HC advocates for commercial court for commercial disputes

Excelsior Correspondent
SRINAGAR, Sept 22: High Court advocated the constitution of a Commercial Division of the Court for disposal of arbitration proceedings relating to commercial disputes of specified value pending before it.
The direction in this regard has been passed by a bench of Justice Sanjay Dhar while answering in affirmative the question whether after the de-operationalization of the Constitution of Jammu and Kashmir pursuant to promulgation of the Constitution (Application to Jammu and Kashmir) Order, 2019 C.O 272, the High Court retains ordinary original civil jurisdiction.
“…There is no manner of doubt in holding that this court even after de-operationalization of the Constitution of Jammu and Kashmir, 1957, and the enactment of the J&K Reorganization Act, 2019, is vested with the ordinary original civil jurisdiction as well as extraordinary original civil jurisdiction,” Justice Dhar said after tracing out in detail the history of it being conferred with the civil jurisdiction.
After answering the query as regarding civil jurisdiction in affirmative, the court however held that it cannot entertain and decide the cases relating to arbitration in a commercial dispute of a specified value without the constitution of a Commercial Division in terms of Section 4 of the Commercial Courts Act, 2015.
“From a careful analysis of the …provisions contained in Commercial Courts Act, 2015, it becomes clear that constitution of a Commercial Division in a High Court, which is vested with ordinary original civil jurisdiction, is an absolute imperative to deal with the cases involving commercial disputes of specified value that may have been filed in the said High Court,” the court said, adding, “such cases have necessarily to be transferred to a Commercial Division constituted in terms of Section 4 of the Act.”
Subsequently, the court directed Registrar General to place the matter before the Chief Justice for consideration so that an appropriate decision is taken with regard to constitution of a Commercial Division of the High Court for disposal of arbitration proceedings relating to commercial disputes of specified value pending before it.
“It is also suggested that feasibility of fixing a different higher specified value for entertaining proceedings relating to commercial disputes by the court in its ordinary original civil jurisdiction be also explored,” the court said, adding, “since a large number of arbitration proceedings relating to commercial disputes are pending in the High Court which, in the absence of a Commercial Division, cannot proceed further, as such, the Registrar General is requested to take urgent steps in the matter”.