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Law and order

Why a lack of judicial reforms could kill India’s startup story

If the Stayzilla co-founder’s arrest shook Indian entrepreneurs a while ago, a look at the judicial trend behind the incident must shake the policymakers

21/06/17

Alok Prasanna Kumar

The payment dispute between Stayzilla and Jigsaw epitomises a deeper problem with the Indian judiciary that could potentially torpedo the growth of Indian startups

The use of criminal cases to try and resolve a civil dispute is not a new phenomenon but its latest manifestation seems to have obtained judicial blessing

The trends from both the District Courts and High Courts are clear—civil litigation is stagnating or falling and criminal litigation continues to rise

In its 188th Report, the Law Commission had recommended that an outer limit of two years be set for civil suits

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Entrepreneurship is being encouraged today throughout institutions, across the ranks. But we know it is a messy process, particularly in commercial enterprises. So when Stayzilla co-founder Yogendra “Yogi” Vasupal was arrested by Chennai Police earlier this year, it took the entire startup community by shock, consternation, and eventually, a furore erupted.

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