Hon’ble President has given his assent to Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Ordinance, 2018 on 03rd May 2018.
The ) Ordinance seeks to achieve the following objectives:
With the rapid economic development there has been considerable increase in commercial activities and consequent steep rise in number of commercial disputes at domestic and international level. Increase of Foreign Direct Investment (FDI) and overseas commercial transactions have further contributed to a significant increase of commercial disputes.
With a view to address the issue faster resolution of matters relating to commercial disputes and to create a positive image particularly among the foreign investors about the independent and responsive Indian legal system, the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 was enacted and commercial courts were established at District Levels in all jurisdictions, except in the territories over which the High Courts have original ordinary civil jurisdiction. These five High Courts i.e. the High Courts of Bombay, Delhi, Calcutta, Madras and of Himachal Pradesh, exercise ordinary original civil jurisdiction in regard to territories of cities of Mumbai, Delhi, Kolkata, Chennai and the territory of the State of Himachal Pradesh respectively. In such territories of these High Courts as per proviso to sub-section (1) of section 3 there are no commercial courts at district level and instead Commercial Divisions have been constituted in each of these High Courts. The specified value of such commercial disputes to be adjudicated by the Commercial Courts or the Commercial Division of High Court, as the case may be is presently Rs. one Crore.
Ease of Doing Business is an index of World Bank which inter alia refers to the dispute resolution environment in a country which facilitates the investors in deciding for setting up of and operation of a business. This index has been created by the World Bank Group and since 2002, it has been evaluating almost all the countries of the world. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of the business. On 31st October, 2017, World Bank released its latest annual ‘Ease of Doing Business’ report for the year 2018 in which India has emerged out as one among top ten improvers and for the first time ever, India has jumped 30 positions and reached 100th ranked country in terms of ‘Ease of Doing Business’ amongst 190 countries. This manifests that India is fast adopting the best practices in regulatory framework for Ease of Doing Business at all fronts.
MINISTRY OF LAW AND JUSTICE
New Delhi, the 3rd May, 2018
THE COMMERCIAL COURTS, COMMERCIAL DIVISION AND COMMERCIAL APPLLATE DIVISION OF HIGH COURTS (AMENDMENT) ORDINANCE, 2018
No. 3 of 2018
Promulgated by the President in the sixty- ninth Year of the Republic of India
An Ordinance to amend the Commercial Courts, Commercial Division and Commercial Appellate Division of high Courts Act, 2015.
Where as parliament is not in session and the president is satisfied that circumstances exist which render it necessary for him to take immediate action;
Now Therefore, in exercise of the powers conferred by clause (1) of article 123 of the Contitution, the president is pleased to promulgate the following Ordinance:-
Short title and commencement.
1. (1) This Ordinance may be called the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Ordinance, 2018.
(2) Save as otherwise provided, it shall come into force at once.