Cabinet likely to consider bill on commercial divisions in HCs

A revised bill to set up commercial divisions in High Courts to deal with high value litigations is likely to be considered by the Union Cabinet tomorrow.

Updated: Sep 15, 2010, 22:30 PM IST

New Delhi: A revised bill to set up
commercial divisions in High Courts to deal with high value
litigations is likely to be considered by the Union Cabinet
tomorrow.

Sources in the government said here that the revised bill
incorporates recommendations made by a Rajya Sabha select
committee.

A parliamentary select committee had recommended several
changes in the Bill, including reducing the threshold limit
from Rs five crore to one crore.

The Commercial Division of High Courts Bill, 2009, was
passed in the Lok Sabha without discussion. But when the Bill
was tabled in the Rajya Sabha, it was referred to a select
committee in December last year for further examination.

The Bill seeks to set up commercial divisions in High
Courts to deal with litigations arising out of monitory
transactions above Rs five crore.

The select committee, in its report to the Rajya Sabha
in July this year, had recommended several changes in the
Bill.

The committee said though it had received several
suggestions to remove the threshold limit altogether, it
decided to reduce it from Rs five crore to Rs one crore.

The reduced limit would enable more people to approach
the commercial divisions of the High Courts to settle their
commercial disputes which are above Rs one crore.

The report pointed that the Bill has no specific
provision to increase the strength of judges in High Courts to
be appointed in the commercial divisions.

"The High Courts are already over-burdened and have a
large number of vacancies. The committee apprehends that bulk
transfer of cases from district courts to commercial division
may result in further clogging... the committee is of the
opinion that the process of filling up of existing vacancies
in HCs may be expedited...," the report said.

PTI