Delhi High Court Holds Costs for Delay Cannot Be Imposed Mechanically, Must Be Reasoned

The Delhi High Court ruled that costs for delay in legal proceedings must not be imposed mechanically or without proper reasoning.

Justice Tejas Karia was hearing VI-John Healthcare’s challenge to a ₹12 lakh cost imposed for a 48-day delay in filing a written statement in a trademark suit by Dabur India. The trial court had relied solely on a previous cautionary order, ignoring the facts and explanation offered.

The Court emphasised that each case must be evaluated on its own facts, and reasons must be recorded while awarding such costs.

The High Court observed that courts must balance procedural discipline with fairness and ensure that costs are not punitive but serve justice.

[VI- John Vs Dabur India]