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Daily Financial News Analysis – 16th Nov’19 | Free PDF Download


Ease of Doing Business by Contract Enforcement

  • Work in District courts came to a standstill for more than a week.
  • Recent example of lack of speedy mediation
  • Ease of Doing Business: 63rd
  • Contract enforcement: 163/190
  • What this category measures?
  • Ans: the time and cost to resolve a commercial dispute and the quality of judicial processes for men and women are measured.
  • Commercial dispute resolution in India takes: 1,445 days
  • Quality of judicial process index: 10.5 out of 18
  • China, on the other hand, ranks fifth, with a quality of judicial index score of 16.5 and resolution of a commercial dispute taking 496 days.
  • National Judicial Data Grid

  • National MSME survey was conducted in which just 21% felt there has been an improvement in contract enforcement.
  • 34% respondents remained neutral, and 44% of the respondents disagreed.
  • While around 40% felt that the time and cost of enforcement in court has reduced significantly, the majority felt otherwise.
  • More than 60% of the 2,861 applications pending on the MSME payments grievance portal against Central and State governments and departments have remained unaddressed for more than 90 days.
  • The government also forms the biggest litigant block in the country.
  • The government has to lead by example
  • A massive overhaul of the judicial process is obviously needed.
  • Pendency is high.
  • A third of the cases are pending more than three years.
  • Some 6,000 vacancies in judiciary
  • Processes can be rationalised, digitised and simplified to make it easier to file and quicker to resolve commercial cases.
  • One long overdue measure is the digitisation of all courts to enable online filing of initial complaints and electronic payment of court fees.
  • Most countries have been working towards setting time standards for disposal of cases.
  • China has regulated the maximum number of adjournments, to be overridden only in exceptional circumstances.
  • While the Commercial Courts Act has set strict timelines for the decision after the hearing, an upper limit of a year or two must include execution of the decisions, appeals and final disposal of commercial disputes.
  • Alternative Dispute Resolution was introduced way back in 1999 with an amendment to the CPC under Section 89, that gave the judiciary powers to refer cases for out of court settlements.
  • Though civil cases are almost always now pushed towards mediation, twenty years on, India still lacks strength in effective mediators, creating a backlog.
  • With an eye on improving the EoDB and making India a centre for international commercial arbitrations, the Arbitration and Conciliation (Amendment) Act, 2019 was passed in August.
  • However, it has run into a muddle, with three petitions in the SC contending that Section 87 of the Act is in conflict with the Insolvency and Bankruptcy Code 2016.
  • The Economic Survey 2017-18 had pegged Timely Justice as the next frontier for EoDB.
  • It recommended coordinated action between the government and judiciary as the key policy solution.
  • In its quest to reach the top 25 in the World Bank ranking, India may find it quicker to move ahead in other parameters.
  • When it comes to contract enforcement, the challenges are deeply rooted.

Q1. Under Har Ghar Jal Yojana, the government will provide water to every house by the year?

  1. 2021
  2. 2022
  3. 2023
  4. 2024

Q2. What is the current installed nuclear power capacity of India?

  1. 4,560 MW
  2. 5,670 MW
  3. 6,780 MW
  4. 7,890 MW




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