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What are the various scenarios with regards to implementing reforms under Contract
Enforcement that States may find themselves in?
Scenario 1: In cases where States do not have Commercial Courts, what steps have to be taken by
the States to implement the reforms.
In such cases, the States in consultation with the respective High Courts should constitute
Commercial Courts at all major towns and clusters to exclusively hear commercial cases . State may
take steps as enumerated above ( Steps 2 to 4)
Scenario 2: In cases where States have established a specialized commercial Courts but are yet to
implement other reforms (Steps 2 to 4), what steps have to be taken by the State to ensure their
implementation?
In such cases, the States/ UTs may in consultation and coordination with the High Court take all
necessary steps to ensure that the necessary infrastructure, staffs, funds, etc for making electronic
processes like e-filing and e-payment are available and operational in Commercial Courts.
Scenario 3: What if the States are under the jurisdiction of a High Court of another State, how would
they implement the reforms?
According to the Commercial Courts Act, 2015, Section 3(1), the State Government may, in
consultation with the concerned High Court constitute the Commercial Courts in their State. For the
States who are under the jurisdiction of the High Court of another State, they may urge the High
Court concerned for setting up of Commercial Courts in their State.
As both the States of Goa and Puducherry have already constituted Commercial Courts in
consultation with their concerned High Court -- High Court of Bombay and High Court of Madras,
respectively; the other reforms with regard to making the courts digital and paperless may be done
by following the same process.
It is pertinent to note that the State of Maharashtra (under the jurisdiction of High Court of
Bombay), have implemented the reforms related to Contract Enforcement with the necessary
consultations and permissions of the High Court of Bombay. Goa also comes under the jurisdiction
of High Court of Bombay and thus, the State Government of Goa may implement
the same reforms in coordination and consonance of the High Court of Bombay.
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