Authors: JordanThe move will help improve India's ranking in the ease of doing business index.New Delhi: An executive orderaimed at amending a law to allow speedy disposal of commercial disputes came into force today.The government says the move will help improve India's ranking in the ease of doing business index.
According to the executive orderissued today, the specified value of a commercial dispute will be brought down to Rs 3 lakh from the present Rs 1 crore.
The executive orderamends the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act.
The ordinance will replace the bill.
It would bring down the time taken from the present 1,445 days for resolution of commercial disputes of lesser value.Ease of doing business is an index of the World Bank which refers to the dispute resolution environment in a country that facilitates an investor in deciding to set up and operate a business.
In October last year, the ease of doing business rankings jumped 30 points to 100driven by reforms in access to credit, power supplies and protection of minority investors.:India Jumps 30 Places In Ease of Business, PM Modi Says 'Historic': 10 PointsThe amendment also provides for establishment of commercial courts at district judge level for the territories over which the high courts Chennai, Delhi, Kolkata, Mumbai and Himachal Pradesh have ordinary original civil jurisdiction.The introduction of the pre-institution mediation process in cases where no urgent, interim relief is contemplated will provide an opportunity to the parties to resolve the commercial disputes outside the ambit of the courts through the authorities constituted under the Legal Services Authorities Act.The law will be given prospective effect so that the authority of the judicial forum presently adjudicating the commercial disputes is not affected.
Increase of foreign direct investment and overseas commercial transactions have further contributed to a significant rise in the number of commercial disputes in the country.
The ordinance was approved by the Union Cabinet yesterday.(This story has not been edited by staff and is auto-generated from a syndicated feed.)