Bill for speedy disposal of commercial disputes passed in LS; Bill allows state govts to establish commercial courts at district level

New Delhi, Aug 2 (KNN) A Bill to speedily resolve commercial disputes worth Rs 3 lakh or more was passed by the Lok Sabha.

The Bill seeks to reduce the pecuniary jurisdiction of commercial courts from Rs 1 crore to Rs 3 lakh.

The bill, which was passed by a voice vote in the Lok Sabha, also allows state governments to establish commercial courts at the district level, even in territories where high courts have ordinary original civil jurisdiction.

In areas where high courts do not have original jurisdiction, state governments may set up commercial appellate courts at the district level to consider appeals from commercial courts below the level of a district judge, as per the bill which replaces an ordinance.

Replying to a debate on the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Bill, 2018, Law Minister Ravi Shankar Prasad said that the Bill will help elevate India’s position in the global ‘Ease of Doing Business’ rankings.

Prasad said this was also one of the reasons why an ordinance had been brought in in order to meet the May deadline of World Bank.

Prasad said this was just one of the several steps by the government to make India more appealing to international businesses, and quick dispute resolution is an important element of it.

He said India’s ranking had improved by 42 places — from 142, when the Narendra Modi government took office in 2014, to 100 this year — in World Bank rankings.