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New Delhi, July 31: Union Law Minister Ravi Shankar Prasad to move The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Bill 2018 on Tuesday in Lok Sabha.
The Bill seeks to achieve the following objectives:
- The Bill brings down the specified value of a commercial dispute to 3 Lakhs from the present one Crore: Therefore, commercial disputes of a reasonable value can be decided by commercial courts. This would bring down the time taken (presently 1445 days) in the resolution of commercial disputes of lesser value and thus further improve India's ranking in the Ease of Doing Business.
- The amendment provides for the establishment of Commercial Courts at district Judge level for the territories over which respective High Courts have ordinary original civil jurisdiction i.e in the cities of Chennai, Delhi, Kolkata, Mumbai and State of Himachal Pradesh. The State Governments, in such territories, may by notification specify such pecuniary value of commercial disputes to be adjudicated at the district level, which shall 'not be less than three lakhs rupees and not more than the pecuniary jurisdiction of the district court. In the jurisdiction of High Courts other than those exercising ordinary original jurisdiction a forum of Appeal in commercial dispute decided by commercial courts below the level of District judge is being provided, in the form of Commercial Appellate Courts to be at district judge level.
- The introduction of the Pre-Institution Mediation process in cases where no urgent, interim relief is contemplated will provide an opportunity to the parties to resolve the commercial disputes outside the ambit of the courts through the authorities constituted under the Legal Services Authorities Act, 1987.will also help in reinforcing investor's confidence in the resolution of commercial disputes.
- Insertion of a new section of 21A which enables the Central Government to make rules and procedures for PIM.
- To give prospective effect to the amendment so as not to disturb the authority of the judicial forum presently adjudicating the commercial disputes as per the extant provisions of the Act.