New Delhi: The Lok Sabha on Wednesday cleared a long-pending measure to set up commercial benches in select high courts to settle high value commercial disputes as part of the government's ease of doing business in India initiative. The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill, 2015 was passed by voice vote in the absence of Congress party, which was boycotting the House over some actions of Arunachal Pradesh Governor.
Law Minister D V Sadananda Gowda moved a clutch of official amendments to bring clarity in the bill which seeks to replace an ordinance issued on October 23. The Union Cabinet later this evening gave its ex-post facto approval to the amendments. In Clause 10 to the Bill, the words, 'Commercial Appellate Division' will be substituted by the words, 'Commercial Division'. Law Ministry said it was a "typographical error".
Another amendment deals with first proviso to Clause 7 to clarify that it will also be applicable to the pending cases. "It would reduce burden on the Division Bench. Amendment in proviso to Clause 7 of the Bill will bring more clarity about the said clause. After amendment in Clause 10, all applications and appeals in Arbitration matters, which are filed in the High Court may be heard and disposed of by the Commercial Division in the High Court consisting of a single Judge Bench," an official statement said after the Cabinet meeting.
Replying to the discussion on the Bill, Gowda said the it was brought with the intention of accelerating economic growth and improving the international image of India's justice delivery system. The need of the hour is "speedy and time-bound disposal" of cases, he said. The legislation provides for transfer of all pending suits and applications relating to commercial disputes involving a claim of Rs one crore and above in the high courts and civil courts to the relevant Commercial Division or Commercial Courts as the case may be.
Commercial Divisions are proposed to be set up in those high courts, such as Delhi, Bombay, Calcutta, and Madras High Court and the one in Himachal Pradesh, which are already exercising ordinary original civil jurisdiction. The UPA had initially brought the bill in 2010 which was referred to a Rajya Sabha Select Committee. The Law Ministry later referred it to the Law Commission. The present bill is based largely on the recommendations of the law panel.
A similar bill was pending before a Parliamentary Standing Committee after being introduced in the Rajya Sabha. While committee was examining it, government issued an ordinance. The committee which gave its report last week had largely supported the provisions of the bill.
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