Government on Thursday notified an ordinance on May 3 to amend the Commercial Courts, Commercial Division and the Commercial Appellate Division in High Courts Act of 2015.
With rapid economic development, there has been a considerable increase in commercial activities and, consequently, a steep rise in the number of commercial disputes at both the domestic and international levels. The manifold increase in foreign direct investment and overseas commercial transactions has further contributed to the rise in the quantum of commercial disputes.
With a view to ensure faster resolution of matters relating to commercial disputes and to create a positive image, particularly, among the foreign investors about the independent and responsive Indian legal system, the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 was enacted.
By virtue of the Act, ‘commercial courts’ were established below the level of the district judge in all jurisdictions, except in the territories over which the high courts have ordinary original civil jurisdiction. These five high courts i.e., the high courts of Bombay, Delhi, Calcutta, Madras and Himachal Pradesh, exercised ordinary original civil jurisdiction in respect of territories of the cities of Mumbai, Delhi, Kolkata, Chennai and the territory of the State of Himachal Pradesh, respectively. In these territories, as per the Proviso to sub-section (1) of section 3, ‘commercial divisions’ had been constituted in each of these high courts. The ‘specified value’ of ‘commercial disputes’ to be adjudicated by the ‘commercial courts’ or the ‘commercial division’ of high courts, as the case may be, was stipulated to be Rs. 1 crore and above.
Earlier, in March, the Union Cabinet, chaired by Prime Minister Narendra Modi, had approved the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Bill, 2018 for introduction in the Parliament.
Read the Notification Here