Law min plans to build commercial courts at district level

RSTV Bureau

Law Ministry plans to amend the law on commercial courts to allow the 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 a business index.

Ravi Shankar Prasad, Law Minister at a public event

Ravi Shankar Prasad, Law Minister at a public event

The proposal is based on the recommendation of a panel headed by the secretary (justice) in the law ministry, a top ministry official said.

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, the official said.

The issue came up for discussion at a recent meeting of the task force.

The 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 proviso 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.