Justice Senthilkumar Ramamoorthy, Madras High Court, Justice M Sundar, Madras High Court, S Chandramohan Past Chairman, CII Tamil Nadu and V P Sengottuvel, Senior Advocate, Madras High Court at the CII Conference on Commercial Dispute Resolution held on SaturdayTamil Nadu has achieved significant progress in expediting the resolution of commercial disputes, outpacing other regions. The reduction in pending cases underscores the success of dedicated commercial courts and divisions, as highlighted by judges of the Madras High Court at a recent CII Conference.

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Tamil Nadu leads in speeding up commercial dispute resolution: High Court Judges
Updated – August 24, 2024 at 09:40 PM.
By BL Chennai Bureau

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M Pallavi Baldev, Special Secretary, Industries Investment Promotion & Commerce Department, Tamil Nadu; M Ponnuswami, Chairman, CII SR MSME & EoDB Taskforce, Justice Senthilkumar Ramamoorthy, Madras High Court, Justice M Sundar, Madras High Court, S Chandramohan Past Chairman, CII Tamil Nadu and V P Sengottuvel, Senior Advocate, Madras High Court at the CII Conference on Commercial Dispute Resolution held on Saturday
M Pallavi Baldev, Special Secretary, Industries Investment Promotion & Commerce Department, Tamil Nadu; M Ponnuswami, Chairman, CII SR MSME & EoDB Taskforce, Justice Senthilkumar Ramamoorthy, Madras High Court, Justice M Sundar, Madras High Court, S Chandramohan Past Chairman, CII Tamil Nadu and V P Sengottuvel, Senior Advocate, Madras High Court at the CII Conference on Commercial Dispute Resolution held on Saturday
Tamil Nadu has achieved significant progress in expediting the resolution of commercial disputes, outpacing other regions. The reduction in pending cases underscores the success of dedicated commercial courts and divisions, as highlighted by judges of the Madras High Court at a recent CII Conference.

In Tamil Nadu and Pondicherry, there are 80 commercial courts across 40 judicial districts, with well-equipped facilities in Coimbatore, Salem, and Madras. The high rate of case disposal in the Commercial Division and Commercial Appellate Division, especially in districts like Coimbatore and Salem, reflects the effectiveness of these courts. While the average disposal rate across districts is around 80 per cent, some areas have seen rates as high as 190 per cent or even 200 per cent, noted Justice M Sundar of the Madras High Court at the CII Conference on Commercial Dispute Resolution.

Justice Sundar emphasised that Tamil Nadu and Pondicherry are making substantial progress, both at the High Court level and within the district judiciary. He pointed out that many disputes reaching the courts stem from poorly drafted arbitration clauses, and meticulous drafting is key to preventing these conflicts.

“By addressing these issues at the contract drafting stage, we can significantly reduce the burden on our courts and provide greater certainty to the business community,” he said, adding that the executive branch has been instrumental in establishing fully digitised commercial courts with advanced video conferencing capabilities, leading to remarkable progress.

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Justice Senthilkumar Ramamoorthy of the Madras High Court noted that the Commercial Courts Act was introduced to improve India’s standing in the World Bank’s Doing Business Report, specifically in contract enforcement. The Act offers several tools —specialist courts, mandatory pre-institutional mediation, strict time limits and the possibility of awarding actual costs—to ensure swift and fair case resolution. The success of these initiatives is evident in the high case clearance rates across various divisions.

As of July 2023, 550 suits were pending, with a clearance rate of 195 per cent, meaning nearly two cases were resolved for every new case filed in the State. In the commercial appellate division, there are approximately 272 cases, with a clearance rate of 166 per cent. At the district judiciary level, around 5,123 cases are pending, with a clearance rate of 80 per cent, he mentioned.

Additionally, a dedicated intellectual property division was established in the Madras High Court in 2023 following the disbanding of the Intellectual Property Appellate Board. Of the 1,100 cases transferred, 900 have been resolved, with about 500 still pending. Similarly, the arbitration roster currently has around 450 pending cases.These statistics clearly demonstrate the success of dedicated commercial courts and divisions, indicating that this approach is the future of our judicial system, he added.

VP Sengottuvel, a Senior Advocate of the Madras High Court, urged the State government to establish more commercial courts in areas with a higher backlog of commercial cases.

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