The Commercial Courts Act, 2016 is an Indian legislation that aims to provide a speedy and efficient resolution of commercial disputes. The act was enacted to reduce the burden of pending cases in Indian courts and to provide a specialized forum for commercial disputes.
The Commercial Courts Act, 2016 has been a significant step towards streamlining the resolution of commercial disputes in India. The establishment of specialized commercial courts and time-bound disposal of cases has helped in reducing the backlog of cases in Indian courts. The act has also provided a mechanism for the quick resolution of commercial disputes, which has been beneficial for businesses in India.
Features of the Commercial Courts Act, 2016 include:
- Establishment of Commercial Courts: The act provides for the establishment of commercial courts at the district level, commercial division in high courts and commercial appellate courts.
- Time-bound disposal of cases: The act provides for a time-bound disposal of commercial disputes. The commercial courts are required to dispose of the cases within a period of six months, which can be extended to a maximum of one year.
- Jurisdiction: The act defines commercial disputes and provides for the jurisdiction of commercial courts over such disputes. The commercial courts have jurisdiction over all disputes arising out of transactions of a commercial nature.
- Appeal mechanism: The act provides for an appeal mechanism against the orders of the commercial courts. Appeals can be made to the commercial appellate courts within a period of 60 days from the date of the order.
- Power to grant interim relief: The commercial courts have the power to grant interim relief to the parties to a dispute. The interim relief can be in the form of an injunction, appointment of a receiver, or any other order as deemed fit by the court.
- Mediation and settlement: The act provides for mediation and settlement of commercial disputes. The parties to a dispute can approach the commercial court for mediation and settlement of their dispute.
The Commercial Courts Act, 2016 recognizes and promotes the use of alternative dispute resolution (ADR) mechanisms such as arbitration and mediation for the resolution of commercial disputes.
Arbitration:
The act provides for the referral of disputes to arbitration, either by agreement between the parties or by court order. The act also recognizes the enforcement of arbitral awards as per the provisions of the Arbitration and Conciliation Act, 1996. The Commercial Courts Act, 2016 also sets out the procedure for the appointment of arbitrators and the conduct of arbitration proceedings.
The Indian Contract Act, 1872 recognizes arbitration as a means of resolving disputes arising from a contract. Section 28 of the act provides that any agreement that prevents the parties from approaching a court for the resolution of their dispute and instead requires them to refer the dispute to arbitration is valid and enforceable.
The Arbitration and Conciliation Act, 1996, governs the arbitration proceedings in India. The act provides for the appointment of arbitrators, the conduct of arbitration proceedings, and the enforcement of arbitral awards.
Under the act, the parties can refer their dispute to arbitration by agreement. The parties can also approach the court for the appointment of an arbitrator or for any interim measures. The act also recognizes the enforcement of foreign arbitral awards in India.
Mediation:
The act provides for the referral of disputes to mediation, either by agreement between the parties or by court order. The parties to a dispute can approach the commercial court for mediation and settlement of their dispute. The act also provides for the appointment of a mediator and the conduct of mediation proceedings.
Mediation is a voluntary and confidential process of dispute resolution. The Indian Contract Act, 1872 does not specifically recognize mediation. However, the act provides for the settlement of disputes by agreement between the parties.
The Indian courts recognize the importance of mediation in resolving disputes and have encouraged parties to opt for mediation as an ADR mechanism. In 2005, the Indian government launched the Mediation and Conciliation Project Committee (MCPC) to promote the use of mediation for the resolution of disputes.
The Mediation and Conciliation Rules, 2004, govern the conduct of mediation proceedings in India. The rules provide for the appointment of a mediator, the conduct of mediation proceedings, and the settlement of disputes by agreement.
Under the rules, parties can approach the court for the appointment of a mediator or for the enforcement of a settlement agreement reached through mediation.
The Commercial Courts Act, 2016 encourages the use of ADR mechanisms for the speedy and efficient resolution of commercial disputes. The act recognizes the importance of arbitration and mediation in reducing the burden of cases in Indian courts and promoting the settlement of disputes through consensual means. By promoting the use of ADR mechanisms, the act aims to provide an alternative to traditional court proceedings and promote a more collaborative and efficient approach to dispute resolution.