had the right to keep the processing fee as agreed in writing.

However, the judge raised serious concerns about how long it took to decide the matter. She said that such cases should have been finished within a few months, but were delayed due to unnecessary applications, repeated adjournments, and frequent changes in lawyers by the company.

She remarked:

"Long delays in resolving business disputes reduce confidence among investors and slow down economic growth."

Judge Saroha emphasised that quick decisions in commercial cases are crucial, not just for legal reasons, but also to help businesses operate smoothly and with confidence.

The judgment said:

“Resolving business disputes quickly is essential for building trust in financial transactions and creating a healthy environment for the economy.”

The court also highlighted how both parties spent a lot of time and money over the years while fighting the case. This situation, according to the judge, reflects a bigger issue in the justice system where slow court processes hurt businesses financially and operationally.

She added:

“This drawn-out legal battle placed heavy financial pressure on both the private company and the bank. It shows how harmful delayed commercial justice can be to our economy.”

Judge Saroha stressed the urgent need for reform, urging courts, lawyers, and litigants to work more professionally to avoid delays in business disputes.

She concluded:

“Everyone involved must act responsibly to prevent such delays in the future. Only then can we build stronger commercial confidence and support economic growth.”