The 253rd Law Commission of India Report

Submitted by the 20th Law Commission of India, headed by Chairman Justice A.P
Shah on 20th Jan, 2015.
Suggests setting up of specialised courts for Commercial Disputes Resolution
through the Commercial Courts Bill. Inspired by London and Singapore
Commercial Courts. Supports PMs Make-In-India campaign.
Report itself defines what a commercial dispute is - Disputes arising out of
ordinary transactions of merchants, bankers, financiers and traders such as
those relating to mercantile documents, joint venture and partnership
agreements, intellectual property rights, insurance and other such areas as have
been defined. Includes disputes involving commercial agreements with the
State.
Seeks speedy disposal of high value commercial disputes (Time limit of 90 days
for a trial). Wants to make India investor (especially foreign investor) friendly.
Cost of litigation to be significantly lowered.
Recommends giving courts discretionary power to impose penalties on time
consuming frivolous litigants and for non-disclosure of documents. Idea is to
make this procedure more efficient than the regular one.
The Commercial Courts Bill, 2015
A revamped version of The Commercial Division of High Courts Bill, 2009 that
lapsed in 2010. Nevertheless, very different from it.
Likely to be introduced in the coming budget session in the last week of Feb.
Proposes to set up commercial courts and make amendments to the CPC to allow
for special rules for the same. Rules will override regular High Court Rules
relating to adjudication of such disputes.
Includes a provision to continuously train and educate judges on relevant
matters by the National and State judicial academies. Security of judges tenure
of 2 years to maintain continuity.
The Courts will be of both lower and commercial appellate divisional level.
The minimum pecuniary jurisdiction of such courts would be Rs. 1 crore.