The President of India has promulgated two ordinances – one for constitution of commercial courts and another to amend the Arbitration and Conciliation Act 1996. One of the ordinances provides for the constitution of Commercial Courts, Commercial Division and Commercial Appellate Division in the High Courts for adjudicating commercial disputes of specified value and for matters connected there with or incidental thereto.

The other ordinance is for amending the Arbitration and Conciliation Act 1996. The union cabinet had approved promulgation of these ordinances and recommended the same to the President.

What is a BILL?

A Bill is predecessor to an Act; a document that is presented in a legislature for discussion and voting.

What is an Act?

Once the Bill is passed by the legislature, it is presented to the President or the Governor. On receiving his assent, it becomes an Act.

What is an Ordinance?

It is promulgated by the President/Governor when the Parliament/Legislative Assembly is not in session. It has the same effect as that of an Act passed by the legislature.

It has to be approved by the legislature within 6 weeks of reassembly of the legislature.