Lok Sabha Question No. 3957 (UNSTARRED), answered on 2020-03-18
Subject: Commercial Courts
Ministry: LAW AND JUSTICE
Asked by: Subhash Ramrao Bhamre, Supriya Sadanand Sule, Amol Ramsing Kolhe, Shriniwas Dadasaheb Patil, DNV Senthilkumar. S., Kuldeep Rai Sharma

## GOVERNMENT OF INDIA MINISTRY OF LAW AND JUSTICE DEPARTMENT OF LEGAL AFFAIRS

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## LOK SABHA

UNSTARRED QUESTION NO.3957 TO BE ANSWERED ON WEDNESDAY, THE 18 TH MARCH, 2020

## COMMERCIAL COURTS

3957. DR. SUBHASH RAMRAO BHAMRE: SHRIMATI SUPRIYA SULE: DR. AMOL RAMSING KOLHE: SHRI SHRINIWAS PATIL: DR. DNV SENTHILKUMAR S.: SHRI KULDEEP RAI SHARMA:

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

- (a) whether the Government has set up commercial courts in the country for  expeditious  disposal  of  commercial  disputes  and  other  issues related to foreign direct investments and if so, the details thereof;
- (b) whether  the  Government  is  aware  of  the  fact  that  the  commercial disputes  reportedly  are  not  disposed  of  in  a  time  bound  manner causing  negative  impact  on  Ease  of  Doing  Business  and  if  so,  the details thereof;
- (c) the  total  number  of  commercial  disputes  pending  in  the  country  in various courts during each of the last three years;
- (d) whether  the  Government  has  taken  any  measures  to  ensure  that commercial  disputes  are  disposed  of  in  a  time  bound  manner  to promote Ease of Doing Business; and
- (e) if so, the details thereof?

## ANSWER

## MINISTER OF LAW AND JUSTICE, COMMUNICATIONS AND ELECTRONICS & INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

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(a)& (b): Yes,  sir.  The  Commercial  Courts  Act,  2015  as  amended  by Commercial Courts (Amendment) Act, 2018 provides for the establishment of  Commercial  Courts  (Below  district  judge  level),  Commercial  Court  (At district  judge  level),  Commercial  Appellate  Court  (At  district  judge  level), Commercial Division (at High Court level) and Commercial Appellate Division

(at  High  Court  level).  As  far  as  the  World  Bank  criterion  of  Ease  of  Doing Business in India is concerned, the position of setting of Commercial Court in the earmarked cities is as under:

- (i) Delhi - 22 dedicated commercial court notified and 21 functional.
- (ii) Mumbai - 4 dedicated commercial courts.
- (iii) Bengaluru - 2 dedicated commercial courts.
- (iv) Kolkata - 2 dedicated commercial courts.

As  per  the  World  Bank's  Doing  Business  Report,  2020,  the  time  taken  to resolve  a  commercial  dispute  is  1445  days.  The  reforms  undertaken  by Delhi, Mumbai, Kolkata and Bengaluru are aimed at reducing the time taken to resolve commercial disputes.

(c) The  information  is  being  collected  and  will  be  laid  on  the  table  of  the House.

(d) &(e): The Government  in its endeavour to ensure resolution of Commercial cases  expeditiously, fairly and at reasonable cost to the litigant, has  enacted  the  Commercial  Courts  Act,  2015,  and  the  act  was  further amended in 2018, which facilitates the fast tracking of Commercial disputes by reducing the specified value of a commercial dispute to Rs. 3 Lakh from Rs.1.00  Crore  and  establishment  of  Commercial  Courts  at  District  Judge level  in  the  Jurisdiction  of  High  Courts  enjoying  Ordinary  Original  Civil Jurisdiction. A mandatory provision of 'Pre-Institution Mediation and Settlement' (PIMS) (an Alternative Dispute Resolution Mechanism) in cases which do not contemplate urgent interim relief has also been introduced by the amended Act to facilitate out of court settlement and ease the work load of  the  Courts.    The  continuous  efforts  of  the  Government  has  resulted  in improving  India's  rank  in  the  World  Bank  Report  on  Doing  Business.In addition,  the  National  Mission  for  Justice  Delivery  and  Legal  Reforms  has been pursuing a coordinated approach for phased liquidation of arrears and pendency in judicial administration, which, inter-alia, involves better infrastructure  for  courts  including  computerization,  increase  in  strength  of subordinate judiciary, policy and legislative measures in the areas prone to excessive litigation, re-engineering of court procedure for quick disposal of cases and emphasis on human resource development.