The Supreme Court of India has emphasized the critical role of commercial courts in facilitating the ease of doing business by ensuring a swift resolution of business disputes. On Monday, the Court highlighted the necessity to evaluate whether there is a need to establish more commercial courts across various states. This assessment aims to address the current backlog and enhance the efficiency of commercial litigation processes.
Supreme Court’s Initiative
The bench, comprising Chief Justice of India (CJI) Surya Kant, Justice Joymalya Bagchi, and Justice V Mohana, has requested up-to-date data concerning the number of pending commercial cases and the infrastructure available to support these courts. The bench stated, “The primary purpose of commercial courts is to expedite hearings… A key aspect of the ease of doing business is the prompt resolution of commercial disputes by the courts.”
The Court is seeking clarity on whether any assessments have been conducted regarding the backlog or trends of cases filed under the Commercial Courts Act. It was noted by the amicus curiae that this information was not previously submitted, despite the Court’s directive in April 2025 for High Courts to report on the timeframes involved in processing these matters.
Phased and State-specific Approach
CJI Surya Kant emphasized that the need for additional courts varies between states and that establishing new courts should be approached in a phased manner. “The necessity for more courts is contingent upon each state’s specific context, considering factors such as infrastructure and the availability of judicial officers,” he stated, acknowledging the diversity in commercial litigation volumes between urban and rural areas.
Senior Advocate Arvind Datar supported this view, underscoring that requirements differ significantly between states. The CJI concurred, noting, “States with major urban centers might experience higher commercial litigation compared to those dominated by rural areas.” Consequently, the Court has mandated the collection of the latest data available as of January 31, 2026, detailing pending commercial cases and the infrastructure of commercial courts.
Next Steps in the Evaluation Process
The Supreme Court has instructed relevant parties to gather state-specific data on the increasing trend of commercial litigation. This information will be pivotal for estimating the need for additional commercial courts in various regions. The Court intends to use this data to issue precise directives for the establishment of new commercial courts where needed.
The matter is scheduled to be reviewed again in two weeks, at which point further directions may be issued based on the data collected.
