New Delhi:
Two bills aimed at creating commercial benches in select high courts and amending a law on arbitration for speedy settlement of high value business disputes were cleared by Parliament today.
The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill, 2015 and the Arbitration and Conciliation Act (Amendment) Bill, 2015 were passed by the Rajya Sabha without debate. They were cleared by the Lok Sabha last week.
The two bills have now replaced two separate ordinances promulgated on October 23.
For speedy settlement of commercial disputes, the Cabinet had in August cleared the bill to amend the Arbitration and Conciliation Act, 1996 to fix a timeline for arbitrators to resolve cases.
Under the amendments to the Arbitration and Conciliation Act, 1996, an arbitrator will have to settle a case within 18 months. After the completion of 12 months, certain restrictions will be put in place to ensure that the arbitration case does not linger on.
An official amendment moved by Law Minister DV Sadananda Gowda in Lok Sabha last week had made it clear that the law will not have any bearing on ongoing arbitration cases and will apply to such cases only if the two parties agree.
The Cabinet had on December 29 last year given a nod to an ordinance to amend the Arbitration Act but it was never sent to the President for approval.
The amendments to the law come amid keenness of the government to attract the greater foreign investment. Certain foreign companies were said to be hesitant to do business in India because of the long-drawn litigations. The Prime Minister has been stressing on steps to promote ease of doing business in India.