Lok Sabha Question No. 3560 (UNSTARRED), answered on 2018-08-08
Subject: Ease of Doing Business
Ministry: LAW AND JUSTICE
Asked by: ASADUDDIN OWAISI

## GOVERNMENT OF INDIA

## MINISTRY OF LAW & JUSTICE

## DEPARTMENT OF JUSTICE

## LOK SABHA

## UNSTARRED QUESTION NO. 3560

## TO BE ANSWERED ON WEDNESDAY, THE 08 th  AUGUST, 2018.

## Ease of Doing Business

## 3560. SHRI ASADUDDIN OWAISI:

## Will the Minister of LAW AND JUSTICE be pleased to state:

- (a) whether the Government has constituted a task force to further improve India's ranking in the Ease of Doing Business Index under the Secretary of Department of Justice;
- (b) if so, the number of representatives from different Ministries and advisors who are members of the task force;
- (c)  whether  the  Government  has  asked  all  the  High  Courts  to  monitor  court adjournments leading to piling of cases;
- (d)  the  other  measures  taken  by  the  Government  in  consultation  with  other Ministries such as labour reforms, etc. in this regard; and
- (e) the time by which the steps are likely to be suggested by the task force in this regard?

## ANSWER

## MINISTER OF STATE FOR LAW AND JUSTICE AND CORPORATE AFFAIRS (SHRI P. P. CHAUDHARY)

- (a) Yes, Madam.  A Task Force was constituted under the Chairpersonship of Secretary, Department of Justice for improving performance on the parameter of ' Enforcing Contracts ' for ease of doing business in India.

(b)&(e)  : Representatives from Department of Industrial Policy & Promotion, Department of Legal Affairs, Legislative Department, Department of Justice, Government of Delhi, Government of Maharashtra, High Court of Delhi and High  Court  of  Bombay  and  Member,  eCommittee  of  the  Supreme  Court  of India  have  been  included  in  the  Task  Force.  Seven  meetings  of  the  Task Force have been held so far.  Activities of the Task Force are  of an on-going nature and regular recommendations/ directions are given to various stakeholders, so as to improve India's ranking in the ease of doing business index. (c) : The power of granting or refusing adjournments is in the domain of the judiciary.  Enforcement as well as monitoring of the said provision also lies in the hands of the judiciary.  However, the Government has periodically invited the  attention  of  all  High  Courts  on  granting  of  indiscriminate  adjournments which  are  causing  delay  in  the  disposal  of  cases.    Government  has  also requested Chief Justices of all High Courts to invite the attention of the district judges to these provisions and impress upon them to adhere to them. (d)  :  The  Government  has  taken  the  following  measures  to  improve  India's ranking  in  the  ' Enforcing  Contracts' parameter  of  the  World  Bank's    Doing Business Report: (i)  Commercial  Courts,  Commercial  Division  and  Commercial  Appellate Division of High Court Act, 2015 was enacted so as to : (a)  Provide  a  mechanism  to  ensure  speedy  disposal  of  commercial disputes of value of Rs.1 crore and above [specified value] by setting up Commercial  Divisions  in  High  Courts  exercising  ordinary  original  civil Delhi,  Bombay,  Calcutta,  Madras,  and  Himachal

- jurisdiction such  as Pradesh High Court; and
- (b) Enable setting up of Commercial Courts at the District Judge  level in the States and UTs where High Courts do not have ordinary original civil jurisdiction.

(ii)  Commercial  Courts,  Commercial  Division  and  Commercial  Appellate Division of High Courts (Amendment) Ordinance, 2018 has been promulgated on 03 rd May, 2018 to : (a) Reduce the specified value of a commercial dispute to Rs.3 lakh from the earlier Rs. 1 crore; (b)  Establish  Commercial Courts at District Judge level for the territories over which respective High Court have ordinary original civil jurisdiction i.e. in  the  cities  of  Chennai,  Delhi,  Kolkata,  Mumbai  and  State  of  Himachal Pradesh; and ( c ) Introduce Pre-Institution Mediation through the authorities constituted under the Legal Services Authorities Act, 1987 in cases where no urgent, interim relief is contemplated. (iii) A Bill to replace this Ordinance has been passed by Lok Sabha on 01.08. 2018. (iv)  The Arbitration and Conciliation Act, 1996 has been amended by the Arbitration and Conciliation (Amendment) Act 2015  to expedite the speedy resolution of disputes by prescribing timelines. (v) The Government has introduced a Bill in Lok Sabha on 18.07.2018 for further amending  the Arbitration and Conciliation Act, 1996, and also for setting up of an independent body namely Arbitration Council of India as an Institutional mechanism to promote and encourage arbitration, conciliation,  mediation  and  other  ADR  Mechanisms  and for  that  purpose evolve policy and guidelines for the establishment, operation and maintenance  of  uniform  professional  stands  in  respect  of  all  matters relating to arbitration and ADR mechanism. (vi)  Furthermore, the Government has introduced a Bill in Lok Sabha on 05.01.2018  to  set  up  an  Institute  of  National    Importance  namely  New Delhi International Arbitration  Centre  (NDIAC) which would function as a flagship institution for domestic & international arbitration. (vii)  The  Specific  Relief  (Amendment)  Bill  2018,  proposing  to  bring significant  amendments  to  Specific  Relief  Act  1963,  was  passed  by  Lok

Sabha on March 15, 2018 and by Rajya Sabha on July 23, 2018.  The Bill seeks to take away the discretionary power of courts in ordering specific performance of contract, by stating that specific  performance  of contract should  be  compulsorily  enforced  by  the  Court.    Further,  compensation need  not  be  sought  for  as  an  alternate  relief,  and  can  be  claimed  in addition to specific performance.

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