LS passes commercial courts Bill

Why it is in news?
  • The Lok Sabha  passed the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Bill, 2018.
Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts
  • The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 ("the Act") provides for the creation of commercial courts at the district level and a commercial division at state level in the high courtsfor providing adispute redressal mechanism to ensure speedy disposal of high value 'commercial disputes’ above 1 crore worth.
  • Significance of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 for the Indian economy :
     1. Increased 'Ease of Doing Business' ranking.
     2. Building Investor confidence
     3. Will encourage emerging Entrepreneurial class.
     4. Reduced Mental pressure via speedy disposals increasing focused development.
    5. Will attract foreign companies with increased business engagement providing FDI & FII         sources.
    6. Fast track resolution would reduce the bank NPAs
  • Significance of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 for the Indian judiciary:
    1. Will Reduce the burden on Civil Courts .
    2. Speedy Disposal rate.
    3. Specialised courts will provide more efficient decision making.
    4. Reduced Pendency rate
    5. Fullfilment of vacant seats in Judiciary.(creating employment as well).
    6. Increased financial resources at court's disposal (via fees, penalties etc.)
  • Challenges in implementation of this Act:
    1. Institutional requirement (as infrastructure will be required)
    2. Accountability issues.( high profile cases with crores involved can lure the judicial officers)
    3. Enforcebility problems.(present enforcement rate is low which creates a little hope for this)
    4. Pendency can increase.( if not disposed efficiently in time bound manner further adding to the problems)
    5. Corruption.( Lobbying in corporate- politics sector is very apparent in the light of recents scams)
    6. Time bound decisions ( depends on judge's efficiency & sense of judgement)
    Amendement
    • It will designate some courts as commercial courts for speedy disposal of commercial disputes and will reduce the pecuniary jurisdiction of these courts from Rs. 1 crore to Rs. 3 lakh.
    • Minister of Law and Justice Ravi Shankar Prasad said this was aimed at improving the ease of doing business in India.
    Source
    The Hindu



Posted by Jawwad Kazi on 2nd Aug 2018
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