On 17 February 2014, the then Union Law Minister Shri Kapil Sibal had introduced the Delhi High Court (Amendment) Bill, 2014, in the Rajya Sabha, to enhance the pecuniary jurisdiction of ordinary original jurisdiction of the Delhi High Court from the existing ₹ 20 lakh to ₹ 2 crore. Since then this Bill is still pending in the Rajya Sabha for about one year. Yesterday (4 February 2015), when this Bill was taken up in the Rajya Sabha, some members insisted that this Bill be taken up with other pending legislation on creation of commercial divisions in High Courts. Upon this, the Union Law Minister Shri D.V. Sadananda Gowda conceded to this demand that the aforesaid Delhi High Court (Amendment) Bill be deferred and taken up along with another pending Bill which seeks to create commercial divisions in High Courts to decide on high value commercial disputes.
[Update (06.05.2015): Also see: Rajya Sabha passes Bill to increase pecuniary jurisdiction of Delhi High Court.]
It is pertinent to mention that the Commercial Division of High Courts Bill, 2009, which sought to create commercial divisions in High Courts to decide on high value commercial disputes of value of more than ₹ 5 crore, was introduced in the Lok Sabha on 16 December 2009. The Rajya Sabha referred it to a Select Committee on 22 December 2009, which submitted its report in July 2010. However, it is understood that this Bill has lapsed in view of the fact that the 15th Lok Sabha has completed its tenure and now the 16th Lok Sabha has been constituted after the 2014 general elections.
It is also noteworthy that on 28 February 2015, during his general budget speech in Lok Sabha, the Union Finance Minister Shri Arun Jaitley had announced the setting up of commercial benches in high courts; the relevant extract of his budget speech is as under:
“For the quick resolution of commercial disputes, the Government proposes to set up exclusive commercial divisions in various courts in India based on the recommendations of the 253rd Report of the Law Commission. The Government proposes to introduce a Bill in the parliament after consulting stakeholders in this regard.”
Thus, it appears that the Government planned to table another Bill in this regard. My enquiries reveal that till date such Bill has not been introduced and in fact I am given to understand that a new Bill is being drafted in accordance with the recommendations of the Report No. 253 [Commercial Division and Commercial Appellate Division of High Courts and Commercial Courts Bill, 2015] of the Law Commission of India which was submitted recently on 29 January 2015 (see here). So, introduction of this new Bill in Parliament may take some time.
Coming back to the issue of the Bill relating to the enhancement of the pecuniary jurisdiction of Delhi High Court from the existing ₹ 20 lakh to ₹ 2 crore, it may be noted that at present, cases involving even a small property are required to be filed before Delhi High Court as the Delhi High Court has ordinary original civil jurisdiction of the civil suits involving value of ₹ 20 lakh and above. It was felt that due to the work load of the Delhi High Court was increased and at the same time, poor people living in Delhi have to cover considerable distance to approach Delhi High Court to seek justice in their cases.
It may be noted that the pecuniary jurisdiction of the Delhi High Court and District Courts of Delhi was last revised in the year 2003 from ₹ 5 lakh to ₹ 20 lakh by the Delhi High Court (Amendment) Act, 2003.
It was mentioned in the Statement of Objects and Reasons of the said Delhi High Court (Amendment) Bill, 2014, that the Coordination Committee of Bar Associations of Delhi at various forums had requested for enhancement of pecuniary jurisdiction of District Courts in Delhi. The Government of National Capital Territory of Delhi had considered this request and had in turn requested the Central Government for enhancement of pecuniary jurisdiction of ordinary original jurisdiction of the High Court of Delhi from the existing rupees twenty lakhs to rupees two crore. Accordingly, the said Bill was introduced in the Parliament to make the necessary changes.
Now, it appears that the said Bill for changing the pecuniary jurisdiction from the existing ₹ 20 lakh to ₹ 2 crore, will be further delayed and its fate will be linked with the Bill for setting up of commercial benches in high courts, as and when such Bill is introduced in Parliament and taken up for debate and passing.
It is pertinent to mention that in the recent past, a series of strikes by lawyers, both for and against the said Bill, had affected the working of the courts in Delhi. Therefore, it is a contentious issue where the High Court Bar and the District Courts Bars in Delhi have conflicting interests.
