During the 19th century, the publication of Chitty on Contracts in 1826 marked a pivotal moment in the development of commercial law. This seminal work laid the groundwork for subsequent legal developments through the application of the doctrine of precedents within the framework of common law.
In common law jurisdictions, including Pakistan, ordinary courts often face procedural complexities leading to delays, increased costs, and expenses. This situation persists in ordinary civil courts, which adhere to procedures outlined in the Code of Civil Procedure. Consequently, in an effort to address these issues, the Punjab government promulgated the Commercial Courts Ordinance on April 13th, 2021.
The ordinance stipulates that commercial courts must resolve disputes within a timeframe of 180 days. To minimize delays, the law discourages adjournments and mandates weekly hearings. Furthermore, the legislation includes provisions for imposing strict penalties on false cases and undue adjournments.
Under the ordinance, defendants are required to file a reply or leave to defend within 30 days. However, leave to defend will only be granted if the defendant raises substantial questions of law and facts. Notably, the law empowers the court to assess the genuineness of annexed documents by following Order XX, Rule XII of the Code of Civil Procedure. For instance, if there is a dispute regarding a registered contract, the court may verify it with the registrar before deciding on the leave to defend. If satisfied with the authenticity of the documents, the court may accept the leave to defend, proceeding to decide the case after recording evidence.
Moreover, the amendments introduced by the ordinance allow for e-filing of all submissions. Overall, the enactment of this legislation aims to restore trust in the judicial system within the business community.