Last week, Lahore got the country’s first commercial court at the Judicial Complex working. The court, which was long demanded, especially by the industrialists and traders’ communities, was inaugurated by the Chief Justice of Pakistan, Justice Gulzar Ahmad.

Not many have high hopes from the venture. While they are calling it a step in the right direction — commercial courts are supposed to fast-track property and related disputes, in order to ease the businessman — they identify certain lacunae that could hamper its progress.

In his speech at the inauguration, the CJP said commercial courts were crucial for the economic development of the country. He called this a revolutionary step. He said the cases relating to business needed to be decided without delay as they had an indirect impact on the economy.

Earlier, the Punjab government, in consultation with the Lahore High Court, promulgated the Punjab Commercial Courts Ordinance 2021 for the “ease of doing business.” Under the said law, commercial courts will be set up across the province. Not only are these courts mandated to decide cases within 180 days, but also e-filing and restrictions on adjournments are among their special features.

The new ordinance was drafted after getting input from the World Bank and the LHC in order to improve the ease of doing business, an area where Pakistan continues to face serious problems. The ordinance promises reforms such as the establishment of commercial courts, training of judges, upgrade of case management tools and court automation. It also aims to increase the use of Alternate Dispute Resolution (ADR) methods, enhance uniformity in judicial decisions and reduce the pendency of cases.

Talking to TNS, Assad Abbas Butt, a lawyer in the Lahore High Court, says that the Punjab Commercial Courts Ordinance 2021 has been promulgated to resolve commercial disputes efficiently and in a cost-effective manner. “The [commercial court] will be headed by an additional sessions’ judge, and shall have jurisdiction over commercial disputes where the value of the claim is over Rs 500,000.

“It excludes the sale and purchase of immovable property,” he adds. But it includes any transaction related to trade and business. The law also applies to disputes arising between individuals and domestic or foreign companies.

The ordinance, according to Butt, also includes “support for alternative dispute resolution, which means allowing for certain types of cases to be decided out of court if both parties agree.”

Moreover, a special secretariat has been set up to oversee postings and transfers of the judges of these courts.

Butt welcomes these developments but is of the view that the ordinance “has some serious lacunae which, if left unaddressed, could waste the entire effort. First, he says, like the banking and anti-terrorists courts, the commercial courts should not be housed on the premises of district courts. They should have separate buildings and premises.

Earlier, the Punjab government, in consultation with the Lahore High Court, promulgated the Punjab Commercial Courts Ordinance 2021 for the “ease of doing business.” Under the said law, commercial courts will be set up across the province. Not only are these courts mandated to decide cases within 180 days, but also e-filing and restrictions on adjournments are among their special features.

“Unfortunately, these days, judges remain under pressure from bar leaders and the lawyers during hearing of cases. The lawyers exert unnecessary pressure on the judges to get orders in their clients’ favour. Sometimes they even resort to violence in courts for the purpose.”

He says there are three to five thousand lawyers in civil courts at a time. In such circumstances, the judges cannot give decisions in commercial cases on merit. “The ordinance states that the commercial court must announce its decision in 180 days. Afterwards, an appeal against the decision of the commercial court can be filed in an appellate court, and if the complainant is not satisfied, he/she can directly approach the Supreme Court of Pakistan, bypassing even the Lahore High Court which has no role in the process. The ordinance is silent on the amount of time it could take the SC to decide on the appeal.”

Though special training has been imparted to judges of these courts, there has been no focus on the training and well-being of the lower staff of the commercial courts in the ordinance. As the lower staff has a meager salary structure, there is a strong likelihood that they will want to make a fast buck, as commercial cases involve disputes worth billions of rupees.”

Moreover, cases of immovable property should not have been excluded from the court’s jurisdiction, as they are part and parcel of most of the commercial disputes.

Naeem Mir, the central secretary general of Anjuman-i-Tajran Pakistan (ATP), isn’t very optimistic about the success of the commercial courts. He says, “Even though it’s a good step, the main force for the implementation of decisions [of commercial courts] is still the police which everyone knows is corrupt to the core.

“When it comes to implementing the court’s decision in a commercial case involving millions of rupees, how can you expect them to act with honesty?” asks Mir. “So there’s still a lot to work on, in order to put things right,” he says, adding that the business community does not know much about the ordinance and the efficacy of the courts. It is important that they are taken into confidence.”

Sheikh Ibrahim, a former executive member of the Lahore Chambers of Commerce and Industry (LCCI), welcomes the establishment of the commercial courts in the province. He says that the motivation for the provincial government to establish these special courts across the province is the realisation of the need that without taking such a step the country’s overall economic growth cannot be ensured. Long delays in hearings and decisions by courts in business matters have badly affected the local as well as foreign investments in Pakistan.

Ibrahim says that regular courts often take years to decide financial disputes. “Hence, commercial courts are needed for early decisions in such cases.

It’s a good omen that the commercial courts have been notified in five districts of the province. More are expected to be set up soon. Business-related cases pending in other courts will gradually be transferred to commercial courts.

He suggests that the government should adopt measures to take the business community on board on the benefits of these courts.

Mian Muhammad Ghaus, a senior politician of Pakistan Tehreek-i-Insaf (PTI), says that at present Pakistan ranks 156 out of the 190 economies on this indicator.

He says access to justice such as high costs due to delaying tactics of lawyers and inefficient disposal have led to over two million cases pending in lower and superior courts of Pakistan. This has led to impediments in the development of a prosperous economy, doubt in rule of law, and inefficient governance. Economic and social progress cannot be achieved without improving the access to justice and the effective protection of the rights of businesses.

The writer is a senior journalist and can be reached at ahsanzia155@gmail.com