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Report No. 253

Commercial Division and Commercial Appellate Division of High Courts and Commercial Courts Bill, 2015

Contents
Chapter I Background to the Report
Background to the Report
A. The 188th Report of the Law Commission
B. Scheme of the Provisions of the Commercial Division of High Courts Bill, 2009
C. Report of the Select Committee on the Commercial Division of High Courts Bill, 2009
D. Concerns Raised by the Rajya Sabha
E. Mandate of the Present Law Commission
Chapter II Drawbacks of the Present Bill
A. Difficulties in the Implementation of the Bill
(i) Lack of original jurisdiction in all High Courts
(ii) Differing pecuniary jurisdictions within the same Court
(iii) High pendency of cases
Table 2.1: Pendency of "civil cases" across High Courts as on 31.03.2014
Table 2.2: Comparison of pendency of civil suits in 2003, 2008, and 2013 in High Courts with original jurisdiction
Table 2.3: Comparison of pendency of civil suits in 2012 and 2013 in High Courts with original jurisdiction
Table 2.4: Pendency of "Commercial disputes" in High Courts with original jurisdiction
Table 2.5: Total number of original side cases pending in each High Court with original civil jurisdiction as on 31.12.2013
Table 2.6: Breakup of pending commercial disputes in High Courts with original jurisdiction on the basis of value is as follows
(iv) Delays and arrears in disposal of cases
Table 2.7: Breakdown of delays in disposal of civil suits in each High Court with original civil jurisdiction
(v) Transfer of pending matters across the board to the High Court
B. Difficulties with Procedural Provisions
(i) Impracticality
(ii) Direct appeal to Supreme Court is not feasible
C. Resistance to Change in the Manner of Conducting Litigation
(i) The United Kingdom
(ii) Singapore
D. No Emphasis on Specialisation in the Commercial Division
Chapter III Need to Update and Reframe the Commercial Division of the High Courts Bill, 2009
A. The Need for Commercial Courts in India
(i) Economic growth
(ii) Improving the international image of the Indian justice delivery system
(iii) Improving legal culture
B. Significant Developments in the Last Five Years
(i) Model courts
(ii) Promised increase in the judicial strength of High Courts
(iii) Computerisation
C. A Fresh Proposal for the Creation of Commercial Divisions and Commercial Courts
D. Nomination to Commercial Division and Commercial Appellate Division and Appointments to the Commercial Court
E. Institutional Arrangements for Commercial Courts
F. Procedural Improvements
(i) Special procedure to be followed in Commercial Courts and Commercial Divisions
(ii) Costs
(iii) Court Fees
(iv) Appeals
(v) Additional Provisions
a. Arbitration
b. Hearing of writ petitions concerning commercial disputes by Commercial Divisions
c. Exclusion of Civil Court Jurisdiction by other law
Chapter IV Conclusions and Summary of Recommendations
Conclusions and Summary of Recommendations (1)
Conclusions and Summary of Recommendations (2)
Annexure The Commercial Division and Commercial Appellate Division of High Courts and Commercial Courts Bill, 2015
The Commercial Division and Commercial Appellate Division of High Courts and Commercial Courts Bill, 2015
Chapter I Preliminary
1. Short title, application, and commencement
2. Definitions
Chapter II Constitution of Commercial Divisions, Commercial Appellate Divisions and Commercial Courts
3. Constitution of Commercial Divisions, Commercial Appellate Divisions and Commercial Courts
4. Nomination of judges to the Commercial Division and Commercial Appellate Divisions in High Courts
5. Appointment of judges to the Commercial Courts
6. Jurisdiction of the Commercial Divisions of High Courts
7. Jurisdiction of Commercial Courts
8. Jurisdiction of Commercial Appellate Divisions of High Courts
9. Bar against revision application or petition against an interlocutory order
10. Transfer of suit if counter-claim in a Commercial Dispute is of Specified Value
11. Jurisdiction in respect of arbitration matters
12. Bar to jurisdiction of Commercial Divisions and Commercial Courts
Chapter III Specified Value
13. Definition and determination of Specified Value
Chapter IV Appeals
14. Appeals from orders of Commercial Divisions and Commercial Courts
15. Appeals from decrees of Commercial Divisions and Commercial Courts
16. Appeals or writ petitions in case of tribunals
17. Expeditious disposal of appeals
Chapter V Amendments to the Provisions of the Code of Civil Procedure, 1908
18. Amendments to the Code of Civil Procedure, 1908 in its application to Commercial Disputes
Chapter VI Miscellaneous
19. Transfer of pending cases
20. Infrastructure Facilities
21. Training and Continuous Education
22. Collection and disclosure of data by the Commercial Courts, Commercial Divisions, and Commercial Appellate Divisions
23. Power of High Court to issue Practice Directions
24. Act to have overriding effect
25. Removal of difficulties
Schedule Amendments to the Code of Civil Procedure, 1908
1. Amendment of Section 26
2. Amendment of Section 35
3. Amendment of Section 35A
4. Amendment of Order V
5. Amendment of Order VI
6. Amendment of Order VII
7. Amendment of Order VIII
8. Substitution of Order XI
Order XI Disclosure, Discovery and Inspection of Documents in Suits Before the Commercial Division of a High Court or a Commercial Court
1. Disclosure and Discovery of documents
2. Discovery by Interrogatories
3. Inspection
4. Admission and Denial of Documents
5. Production of documents
6. Electronic Records
7. Certain provisions of the Code of Civil Procedure, 1908 not to apply
Order XIIIA - Summary Judgment
1. Scope of and classes of suits to which this Order applies
2. Stage for application for summary judgment
3. Grounds for summary judgment
4. Procedure
5. Evidence for hearing of summary judgment
6. Orders that may be made by the Court
7. Conditional Order
8. Power to impose costs
Order XV-A Case Management Hearing
1. First Case Management Hearing
2. Orders to be passed in a Case Management Hearing
3,4,5. Time limit for the completion of a trial
6. Powers of the Court in a Case Management Hearing
7. Adjournment of Case Management Hearing
8. Amendment of Order XVIII
9. Amendment to Order XIX
10. Amendment of Order XX
Appendix Statement of Truth
Statement of Truth


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