Speedy verdict in corporate disputes must wait longer
A parliamentary panel is likely to seek the opinion of the attorney-general on a bill aimed at speedy adjudication of big ticket commercial disputes.
By ET Bureau |
NEW DELHI: A parliamentary panel is likely to seek the opinion of the attorney-general on a bill aimed at speedy adjudication of big ticket commercial disputes.
The bill, under the scrutiny of the Select Committee on Personnel, Public Grievances, Law and Justice, came in for criticism on Wednesday from the Opposition, which raised questions about its constitutional validity.
The Commercial Division of High Courts Bill, 2009, was passed by the Lok Sabha without a debate during the winter session of Parliament, but was referred to the select committee when it was sent to the Rajya Sabha.
At a meeting of the panel, BJP and Left expressed apprehensions about the bill creating a privileged litigant class and a rich-poor divide. This, opposition members said, could violate the Fundamental Right to equality granted under the Constitution. “There is a view that the bill is not in tune with the Constitution and protects the rich,” an opposition leader said. These worries will now have to be addressed by the law ministry, sources said.
The bill, based on recommendations of the 188th Report of the Law Commission of India, aims at adjudication of commercial disputes worth Rs five crore or above within a year. It seeks to fast-track such disputes in a bid to improve the legal climate in the country for doing business.
A 2009 World Bank report had ranked India 122, after Pakistan, Bangladesh and Nepal, in a list of 188 on ease of doing business. The international body placed India almost at the bottom of the ladder on legal environment for doing business. The bill was part of government’s effort to remove such apprehensions in a “more competitive world”.
The Law Commission had recommended the creation of commercial division with high-tech facilities in each high court so that they may handle commercial cases of high threshold value on fast track basis.
The Rajya Sabha wanted a thorough discussion on the bill, particularly in the wake of its passage without a debate in the Lower House. The select committee will prepare a report on the bill which will then be debated by the Rajya Sabha.
The bill, under the scrutiny of the Select Committee on Personnel, Public Grievances, Law and Justice, came in for criticism on Wednesday from the Opposition, which raised questions about its constitutional validity.
The Commercial Division of High Courts Bill, 2009, was passed by the Lok Sabha without a debate during the winter session of Parliament, but was referred to the select committee when it was sent to the Rajya Sabha.
At a meeting of the panel, BJP and Left expressed apprehensions about the bill creating a privileged litigant class and a rich-poor divide. This, opposition members said, could violate the Fundamental Right to equality granted under the Constitution. “There is a view that the bill is not in tune with the Constitution and protects the rich,” an opposition leader said. These worries will now have to be addressed by the law ministry, sources said.
The bill, based on recommendations of the 188th Report of the Law Commission of India, aims at adjudication of commercial disputes worth Rs five crore or above within a year. It seeks to fast-track such disputes in a bid to improve the legal climate in the country for doing business.
A 2009 World Bank report had ranked India 122, after Pakistan, Bangladesh and Nepal, in a list of 188 on ease of doing business. The international body placed India almost at the bottom of the ladder on legal environment for doing business. The bill was part of government’s effort to remove such apprehensions in a “more competitive world”.
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The Law Commission had recommended the creation of commercial division with high-tech facilities in each high court so that they may handle commercial cases of high threshold value on fast track basis.
The Rajya Sabha wanted a thorough discussion on the bill, particularly in the wake of its passage without a debate in the Lower House. The select committee will prepare a report on the bill which will then be debated by the Rajya Sabha.
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