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The Law Ministry has asked states to set up special courts to settle disputes related to infrastructure project contracts under a law that was amended two years ago, saying it is very important in improving the 'Ease of Doing Business' ranking of both India and states.

Citing the examples of the high courts of Allahabad, Karnataka, and Madhya Pradesh, it has suggested other high courts to allocate a special day to make already functioning designated special courts for dealing with infrastructure project litigation as dedicated courts.

Section 20 B of the Specific Relief (Amendment) Act, 2018, provides for designated courts. But the Law Ministry wants a designated court to function as a dedicated court on special days.

In a letter to the registrar's general of all high courts last week, the secretary (Justice) in the Law Ministry said that the Karnataka, Allahabad, and Madhya Pradesh high courts have set up Designated Special Courts instead of Dedicated Special Courts under the Specific Relief Act.

The high courts have dedicated special days every week to enable exclusive handling of Specific Relief matters pertaining to infrastructure project contracts.

The letter mentioned this arrangement could be considered for adoption in your high court as an alternative measure until Dedicated Special Courts are set up. This could be helpful in the enforceability of the contract both from the perspective of time and cost, thereby stimulating investors' confidence and creating a conducive business climate.

According to Section 20B of the amended law, the state government, in consultation with the chief justice of the high court, will designate one or more civil courts as specially designated courts, within the local limits of the area to exercise jurisdiction and to try a suit under the Specific Relief (Amendment) Act in respect of contracts relating to infrastructure projects.