Centre plans to set up more commercial courts

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Context:

  • 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.

Why such Move?

  • Legal remedy to commercial disputes and enforcement of business contracts are parameters of the World Bank ranking.

India’s Performance:

  • In terms of ease of enforcing contracts, India jumped from 172 to 164. “Though the jump in the ranking sounds small, it is substantial given the diversities of laws in our country and the complex demography
  • India’s performance has been varied within the legal framework. For example, the World Bank’s ranking marked “court system and proceedings in India” 4.5 out of a total of 5, but in management of cases, it was 1.5 out of 6. India also fared well in alternative dispute redress mechanism and scored 2.5 out of a total of 3 marks.

The Proposal:

  • The government is proposing amendments to facilitate the establishment of commercial courts, at the district level, in places where the High Courts have ordinary original civil jurisdiction.
  • The specified value of commercial disputes would be brought down so as to expand the scope of commercial adjudication effectively and expeditiously.

Source:TH