Amendments in the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill, 2015, as introduced in the Lok Sabha

No: --- Dated: Dec, 16 2015

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its ex-post facto approval to official amendments in the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill, 2015, as introduced in the Lok Sabha. 

The amendments will be as under: 

i. In Clause 10 to the Bill, the words, “Commercial Appellate Division” will be substituted by the words, “Commercial Division”. 

ii. First Proviso to Clause 7 of the Bill will also be amended to clarify that the said proviso will also be applicable to the pending cases. 

It would reduce burden on the Division Bench. Amendment in Proviso to Clause 7 of the Bill will bring more clarity about the said clause. The Amendments are likely to be introduced in the current session of Parliament. After amendment in Clause 10, all applications and appeals in Arbitration matters, which are filed in the High Court may be heard and disposed of by the Commercial Division in the High Court consisting of a single Judge Bench. 

Background: 

A Bill for replacement of Ordinance has been introduced in the Lok Sabha on 07.12.2015. As provided in Clause 10(1) and (2) of the Bill, all applications and appeals in Arbitration matters, which are filed in the High Court are to be the heard and disposed of by the Commercial Appellate Division which consist of Two Judge Bench. Concerns have been expressed that it may overburden the High Courts. 

The Cabinet in its meeting held on held on 21st October, 2015, had approved the proposal for promulgation of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015 and to introduce a Bill in the Parliament to replace the Ordinance. Accordingly, the President promulgated the Ordinance on 23.10.2015.