“Sahodaya MUN 2019”

LOKSABHA
Background Guide

Knowledge Partner
LETTER FROM YOUR EB
Dear Delegates,

We welcome you to LOK SABHA at Sahodaya MUN

(powered by Muniversiti). As your executive board, during
your time in the committee, we’ll be trying to open portals
for you towards a fast-paced world of international politics
and diplomacy. In the committee you’re not just going to
be a school student. Rather, you’d be an international
delegate with the responsibility of voicing the opinions of
millions of civilians from your sovereign nation.

During the course of the debate, we expect that the

delegates would adhere strictly to their nation’s foreign
interests and would only quote articles and statistics from
Reuters, Al Jazeera, TeleSur, UN or national documents
while making statements.

Prior to your attendance in the committee, we urge you all

to try understand the complex multidimensional nature of
international politics over seemingly fundamental black
and white issues. Thoroughly read this background guide
which is curated information UN reports, but keep it in your
mind that this is only to kick start your research and is not to
be treated as the end-all be-all of your delegate research.

We promote delegate engagement with the Executive

Board and strongly suggest that everyone should feel free

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in the committee to raise questions ranging from
complicated problems like “How to solve border
conflicts?” all the way to basic questions like “How are
international borders defined?” We hope to be surprised
by your creative and intellectual inputs during the debate
and we also hope to surprise you with how much fun
understanding international socio-political landscape can
be.

Your EB looks forward to interacting with you, not just as the

people who are there to score your performance, not just
as your mentors in the conference, but also as light-
hearted quick-witted potential friends.

Sincerely,

CHAIR VICE CHAIR

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 ABOUT THE COMMITTEE

The Lok Sabha, as per the Constitution, consists of not more

than five hundred and thirty Members chosen by direct
election from territorial constituencies in the States, not
more than twenty Members to represent the Union
Territories [Article 81] and not more than two Members of
the Anglo-Indian Community to be nominated by the
President, if he/she is of the opinion that the Anglo-Indian
Community is not adequately represented in the Lok
Sabha [Article 331]. The limit on the maximum number of
Members chosen directly from territorial constituencies in
States may be exceeded if such an increase is incidental
to the reorganisation of States by an Act of Parliament.

Unless sooner dissolved by the President, the Lok Sabha

continues for five years from the date appointed for its first
meeting and no longer, as the expiration of the period of
five years operates as a dissolution of the House. However,
while a Proclamation of Emergency is in operation, this
period may be extended by Parliament by law for a period
not exceeding one year at a time and not exceeding in
any case beyond a period of six months after the
Proclamation has ceased to operate.

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The Rules of Procedure and Conduct of Business in Lok
Sabha provide that at the commencement of the House
or from time to time, as the case may be, the Speaker shall
nominate from amongst the Members a Panel of not more
than ten Chairpersons, any one of whom may preside over
the House in the absence of the Speaker and the Deputy
Speaker when so requested by the Speaker or, in the
absence of the Speaker, by the Deputy Speaker. A
Chairperson so nominated, holds office until a new Panel
of Chairpersons is nominated, unless he/she resigns earlier
from the Panel or is appointed a Minister or elected as
Deputy Speaker.

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 LOK SABHA’S
FUNCTIONING

An ordinary bill can become law only after it has been

passed by both the Houses of Parliament. It can be
introduced either in the Lok Sabha or the Rajya Sabha.
When a bill is introduced and passed by the Lok Sabha, it
is sent to the Rajya Sabha. After it has secured the approval
of Rajya Sabha, it goes to the President for his signature.

After this it becomes a law. Although ordinary bills can be

introduced in either of the two houses of Parliament, almost
90% of the bills are actually introduced in the Lok Sabha. In
case the Rajya Sabha rejects a bill passed by the Lok
Sabha and returns it with or without some amendments,
the Lok Sabha reconsiders the bill.

If the Lok Sabha re-passes it and the Rajya Sabha is still not
prepared to pass it, a deadlock occurs. If this deadlock
remains unresolved for six months, the President summons
a joint sitting of the two Houses. The decision of the joint
sitting is accepted by both the Houses.

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INTRODUCTION

Commercial courts handle complex national and

international business disputes. Cases that we hear
include disputes over contracts and business documents
insurance and reinsurance sale of commodities import,
export and transport (‘carriage’) of goods issues relating
to arbitration awards banking and financial services
agency and management agreements construction of
ships. Many of these cases can also be heard by the
Circuit Commercial Court. However, we generally hear
the more complex cases, or cases where there is a large
amount at stake.

The Bill reduces the pecuniary jurisdiction of commercial

courts from one crore rupees to three lakh rupees. It may
be argued that the transfer of all commercial disputes
above three lakh rupees may over burden the commercial
courts and defeat the objective with which they were
established.

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 HIGHLIGHTS
OF THE BILL

The Commercial Courts Act, 2015 provides for

commercial courts and commercial divisions of high
courts to adjudicate commercial disputes with a value of
at least one crore rupees. The Ordinance reduces this limit
to three lakh rupees.

The Ordinance allows state governments to establish

commercial courts at the district level, even in territories
where high courts have ordinary original civil jurisdiction.

In areas where high courts do not have original

jurisdiction, state governments may set up commercial
appellate courts at the district level to consider appeals
from commercial courts below the level of a district
judge.

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 HIGHLIGHTS OF THE
ORDINANCE

Enforcing commercial contracts requires the involvement

of the judicial system. However, it takes nearly four years
(1,420 days) in India to resolve commercial disputes. This
may be due to reasons such as high existing pendency of
cases, and complex litigation procedures. In 2013, there
were 32,656 civil cases pending in various high courts, of
which 52% were commercial disputes.

Over the years, various expert bodies such as the Law

Commission of India and the Standing Committee on
Personnel, Public Grievances, Law and Justice have
observed the need to fast track disposal of commercial
disputes. They note that most commercial disputes,
especially of high value have an impact on financial
investments and larger economic activity in the
country. In its 253rd Report, the Law Commission (2015)
further noted that an independent mechanism for quick
disposal of these commercial disputes is required with
specialised expertise in dealing with commercial cases.

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In this context, the Commercial Courts, Commercial
Division and Commercial Appellate Division of High Courts
Act, 2015 was enacted to fast track the disposal of high
value commercial disputes (above rupees one crore), by
establishing commercial courts at the district level, and
commercial divisions and commercial appellate divisions
in high courts.

As of December 2017, state governments had constituted

a total of 247 commercial courts in various districts across
the country. To improve ease of doing business in India, the
Commercial Courts, Commercial Division and Commercial
Appellate Division of High Courts (Amendment)
Ordinance, 2018 (Commercial Courts Ordinance, 2018)
was promulgated in May 2018, to reduce the pecuniary
jurisdiction of commercial courts and commercial divisions
in high courts from one crore rupees to three lakh rupees.

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Some basic differences are listed on the table presented
on this next page:

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 PECUNIARY
JURISDICTION OF
COMMERCIAL COURTS

Over the years, the Law Commission and Parliamentary

Standing Committees have observed that due to high
pendency of cases the judicial system is unable to
dispose of cases in a timely manner. The Law Commission
in 2003 and 2015 recommended that a law be enacted
to establish commercial courts to resolve commercial
disputes of high value. They argued that adjudication of
high value commercial disputes requires specialised
expertise, and has a larger impact on foreign investments
and economic growth of the country. It has been
recommended that the minimum value of cases being
heard by commercial courts should be above rupees one
crore.

Reducing the minimum value to above rupees three lakh

will increase the number of cases admitted in commercial
courts and therefore slow down the priority given to
relatively higher value cases. Note that while examining
the 2015 Act, the Standing Committee on Law and
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Justice (2015) recommended increasing the minimum
value of commercial disputes from one crore rupees to
two crore rupees. It argued that setting a lower value
may lead to the transfer of large number of cases which
may overburden the commercial courts. Therefore, the
purpose behind their establishment may be defeated.

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 CONCLUSION
The amendment provides for establishment of Commercial
Courts at district Judge level for the territories over which
respective High Courts have ordinary original civil
jurisdiction i.e. in the cities of Chennai, Delhi, Kolkata,
Mumbai and State of Himachal Pradesh. The State
Governments, in such territories may by notification specify
such pecuniary value of commercial disputes to be
adjudicated at the district level, which shall not be less than
Rs. 3 lakhs and not more than the pecuniary jurisdiction of
the district court. In the jurisdiction of High Courts other than
those exercising ordinary original jurisdiction a forum of
Appeal in commercial dispute decided by commercial
courts below the level of District judge is being provided, in
the form of Commercial Appellate Courts to be at district
judge level.

India will finally have exclusive Commercial Courts for a

wider horizon of commercial disputes in as much as it shall
have jurisdiction even for disputes as small as an amount
of Rs. 3 lakhs and more which previously was contained
for only disputes involving Rs. 1 Crore and above.

The specialized courts will evolve with speedy trial and

corrective results in corrective disputes as well. This is a

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measure seen as second biggest reform for speedy trail in
commercial disputes after Arbitration & Conciliation Act
was amended to expedite the arbitration process in India.
The changes are in line with a vision to boost the foreign
investor's confidence and to facilitate an ease of doing
business in India. The year 2016 to 2018 has resulted into
some drastic changes in law and its structure which in
medium to long term will enhance the image of Indian
Legal System.

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 REFERENCES AND
FURTHER READING

1. “Ease of Doing Business”, 122nd Report of the

Department Related Standing Committee on
Commerce, December 21,
2015, http://164.100.47.5/newcommittee/reports/Engl
ishCommittees/Committee%20on%20Commerce/122
.pdf.
2. “Commercial Division and Commercial Appellate
Division of High Courts and Commercial Courts Bill,
2015”, Law Commission, Report No. 253, January
2015,http://lawcommissionofindia.nic.in/reports/Repo
rt_No.253_Commercial_Division_and_Commercial_A
ppellate_Division_of_High_Courts_and__Commercial_
Courts_Bill._2015.pdf.
3. “Proposals for Constitution Of Hi-Tech Fast – Track
Commercial Divisions In High Courts”, Law
Commission, Report No. 188, December

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 2003, http://lawcommissionofindia.nic.in/reports/188t
h%20report.pdf.
4. Report No.78, Standing Committee on Personnel,
Public Grievances, Law and Justice: ‘The
Commercial Courts, Commercial Division and
Commercial Appellate Division of High Courts Bill,
2015, Rajya Sabha, December
2015, http://www.prsindia.org/uploads/media/Com
mercial%20courts/SCR-
%20Commercial%20Courts%20bill.pdf.
5. The Commercial Courts, Commercial Division and
Commercial Appellate Division of High Courts Act,
2015,https://indiacode.nic.in/bitstream/123456789/21
56/1/201604.pdf.
6. Rajya Sabha Starred Question No.14, Ministry of Law
and Justice, December 15, 2017.
7. “Arrears and Backlog: Creating Additional Judicial
(wo)man power”, Law Commission of India, Report
No. 245, July 7,
2014, http://lawcommissionofindia.nic.in/reports/Rep
ort245.pdf.
8. Court News, Supreme Court of India, Volume 12,
No.1, January to March 2017.

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 9. Vision Statement presented by the Law Minister to
the Chief Justice of India at the National Consultation
for Strengthening the Judiciary towards Reducing
Pendency and Delays, October 2009.
10. Advisory Council of the National Mission for
Justice Delivery and Legal Reforms, chaired by the
Union Law Minister, on May 15, 2012; Conference of
Chief Justices and Chief Ministers, 2012.
11. National Commission to Review the Working of
the Constitution, Volume. 1, Chapter
7,http://lawmin.nic.in/ncrwc/finalreport/v1ch7.htm.

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 “Success usually comes to
those who are too busy to be
looking for it”

(End of Document)

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