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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Special Economic Zones

A civil suit arises between two entrepreneurs operating in a Special Economic Zone in a State. The State Government, with the concurrence of the Chief Justice of the High Court, has already designated a court to try suits of a civil nature arising in that Zone. Which court should try the suit?

The suit must be tried by the court designated for that Special Economic Zone under section 23. Once the State Government designates a court with the High Court Chief Justice's concurrence, no other court may try civil suits arising in the Zone.

  1. AAny civil court having ordinary territorial jurisdiction
  2. BThe court designated under section 23 for that ZoneCorrect
  3. CAn arbitrator appointed by the Central Government
  4. DThe Development Commissioner of the Zone

Explanation

Under section 23(2), no court other than the designated court may try a civil suit arising in the Zone. Arbitration under section 42 is available only where no court has been designated, so the arbitrator option is wrong here.

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