Corporate litigation in SC may cost more

It may be raining money for the Supreme Court, with a multi-fold increase in its annual revenue. A parliamentary standing committees proposal recommending a multiple rise in court-fees for corporates has gone down well with the ministry of law and justice. At a high-level committee meeting held on Thursday, there was unanimity on introduction of an ad-valorem court fee for all corporate matters brought before the apex court. Once the proposal is implemented, the SC’s court fee collection could increase to several hundred crores per annum compared to just over Rs 1 crore now. In return, corporates would get a fast-track mechanism for resolution of legal disputes in the form of an exclusive corporate bench. The meeting (with the ministry of law and justice) was a positive and healthy discussion and the draft report is scheduled to be adopted on August 1 chairman of parliamentary standing committee on law and justice EMS Natchiappan told ET. He, however, added that accepting the recommendations was a political decision by the government. Once the draft report is adopted, the matter will either be placed before Parliament after clearance by the Cabinet. Justifying the proposed increase in corporate court fees, Mr Natchiappan says while crores of money are at stake in several company litigations, the litigating corporates pay a fee of just a few thousands. While the panel is silent on the rate at which the ad-valorem duty should be made applicable, the chairman said the additional revenue that the apex court could generate was likely to be between Rs 1,000 crore and Rs 10,000 crore. Mr Natchiappan says presently, the Supreme Court earned a revenue of slightly over Rs 1 crore, with more than 18,000 corporate matters pending before it. The panels recommendations have further stressed setting up a separate bench in the apex court that would exclusively look after corporate matters. While Mr Natchiappan says all the panels recommendations require the dual sanction of the government as well as the highest judiciary, and subsequent amendments to the Supreme Court rules. The panel has also recommended greater transparency and regulation in the appointment of judges. – www.economictimes.indiatimes.com