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| Proposal to set up commerical courts |
| Press Trust of India / New Delhi Oct 27, 2009, 10:32 IST |
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A proposal to set up commercial courts in the country to deal with high value cases is likely to be placed before the Union Cabinet shortly.
The proposed courts will come up at mega cities having High Courts, sources in the Law Ministry have said.
They are expected to deal with matters involving monetary transactions of over Rs 2 crore, the sources said, adding a final decision on the cut-off amount is yet to be taken.
According to the Law Ministry, such specialised courts will be good for investors and help in FDI and domestic investments.
Once the courts are set up, they will take load off regular courts in dealing with commercial issues and help reduce pendency of cases.
If the proposal get a green signal from the Cabinet, a Commercial Courts Bill is expected to be tabled in the Winter Session of Parliament.
The proposal has been circulated to various ministries for getting their view point.
Jurists, legal experts and industry captains have been demanding setting up of special courts to deal with commercial cases and this move is a part of the reforms initiated in the judiciary.
"Unless the world community is satisfied that the implementation of international covenants will not be adhered due to legal tangle and frivolous litigations, they will always shy away from Indian markets," Law Minister M Veerappa Moily had said recently.
Recently, a high-level committee had suggested establishiment of "commercial division" in each High Court for dealing with commercial disputes involving Rs one crore and above in the country.
The committee had referred to the suggestions of the World Bank for establishment of separate Commercial Courts and has agreed to that.
The committee had submitted its report to the Cabinet Secretary on July 23, 2008.
The Law Commission in one of its report has recommended constitution of commercial divisions in each High Court.
Speaking at a seminar on pendency of cases in courts here on Sunday last, Finance Minister Pranab Mukherjee had said it takes 425 days to enforce a contract in India, thereby placing it at a lowly 173rd position globally on that front.
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