Special benches at HCs to try financial disputes, soon

 The Union government will establish special benches in all the high courts to hear disputes related to commercial and financial matters, Union Law Minister D V Sadananda Gowda has said.

“The Law Commission in its report on judicial reforms has recommended establishment of separate benches in the high courts for speedy disposal of cases related to commercial and financial matters. An announcement in this regard will be made in the coming budget,” the minister said here on Saturday.

Gowda was in the City to take part in an interaction with representatives of trade bodies, industry associations and entrepreneurs. The BJP Cell on Micro, Small and Medium Enterprises (MSME) has organised the event.

The minister said that Arbitration Act would be amended to ensure that cases were settled in India itself. Due to lack of infrastructure facilities, including manpower shortage, many go for arbitration outside India.

The process is time consuming, he pointed out. The law would be amended to make it industry-friendly. An announcement to this effect could be expected in the coming budget, he stated.

He said that Prime Minister Narendra Modi had asked all his ministerial colleagues to go through the mails sent by various industry associations and individuals. The ministers have been asked to consider the suggestions made by trade bodies.

Minister of State for Heavy Industries G M Siddesh told the gathering that the Centre would sanction Rs 125 crore for setting up a machine tool factory in Tumakuru.

‘PSUs delaying payment’

A section of the audience, mainly industrialists,  told the minister that public sector units were delaying payment for the supplies being made by MSMEs. As per the rules, payment should be made within 45 days of the supply. But this has not been followed strictly, they said.

Siddesh said he would talk to the heads of PSUs and ensure that payments were made within the prescribed time. He also assured the gathering that he would frequently interact with industry bodies in Karnataka.