GS-2 (Mains), Mains-2018 (English), Uncategorized

Commercial Courts – Significance & Challenges in India


What is Commercial courts?

-> The commercial courts attempt to cover a broad range of disputes within the scope of a ‘commercial dispute’.

-> The definition broadly covers commercial disputes arising from ordinary transactions of merchants, bankers, financiers and traders such as those relating to mercantile documents, export and import of merchandise or service, admiralty and maritime law, transactions relating to aircraft, etc.


Significance of Commercial courts:

-> The commercial courts provide for strict deadlines for conduct of case, filing of written statements, filing of documents, filing of written statements, etc.

-> Commercial courts promotes Ease of doing Business (EoDB) in India.

-> India ranks 172 out of 190 countries under the “enforcing contracts” indicator in the latest report.

-> Encourage investor confidence and promotes Entrepreneurial class.

-> Fast track resolution would reduce banks NPAs.

-> Specialized court provides more efficient decision making.



-> The entire infrastructural development onus goes to the States and if they do not implement it, there would be no benefit. Funding remains a key challenge.

-> Proper skill training for the new regime would be needed.

-> The financial threshold is set up at 1 crore which may again pose burden to these courts.

-> Issue of jurisdiction between civil court & commercial court.

-> Inappropriate infrastructure like shortage of judges etc.


Indian’s performance within the legal framework according to the World Bank’s Ranking and the government’s take on it:

-> India’s performance has been varied within the legal framework.

-> The World Bank’s ranking marked “court system and proceedings in India” 4.5 out of a total of 5, but in management of cases, it was 1.5 out of 6.

-> India also fared well in alternative dispute redress mechanism and scored 2.5 out of a total of 3 marks.

-> Thus, the government is proposing amendments to facilitate the establishment of commercial courts, at the district level, in places where the High Courts have ordinary original civil jurisdiction.

-> The specified value of commercial disputes would be brought down to expand the scope of commercial adjudication effectively and expeditiously.



Setting up of Commercial Court is a good step taken by the government of India for the creation of a business-friendly environment considering the commercial cases discouraging the foreign & domestic investors and hindering the economic progress of our country.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s