Indian Law
THE COMMERCIAL COURTS ACT, 2015
Act No. 4 of 2016
Published in the Gazette of India on 31 December 2015
[Note: This is a clean, easy-to-read version of the Act as originally published. The original publication document is not available and this content could not be verified.]
THE COMMERCIAL COURTS, COMMERCIAL DIVISION AND COMMERCIAL APPELLATE DIVISION OF HIGH COURTS ACT, 2015
NO. 4 OF 2016
[31st December, 2015]
An Act to establish Commercial Courts, Commercial Divisions, and Commercial Appellate Divisions in High Courts to handle commercial disputes of a specified value and related matters.
BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:—
CHAPTER I PRELIMINARY
1. Short title, extent, and commencement
(1) This Act may be called the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall be deemed to have come into force on the 23rd day of October, 2015.
2. Definitions
(1) In this Act, unless the context otherwise requires:—
(a) “Commercial Appellate Division” means the Commercial Appellate Division in a High Court constituted under section 5(1);
(b) “Commercial Court” means the Commercial Court constituted under section 3(1);
(c) “commercial dispute” means a dispute arising out of:
| (i) | Ordinary transactions of merchants, bankers, financiers, and traders, including mercantile documents and their enforcement and interpretation; |
|---|---|
| (ii) | Export or import of merchandise or services; |
| (iii) | Admiralty and maritime law issues; |
| (iv) | Transactions relating to aircraft, aircraft engines, aircraft equipment, and helicopters, including sales, leasing, and financing; |
| (v) | Carriage of goods; |
| (vi) | Construction and infrastructure contracts, including tenders; |
| (vii) | Agreements relating to immovable property used exclusively in trade or commerce; |
| (viii) | Franchising agreements; |
| (ix) | Distribution and licensing agreements; |
| (x) | Management and consultancy agreements; |
| (xi) | Joint venture agreements; |
| (xii) | Shareholders agreements; |
| (xiii) | Subscription and investment agreements in the services industry, including outsourcing and financial services; |
| (xiv) | Mercantile agency and mercantile usage; |
| (xv) | Partnership agreements; |
| (xvi) | Technology development agreements; |
| (xvii) | Intellectual property rights (registered and unregistered trademarks, copyright, patent, design, domain names, geographical indications, and semiconductor integrated circuits); |
| (xviii) | Agreements for sale of goods or provision of services; |
| (xix) | Exploitation of oil and gas reserves or other natural resources, including electromagnetic spectrum; |
| (xx) | Insurance and re-insurance; |
| (xxi) | Contracts of agency relating to any of the above; and |
| (xxii) | Such other commercial disputes as may be notified by the Central Government. |
Explanation: A commercial dispute does not cease to be a commercial dispute merely because:
- (a) It also involves recovery of immovable property or realisation of monies from immovable property given as security, or involves any other relief pertaining to immovable property;
- (b) One of the contracting parties is the State, any of its agencies or instrumentalities, or a private body carrying out public functions;
(d) “Commercial Division” means the Commercial Division in a High Court constituted under section 4(1);
(e) “District Judge” has the same meaning as in clause (a) of article 236 of the Constitution of India;
(f) “document” means any matter expressed or described upon any substance by means of letters, figures, marks, electronic means, or more than one of these, intended to be used for recording that matter;
(g) “notification” means a notification published in the Official Gazette, and “notify” shall be construed accordingly;
(h) “Schedule” means the Schedule appended to this Act; and
(i) “Specified Value” means the value of the subject-matter of a suit as determined under section 12, which shall not be less than one crore rupees or such higher value as may be notified by the Central Government.
(2) Words and expressions used but not defined in this Act but defined in the Code of Civil Procedure, 1908 and the Indian Evidence Act, 1872 shall have the same meanings as assigned to them in those laws.
CHAPTER II CONSTITUTION OF COMMERCIAL COURTS, COMMERCIAL DIVISIONS, AND COMMERCIAL APPELLATE DIVISIONS
3. Constitution of Commercial Courts
(1) The State Government, after consultation with the concerned High Court, may by notification constitute such number of Commercial Courts at the District level as it deems necessary.
Provided that no Commercial Court shall be constituted for territory over which the High Court has ordinary original civil jurisdiction.
(2) The State Government shall, after consultation with the concerned High Court, specify by notification the local limits of the jurisdiction of a Commercial Court and may from time to time increase, reduce, or alter such limits.
(3) The State Government shall, with the concurrence of the Chief Justice of the High Court, appoint one or more persons having experience in dealing with commercial disputes to be the Judge(s) of a Commercial Court from amongst the cadre of Higher Judicial Service in the State.
4. Constitution of Commercial Division of High Court
(1) In all High Courts having ordinary civil jurisdiction, the Chief Justice of the High Court may by order constitute a Commercial Division having one or more Benches consisting of a single Judge to exercise jurisdiction and powers under this Act.
(2) The Chief Justice of the High Court shall nominate Judges of the High Court who have experience in dealing with commercial disputes to be Judges of the Commercial Division.
5. Constitution of Commercial Appellate Division
(1) After issuing notification under section 3(1) or order under section 4(1), the Chief Justice of the concerned High Court shall by order constitute a Commercial Appellate Division having one or more Division Benches to exercise jurisdiction and powers under this Act.
(2) The Chief Justice of the High Court shall nominate Judges of the High Court who have experience in dealing with commercial disputes to be Judges of the Commercial Appellate Division.
6. Jurisdiction of Commercial Court
The Commercial Court shall have jurisdiction to try all suits and applications relating to a commercial dispute of a Specified Value arising out of the entire territory of the State over which it has territorial jurisdiction.
Explanation: A commercial dispute shall be considered to arise out of the entire territory of the State over which a Commercial Court has jurisdiction if the suit or application has been instituted as per sections 16 to 20 of the Code of Civil Procedure, 1908.
7. Jurisdiction of Commercial Divisions of High Courts
All suits and applications relating to commercial disputes of a Specified Value filed in a High Court having ordinary original civil jurisdiction shall be heard and disposed of by the Commercial Division of that High Court.
Provided that all suits and applications relating to commercial disputes stipulated by an Act to lie in a court not inferior to a District Court, and filed or pending on the original side of the High Court, shall be heard and disposed of by the Commercial Division of the High Court.
Provided further that all suits and applications transferred to the High Court by virtue of 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 of the High Court in all areas over which the High Court exercises ordinary original civil jurisdiction.
8. Bar against revision application or petition against an interlocutory order
Notwithstanding anything contained in any other law, no civil revision application or petition shall be entertained against any interlocutory order of a Commercial Court, including an order on the issue of jurisdiction. Any such challenge, subject to section 13, shall be raised only in an appeal against the decree of the Commercial Court.
9. Transfer of suit if counterclaim in a commercial dispute is of Specified Value
(1) Notwithstanding anything in the Code of Civil Procedure, 1908, if a counterclaim filed in a suit before a civil court relating to a commercial dispute is of Specified Value, such suit shall be transferred by the civil court to the Commercial Division or Commercial Court having territorial jurisdiction.
(2) If such suit is not transferred as per sub-section (1), the Commercial Appellate Division of the High Court exercising supervisory jurisdiction over the civil court may, on application by any party, withdraw such suit and transfer it to the Commercial Court or Commercial Division having territorial jurisdiction. Such order of transfer shall be final and binding.
10. Jurisdiction in respect of arbitration matters
Where the subject-matter of an arbitration is a commercial dispute of a Specified Value:
(1) International Commercial Arbitration: All applications or appeals arising out of such arbitration under the Arbitration and Conciliation Act, 1996 filed in a High Court shall be heard and disposed of by the Commercial Division where such Commercial Division has been constituted.
(2) Other Arbitration (filed on original side of High Court): All applications or appeals arising out of such arbitration under the Arbitration and Conciliation Act, 1996 filed on the original side of the High Court shall be heard and disposed of by the Commercial Division where such Commercial Division has been constituted.
(3) Other Arbitration (filed in district court): All applications or appeals arising out of such arbitration under the Arbitration and Conciliation Act, 1996 that would ordinarily lie before any principal civil court of original jurisdiction in a district (not being a High Court) shall be filed in, and heard and disposed of by, the Commercial Court exercising territorial jurisdiction where such Commercial Court has been constituted.
11. Bar of jurisdiction of Commercial Courts and Commercial Divisions
Notwithstanding anything contained in this Act, a Commercial Court or Commercial Division shall not entertain or decide any suit, application, or proceedings relating to any commercial dispute in respect of which the jurisdiction of the civil court is either expressly or impliedly barred under any other law for the time being in force.
CHAPTER III SPECIFIED VALUE
12. Determination of Specified Value
(1) The Specified Value of the subject-matter of a commercial dispute in a suit, appeal, or application shall be determined as follows:
| (a) | Recovery of money: The money sought to be recovered inclusive of interest, if any, computed up to the date of filing; |
|---|---|
| (b) | Movable property or right therein: The market value of the movable property as on the date of filing; |
| (c) | Immovable property or right therein: The market value of the immovable property as on the date of filing; |
| (d) | Any other intangible right: The market value of the said rights as estimated by the plaintiff; and |
| (e) | Counterclaim: The value of the subject-matter of the commercial dispute in such counterclaim as on the date of the counterclaim. |
(2) The aggregate value of the claim and counterclaim (if any) in an arbitration of a commercial dispute shall be the basis for determining whether such arbitration is subject to the jurisdiction of a Commercial Division, Commercial Appellate Division, or Commercial Court.
(3) No appeal or civil revision application under section 115 of the Code of Civil Procedure, 1908 shall lie from an order of a Commercial Division or Commercial Court finding that it has jurisdiction to hear a commercial dispute under this Act.
CHAPTER IV APPEALS
13. Appeals from decrees of Commercial Courts and Commercial Divisions
(1) Any person aggrieved by the decision of the Commercial Court or Commercial Division of a High Court may appeal to the Commercial Appellate Division of that High Court within a period of sixty days from the date of judgment or order.
Provided that an appeal shall lie from such orders passed by a Commercial Division or Commercial Court that are 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.
(2) Notwithstanding anything in any other law or Letters Patent of a High Court, no appeal shall lie from any order or decree of a Commercial Division or Commercial Court otherwise than in accordance with the provisions of this Act.
14. Expeditious disposal of appeals
The Commercial Appellate Division shall endeavour to dispose of appeals filed before it within a period of six months from the date of filing.
CHAPTER V TRANSFER OF PENDING SUITS
15. Transfer of pending cases
(1) All suits and applications (including applications under the Arbitration and Conciliation Act, 1996) relating to a commercial dispute of a Specified Value pending in a High Court where a Commercial Division has been constituted shall be transferred to the Commercial Division.
(2) All suits and applications (including applications under the Arbitration and Conciliation Act, 1996) relating to a commercial dispute of a Specified Value pending in any civil court in any district or area in respect of which a Commercial Court has been constituted shall be transferred to such Commercial Court.
Provided that no suit or application where the final judgment has been reserved by the Court prior to the constitution of the Commercial Division or Commercial Court shall be transferred.
(3) Where any suit or application relating to a commercial dispute of Specified Value stands transferred, the provisions of this Act shall apply to those procedures that were not complete at the time of transfer.
(4) The Commercial Division or Commercial Court may hold case management hearings in respect of such transferred suits to prescribe new timelines or issue further directions for speedy disposal in accordance with Order XIV-A of the Code of Civil Procedure, 1908.
Provided that the proviso to sub-rule (1) of Rule 1 of Order V of the Code of Civil Procedure, 1908 shall not apply to such transferred suits, and the court may, in its discretion, prescribe a new time period within which the written statement shall be filed.
(5) If such suit or application is not transferred as specified, the Commercial Appellate Division of the High Court may, on application by any party, withdraw such suit or application and transfer it to the Commercial Division or Commercial Court having territorial jurisdiction. Such order of transfer shall be final and binding.
CHAPTER VI AMENDMENTS TO THE PROVISIONS OF THE CODE OF CIVIL PROCEDURE, 1908
16. Amendments to the Code of Civil Procedure, 1908 in its application to commercial disputes
(1) The provisions of the Code of Civil Procedure, 1908 shall, in their application to any suit in respect of a commercial dispute of a Specified Value, stand amended in the manner specified in the Schedule.
(2) The Commercial Division and Commercial Court shall follow the provisions of the Code of Civil Procedure, 1908, as amended by this Act, in the trial of a suit in respect of a commercial dispute of a Specified Value.
(3) Where any provision of any Rule of the jurisdictional High Court or any amendment to the Code of Civil Procedure, 1908 by the State Government is in conflict with the provisions of the Code of Civil Procedure as amended by this Act, the provisions of the Code of Civil Procedure as amended by this Act shall prevail.
CHAPTER VII MISCELLANEOUS
17. Collection and disclosure of data
Statistical data regarding the number of suits, applications, appeals, or writ petitions filed, pending, and disposed of before the Commercial Court, Commercial Division, or Commercial Appellate Division shall be maintained and updated every month and published on the website of the relevant High Court.
18. Power of High Court to issue directions
The High Court may, by notification, issue practice directions to supplement the provisions of Chapter II of this Act or the Code of Civil Procedure, 1908 insofar as such provisions apply to the hearing of commercial disputes of a Specified Value.
19. Infrastructure facilities
The State Government shall provide necessary infrastructure to facilitate the working of a Commercial Court or a Commercial Division of a High Court.
20. Training and continuous education
The State Government may, in consultation with the High Court, establish necessary facilities for training of Judges who may be appointed to the Commercial Court, Commercial Division, or Commercial Appellate Division in a High Court.
21. Act to have overriding effect
Save as otherwise provided, the provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act.
22. Power to remove difficulties
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions (not inconsistent with this Act) as may appear necessary or expedient for removing the difficulty.
Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
23. Repeal and savings
(1) The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015 is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.
THE SCHEDULE
(See section 16)
Amendments to the Code of Civil Procedure, 1908
Sarvarthapedia Cross-Referenced Conceptual Network
The Commercial Courts Act, 2015 (Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015)
This conceptual network is designed in the style of a Wikipedia “See also” system. Each topic functions as an independent knowledge node while simultaneously connecting to broader concepts across commercial law, civil procedure, constitutional law, judicial administration, arbitration, and business regulation.
Core Knowledge Cluster
Commercial Courts Act, 2015
Core Concept
The legislative framework establishing specialized courts for adjudication of high-value commercial disputes through expedited procedures and specialized judicial administration.
Connects To
- Commercial Justice
- Civil Procedure
- Commercial Litigation
- Judicial Reforms
- Arbitration Law
- Business Law
- Court Administration
- Case Management
- High Courts
- District Judiciary
Constitutional Foundation Cluster
Constitutional Basis of Commercial Courts
Related Concepts
- Administration of Justice
- Separation of Powers
- Federal Judicial Structure
- High Court Jurisdiction
- State Government Powers
- Judicial Independence
- Legislative Competence
- Constitutional Governance
See Also
- Constitution of India
- Seventh Schedule
- High Courts
- District Courts
- Judicial Administration
- Rule of Law
Court System Cluster
Commercial Court
Related Topics
- District Level Courts
- Commercial Jurisdiction
- Specialized Courts
- Civil Courts
- Original Jurisdiction
Linked Articles
- District Judge
- Judicial Service
- Territorial Jurisdiction
- Court Infrastructure
- Judicial Administration
Commercial Division
Connected Articles
- High Court
- Original Civil Jurisdiction
- Commercial Litigation
- Commercial Appeals
- Commercial Bench
- Single Judge Bench
Commercial Appellate Division
Cross References
- Appeals
- Appellate Jurisdiction
- Commercial Appeal
- High Court Division Bench
- Finality of Orders
Commercial Dispute Cluster
Commercial Dispute
Parent Concepts
- Commercial Transactions
- Business Law
- Contract Law
- Mercantile Law
Subcategories
Trade and Commerce
- Merchant Transactions
- Banking Transactions
- Financial Services
- Mercantile Documents
International Trade
- Export Law
- Import Law
- Customs Law
- International Commerce
Maritime Commerce
- Admiralty Law
- Shipping Law
- Marine Insurance
- Carriage of Goods
Aviation Commerce
- Aircraft Leasing
- Aviation Finance
- Aircraft Sale
- Aviation Contracts
Infrastructure
- Construction Contracts
- Engineering Contracts
- Infrastructure Development
- Government Tender
Commercial Property
- Commercial Real Estate
- Industrial Property
- Business Premises
- Trade Property
Corporate Transactions
- Joint Venture
- Shareholder Agreements
- Corporate Governance
- Investment Agreements
- Mergers
- Business Acquisition
Intellectual Property
- Patent
- Trademark
- Copyright
- Industrial Design
- Domain Name
- Geographical Indication
- Semiconductor Layout Design
Technology
- Technology Transfer
- Software Licensing
- Innovation Contracts
- Technology Development Agreement
Natural Resources
- Mining Law
- Oil and Gas
- Spectrum Allocation
- Energy Law
Insurance
- Insurance Contracts
- Reinsurance
- Risk Management
Jurisdiction Cluster
Territorial Jurisdiction
Related Concepts
- Cause of Action
- Place of Business
- Civil Jurisdiction
- Court Competence
Linked Articles
- Sections 16–20 CPC
- Commercial Court
- High Court
Subject Matter Jurisdiction
Connected Topics
- Commercial Dispute
- Specified Value
- Arbitration
- Civil Suit
- Commercial Appeal
Specified Value Cluster
Specified Value
Related Concepts
- Pecuniary Jurisdiction
- Valuation of Suit
- Market Value
- Subject Matter Value
- Counterclaim Value
Connected Articles
- Court Fees
- Civil Procedure Code
- Commercial Suit
- Jurisdiction
Arbitration Cluster
Commercial Arbitration
Parent Concepts
- Arbitration Law
- Alternative Dispute Resolution
- Commercial Dispute
Connected Articles
- Arbitration and Conciliation Act, 1996
- International Commercial Arbitration
- Domestic Arbitration
- Commercial Court
- Commercial Division
Civil Procedure Cluster
Code of Civil Procedure
Connected Topics
- Pleadings
- Written Statement
- Discovery
- Inspection
- Evidence
- Trial
- Decree
- Execution
Related Articles
- Commercial Courts Act Amendments
- Order V CPC
- Order XI CPC
- Order XIIIA CPC
- Order XVA CPC
- Order XLIII CPC
Case Management Hearing
Associated Concepts
- Judicial Efficiency
- Time Management
- Procedural Discipline
- Litigation Strategy
Connected Articles
- Trial Management
- Scheduling Orders
- Evidence Management
- Discovery
Appeals Cluster
Commercial Appeals
Related Topics
- Appeal
- Appellate Jurisdiction
- Limitation
- Final Order
- Interlocutory Order
Connected Articles
- Commercial Appellate Division
- Order XLIII CPC
- Section 37 Arbitration Act
Interlocutory Orders
Cross References
- Interim Relief
- Injunction
- Procedural Orders
- Revision Jurisdiction
Judicial Administration Cluster
Judicial Specialization
Related Topics
- Specialized Judiciary
- Commercial Judges
- Judicial Training
- Court Administration
Connected Articles
- Higher Judicial Service
- Judicial Education
- Commercial Law Expertise
Court Infrastructure
Linked Concepts
- Digital Courts
- e-Courts
- Court Management
- Judicial Resources
- Court Technology
Statistical Data
Connected Topics
- Judicial Transparency
- Court Analytics
- Pendency Statistics
- Disposal Rate
- Judicial Performance
Business Law Cluster
Commercial Contracts
Related Articles
- Contract Law
- Breach of Contract
- Damages
- Specific Performance
- Commercial Remedies
Corporate Law
Connected Topics
- Companies
- Shareholders
- Directors
- Corporate Governance
- Mergers
- Acquisitions
Banking and Finance
Related Articles
- Banking Law
- Securities
- Financial Services
- Commercial Lending
- Project Finance
Intellectual Property Cluster
Intellectual Property Rights
Subtopics
- Patent Law
- Trademark Law
- Copyright Law
- Design Law
- Trade Secret
- Licensing
Cross References
- Technology Law
- Innovation
- Commercial Litigation
Litigation Management Cluster
Commercial Litigation
Related Concepts
- Pleadings
- Evidence
- Discovery
- Witnesses
- Trial
- Appeals
- Enforcement
Speedy Disposal
Associated Topics
- Judicial Reform
- Efficient Justice
- Time-bound Proceedings
- Procedural Economy
Enforcement Cluster
Enforcement of Commercial Decrees
Related Articles
- Execution Proceedings
- Attachment
- Recovery
- Decree Holder
- Judgment Debtor
Connected Topics
- Civil Procedure
- Commercial Litigation
- Appeals
Governance Cluster
Judicial Reforms
Connected Articles
- Ease of Doing Business
- Investment Climate
- Commercial Certainty
- Rule of Law
- Economic Governance
Ease of Doing Business
Related Topics
- Commercial Courts
- Contract Enforcement
- Investment
- Corporate Governance
- International Competitiveness
Comparative Law Cluster
International Commercial Courts
Compare With
- England and Wales Commercial Court
- Singapore International Commercial Court
- Delaware Court of Chancery
- Dubai International Financial Centre Courts
Related Concepts
- Comparative Commercial Law
- International Business Litigation
- Global Arbitration
Sarvarthapedia Cross-Domain Knowledge Network
Law
Links To
- Constitutional Law
- Civil Law
- Commercial Law
- Corporate Law
- Banking Law
- Intellectual Property Law
- Arbitration Law
- Administrative Law
Economics
Links To
- Markets
- Commerce
- Investment
- Banking
- Finance
- International Trade
- Economic Institutions
Business
Links To
- Companies
- Entrepreneurship
- Corporate Governance
- Contracts
- Supply Chains
- Business Strategy
Public Administration
Links To
- Judicial Administration
- Court Management
- Governance
- Digital Government
- Public Policy
Technology
Links To
- Digital Evidence
- Electronic Documents
- Intellectual Property
- Artificial Intelligence in Courts
- e-Governance
- Legal Technology
Ultimate See Also Network
Primary Articles
- Commercial Courts Act, 2015
- Commercial Dispute
- Commercial Court
- Commercial Division
- Commercial Appellate Division
- Commercial Litigation
- Commercial Arbitration
- Code of Civil Procedure
- Arbitration and Conciliation Act, 1996
- Contract Law
- Corporate Law
- Intellectual Property Law
- Banking Law
- Infrastructure Law
- Judicial Administration
- Judicial Reforms
- Case Management
- Appeals
- Commercial Justice
- Business Law
- Rule of Law
- Ease of Doing Business
- Economic Governance
- Court Management
- Digital Courts
- International Commercial Courts
- Kerala Shops and Commercial Establishments Act, 1960
- V. Sasidharan vs Peter & Karunakar & Ors ( 1984 AIR 1700)
- Commercial dispute and the expression “arising out of” and “in relation to immovable property”
- Federation of A.P. Chambers of Commerce & Industry and Ors. vs. State of A.P. and Ors., (2000) 6 SCC 550
