THE COMMERCIAL COURTS ACT, 2015

PREAMBLE

What is the long title of the Commercial Courts Act, 2015?

An Act to provide for the constitution of Commercial Courts, Commercial Appellate Courts, Commercial Division and Commercial Appellate Division in the High Courts for adjudicating commercial disputes of specified value and matters connected therewith or incidental thereto.

What is the Act number of the Commercial Courts Act, 2015?

Act No. 4 of 2016.

When was the Commercial Courts Act, 2015 enacted?

31st December, 2015.

CHAPTER I

PRELIMINARY

What is the subject matter of Section 1?

Short title, extent and commencement.

What is the short title of the Act under Section 1(1)?

The Commercial Courts Act, 2015.

What is the extent of the Commercial Courts Act, 2015 under Section 1(2)?

It extends to the whole of India.

From which date is the Commercial Courts Act, 2015 deemed to have come into force under Section 1(3)?

23rd October, 2015.

What is the subject matter of Section 2?

Definitions.

What is a "Commercial Appellate Court" under Section 2(1)(a)?

A Commercial Appellate Court designated under Section 3A.

What is a "Commercial Appellate Division" under Section 2(1)(aa)?

The Commercial Appellate Division in a High Court constituted under Section 5(1).

What is a "Commercial Court" under Section 2(1)(b)?

A Commercial Court constituted under Section 3(1).

What is a "commercial dispute" under Section 2(1)(c)?

A dispute arising out of matters specified in clauses (i) to (xxii).

Does a dispute relating to ordinary transactions of merchants, bankers, financiers and traders constitute a commercial dispute under Section 2(1)(c)(i)?

Yes.

Do disputes relating to export or import of merchandise or services constitute commercial disputes under Section 2(1)(c)(ii)?

Yes.

Do issues relating to admiralty and maritime law constitute commercial disputes under Section 2(1)(c)(iii)?

Yes.

Do transactions relating to aircraft, aircraft engines, aircraft equipment and helicopters constitute commercial disputes under Section 2(1)(c)(iv)?

Yes.

Does carriage of goods constitute a commercial dispute under Section 2(1)(c)(v)?

Yes.

Do construction and infrastructure contracts, including tenders, constitute commercial disputes under Section 2(1)(c)(vi)?

Yes.

Do agreements relating to immovable property used exclusively in trade or commerce constitute commercial disputes under Section 2(1)(c)(vii)?

Yes.

Do franchising agreements constitute commercial disputes under Section 2(1)(c)(viii)?

Yes.

Do distribution and licensing agreements constitute commercial disputes under Section 2(1)(c)(ix)?

Yes.

Do management and consultancy agreements constitute commercial disputes under Section 2(1)(c)(x)?

Yes.

Do joint venture agreements constitute commercial disputes under Section 2(1)(c)(xi)?

Yes.

Do shareholders' agreements constitute commercial disputes under Section 2(1)(c)(xii)?

Yes.

Do subscription and investment agreements relating to the services industry constitute commercial disputes under Section 2(1)(c)(xiii)?

Yes.

Do mercantile agency and mercantile usage disputes constitute commercial disputes under Section 2(1)(c)(xiv)?

Yes.

Do partnership agreements constitute commercial disputes under Section 2(1)(c)(xv)?

Yes.

Do technology development agreements constitute commercial disputes under Section 2(1)(c)(xvi)?

Yes.

Do disputes relating to intellectual property rights constitute commercial disputes under Section 2(1)(c)(xvii)?

Yes, including disputes relating to registered and unregistered trademarks, copyright, patents, designs, domain names, geographical indications and semiconductor integrated circuits.

Do agreements for sale of goods or provision of services constitute commercial disputes under Section 2(1)(c)(xviii)?

Yes.

Do disputes relating to exploitation of oil, gas or other natural resources constitute commercial disputes under Section 2(1)(c)(xix)?

Yes.

Do insurance and re-insurance disputes constitute commercial disputes under Section 2(1)(c)(xx)?

Yes.

Do contracts of agency relating to commercial matters constitute commercial disputes under Section 2(1)(c)(xxi)?

Yes.

Can the Central Government notify additional categories of commercial disputes under Section 2(1)(c)(xxii)?

Yes.

Does a commercial dispute cease to be commercial because it involves recovery of immovable property or realisation of money secured by immovable property under Explanation (a)?

No.

Does a commercial dispute cease to be commercial because one of the parties is the State or its agency or a private body performing public functions under Explanation (b)?

No.

What is the subject matter of Section 2(1)(d)?

Definition of "Commercial Division".

What is a "Commercial Division" under Section 2(1)(d)?

The Commercial Division in a High Court constituted under Section 4(1).

What is the subject matter of Section 2(1)(e)?

Definition of "District Judge".

What does "District Judge" mean under Section 2(1)(e)?

It has the same meaning as assigned in Article 236(a) of the Constitution of India.

What is the subject matter of Section 2(1)(f)?

Definition of "document".

What is a "document" under Section 2(1)(f)?

Any matter expressed or described on any substance by letters, figures, marks, electronic means or a combination thereof, intended or capable of being used for recording that matter.

What is the subject matter of Section 2(1)(g)?

Definition of "notification".

What does "notification" mean under Section 2(1)(g)?

A notification published in the Official Gazette.

What is the subject matter of Section 2(1)(h)?

Definition of "Schedule".

What does "Schedule" mean under Section 2(1)(h)?

The Schedule appended to the Act.

What is the subject matter of Section 2(1)(i)?

Definition of "Specified Value".

What is "Specified Value" under Section 2(1)(i)?

The value of the subject matter of a commercial dispute determined under Section 12, which shall not be less than ₹3 lakh or such higher value as notified by the Central Government.

How are undefined words and expressions interpreted under Section 2(2)?

They have the same meanings as assigned to them in the Code of Civil Procedure, 1908 and the Indian Evidence Act, 1872.

CHAPTER II

CONSTITUTION OF COMMERCIAL COURTS, COMMERCIAL DIVISIONS AND COMMERCIAL APPELLATE DIVISIONS

What is the subject matter of Section 3?

Constitution of Commercial Courts.

Who constitutes Commercial Courts under Section 3(1)?

The State Government after consultation with the concerned High Court.

At what level are Commercial Courts constituted under Section 3(1)?

At the District level.

For what purpose are Commercial Courts constituted under Section 3(1)?

To exercise the jurisdiction and powers conferred under the Commercial Courts Act.

What does the first Proviso to Section 3(1) provide?

In States having High Courts with ordinary original civil jurisdiction, the State Government may constitute Commercial Courts at the District Judge level.

What does the second Proviso to Section 3(1) provide?

The State Government may specify the pecuniary value for Commercial Courts, which shall not be less than ₹3 lakh and not exceed the pecuniary jurisdiction of the District Courts.

What power is conferred under Section 3(1A)?

The State Government may specify, for the whole or any part of the State, a pecuniary value of not less than ₹3 lakh or such higher value.

Who specifies the territorial jurisdiction of a Commercial Court under Section 3(2)?

The State Government after consultation with the concerned High Court.

Can the territorial jurisdiction of a Commercial Court be altered under Section 3(2)?

Yes, it may be increased, reduced or altered from time to time.

Who appoints the Judges of a Commercial Court under Section 3(3)?

The State Government with the concurrence of the Chief Justice of the High Court.

What qualification is required for appointment as a Judge of a Commercial Court under Section 3(3)?

Experience in dealing with commercial disputes.

At what levels may Judges be appointed under Section 3(3)?

At the level of a District Judge or a court below the level of a District Judge.

What is the subject matter of Section 3A?

Designation of Commercial Appellate Courts.

Who designates Commercial Appellate Courts under Section 3A?

The State Government after consultation with the concerned High Court.

Where are Commercial Appellate Courts designated under Section 3A?

In territories other than those over which the High Courts have ordinary original civil jurisdiction.

At what level are Commercial Appellate Courts designated under Section 3A?

At the District Judge level.

For what purpose are Commercial Appellate Courts designated under Section 3A?

To exercise the jurisdiction and powers conferred under the Commercial Courts Act.

What is the subject matter of Section 4?

Constitution of Commercial Division of High Court.

Who constitutes the Commercial Division under Section 4(1)?

The Chief Justice of the High Court.

In which High Courts can a Commercial Division be constituted under Section 4(1)?

High Courts having ordinary original civil jurisdiction.

How is the Commercial Division constituted under Section 4(1)?

By order constituting one or more Benches consisting of a single Judge.

For what purpose is the Commercial Division constituted under Section 4(1)?

To exercise the jurisdiction and powers conferred under the Commercial Courts Act.

Who nominates the Judges of the Commercial Division under Section 4(2)?

The Chief Justice of the High Court.

What qualification is required for Judges of the Commercial Division under Section 4(2)?

Experience in dealing with commercial disputes.

What is the subject matter of Section 5?

Constitution of Commercial Appellate Division.

Who constitutes the Commercial Appellate Division under Section 5(1)?

The Chief Justice of the concerned High Court.

When is the Commercial Appellate Division constituted under Section 5(1)?

After issuing a notification under Section 3(1) or an order under Section 4(1).

How is the Commercial Appellate Division constituted under Section 5(1)?

By order constituting one or more Division Benches.

For what purpose is the Commercial Appellate Division constituted under Section 5(1)?

To exercise the jurisdiction and powers conferred by the Commercial Courts Act.

Who nominates the Judges of the Commercial Appellate Division under Section 5(2)?

The Chief Justice of the High Court.

What qualification is required for Judges of the Commercial Appellate Division under Section 5(2)?

Experience in dealing with commercial disputes.

What is the subject matter of Section 6?

Jurisdiction of Commercial Court.

What jurisdiction does a Commercial Court have under Section 6?

Jurisdiction to try all suits and applications relating to a commercial dispute of a Specified Value arising out of the territory over which it has territorial jurisdiction.

Does the jurisdiction of a Commercial Court extend to both suits and applications under Section 6?

Yes.

What type of disputes fall within the jurisdiction of a Commercial Court under Section 6?

Commercial disputes of a Specified Value.

When is a commercial dispute deemed to arise within the territorial jurisdiction of a Commercial Court under the Explanation to Section 6?

When the suit or application is instituted in accordance with Sections 16 to 20 of the Code of Civil Procedure, 1908.

Which provisions of the Code of Civil Procedure determine territorial jurisdiction under the Explanation to Section 6?

Sections 16 to 20 of the Code of Civil Procedure, 1908.

What is the subject matter of Section 7?

Jurisdiction of Commercial Divisions of High Courts.

Which suits and applications are heard by the Commercial Division under Section 7?

All suits and applications relating to commercial disputes of a Specified Value filed in a High Court having ordinary original civil jurisdiction.

In which High Courts does Section 7 apply?

High Courts having ordinary original civil jurisdiction.

What does the first Proviso to Section 7 provide?

Suits and applications relating to commercial disputes which, under any Act, are required to lie in a court not inferior to a District Court and are filed or pending on the original side of the High Court shall be heard and disposed of by the Commercial Division.

What does the second Proviso to Section 7 provide?

Suits and applications transferred to the High Court under Section 22(4) of the Designs Act, 2000 or Section 104 of the Patents Act, 1970 shall be heard and disposed of by the Commercial Division.

Under which provisions are transferred cases covered by the second Proviso to Section 7?

Section 22(4) of the Designs Act, 2000 and Section 104 of the Patents Act, 1970.

What is the subject matter of Section 8?

Bar against revision application or petition against an interlocutory order.

Can a civil revision application or petition be entertained against an interlocutory order of a Commercial Court under Section 8?

No.

Does the bar under Section 8 apply to an order on the issue of jurisdiction?

Yes.

Notwithstanding which law does Section 8 operate?

Notwithstanding anything contained in any other law for the time being in force.

How can an interlocutory order of a Commercial Court be challenged under Section 8?

Only in an appeal against the decree of the Commercial Court, subject to Section 13.

Which section governs the appeal referred to in Section 8?

Section 13 of the Commercial Courts Act, 2015.

What is the subject matter of Section 9?

Transfer of suit if counterclaim in a commercial dispute is of Specified Value.

What is the present status of Section 9 of the Commercial Courts Act, 2015?

Omitted by the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Act, 2018.

When was Section 9 omitted?

With effect from 3rd May, 2018.

What is the subject matter of Section 10?

Jurisdiction in respect of arbitration matters.

When does Section 10 apply?

When the subject matter of the arbitration is a commercial dispute of a Specified Value.

Which court hears applications or appeals arising from an international commercial arbitration under Section 10(1)?

The Commercial Division of the High Court where such Commercial Division has been constituted.

Under which Act do the applications or appeals referred to in Section 10 arise?

The Arbitration and Conciliation Act, 1996.

Which court hears applications or appeals arising from a domestic arbitration filed on the original side of a High Court under Section 10(2)?

The Commercial Division of the High Court where such Commercial Division has been constituted.

Which court has jurisdiction under Section 10(3) where a domestic arbitration matter would ordinarily lie before the principal civil court of original jurisdiction?

The Commercial Court exercising territorial jurisdiction over the arbitration, where such Commercial Court has been constituted.

Does Section 10(3) apply to matters that would ordinarily lie before a High Court?

No, it applies only to matters ordinarily lying before a principal civil court of original jurisdiction in a district, not being a High Court.

What is the subject matter of Section 11?

Bar of jurisdiction of Commercial Courts and Commercial Divisions.

Can a Commercial Court entertain a matter where the jurisdiction of the civil court is expressly or impliedly barred under any other law?

No.

Can a Commercial Division entertain a matter where the jurisdiction of the civil court is expressly or impliedly barred under any other law?

No.

What types of proceedings are barred under Section 11?

Suits, applications or proceedings relating to commercial disputes where civil court jurisdiction is expressly or impliedly barred by any other law.

Section 11 begins with which non-obstante clause?

Notwithstanding anything contained in this Act.

CHAPTER III

SPECIFIED VALUE

What is the subject matter of Section 12?

Determination of Specified Value.

How is the Specified Value determined under Section 12(1)?

In the manner provided in clauses (a) to (d).

How is the Specified Value determined where the relief is for recovery of money under Section 12(1)(a)?

By the amount sought to be recovered, including interest computed up to the date of filing of the suit or application.

How is the Specified Value determined where the relief relates to movable property under Section 12(1)(b)?

By the market value of the movable property on the date of filing of the suit, appeal or application.

How is the Specified Value determined where the relief relates to immovable property under Section 12(1)(c)?

By the market value of the immovable property on the date of filing of the suit, appeal or application.

How is the Specified Value determined where the relief relates to an intangible right under Section 12(1)(d)?

By the market value of the intangible right as estimated by the plaintiff.

How is the Specified Value determined in arbitration proceedings under Section 12(2)?

By the aggregate value of the claim and counterclaim, if any, set out in the statement of claim and counterclaim.

For what purpose is the aggregate value considered under Section 12(2)?

To determine whether the arbitration falls within the jurisdiction of the Commercial Division, Commercial Appellate Division or Commercial Court.

Is an appeal maintainable against an order of a Commercial Division or Commercial Court holding that it has jurisdiction under the Act under Section 12(3)?

No.

Is a civil revision under Section 115 of the Code of Civil Procedure, 1908 maintainable against such an order under Section 12(3)?

No.

CHAPTER IIIA

PRE-INSTITUTION MEDIATION AND SETTLEMENT

What is the subject matter of Section 12A?

Pre-Institution Mediation and Settlement.

Is pre-institution mediation mandatory under Section 12A(1)?

Yes, where the suit does not contemplate any urgent interim relief.

When is pre-institution mediation not mandatory under Section 12A(1)?

When the suit contemplates urgent interim relief.

Who prescribes the manner and procedure for pre-institution mediation under Section 12A(1)?

The Central Government by rules.

Who may be authorised to conduct pre-institution mediation under Section 12A(2)?

The Authorities constituted under the Legal Services Authorities Act, 1987.

Who authorises the mediation authority under Section 12A(2)?

The Central Government by notification.

Within what period must pre-institution mediation be completed under Section 12A(3)?

Three months from the date of the plaintiff's application.

By how much can the mediation period be extended under the first Proviso to Section 12A(3)?

By a further period of two months with the consent of the parties.

Is the time spent in pre-institution mediation excluded for limitation purposes under the second Proviso to Section 12A(3)?

Yes.

Under which Act is limitation excluded under the second Proviso to Section 12A(3)?

The Limitation Act, 1963.

What must be done if the parties arrive at a settlement under Section 12A(4)?

The settlement must be reduced into writing and signed by the parties and the mediator.

What is the legal effect of a settlement under Section 12A(5)?

It has the same status and effect as an arbitral award on agreed terms under Section 30(4) of the Arbitration and Conciliation Act, 1996.

CHAPTER IV

APPEALS

What is the subject matter of Section 13?

Appeals from decrees of Commercial Courts and Commercial Divisions.

Who may appeal under Section 13(1)?

Any person aggrieved by the judgment or order of a Commercial Court below the level of a District Judge.

To which court does an appeal lie under Section 13(1)?

The Commercial Appellate Court.

Within what period must an appeal be filed under Section 13(1)?

Within sixty days from the date of the judgment or order.

Who may appeal under Section 13(1A)?

Any person aggrieved by the judgment or order of a Commercial Court at the level of District Judge exercising original civil jurisdiction or of the Commercial Division of a High Court.

To which court does an appeal lie under Section 13(1A)?

The Commercial Appellate Division of the High Court.

Within what period must an appeal be filed under Section 13(1A)?

Within sixty days from the date of the judgment or order.

From which orders does an appeal lie under the Proviso to Section 13(1A)?

Orders specifically enumerated under Order XLIII of the Code of Civil Procedure, 1908 (as amended by this Act) and Section 37 of the Arbitration and Conciliation Act, 1996.

What is the effect of Section 13(2)?

No appeal shall lie from any order or decree of a Commercial Division or Commercial Court except in accordance with the provisions of this Act.

Does Section 13(2) override other laws and the Letters Patent of a High Court?

Yes.

What is the subject matter of Section 14?

Expeditious disposal of appeals.

Which courts are required to endeavour to dispose of appeals expeditiously under Section 14?

The Commercial Appellate Court and the Commercial Appellate Division.

Within what period should appeals be disposed of under Section 14?

Six months from the date of filing of the appeal.

CHAPTER V

TRANSFER OF PENDING SUITS

What is the subject matter of Section 15?

Transfer of pending cases.

Which cases are transferred under Section 15(1)?

All suits and applications, including applications under the Arbitration and Conciliation Act, 1996, relating to commercial disputes of Specified Value pending in a High Court where a Commercial Division has been constituted.

To where are cases transferred under Section 15(1)?

To the Commercial Division.

Which cases are transferred under Section 15(2)?

All suits and applications, including applications under the Arbitration and Conciliation Act, 1996, relating to commercial disputes of Specified Value pending in any civil court in a district or area where a Commercial Court has been constituted.

To where are cases transferred under Section 15(2)?

To the Commercial Court constituted for that district or area.

Which cases are not transferred under the Proviso to Section 15(2)?

Cases in which the final judgment had been reserved before the constitution of the Commercial Division or Commercial Court.

What is the effect of Section 15(3)?

The provisions of the Commercial Courts Act apply to those procedures that were incomplete at the time of transfer.

What power does the Commercial Division or Commercial Court have under Section 15(4)?

To hold case management hearings and prescribe new timelines or issue further directions for speedy disposal in accordance with Order XV-A of the Code of Civil Procedure, 1908.

What is the effect of the Proviso to Section 15(4)?

The proviso to Order V Rule 1(1) CPC does not apply, and the court may prescribe a fresh time for filing the written statement.

What power does the Commercial Appellate Division have under Section 15(5)?

To withdraw and transfer a suit or application to the appropriate Commercial Division or Commercial Court if it has not been transferred as required.

Who may apply for transfer under Section 15(5)?

Any party to the suit or application.

What is the effect of an order passed under Section 15(5)?

It is final and binding.

CHAPTER VI

AMENDMENTS TO THE PROVISIONS OF THE CODE OF CIVIL PROCEDURE, 1908

What is the subject matter of Section 16?

Amendments to the Code of Civil Procedure, 1908 in its application to commercial disputes.

How does the Code of Civil Procedure, 1908 apply to commercial disputes of Specified Value under Section 16(1)?

It stands amended in the manner specified in the Schedule to the Commercial Courts Act.

Which courts must follow the amended Code of Civil Procedure under Section 16(2)?

The Commercial Division and the Commercial Court.

For which suits must the amended Code of Civil Procedure be followed under Section 16(2)?

Suits relating to commercial disputes of Specified Value.

What is the effect of Section 16(3) where a High Court Rule or State amendment conflicts with the amended Code of Civil Procedure?

The provisions of the Code of Civil Procedure, as amended by the Commercial Courts Act, shall prevail.

What prevails in case of conflict under Section 16(3)?

The Code of Civil Procedure, 1908 as amended by the Commercial Courts Act.

CHAPTER VII

MISCELLANEOUS

What is the subject matter of Section 17?

Collection and disclosure of data by Commercial Courts, Commercial Appellate Courts, Commercial Divisions and Commercial Appellate Divisions.

What statistical data must be maintained under Section 17?

Data relating to the number of suits, applications, appeals or writ petitions filed, pendency, status of each case and the number of cases disposed of.

How frequently must the statistical data be updated under Section 17?

Every month.

Where must the statistical data be published under Section 17?

On the website of the relevant High Court.

What is the subject matter of Section 18?

Power of High Court to issue directions.

What power is conferred on the High Court under Section 18?

To issue practice directions by notification.

For what purpose may practice directions be issued under Section 18?

To supplement Chapter II of the Act or the Code of Civil Procedure, 1908, as applicable to commercial disputes of Specified Value.

What is the subject matter of Section 19?

Infrastructure facilities.

Who is responsible for providing infrastructure under Section 19?

The State Government.

For whom must infrastructure be provided under Section 19?

Commercial Courts and Commercial Divisions of the High Court.

What is the subject matter of Section 20?

Training and continuous education.

Who may establish training facilities under Section 20?

The State Government in consultation with the High Court.

For whom are training facilities established under Section 20?

Judges appointed to Commercial Courts, Commercial Appellate Courts, Commercial Divisions and Commercial Appellate Divisions.

What is the subject matter of Section 21?

Act to have overriding effect.

What is the effect of Section 21?

The provisions of the Commercial Courts Act override anything inconsistent contained in any other law or instrument, unless otherwise provided in the Act.

What is the subject matter of Section 21A?

Power of Central Government to make rules.

Who has the power to make rules under Section 21A(1)?

The Central Government.

How are rules made under Section 21A(1)?

By notification.

For what purpose are rules made under Section 21A(1)?

To carry out the provisions of the Commercial Courts Act.

What may the rules provide for under Section 21A(2)(a)?

The manner and procedure of pre-institution mediation under Section 12A(1).

What may the rules provide for under Section 21A(2)(b)?

Any other matter required to be prescribed or for which rules are to be made by the Central Government.

What is the parliamentary procedure for rules under Section 21A(3)?

Every rule shall be laid before each House of Parliament for a total period of thirty days, which may be comprised in one session or two or more successive sessions.

What is the effect if both Houses modify or annul a rule under Section 21A(3)?

The rule shall thereafter have effect only in the modified form or cease to have effect, as the case may be.

Does modification or annulment under Section 21A(3) affect actions already taken under the rule?

No.

What is the subject matter of Section 22?

Power to remove difficulties.

Who may remove difficulties under Section 22(1)?

The Central Government.

How may the Central Government remove difficulties under Section 22(1)?

By order published in the Official Gazette.

Can an order under Section 22(1) be inconsistent with the Act?

No.

Within what period can the power under Section 22(1) be exercised?

Within two years from the date of commencement of the Act.

What is the parliamentary requirement under Section 22(2)?

Every order made under Section 22 shall be laid before each House of Parliament.

What is the subject matter of Section 23?

Repeal and savings.

Which Ordinance is repealed under Section 23(1)?

The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015 (Ordinance 8 of 2015).

What is the saving provision under Section 23(2)?

Anything done or any action taken under the repealed Ordinance is deemed to have been done or taken under the corresponding provisions of the Commercial Courts Act.

What is the subject matter of Section 17?

Collection and disclosure of data by Commercial Courts, Commercial Appellate Courts, Commercial Divisions and Commercial Appellate Divisions.

What statistical data must be maintained under Section 17?

Data relating to the number of suits, applications, appeals or writ petitions filed, pendency, status of each case and the number of cases disposed of.