Don’t miss the latest developments in business and finance.

40 projects stuck in litigation stall investment of Rs 4 lakh crore: ASSOCHAM

Image
Capital Market
Last Updated : Jan 19 2015 | 11:15 AM IST
Making out a strong case for commercial court in every high court and special benches for high value litigations, the ASSOCHAM said 40 projects worth over Rs 4 lakhs crores are stuck in litigation process in different courts and tribunals.

An ASSOCHAM paper on 'Reforms in Indian Legal System,' contended that delays in timely disposal of high value cases are taking a huge toll on the country's GDP and prompting some foreign Commercial Courts assuming jurisdiction in disputes even where no cause of action arose in those countries.

Further, the contention of the foreign courts in assuming jurisdiction in commercial disputes even where no cause of action arose in those countries is dilatory processes in India where disputes linger on for years together causing economic losses to the parties in the dispute and policy uncertainty among investors.

While the Indian judiciary is respected the world over for independent judicial processes, there are concerns over long delays in disposal of cases. As per latest statistics collected by ASSOCHAM, Supreme Court has 63,843 cases pending as on 1st May, 2014, High Courts have 44,62,705 cases pending and the Lower Courts have 2,68,38,861 cases pending as of December 2013.

To speed up the resolution of commercial disputes, the ASSOCHAM has suggested various measures including creation of better infrastructure, filling up of vacancies of Judges and clarity in regard to the role of appellate tribunals. Since the IPR regime is gaining importance and has caught the attention of the global investors, there should be special benches for IPR cases.

Besides ad-hoc arbitration be stopped completely and the Arbitration Act should be amended and the system of arbitration should be made more credible and effective. Also there should be an international standard Arbitration centre in Delhi on the lines of New York / London / Singapore.

The ASSOCHAM paper suggested a clear National litigation Policy responsibility should be fixed for frivolous litigation.

More From This Section

The Supreme Court of India in consultation with the government should come out with a policy under which Trial Courts are asked that the cases - civil or criminal, which are pending under the Trial Courts for more than 20 years be closed.

Similarly, the apex court should issue instruction that litigations under arbitration must be finished maximum within one year and in case of any delay the arbitration cases must be subject to scrutiny by the relevant High Court or Supreme Court beyond one year.

Powered by Capital Market - Live News

Also Read

First Published: Jan 19 2015 | 10:56 AM IST

Next Story