Commercial courts

The Indian Government has been quite vocal and serious in their program of ‘Make in India’ and boosting the ‘ease of doing business in India’. The speedy and efficacious enforcement of contracts, recovery of monetary claims and award of just compensation for damages suffered are absolutely critical to encourage investment and economic activity. The enactment of the Commercial Courts, Commercial Division and Commercial Appellate Division of the High Courts Act, 2015 (the "Act"), will act as a catalyst for achieving the objective of its pet programme. The Government also appears to be serious to make litigation less cumbersome and expeditious by introduction of the Act. The Act mirrors and affirms similar principles of law reflected in various statues of developed countries which ensure a speedy legal recourse. The Act received assent of the President of India on December 31, 2015. However, in view of Ordinance[1], the Act is deemed to be in force since October 23, 2015.

• The Act essentially introduces setting up of a Commercial Court at District level and a Commercial Division in the High Court, having ordinary original civil jurisdiction to deal with Commercial Dispute2 of a Specified Value3, not being less than Rs.1,00,00,000 or such higher value as may be notified by the Central Government. All appeals from the orders of the Commercial Court/Commercial Division would lie before the Commercial Appellate Divisions to be set-up in all High Courts.