Days after India jumped 30 positions in the World Bank’s Ease of Doing Business ranking, Law Ministry officials said the Union government proposed to establish commercial courts in districts to further improve the parameters.
About commercial courts:
On January 1, 2016, the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill, 2015 received Presidential assent.
It contemplates setting up commercial courts at the district level and commercial divisions and appellate divisions at the high court level. It seeks to completely transform the manner in which commercial cases are heard and tried in India.
Functions of various stakeholders: It stipulates various functions performed by three key players, namely state governments, chief justices of high courts and lawyers/litigants. All state governments have to ensure that adequate infrastructure is provided for commercial courts and commercial divisions so that modern methods like electronic filing and video conferencing can be implemented without delay.
Chief justices have a huge responsibility in implementing this Act by setting up commercial courts in various districts and by designating or setting up commercial divisions in the high courts, which also need to issue practice directions to implement the provisions of this Act.
What is a commercial dispute?
A commercial dispute is defined to include any dispute related to transactions between merchants, bankers, financiers, traders, etc. Such transactions deal with mercantile documents, partnership agreements, intellectual property rights, insurance, etc.