Centre plans to set up more commercial courts: 

Centre plans to set up more commercial courts: 

Context:

• Union government proposed to establish commercial courts in districts to further improve the parameters of ease of doing business.

Indian’s performance within the legal framework according to the World Bank’s Ranking and the government’s take on it:

• India’s performance has been varied within the legal framework.
• The World Bank’s ranking marked “court system and proceedings in India” 4.5 out of a total of 5, but in management of cases, it was 1.5 out of 6.
• India also fared well in alternative dispute redress mechanism and scored 2.5 out of a total of 3 marks.
• The government is thus proposing amendments to facilitate the establishment of commercial courts, at the district level, in places where the High Courts have ordinary original civil jurisdiction.
• The specified value of commercial disputes would be brought down so as to expand the scope of commercial adjudication effectively and expeditiously.

Constitution of commercial courts, commercial Dickson and commercial appellate division:

• The Commercial Courts, Commercial Division and Commercial Appellate Division of the High Courts Act, 2015 constitutes a two layer set-up., i.e.
• The Commercial Courts/Commercial Divisions; and
• The Commercial Appellate Divisions.
• Except where High Courts have ordinary original civil jurisdiction the State Governments are to set-up Commercial Courts at the District level.
• And wherever the High Courts have ordinary original civil jurisdiction, the Chief Justice is to set-up a Commercial Division bench presided by a single Judge;
• The Commercial Appellate Division presided by bench of two Judges is to be constituted by the Chief Justice of each of the High Courts,  to hear appeals from decisions of the Commercial Court or Commercial Division.

Definition:

• The commercial courts attempts to cover a broad range of disputes within the scope of a ‘commercial dispute’.
• The definition broadly covers commercial disputes arising from ordinary transactions of merchants, bankers, financiers and traders such as those relating to mercantile documents, export and import of merchandise or service, admiralty and maritime law, transactions relating to aircraft, etc.

Objectives of commercial courts:

• The commercial courts provides for strict deadlines for conduct of case, filing of written statements, filing of documents, filing of written statements, etc.
• Several new procedures have also been adopted by the The Commercial Courts, Commercial Division and Commercial Appellate Division of the High Courts Act, 2015  to make the process of hearing of the disputes faster.
• The Act has also provided some detailed guidelines with respect to the factors which the Court has to consider when giving the direction about costs, that whether one party should bear all or some of the cost of the other party.

What is the way ahead?

• Before establishing more commercial courts, there is a need for appointment of sufficient number of judges to the Courts, appropriate infrastructure is provided, salary of judges are dramatically increased to attract better talented, trained and competent persons who are selected, based on merit, to head these courts, and  change in the very mindset and attitude of both the judges and the lawyers functioning in the Courts.
• The concept of commercial disputes and parameters are to be broadly discussed and explained do that there is not much of confusion.