Chanakya IAS Academy Blog


Help speed up resolution of commercial disputes

Help speed up resolution of commercial disputes

The Central government has urged the Supreme Court to provide the necessary leadership for expeditious resolution of commercial disputes in lower courts of Delhi and Mumbai. This can be achieved through e-filing and e-service of summons and adherence to time lines.

Certain issues could be addressed by the judiciary through its initiatives in the larger interest of efficient and effective delivery of justice. 

The Court can provide the necessary leadership for proper implementation of the existing provisions of the Civil Procedure Code. These provisions can be related to the grant of adjournments, adherence to time lines and electronic filing and electronic service of summons.

This will go a long way towards providing timely and effective enforcement of contracts and will undoubtedly ensure a marked improvement in our ranking. 

Ease of doing business:

  • High priority has been accorded to improving the ease of doing business
  • To make India a favourable investment destination for domestic as well as global investors
  • To achieve this efficient and effective delivery of justice plays a key role

World bank report on Doing business:

  • An annual report which compares the business regulations across 190 economies
  • As per the report India’s overall ranking improved from 131 in 2016 to 130 in 2017
  • The overall ranking is formulated based on an average of the various sub-indicators
  • The sub-indicators include
    • Time taken to start a business
    • Time taken to get construction permits
    • Paying taxes
    • Enforcing contracts
  • Enforcing contracts involves the time and cost involved in resolving a standardized commercial dispute through a local court of first instance,
  • For ranking, the Delhi district court and Mumbai city civil court are used as of now

Transforming Commercial dispute resolution:

  • Passing the Commercial Division of High Courts Bill
  • Introduces a commercial division in every high court having original jurisdiction and commercial courts in districts
  • The term commercial is widely defined under the provisions of the act
  • Provides for a fast track mechanism with stringent timelines
  • The Bill adopts the carrot and stick approach, wherein carrots will be offered for compliance and stick will be wielded in case of delay
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