Government's plan to set up commercial divisions in high courts to settle high value litigations has received a setback with a parliamentary select committee recommending several changes in the Bill, including reducing the threshold limit from Rs five crore to one crore.

The Commercial Division of High Courts Bill, 2009 was passed in the Lok Sabha without discussion. But when the Bill was tabled in the Rajya Sabha, it was referred to a select committee in December last year for further examination.

The Bill seeks to set up commercial divisions in High Courts to deal with litigations arising out of monitory transactions above Rs five crore.

The select committee, in its report to the Rajya Sabha yesterday, has recommended several changes in the Bill. "Since a parliamentary select committee has made recommendations, we may have to take the bill back to the Cabinet for approval," a Law Ministry official said.

The committee said that though it had received several suggestions to remove the threshold limit altogether, it decided to reduce it from Rs five crore to Rs one crore.

The reduced limit would enable more people to approach the commercial divisions of the High Courts to settle their commercial disputes which are above Rs one crore.

The report pointed that the Bill has no specific provision to increase the strength of judges in High Courts to be appointed in the Commercial Divisions.

"The High Courts are already over-burdened and marred with large number of vacancies in various HCs. The committee apprehends that bulk transfer of cases from district courts to commercial division may result in further clogging... the committee is of the opinion that the process of filling up of existing vacancies in the HCs may be expedited...," the report said.

It suggested that possibilities of having a commercial division in the Supreme Court should be explored as litigations decided by commercial devisions of HCs can be challenged in the apex court and it may lead to increase in litigations at the top level.

The committee also recommended that instead of two, the commercial division per High Court should have only one judge to avoid problems arising out of differences.

On appointment of advocates, the committee said the minimum experience should be reduced from 20 years to 10 years for a lawyer to represent clients in commercial divisions.

Out of the 11 members in the committee, two -- P Rajeeve and D Raja-- had given their dissent notes.

Rajeeve said the development of commerce and trade should not be at the cost of delaying justice for the comon man.

Raja said the government was copying the concept from western countries without analysing the situation prevailing in India.