Government advocating to create special designated court for hearing in infra project cases
The Law Ministry has asked state governments to form special courts to settle disputes related to contracts for infrastructure projects under a law amended two years ago. The ministry says that it is very important to improve the Ease of Doing Business ranking of the country as well as the states.
Karnataka, Allahabad and Madhya Pradesh high courts were given the example of states
Citing the example of the High Court of Karnataka, Allahabad and Madhya Pradesh, the Law Ministry has also suggested that other special courts be given special days for dedicated courts to those designated special courts, which are already hearing cases related to infrastructure projects. Section 20B of the Specific Relief Amendment Act 2018 provides for the designation of a designated court, but the law ministry wants the designated special court to be replaced by a dedicated special court.
The justice secretary wrote to the registrar general of all high courts last week
The Justice Secretary of the Law Ministry had written a letter to the Registrar General of all the High Courts last week, stating that the High Court of Allahabad, Karnataka and Madhya Pradesh has designated a designated special court in place of the dedicated special court under the Specific Relief Act. These High Courts have fixed specific days for special handling of the specific relief matter associated with the contract of infrastructure project every week.
As an alternative measure, a designated special court can be arranged.
The letter also states that until a dedicated special court is formed, a designated special court can be arranged in the High Court as an alternative measure. This arrangement will be beneficial in terms of both the time and expense involved in implementing the contract, as well as increasing investor confidence and creating a favorable business environment.
According to the Special Relief Amendment Act 2018, emphasis on making special courts
Law Minister Ravi Shankar Prasad wrote a letter to the Chief Ministers in all states in October and insisted on making a special court as per the Special Relief Amendment Act 2018. Prasad had said that section 20A has been inserted in the law made for contracts for infrastructure projects, according to which the court will not grant an injunction in any such case, i.e., will not give a restraining order in favor of the plaintiff in which he feels that the infrastructure project from doing so will be delayed or interrupted to continue.
The special court will save time and expenses, create a better investment-friendly environment
Prasad had said that foreign investors believe that having a special court will ensure the implementation of infra contracts both in terms of time and expense and a better investment-friendly environment. In view of this, the creation of special courts will not delay the completion of the infra project or hinders their continuation. Under Section 20B of the amended law, the state government will make one or more civil courts as specially designated courts in the local limit of the Chief Justice Area of the High Court for settlement of disputes related to infrastructure projects.
