Govt weighing proposal for commercial courts: Gowda

The government is looking into the recommendations of the Law Commission for setting up separate divisions in the high courts for settling commercial disputes, as part of its efforts to improve the ease of doing business in India and to facilitate the `Make in India' campaign,

'Enforcing contracts' is one of the areas that affects India's ranking on ease of doing business index. The ranking on the 'enforcing contracts' indicator is based on the assessment of the procedures, time and cost involved in resolving a commercial dispute, union minister of law and justice D V Sadananda Gowda informed the Lok Sabha on Monday.

The Law Commission of India has recently submitted its a report on `Commercial Division and Commercial Appellate Division of High Courts and Commercial Courts Bill, 2015'.

The report, inter-alia, defines commercial disputes and recommends the establishment of commercial courts and commercial division and commercial appellate division in the high courts in order to ensure speedy disposal of high value commercial suits, the minister stated.

At present commercial disputes fall within the broader category of civil cases and there is no provision for maintaining separate data on commercial disputes centrally, he added.

He said the government has adopted a co-ordinated approach for phased liquidation of pendency in judicial administration by providing support for better court infrastructure, including computerisation, encouraging increase in the strength of subordinate judiciary, promoting dispute resolution through alternative mechanisms and initiating policy and legislative measures in the areas prone to excessive litigation.