Govt pushes for minimal adjournments to reduce delay in commercial disputes

Seeking to cut down on delays in settling commercial disputes, the Law Ministry has urged the high courts of Delhi, Bombay, Calcutta and Karnataka to direct judicial officers in lower judiciary to restrict the number of adjournments to three in such matters.

The Department of Justice in the Law Ministry wrote to the registrars general of the four high courts requesting themto issue necessary directions to all judicial officers, "especially those dealing with commercial cases to restrict the number of adjournments to three" in all commercial cases, under their jurisdiction.

It cited Order XVI, Rule 1, Code of Civil Procedure, 1908 which deals with number of restrictions.

The letter was written in March this year, and Delhi and Mumbai High Courtshave now issued directions regarding restricting the number of adjournments to three.

The Karnataka High Court has decidedto issue a circular inviting attention of judicial officers in charge of commercial courts to the "relevant provisions" mentioned by the Department of Justice.

In April, the Department of Justice informed the Cabinet Secretariat about its request to the four high courts and their subsequent response.

The Commercial Courts Act, 2015 provided for commercial courts and commercial divisions of high courts to settle commercial disputes with a value of at least Rs 1 crore.

Later, the pecuniary jurisdiction (or the minimum value of the dispute) was reduced to Rs three lakh from Rs one crore to enable smaller businesses to approach commercial courts.

Increase in foreign direct investment and overseas commercial transactions have further contributed to a significant rise in the number of commercial disputes in the country.