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The Commercial Courts Act, 2015 and its amendments

Courtesy/By: KANIKA GOSWAMY | 2020-08-29 11:12     Views : 306

The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts of 2015 is a legislation which helps in enhancing India in Ease of Doing Business Index released by World Bank every year and is also one of the most important acts in terms of commercial law. This act specifically provides the constitution of the commercial courts that decide upon commercial disputes with the limit upto 1 crore rupees. As the name suggests, there are courts established at district level and straight to the state level in form of high court as well. This is a very important act because it it contains the jurisdiction and as well as the remedies that can be employed in cases of commercial disputes. The act has undergone certain amendments in 2018.

The following are the amendments:

  1. The name of the act has been changed to Commercial courts act 2015. The reason for changing the name of the act is because its name only contained the divisions of the courts that are formed for commercial disputes. Therefore, for a concise name was preferred.
  2. Before the amendment the state government along with the advice of the chief justice of the high court of that state had to appoint judges of the commercial courts. However after this amendment the state government was given power to appoint the judges even without taking the advice of the chief justice. However an important clause was added stating that if such amendment will challenge the constitutionality and will also challenge the independence of the judiciary, this can be amended again.
  3. The Institution of mediation has been considered important for or the act. The Legal Services Authorities Act, 1987 has been taken into consideration and the plaintiff has to undergo mediation before the actual trial. Sach mediation shall be given the status of an arbitration award which means the award of mediation will be be final.
  4. The minimum dispute value which was earlier Rs. 1 crore has been changed to Rs. 300 thousand. This has been done in order to bring more cases under their scope so as to meet the parameters of Ease of Doing Business Report of the World Bank.
  5.   The hierarchy of the commercial courts has also so been split into two different types:
    a) the commercial courts where the high courts have ordinary original jurisdiction these deal with three hundred thousand rupees commercial disputes. And also this state has to established district court even in the places where high courts exercise this jurisdiction and also set the pecuniary jurisdiction of such district courts which should be less than three hundred thousand.
    b) commercial courts which are below district judge in jurisdictions where the high courts have no ordinary original jurisdiction this has been done to reduce the value for the disputes that had been set in 2015.
  6. The amendment also deleted the section 9 which stated that there could be transfer of suits to Commercial Court if there is a specified value. However this was changed because there is a reduction in the specified value.

 

Courtesy/By: KANIKA GOSWAMY | 2020-08-29 11:12