{"id":31494,"date":"2018-10-27T14:23:19","date_gmt":"2018-10-27T08:53:19","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=31494"},"modified":"2018-10-27T14:23:19","modified_gmt":"2018-10-27T08:53:19","slug":"courting-the-rankings","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/courting-the-rankings\/","title":{"rendered":"Courting the rankings\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/opinion\/op-ed\/courting-the-rankings\/article22661678.ece\"><b>Courting the rankings<\/b><\/a><b>\u00a0<\/b><\/p>\n<p><b>Context:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Reports of India moving into the top 100 in the World Bank\u2019s Ease of Doing Business global ranking is credible.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">But there is a component that still has a dismal ranking and it is the one about \u201cenforcing contracts\u201d.<\/span><\/li>\n<\/ul>\n<p><b>The issue:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In the World Bank report India\u2019s ranking in the <\/span><b>\u2018enforcement of contract\u2019 component is 164<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The report says that it takes <\/span><b>an average of 1,445 days (or nearly four years) to enforce a contract<\/b><span style=\"font-weight: 400;\"> in India.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In this, the <\/span><b>distance to frontier (DTF) ranking score is 40.76<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The all-told cost to a litigant to recover amounts legitimately is <\/span><b>31% of the value of the claim<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This is a shocking state of affairs.<\/span><\/li>\n<\/ul>\n<p><b>\u201cEase of doing business\u201d index:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A nation\u2019s ranking in the \u201cease of doing business\u201d index is based on the average of 10 sub-indices which are: starting a business; dealing with construction permits; getting electricity connections; registering property; getting credit; protecting minority investors; paying taxes; trading across borders; enforcing contracts; and resolving insolvency.<\/span><\/li>\n<\/ul>\n<p><b>Commercial Courts, Commercial Division and Commercial Appellate Division:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In 2015 the Parliament passed the <\/span><b>Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act<\/b><span style=\"font-weight: 400;\">. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The purpose behind the Act is to <\/span><b>provide a forum with upgraded infrastructure<\/b><span style=\"font-weight: 400;\"> to resolve a certain class of disputes, classified as <\/span><b>\u201ccommercial disputes\u201d<\/b><span style=\"font-weight: 400;\"> in the Act, in a time-bound and effective manner.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The legislation also requires establishment of <\/span><b>appropriate infrastructure and manpower training<\/b><span style=\"font-weight: 400;\"> on a constant basis.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Act essentially paves the way for the setting up of <\/span><b>commercial courts at the district level and a commercial division in High Courts <\/b><span style=\"font-weight: 400;\">that have original jurisdiction along with a commercial appellate division in the High Courts to <\/span><b>hear appeals arising under the Act<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">By mandating that High Courts must show <\/span><b>levels of disposal of such claims<\/b><span style=\"font-weight: 400;\"> on their website, the Act also ensures <\/span><b>transparency.<\/b><\/li>\n<\/ul>\n<p><b>Five aspects of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> Firstly, while the Act contemplates the \u201cappointment\u201d of commercial court judges in districts, in most States the government there has <\/span><b>merely vested the presiding district judge with powers to act as a commercial court.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Secondly, whenever presiding officers are appointed to commercial courts, it <\/span><b>must be ensured that they have experience in dealing with commercial disputes<\/b><span style=\"font-weight: 400;\">, as Section 3 of the Act ordains.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Third, in terms of Section 19 of the Act, the respective State governments must, in consultation with the High Courts, <\/span><b>establish necessary infrastructural facilities<\/b><span style=\"font-weight: 400;\"> to run these courts.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Fourthly, in terms of Section 20 , the State government is to <\/span><b>establish facilities providing for the training of judges<\/b><span style=\"font-weight: 400;\"> who may be appointed to these courts.<\/span><\/li>\n<li>Finally, and possibly most importantly, in terms of Section 17, statistical data regarding the functioning of these courts are to be displayed on the website of the respective High Courts.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Courting the rankings\u00a0 Context: Reports of India moving into the top 100 in the World Bank\u2019s Ease of Doing Business global ranking is credible. But there is a component that still has a dismal ranking and it is the one about \u201cenforcing contracts\u201d. The issue: In the World Bank report India\u2019s ranking in the \u2018enforcement&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/courting-the-rankings\/\">Continue reading <span class=\"screen-reader-text\">Courting the rankings\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-31494","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704580694},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/31494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=31494"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/31494\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=31494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=31494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=31494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}