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𝐂𝐨𝐦𝐦𝐞𝐫𝐜𝐢𝐚𝐥 𝐂𝐨𝐮𝐫𝐭𝐬 𝐀𝐜𝐭 𝟐𝟎𝟏𝟓 - 𝐚𝐧 𝐞𝐝𝐠𝐞 𝐨𝐯𝐞𝐫 𝐭𝐡𝐞 𝐃𝐨𝐦𝐞𝐬𝐭𝐢𝐜 #𝐀𝐫𝐛𝐢𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐈𝐧𝐝

Posted on 03-03-2022

Commercial court'Act's main purpose is to ensure speedy disposal of high stake commercial cases. Initially, the Act had limited the specific value of the suit to not less than Rupees One crore; also the commercial courts were to be established at all the District levels. However, there were no commercial courts established at the District level where the High court had original civil jurisdiction. Later on, amendments dated 03.05.2018 in regards to the specific value and the jurisdiction are of importance. Accordingly, the specific value of the suit was reduced to not less than Rupees Three lakhs and proviso was added to section 3 (1) which states that the commercial courts at district level shall be established even where the High court had its original civil jurisdiction. The star that shines: In the #Commercial Courts Act, a prelitigation mediation is mandatory, the timeline for the pre-litigation mediation is 90 days. It has been noted that some disputes are actually resolved through this process. In cases where the prescribed prelitigation mediation fails, the parties can initiate a claim essentially praying for the interim urgent relief along with the main relief sought in a common claim petition. However, this is not possible under the Arbitration and Conciliation Act, if a tribunal has not been constituted. Pocket friendly: Arbitration fee is approximately 5-10% (at a minimum) of the value of the claim of the claimant; whereas the court fee payable in case of approaching the court is very meager compared to the cost of Arbitration, even if the adjudication of the dispute involved several crores. Further, after the respective parties to the dispute file their pleadings including the claims and defense, a case for summary judgment could be made out and final orders could be passed if the court feels that the defense raised is frivolous. Further, unlike the process of arbitration, there is no need to pay for the costs of venue nor does he have to pay an additional stamp duty of 0.1% of the value of the final order. Considering the prevailing practice of snail-paced Domestic Arbitration, definitely, Commercial Courts are the light at the end of the tunnel! Hence, It will be prudent to include the Commercial courts' option in the dispute resolution clause of the contracts. www.linkedin.com/in/ramaadr #disputeresolution #courts ADROIT CLAIMS AND ADR CONSULTANTS


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