📜 The Commercial Courts Act, 2015
Complete Educational Guide with Explanations, Case Laws & Visual Aids
(As Amended by Act 28 of 2018)
This resource is for educational purposes only and does not constitute legal advice. For specific legal matters, please consult a qualified legal professional.
📋 Overview of the Act
🎯 What is this Act About?
The Commercial Courts Act, 2015 is like a special fast-track lane for business disputes. Just like express highways help vehicles reach their destination faster, this Act creates special courts that handle business-related cases more quickly than regular courts.
📌 Simple Example
Imagine you are a businessperson who supplied goods worth ₹50 lakhs to another company, but they haven't paid you for 2 years. Instead of waiting 10-15 years in a regular court, you can go to a Commercial Court which is designed to settle your case much faster.
| Aspect | Details |
|---|---|
| Act Number | Act No. 4 of 2016 |
| Date of Enactment | 31st December, 2015 |
| Deemed Commencement | 23rd October, 2015 |
| Territorial Extent | Whole of India |
| Minimum Specified Value | ₹3 Lakhs (after 2018 amendment; earlier it was ₹1 Crore) |
| Major Amendment | Commercial Courts (Amendment) Act, 2018 |
🎯 Purpose and Objectives
- To improve India's ranking in "Ease of Doing Business" by faster resolution of commercial disputes
- To reduce the huge backlog of pending commercial cases in Indian courts
- To provide a specialized forum with judges experienced in commercial matters
- To introduce case management techniques for speedier disposal
- To mandate pre-institution mediation to encourage settlement before litigation
⚖️ Landmark Case Law
Patil Automation Pvt. Ltd. v. Rakheja Engineers Pvt. Ltd. (2022) 10 SCC 1
Held: The Supreme Court declared that Section 12A of the Commercial Courts Act, which mandates pre-institution mediation, is mandatory in nature. Any suit filed without exhausting the remedy of pre-institution mediation must be rejected under Order VII Rule 11 of CPC. This landmark judgment emphasized that mediation helps decongest courts and promotes efficient dispute resolution.
📖 Chapter I - Preliminary (Sections 1-2)
📌 Section 1 - Short Title, Extent and Commencement
This section gives the Act its official name, tells us where it applies, and when it started working.
- Title: The Act is officially called "The Commercial Courts Act, 2015"
- Extent: It applies to the whole of India (after 2019 amendment, J&K included)
- Commencement: The Act is deemed to have come into force on 23rd October, 2015
📌 Simple Example
Think of this section as the "identity card" of the Act. Just like your Aadhaar card has your name, address, and date of birth, Section 1 gives the Act its name, tells where it works (all of India), and its birthday (23rd October, 2015).
📌 Section 2 - Definitions
This section is like a dictionary for the Act. It explains the meaning of important words used throughout the Act so everyone understands them the same way.
| Term | Meaning in Simple Words |
|---|---|
| Commercial Appellate Courts | Special appeal courts at District Judge level designated under Section 3A to hear appeals from Commercial Courts below District Judge level |
| Commercial Appellate Division | A special bench in the High Court that hears appeals from Commercial Courts and Commercial Divisions |
| Commercial Court | A special court created at district level specifically to handle commercial disputes |
| Commercial Division | A special bench within a High Court that handles commercial disputes filed directly in the High Court |
| Commercial Dispute | A business-related disagreement that arises from transactions like trade, contracts, intellectual property, etc. |
| Specified Value | The minimum monetary value of a dispute to be heard by Commercial Courts - currently ₹3 Lakhs |
📌 What Qualifies as a "Commercial Dispute"? [Section 2(1)(c)]
The Act lists 22 types of disputes that are considered "commercial disputes". Here are the main categories:
| S.No. | Type of Dispute | Simple Explanation |
|---|---|---|
| 1 | Mercantile Transactions | Deals between businesspeople, bankers, traders involving business documents |
| 2 | Export/Import | Disputes about buying or selling goods/services across countries |
| 3 | Admiralty & Maritime | Disputes related to ships, sea trade, and ocean transportation |
| 4 | Aircraft Transactions | Disputes about buying, selling, or leasing airplanes and helicopters |
| 5 | Carriage of Goods | Disputes about transporting goods from one place to another |
| 6 | Construction & Infrastructure | Disputes about building projects, tenders, and infrastructure contracts |
| 7 | Immovable Property (Trade/Commerce) | Disputes about property used exclusively for business purposes |
| 8 | Franchising Agreements | Disputes between franchisors and franchisees (like McDonald's and its franchise owners) |
| 9 | Distribution & Licensing | Disputes about distribution rights and licenses |
| 10 | Management & Consultancy | Disputes about management services and consulting agreements |
| 11 | Joint Venture Agreements | Disputes between partners in a joint business venture |
| 12 | Shareholders Agreements | Disputes between shareholders of a company |
| 13 | Subscription & Investment | Disputes about investments in services industry and financial services |
| 14 | Mercantile Agency | Disputes about business agencies and trade practices |
| 15 | Partnership Agreements | Disputes between business partners |
| 16 | Technology Development | Disputes about technology creation and development contracts |
| 17 | Intellectual Property Rights | Disputes about trademarks, copyrights, patents, designs, domain names, etc. |
| 18 | Sale of Goods/Services | Disputes about buying or selling goods or services |
| 19 | Natural Resources | Disputes about oil, gas, and other natural resources including spectrum |
| 20 | Insurance & Re-insurance | Disputes about insurance policies and claims |
| 21 | Agency Contracts | Disputes about agency relationships for any of the above |
| 22 | Other Notified Disputes | Any other dispute notified by the Central Government |
📌 Practical Example
A software company (ABC Ltd.) enters into a technology development agreement with another company (XYZ Ltd.) to create a mobile application. After completing the work, XYZ Ltd. refuses to pay ₹25 lakhs. This is a "commercial dispute" because it involves a technology development agreement (Category 16) and the value exceeds ₹3 lakhs.
⚖️ Important Case Law
Ambalal Sarabhai Enterprises Ltd. v. K.S. Infraspace LLP (2020) 15 SCC 585
Held: The Supreme Court clarified that for a dispute to be a "commercial dispute," it must fall within the categories specified in Section 2(1)(c). The Court emphasized that agreements relating to immovable property are commercial disputes only when the property is used exclusively in trade or commerce.
📖 Chapter II - Constitution of Commercial Courts (Sections 3-11)
📌 Section 3 - Constitution of Commercial Courts
This section explains how Commercial Courts are created at the district level. Think of it as the "birth certificate" provision for Commercial Courts.
- Who Creates Them: The State Government, after consulting with the High Court
- Where: At District level
- Judges: Persons having experience in dealing with commercial disputes
- Levels: Can be at District Judge level or below District Judge level
📌 Simple Example
The Maharashtra Government, after discussing with the Bombay High Court, can create a Commercial Court in Pune. They will appoint a judge who has handled business cases before. This court will only handle business disputes worth ₹3 lakhs or more from the Pune area.
📌 Section 3A - Designation of Commercial Appellate Courts
This section (added in 2018) allows for creating special appeal courts at the District Judge level. If you lose in a Commercial Court below District Judge level, you can appeal here.
- These are designated at District Judge level
- They hear appeals from Commercial Courts below District Judge level
- Not applicable where High Courts have ordinary original civil jurisdiction (like Mumbai, Kolkata, Chennai)
📌 Section 4 - Constitution of Commercial Division of High Court
This section creates special benches within High Courts to handle commercial disputes. Not all High Courts have this - only those with ordinary original civil jurisdiction (like Mumbai, Kolkata, Chennai, Delhi).
- Who Creates: The Chief Justice of the High Court by order
- Composition: One or more benches with a single judge each
- Judge Qualification: Must have experience in dealing with commercial disputes
📌 Section 5 - Constitution of Commercial Appellate Division
This section creates the appeal court within High Courts for commercial matters. If you lose in a Commercial Court or Commercial Division, you can appeal here.
- Created by the Chief Justice of the High Court
- Has Division Benches (two or more judges sitting together)
- Judges must have experience in commercial disputes
📌 Section 6 - Jurisdiction of Commercial Court
This section tells us what cases a Commercial Court can hear. It's like defining the "territory" and "power" of the court.
- Can try all suits and applications relating to commercial disputes
- The dispute must be of "Specified Value" (₹3 lakhs or more)
- Territorial jurisdiction follows CPC Sections 16-20
📌 Where to File?
If ABC Company in Delhi supplies goods to XYZ Company in Mumbai, and XYZ doesn't pay, ABC can file the case either in Delhi (where cause of action arose) or Mumbai (where XYZ has its office), depending on where the defendant resides or where the breach occurred.
📌 Section 7 - Jurisdiction of Commercial Divisions of High Courts
This section explains when cases go directly to the Commercial Division of High Courts instead of lower Commercial Courts.
- Applies to High Courts having ordinary original civil jurisdiction
- All commercial disputes of Specified Value filed in such High Courts go to Commercial Division
- Includes matters transferred from District Courts under Designs Act, 2000 and Patents Act, 1970
📌 Section 8 - Bar Against Revision Applications
This section says you cannot challenge every small order of the Commercial Court separately. You have to wait until the final decision and then appeal.
- No civil revision application or petition against interlocutory (intermediate) orders
- Even orders on jurisdiction cannot be challenged immediately
- Challenge can only be raised in appeal against the final decree
📌 Why This Rule?
Imagine if every small order (like allowing a document to be filed) could be challenged separately. Cases would drag on for years just dealing with small issues. This section prevents that delay by saying "wait for the final decision, then appeal."
⚖️ Important Case Law
Kandla Export Corporation v. OCI Corporation (2018) 14 SCC 715
Held: The Supreme Court held that the Arbitration and Conciliation Act, 1996 being a special statute overrides the Commercial Courts Act, 2015 in matters of appeals. Appeals in respect of orders under the Arbitration Act lie only to the extent provided under Section 37 of that Act.
📌 Section 10 - Jurisdiction in Arbitration Matters
This section explains where arbitration-related applications and appeals should be filed when they involve commercial disputes.
| Type of Arbitration | Where to File |
|---|---|
| International Commercial Arbitration | Commercial Division of High Court |
| Domestic Arbitration (Original Side of HC) | Commercial Division of High Court |
| Domestic Arbitration (District Level) | Commercial Court having territorial jurisdiction |
⚖️ Important Case Law
BGS SGS SOMA JV v. NHPC Ltd. (2020) 4 SCC 234
Held: The Supreme Court held that there is no independent right of appeal under Section 13(1) of the Commercial Courts Act. The section merely provides the forum for filing appeals, while Section 37 of the Arbitration Act determines the maintainability of such appeals.
📌 Section 11 - Bar of Jurisdiction
This section clarifies that Commercial Courts and Commercial Divisions cannot hear cases where some other law specifically bars civil court jurisdiction.
📌 Example
If a law says "only the Consumer Court can decide this matter," then even if it's a commercial dispute, you cannot go to the Commercial Court. The special bar created by another law will prevail.
📖 Chapter III - Specified Value (Section 12)
📌 Section 12 - Determination of Specified Value
This section explains how to calculate the value of your dispute to check if it qualifies for Commercial Court. Think of it as the "entry ticket" - your dispute must be worth at least ₹3 lakhs.
| Type of Relief Sought | How to Calculate Value |
|---|---|
| Recovery of Money | Amount sought + Interest calculated up to the date of filing |
| Movable Property | Market value of the property on the date of filing |
| Immovable Property | Market value of the property on the date of filing |
| Intangible Rights | Market value as estimated by the plaintiff |
| Arbitration Matters | Aggregate value of claim + counterclaim (if any) |
📌 Practical Examples
- Money Suit: If someone owes you ₹2.5 lakhs principal + ₹60,000 interest = ₹3.1 lakhs total → Qualifies for Commercial Court
- Property Dispute: Dispute about a commercial shop worth ₹50 lakhs → Qualifies for Commercial Court
- IP Rights: Dispute about a trademark you value at ₹10 lakhs → Qualifies for Commercial Court
📌 Important Note - No Appeal on Jurisdiction Finding
Section 12(3) states that no appeal or civil revision application under Section 115 CPC shall lie from an order of a Commercial Division or Commercial Court finding that it has jurisdiction. This prevents endless disputes about whether the case belongs in Commercial Court.
⚖️ Important Case Law
Jaycee Housing Pvt. Ltd. v. Registrar (General), Orissa High Court (2022) SCC OnLine SC 1549
Held: The Supreme Court held that State Governments can confer jurisdiction to hear applications under Sections 9, 14, and 34 of the Arbitration Act upon Commercial Courts which are subordinate to the rank of Principal Civil Judge in the District.
📖 Chapter IIIA - Pre-Institution Mediation (Section 12A)
📌 Section 12A - Pre-Institution Mediation and Settlement
This section (added in 2018) requires parties to try mediation before filing a suit. It's like saying "try to talk and settle first, before fighting in court." This is one of the most important provisions of the Act.
- Mandatory Requirement: Must exhaust pre-institution mediation before filing suit (unless urgent interim relief is needed)
- Authority: Mediation conducted by authorities under Legal Services Authorities Act, 1987
- Time Limit: 3 months (extendable by 2 more months with consent)
- Limitation Period: Time spent in mediation is excluded from limitation period
- Effect of Settlement: Same as arbitral award on agreed terms under Section 30(4) of Arbitration Act
📌 How Does This Work?
Step 1: Rahul wants to sue ABC Company for ₹10 lakhs unpaid dues
Step 2: Before filing suit, Rahul applies to Legal Services Authority for mediation
Step 3: ABC Company is called for mediation
Step 4: If they settle, it's recorded and has the force of an arbitral award
Step 5: If no settlement in 3-5 months, Rahul can file suit
📌 Exception - Urgent Interim Relief
If you genuinely need urgent court intervention (like stopping someone from selling disputed property), you can skip mediation. But the court will check if your urgency claim is genuine.
⚖️ Landmark Case Law
Patil Automation Pvt. Ltd. v. Rakheja Engineers Pvt. Ltd. (2022) 10 SCC 1
Held: The Supreme Court made the following crucial findings:
1. Mandatory Nature: Section 12A is mandatory, not directory. Pre-institution mediation must be exhausted before filing suit.
2. Consequence of Non-Compliance: Any suit filed without complying with Section 12A must be rejected under Order VII Rule 11 of CPC.
3. Suo Moto Power: Courts can reject such plaints even without an application from the defendant.
4. Purpose: The provision aims to decongest courts and promote alternative dispute resolution.
5. Prospective Application: The declaration was made prospective, effective from 22.08.2022.
⚖️ Related Case Law
Yamini Manohar v. T.K.D. Keerthi (2024) 5 SCC 815
Held: The Supreme Court clarified that the term "contemplate urgent interim relief" in Section 12A empowers the Court to evaluate whether the plaintiff's plea genuinely requires urgent relief. The Court can examine the contents of the plaint, accompanying documents, and factual circumstances to determine if the claim for urgency is bona fide or merely an attempt to bypass mediation.
| Situation | Mediation Required? |
|---|---|
| Simple money recovery suit | Yes - Must go through mediation first |
| Suit seeking injunction to stop demolition | No - Urgent interim relief contemplated |
| Suit for specific performance | Yes - Unless urgent relief genuinely needed |
| Suit to prevent dissipation of assets | No - Urgent interim relief contemplated |
| Counterclaim in pending suit | No - Not a fresh institution |
📖 Chapter IV - Appeals (Sections 13-14)
📌 Section 13 - Appeals from Decrees of Commercial Courts
This section creates the appeal mechanism. If you're unhappy with a Commercial Court's decision, this tells you where and how to appeal.
| Decision From | Appeal Goes To | Time Limit |
|---|---|---|
| Commercial Court (below District Judge level) | Commercial Appellate Court | 60 days |
| Commercial Court (District Judge level) | Commercial Appellate Division of High Court | 60 days |
| Commercial Division of High Court | Commercial Appellate Division of High Court | 60 days |
📌 What Orders Can Be Appealed?
Not every order can be appealed. Appeals are limited to:
- Judgments and decrees (final decisions)
- Orders specifically enumerated under Order XLIII of CPC
- Orders appealable under Section 37 of Arbitration Act
📌 Important Note
No appeal shall lie from any order or decree of a Commercial Division or Commercial Court otherwise than in accordance with this Act. This means you cannot use Letters Patent appeals or any other method - only the appeals provided under this Act.
📌 Section 14 - Expeditious Disposal of Appeals
Appeals should be disposed of within 6 months from filing. This ensures appeals don't drag on for years like regular cases.
⚖️ Important Case Law
HPL (India) Ltd. v. QRG Enterprises (2017) 4 SCC 660
Held: The Supreme Court emphasized that the Commercial Courts Act was enacted to ensure speedy disposal of commercial disputes. The time limits prescribed in the Act should be strictly followed to achieve the legislative intent of expeditious resolution.
📖 Chapter V - Transfer of Pending Suits (Section 15)
📌 Section 15 - Transfer of Pending Cases
When Commercial Courts or Commercial Divisions are created, what happens to cases already pending in regular courts? This section handles that transfer.
- High Court Transfers: Cases pending in High Courts having Commercial Division get transferred to the Commercial Division
- District Court Transfers: Cases pending in civil courts get transferred to Commercial Courts
- Exception: Cases where judgment has been reserved before constitution of Commercial Court/Division are NOT transferred
- New Provisions Apply: The Act's provisions apply to procedures that were incomplete at transfer time
- Case Management: Court can hold case management hearings and prescribe new timelines for transferred cases
📌 Practical Scenario
A commercial suit worth ₹2 crores was pending since 2014 in the Pune District Court. When the Commercial Court was created in Pune in 2019, this case was transferred to the Commercial Court. The judge held a case management hearing and set new timelines to speed up the case.
⚖️ Important Case Law
Prakash Corporates v. Dee Vee Projects Ltd. 2022 SCC OnLine SC 162
Held: The Supreme Court held that the COVID-19 limitation orders in SMWP No. 3 of 2020 apply to the period for filing written statements in commercial disputes as well. The extraordinary measures during extraordinary circumstances cannot be curtailed with reference to the ordinary operation of law.
📖 Chapter VI - Amendments to CPC (Section 16)
📌 Section 16 - Amendments to CPC for Commercial Disputes
This section modifies the Code of Civil Procedure for commercial disputes. The Schedule to the Act contains detailed amendments that make commercial litigation faster and more efficient.
| Key Amendment | What It Means |
|---|---|
| Written Statement Timeline | Must be filed within 30 days (extendable to max 120 days). After 120 days - right forfeited! |
| Costs | Court has wide discretion on costs. Loser generally pays winner's costs including legal fees. |
| Document Disclosure | All documents must be filed with plaint/written statement. Late documents need court permission. |
| Summary Judgment | Court can decide case without trial if one side has no real prospect of success. |
| Case Management | Mandatory case management hearings. Arguments must close within 6 months. |
| Statement of Truth | All pleadings must be verified by affidavit in prescribed format. |
📌 Order XI - Document Disclosure
This is one of the most significant amendments. All parties must disclose all relevant documents upfront, not hide them for later "gotcha" moments.
- Plaintiff: Must file all documents with the plaint
- Defendant: Must file all documents with written statement
- Declaration Required: Oath that all relevant documents have been disclosed
- Penalty for Non-Disclosure: Cannot rely on undisclosed documents later
- Electronic Records: Special rules for disclosing electronic documents including metadata
📌 Order XIII-A - Summary Judgment
If one party clearly has no case, why waste time on a full trial? Summary judgment allows the court to decide quickly.
- Can be applied after summons served but before issues framed
- Court checks if the opposing party has any "real prospect" of success
- If no real prospect exists, court can give judgment without full trial
- Court may also make conditional orders requiring deposits or security
📌 Order XV-A - Case Management Hearing
This is a revolutionary concept borrowed from UK and US courts. The judge actively manages the case timeline instead of letting parties drag it endlessly.
- First Hearing: Within 4 weeks of filing admission/denial of documents
- Court's Powers: Frame issues, list witnesses, fix evidence dates, set argument dates
- Time Limit: Arguments must close within 6 months of first case management hearing
- Strict Compliance: Non-compliance can lead to foreclosure of rights or dismissal
📌 Case Management in Action
In the first Case Management Hearing, the judge says:
"Issues framed. Plaintiff has 3 witnesses, Defendant has 2. Evidence affidavits by January 15. Cross-examination: Feb 1-5. Written arguments by Feb 20. Oral arguments on Feb 28. Judgment reserved."
This structured approach prevents indefinite delays.
⚖️ Important Case Law
SCG Contracts (India) Pvt. Ltd. v. K.S. Chamankar Infrastructure Pvt. Ltd. (2019) 12 SCC 210
Held: The Supreme Court emphasized that the 120-day time limit for filing written statement is absolute and mandatory. After 120 days, the defendant forfeits the right to file written statement and the court shall not allow it on record. This strict timeline is essential to achieve the Act's objective of speedy disposal.
📖 Chapter VII - Miscellaneous (Sections 17-23)
📌 Section 17 - Collection and Disclosure of Data
Commercial Courts must maintain and publish statistics about their cases. This ensures transparency and allows monitoring of court performance.
- Number of suits, applications, appeals filed
- Pendency status of each case
- Number of cases disposed
- Data updated monthly on High Court website
📌 Section 18 - Power of High Court to Issue Directions
High Courts can issue practice directions to supplement the Act. These are like additional rules specific to that High Court.
📌 Section 19 - Infrastructure Facilities
State Governments must provide necessary infrastructure for Commercial Courts to function properly.
📌 Section 20 - Training and Continuous Education
State Governments may establish training facilities for judges appointed to Commercial Courts. This ensures judges are well-equipped to handle complex commercial matters.
📌 Section 21 - Overriding Effect
This Act prevails over any other law that contradicts it. If there's a conflict between this Act and another law, this Act wins.
📌 Example
If a High Court rule says written statement can be filed within 180 days, but this Act says 120 days maximum, the Act's 120-day limit prevails.
📌 Section 21A - Power of Central Government to Make Rules
The Central Government can make rules to carry out the provisions of the Act, especially regarding pre-institution mediation procedures.
📌 Section 22 - Power to Remove Difficulties
If any difficulty arises in implementing the Act, the Central Government can issue orders to resolve it. This power was available only for 2 years from commencement.
📌 Section 23 - Repeal and Savings
This section repealed the earlier Ordinance and saved actions taken under it.
📊 Flowchart - Commercial Dispute Resolution Process
(Value ≥ ₹3 Lakhs)
for Pre-Institution Mediation
(3-5 Months Maximum)
(Effect of Arbitral Award)
Commercial Court/Division
+ Statement of Truth
(30-120 Days Maximum)
(30 Days for Inspection)
(15 Days)
(Within 4 Weeks)
(Timeline Fixed by Court)
(Close within 6 Months)
(Within 90 Days of Arguments)
(Within 60 Days)
Appellate Division
(Within 6 Months)
🧠 Mind Map - Commercial Courts Act Structure
- Commercial Courts (District Level)
- Commercial Appellate Courts
- Commercial Division (High Court)
- Commercial Appellate Division
- Specialized Judges Required
- Specified Value ≥ ₹3 Lakhs
- 22 Types of Commercial Disputes
- Arbitration Matters
- Territorial Jurisdiction (CPC)
- No Revision Against Interlocutory Orders
- Section 12A Mediation
- Mandatory (Unless Urgent Relief)
- 3-5 Months Timeline
- Legal Services Authority
- Settlement = Arbitral Award
- Written Statement: 30-120 Days
- Case Management: 4 Weeks
- Trial Completion: 6 Months
- Judgment: 90 Days
- Appeal: 60 Days
- Summary Judgment (Order XIII-A)
- Case Management Hearing
- Strict Document Disclosure
- Costs Follow Event
- Statement of Truth
- 60 Days Time Limit
- Limited to Enumerated Orders
- 6 Months for Disposal
- No Letters Patent Appeal
- Overriding Effect of Act
🗺️ Roadmap - Evolution of Commercial Courts Act
Commercial Courts Ordinance, 2015
The journey begins with an Ordinance promulgated on 23rd October, 2015 to create specialized commercial courts for faster resolution of commercial disputes.
Commercial Courts Act, 2015 Enacted
Parliament passed the Act on 31st December, 2015 (Act No. 4 of 2016). The Ordinance was replaced with permanent legislation. Initial specified value was ₹1 Crore.
Initial Implementation Phase
State Governments began constituting Commercial Courts and Commercial Divisions. High Courts issued practice directions. Judges were trained for commercial matters.
Major Amendment - Act 28 of 2018
Significant amendments including: Specified Value reduced from ₹1 Crore to ₹3 Lakhs; Section 12A (Pre-Institution Mediation) introduced; Commercial Appellate Courts created; Various procedural improvements.
Pre-Institution Mediation Rules
Central Government notified the Commercial Courts (Pre-Institution Mediation and Settlement) Rules, 2018, providing detailed procedure for mediation under Section 12A.
J&K Integration
Following the reorganization of Jammu & Kashmir, the words "except the State of Jammu and Kashmir" were omitted, extending the Act to the whole of India.
COVID-19 Period
Supreme Court extended limitation periods. Virtual hearings adopted. Courts grappled with applying strict timelines during pandemic. Key judgments on written statement timelines.
Patil Automation Judgment
Supreme Court declared Section 12A mandatory. Non-compliance leads to rejection of plaint. Declaration made prospective from 22.08.2022. Landmark ruling shaping mediation requirements.
Consolidation & Refinement
Further clarifications by courts on Section 12A scope. Infrastructure improvements. More dedicated commercial courts established. Increasing awareness about pre-institution mediation.
Current Status
Commercial Courts operational across India. Section 12A compliance well-established. Continuous efforts to achieve the ease of doing business objectives. Focus on reducing pendency.
Way Forward
Expected developments: Further reduction in timelines, enhanced e-filing, more trained mediators, specialized commercial benches, integration with ODR (Online Dispute Resolution) platforms.
📑 Quick Reference Summary Table
| Section | Subject Matter | Key Point |
|---|---|---|
| Sec 1 | Short Title, Extent, Commencement | Applies to whole of India from 23.10.2015 |
| Sec 2 | Definitions | 22 types of commercial disputes; Specified Value ≥ ₹3 Lakhs |
| Sec 3 | Constitution of Commercial Courts | Created by State Govt. at District level |
| Sec 3A | Commercial Appellate Courts | Hears appeals from Commercial Courts below DJ level |
| Sec 4 | Commercial Division of HC | Created by Chief Justice in HCs with original jurisdiction |
| Sec 5 | Commercial Appellate Division | Division Bench to hear appeals |
| Sec 6 | Jurisdiction of Commercial Court | All commercial disputes of Specified Value |
| Sec 7 | Jurisdiction of Commercial Division | Disputes in HCs with original civil jurisdiction |
| Sec 8 | Bar on Revision | No revision against interlocutory orders |
| Sec 10 | Arbitration Jurisdiction | Commercial Courts/Divisions handle arbitration matters |
| Sec 11 | Bar of Jurisdiction | Cannot override express bars in other laws |
| Sec 12 | Determination of Specified Value | Methods to calculate suit value |
| Sec 12A | Pre-Institution Mediation | MANDATORY unless urgent relief needed |
| Sec 13 | Appeals | Appeal within 60 days to appropriate forum |
| Sec 14 | Expeditious Disposal | Appeals disposed within 6 months |
| Sec 15 | Transfer of Pending Cases | Pending cases transferred to Commercial Courts |
| Sec 16 | CPC Amendments | Special procedures in Schedule |
| Sec 21 | Overriding Effect | Act prevails over inconsistent laws |