Centre asks states to set up special courts for infra project disputes

The Union Law Ministry has directed states to set up special courts to settle disputes related to infrastructure project contracts under a law amended two years ago as this will improve the 'Ease of Doing Business' ranking of both India and states. Giving examples of Allahabad, Karnataka, and Madhya Pradesh high courts, it suggested other high courts to allocate a special day to make already functioning designated special courts for dealing with infrastructure project litigation as dedicated courts. Section 20-B of the Specific Relief (Amendment) Act, 2018, provides for designated courts. But the Law Ministry wants a designated court to function as a dedicated court on special days.

In a letter to the registrars general of all high courts, the secretary (Justice) in the Law Ministry said that the Karnataka, Allahabad and Madhya Pradesh high courts have set up Designated Special Courts instead of Dedicated Special Courts under the Specific Relief Act. The high courts have dedicated special days every week to enable exclusive handling of Specific Relief matters about infrastructure project contracts. This arrangement could be considered for adoption in the high court as an alternative measure until Dedicated Special Courts are put in place. It could help to enforce contracts from both the perspective of time and cost, thereby stimulating investors' confidence and creating a conducive business environment.