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Some States May Get District-Level Commercial Courts Soon

Some States May Get District-Level Commercial Courts Soon

Some States May Get District-Level Commercial Courts Soon
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The law ministry plans to amend the law on commercial courts to allow establishment of such courts at the district-level in some states as part of the government's efforts to improve India's ranking in the ease of doing business index. The proposal is based on the recommendation of a panel headed by the secretary (justice) in the law ministry.

A task force has been set up by the government to suggest changes in judicial procedures for faster disposal of commercial disputes, and to improve the country's ranking in the World Bank index of ease of doing business.

The task force also recommends amending a key law dealing with time-bound settlement of commercial disputes.

The department of legal affairs in the law ministry is looking into the possibility of amending the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015, to allow establishment of commercial courts at the district-level in some states.

Representatives of the Delhi High Court and the Bombay High Court had expressed their inability to set up commercial courts at district-level unless amendments were made in the Act to remove provisos regarding the original jurisdiction of high courts, and reducing the value of commercial disputes that could be taken up at the district-level.

The law was passed to create commercial Benches in select high courts for speedy settlement of high-value business disputes.

With inputs from Housing News

Last Updated: Fri Nov 17 2017

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