The Union Budget’s proposal to set up commercial divisions in courts was greeted warmly by legal experts. Based on a report of the Law Commission, the Central government proposes to introduce a Bill to set up exclusive commercial divisions in courts.
Litigation time
New divisions are expected to greatly cut down litigation time in disputes of a commercial nature. Besides decreasing the burden on other courts, commercial divisions would also encourage investment and lending, said P.S. Gopinathan, former judge of the High Court of Kerala.
“A large sum of money is tied up and hence unavailable for lending because cases of banks and other organisations are held up in courts. If it becomes difficult to realise money lent, people will also hesitate to give loans,” he said.
Foreign investment
Justice Gopinathan said commercial divisions would also encourage foreign investors who may had stayed away fearing long litigation periods.
