What are the features of the Commercial Courts, Commercial Division and Commercial Division of High Courts (Amendment) Bill, 2018?

The Union Cabinet has approved the Commercial Division and Commercial Division of High Courts (Amendment) Bill, 2018 introduction in the Parliament. The bill aims to provide for 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 features of the bill include:

  • The Bill brings down the specified value of a commercial dispute to 3 Lakhs from the present one Crore. This would bring down the time taken (presently 1445 days) in resolution of commercial disputes of lesser value and thus further improve India’s ranking in the Ease of Doing Business as it can improve the scores under the enforcing contracts parameter.
  • It provides for establishment of Commercial Courts at district Judge level for the territories over which respective High Courts have ordinary original civil jurisdiction in the cities of Chennai, Delhi, Kolkata, Mumbai and State of Himachal Pradesh.
  • Introduction of the Pre-Institution Mediation process in cases where no urgent, interim relief is contemplated. This will provide for an opportunity to the parties to resolve the commercial disputes outside the ambit of the courts through the authorities. This will also help in reinforcing investor’s confidence in the resolution of commercial disputes.
  • Central Government to make rules and procedures for Pre-Institution Mediation.

These measures like encouraging arbitration, empowering the commercial courts and mediation will aid India in achieving the target of breaking into top 50 club in the ease of doing business rankings.


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