May 07, 2018
The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Ordinance, 2018 was promulgated by the President of India on May 03, 2018. The ordinance amends the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015.
Key Highlights of the Ordinance:
Pre-Institution Mediation and Settlement– The ordinance inserts Section 12A into the Act of 2015 to provide for Pre-Institution Mediation and Settlement. It states that in a suit which does not contemplate any urgent relief under the Act shall not be instituted unless the Plaintiff exhausts the remedy of Pre-Institution Mediation. It also states that the settlement arrived through pre-institution mediation shall have the effect of an Arbitral award under the Arbitration and Conciliation Act, 1996.
Widening Pecuniary Jurisdiction of commercial dispute– The Ordinance amends Section 2 of the Act of 2015 to widen the scope of pecuniary jurisdiction of commercial courts. Prior to the ordinance the specified value of commercial dispute as stipulated under Section 2(h) of the Act was that the value of subject matter of dispute shall not be less than one crores. The Act has now been amended to provide that the value of subject matter of dispute shall not be less than three lakhs.
Read the ordinance here.