President Pranab Mukherjee has promulgated two ordinances aimed at creating commercial benches in select high courts and amending a law on arbitration for speedy settlement of high value business disputes.
One ordinance would bring into force the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill, 2015. The other one amended the Arbitration and Conciliation Act, 1996 under which an arbitrator will have to settle a case within 18 months.
However, after the completion of 12 months, certain restrictions will be in place to ensure that the arbitration case does not linger on.
With the ordinance coming into force, all pending suits and applications relating to commercial disputes involving a claim of Rs 1 crore and above in the high courts and civil courts will be transferred to the relevant Commercial Division or Commercial Courts as the case may be.
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