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October 7, 2025

Daily Legal Current Affairs: 7 Oct 2025/Section 12 A of Commercial Courts Act, 2015:

 Section 12 A of Commercial Courts Act, 2015:

Why in News ? In contemporary India, there is a growing tendency among sections of the ruling class and public policy advisers to portray the judiciary as a roadblock to economic development. A prominent example is Sanjeev Sanyal, member of the Prime Minister’s Economic Advisory Council, who recently described the judiciary as the “single biggest hurdle” to achieving the goal of Viksit Bharat.

Misplaced Blame and Oversimplification:

This criticism reflects a simplistic narrative that blames the judiciary for India’s economic bottlenecks, often citing procedural delays, short working hours, and inefficiency. However, such caricaturing of the courts ignores the structural issues that contribute to legal delays:

  • Severe shortage of judges and infrastructure
  • Lack of modern case management systems
  • Inadequate support staff and technical resources

The judiciary, in many ways, reflects the broader governance failures—poor funding, bureaucratic delays, and ineffective implementation—that also plague the executive and legislative branches.

Judicial Mandates vs Executive Responsibility

Critics often cite legal procedures, such as mandatory pre-suit mediation under the Commercial Courts Act, 2015, as ineffective burdens imposed by courts. However, these are statutory mandates passed by Parliament, and not judicial innovations. Blaming courts for their enforcement reveals a misunderstanding of institutional roles.

Need for Balanced Reform, Not Vilification

The Indian judicial system undoubtedly needs reform—streamlining procedures, digitisation, and alternative dispute resolution must be prioritised. But vague and misinformed criticism only weakens public trust in an institution that remains a crucial check on executive excess and a guarantor of fundamental rights.

Conclusion:

In a democracy, institutional introspection is necessary—but reform must be rooted in evidence and collaborative governance, not scapegoating. A thriving Viksit Bharat requires not just economic growth, but a strong, independent judiciary that ensures that growth is just and equitable.

Commercial Courts Act, 2015:

The Commercial Courts Act, 2015 was enacted to streamline and expedite the resolution of commercial disputes in India, thereby improving the ease of doing business and reducing the burden on traditional civil courts.

Objective:

To provide a separate and specialized judicial mechanism for commercial disputes of a specified value and ensure their speedy adjudication.

 Key Features:

Feature Description
Special Courts Establishes Commercial Courts at the district level and Commercial Divisions in High Courts with original jurisdiction.
Specified Value Initially set at Rs1 crore; later reduced to Rs 3 lakh by the 2018 amendment to widen access.
Scope of Disputes Applies to commercial disputes, including those related to trade, contracts, intellectual property rights, joint ventures, franchising, etc.
Mandatory Pre-Institution Mediation Introduced via Section 12A – encourages out-of-court settlement before litigation.
Fast-Track Procedure Strict timelines for filing written statements and disposal of cases (aimed at within 6 months).
No Civil Court Jurisdiction In matters under commercial courts, civil courts are barred from exercising jurisdiction.

Important Sections:

Section Provision
Section 2(c) Defines “commercial dispute”, broadly to include all disputes related to commerce and trade.
Section 3 Establishes Commercial Courts at District level and Commercial Divisions in High Courts with original jurisdiction.
Section 12A Mandatory pre-institution mediation for cases (except those requiring urgent interim relief). Aimed at reducing the case burden.
Section 13 Provides for appeals from Commercial Courts to Commercial Appellate Divisions in High Courts within 60 days.
Section 16 The Act overrides any inconsistent provisions in other laws (non-obstante clause).

 

Amendments:

Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Act, 2018:

  • Reduced “specified value” from Rs 1 crore to Rs 3 lakh.
  • Extended pre-institution mediation provision under Section 12A.
  • Allowed state governments to designate judges for Commercial Courts even at the subordinate level.

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