Commercial Courts, Another Attempt By The Government To Reduce Overbearing Litigation Numbers

In order to take forward and accelerate the agenda of the “Ease of Doing Business” and “Make in India”, the Commercial Courts, Commercial Division and Commercial Appellate Division of the High Court’s Act, 2015 has been promulgated, which provides for the constitution of Commercial Courts and the establishment of Commercial Divisions and Commercial Appellate. In order to take forward and accelerate the agenda of the “Ease of Doing Business” and “Make in India”, the Commercial Courts, Commercial Division and Commercial Appellate Division of the High Court’s Act, 2015 has been promulgated, which provides for the constitution of Commercial Courts and the establishment of Commercial Divisions and Commercial Appellate Divisions in the High Courts to adjudicate Commercial Disputes for achieving the motive of swift and speedy enforcement of contracts, recovery of monetary claims and compensation for damages suffered to increase investment and economic activity in our country. Commercial Courts/Divisions at various levels: a) The Act provides for the constitution of “Commercial Courts” in every district in all states and union territories where the High Court of that state or union territory does not have/exercise ordinary original civil jurisdiction and “Commercial Divisions” within High Courts exercising ordinary original civil jurisdiction. The transfer of pending cases in civil courts to these Commercial Court/Divisions may lead to practical and logistical difficulties initially as the Courts will have to deal with transferring of a substantial number of cases, which in turn may lead to cases being delayed until the correct courts receive the proceedings in suits that now would fall within the definitions of “Commercial Disputes’ being above the “Specified Value”.