In an attempt to improve India’s stand on ease of doing business, the Lok Sabha on Wednesday had a debate over cutting down the specified value of commercial disputes from the present the price of Rs 1 crore to Rs 3 lakhs. According to Union Law Minister Ravi Shankar Prasad, there were total 214 commercial courts and more than 2,000 cases of over Rs 1 crore were pending in these courts. Shouldering the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amend) Bill for consideration and passage, he said, “Good governance is also a part of good economy”.
This Bill also pushes the demand to remove the ordinance introduced in 2018 by the government. The ordinance is aimed at bringing down the time taken (presently 1445 days) in the resolution of commercial disputes of lesser value and thus further improve India’s ranking in the Ease of Doing Business.
Also Read: Ease of Doing Business Report: Andhra ranks No.1, Delhi No. 23
It also demands insertion of the new section of 21A that enables the Central Government to make rules and procedures for Pre-Institution Mediation. The ordinance also demands prospective effect to the Bill for more freedom to the judicial forum authority dealing with the commercial dispute cases. The officials have also claimed that there has been a significant rise in the commercial dispute cases at both domestic and international levels.
