The Centre on Wednesday cleared two ordinances aimed at speedy settlement of commercial disputes, something that is expected to catalyse efforts to improve the ‘ease of doing business’ in the country.

The Union Cabinet cleared ordinances to amend the Arbitration and Conciliation Act and bring in the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill, 2015 that is pending before a Parliamentary standing committee, PTI said quoting sources. In December 2014, the Cabinet had cleared an ordinance to amend the Arbitration Act but it was not sent to the President for approval.

The Cabinet had, in August, cleared a bill to amend the Arbitration Act to fix a timeline for arbitrators to resolve cases. The bill was not introduced in Parliament. Under the proposed amendments to the Arbitration and Conciliation Act, 1996, an arbitrator will have to settle a case within 18 months. However, after the completion of 12 months, certain restrictions will be put in place to ensure that the arbitration case does not drag on indefinitely, the officials said. Another amendment to the law puts a cap on the fee of an arbitrator and requires the arbitrator to declare if there is a conflict of interest in a case he or she is taking up.

In the original ordinance approved by the Cabinet in December last year, the timeline was fixed at nine months. The time-line was changed after inter-ministerial discussions.

The amendments to the legislation come amidst the government’s efforts to attract higher foreign investment into the country. Foreign companies have expressed their reluctance in doing business in India because of the long-drawn litigations.

In its report submitted last year, the Law Commission had also recommended amendments to the arbitration law to help India become a favoured destination for international arbitration.

The department related standing committee on Law and Personnel was to table its report in Parliament on the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill, 2015 by end of July. But it was granted a month’s extension till August 30. The panel has sought a fresh extension till November 30.

The Bill has been pending since. After being referred to a Rajya Sabha Select Committee during UPA’s tenure, it was sent to the Law Commission. Based on the law panel’s recommendations, the NDA government re-drafted the bill as part of its ease of doing business.

The government will now have to take a call on bringing into force a law which will allow the Delhi High Court to transfer thousands of cases, mostly related to property disputes, to the district courts of the capital. The law will enhance the pecuniary jurisdiction of civil courts from the existing Rs 20 lakh to Rs 2 crore. The Delhi High Court (Amendment) Act, 2015, has received the approval of the President but is yet to be brought into force. Pecuniary jurisdiction refers to the jurisdiction of a court over a suit based on the amount or value of its subject matter.

(with PTI inputs)

Minimum bonus to be hiked to Rs 7,000 a year

New Delhi: The Cabinet on Wednesday approved a proposal to raise the salary threshold for mandatory bonus for workers from Rs 10,000 a month at present to Rs 21,000 and the minimum bonus from an annual Rs 3,500 now to Rs 7,000. All factories and establishments employing 20 or more persons are expected to pay the bonus compulsorily, provided the worker has worked in the establishment for at least 30 days. Employees in LIC, sailors, dock workers and university employees are outside the Act’s ambit. The Payment of Bonus (Amendment) Bill, 2015 will be tabled in Parliament for this purpose. The new bonus norms will take effect retrospectively from April 1, 2015.

While the minimum bonus is a legal liability on the firms concerned, whether or not they make a profit, these firms are also required to pay a higher bonus if their “allocable surplus” exceeds the amount payable as minimum bonus, subject to a cap (20 per cent) of the salaries. FE