Cabinet approves ordinance to amend law for speedy disposal of commercial disputes
The Union Cabinet chaired by Prime Minister Narendra Modi has approved promulgation of Ordinance amend a law for speedy disposal of commercial disputes. This decision aims to improve India’s ranking in World Bank’s ease of doing business index. The index takes into consideration dispute resolution environment in country, which facilitates investors in deciding for setting up of and operation of a business.
Key Facts
The ordinance will replace Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill which is pending in Parliament. It will bring down specified value of commercial dispute to Rs 3 lakh from the present Rs 1 crore. It also aims to bring down time taken from the present 1,445 days in resolution of commercial disputes of lesser value.
The amendments through ordinance provides for establishment of commercial courts at district judge level for territories over which High Courts Chennai, Delhi, Kolkata, Mumbai and Himachal Pradesh have ordinary original civil jurisdiction. The ordinance will be given prospective effect so that authority of the judicial forum presently adjudicating commercial disputes is not affected.
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Month: Current Affairs - May, 2018