Report No. 188
2. Method of expeditious disposal of "Commercial cases" of high pecuniary value in NUTSHELL:
We recommend the creation of "Commercial Division' in each of our High Courts so that these may handle 'commercial cases' of a high threshold value of (say) Rs. 1 crore and above, or such higher limit as may be fixed by the High Court and on fast-track basis. Such a procedure was recommended in our Report on Amendments to the Indian Arbitration and Conciliation Act, 1996 for 'fast-track' arbitration. The objective is that a commercial case of such high value should be disposed of within a period of one year or at the most two years in all the States in India.
A maximum period of two years is perfectly justified and is comparable to the period of pendency in most courts abroad and in particular in US and UK. The proposed Divisions should be manned by Judges of the High Court who are well-versed in civil law and in particular, commercial laws. It is also proposed that High Court Judges should be given extensive exposure to the fast growing changes in commerce occurring globally and that their knowledge levels in respect of new branches of commercial law should be updated constantly by a programme of continuing lectures.
The commercial cases above the pecuniary limit of (say) Rs. 1 crore or more as stated above must, in our view, be taken up on the original side of the High Court and to be allocated to the Commercial Division. Simultaneously, pending appeals before the High Court in relation to commercial cases of the high pecuniary value abovementioned must also to be allocated to the Commercial Division straightway rather than stand in queue along with other civil appeals pending in the High Courts. Likewise, the execution of decrees passed by the Commercial Division must also be undertaken by the same Division.