Budget 2015: Exclusive divisions to handle commercial disputes
Jaitley said, for the quick resolution of commercial disputes, the Government proposes to set up exclusive commercial divisions.
By Maulik Vyas, ET Bureau | Updated:
MUMBAI: In an effort to create a conducive investment environment and woo foreign investors, the government has proposed the setting up of an exclusive division in various courts to deal only with commercial disputes.
On Saturday, while presenting first full budget of current government, Union Finance Minister, Arun Jaitley said, for the quick resolution of commercial disputes, the Government proposes to set up exclusive commercial divisions in various courts in India based on the recommendations of the 253rd Report of the Law Commission.
“Currently since even commercial disputes take 20 years to get resolved, defendants take advantage of the system,” says Janak Dwarkadas, Senior Counsel. “Commercial Courts who will be charged with the expeditious disposal of commercial disputes will discourage such defendants from setting up frivolous defenses.”
In a budget speech, the minister had clarified that the Government proposes to introduce a Bill in the parliament after consulting stakeholders in this regard.
More than 1,800 listed companies tracked by the ET Intelligence Group (ETIG), collectively spent about Rs 21,906 crore on legal disputes for the financially year ending March 2014, a 17.5% jump over the previous year. ETIG is a research arm of the paper.
“Exclusive commercial courts are the crying need, with judges possessing appropriate knowledge (on commercial matters),” said Rajiv Luthra, founder of Luthra & Luthra Law Office. “Mr Jaitley has shown his mettle and commitment.”
On Saturday, while presenting first full budget of current government, Union Finance Minister, Arun Jaitley said, for the quick resolution of commercial disputes, the Government proposes to set up exclusive commercial divisions in various courts in India based on the recommendations of the 253rd Report of the Law Commission.
“Currently since even commercial disputes take 20 years to get resolved, defendants take advantage of the system,” says Janak Dwarkadas, Senior Counsel. “Commercial Courts who will be charged with the expeditious disposal of commercial disputes will discourage such defendants from setting up frivolous defenses.”
In a budget speech, the minister had clarified that the Government proposes to introduce a Bill in the parliament after consulting stakeholders in this regard.
More than 1,800 listed companies tracked by the ET Intelligence Group (ETIG), collectively spent about Rs 21,906 crore on legal disputes for the financially year ending March 2014, a 17.5% jump over the previous year. ETIG is a research arm of the paper.
“Exclusive commercial courts are the crying need, with judges possessing appropriate knowledge (on commercial matters),” said Rajiv Luthra, founder of Luthra & Luthra Law Office. “Mr Jaitley has shown his mettle and commitment.”
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