1

Commercial Courts Act,

2015
(Prepared by Chandrashekhar .U, Senior Faculty Member, KJA, as on
31.05.2022)
2
 3

The Commercial Courts Act, 2015

An Act to provide for the constitution of Commercial Courts,

1[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. BE it enacted by Parliament in the
Sixty-sixth Year of the Republic of India.

Objects:

Phenomenal changes have taken place in the country of India

resulting to privatization, liberalization and globalization.
Tremendous economic development has ushered in enormous
commercial activities including foreign direct investments and
public- private partnership. Commercial transactions have
contributed for increase in commercial disputes. It is required to
create a positive image about the independent and responsive
Indian Legal system. This has prompted the Union of India to take
new measures for speedy resolution of commercial disputes,
widening the scope of the courts to deal with commercial disputes
and facilitate ease of doing business in India. The above act has
come into effect from 23.10.2015 for speedy resolution of
commercial disputes of the high value of Rs. One Crore and above
and to establish Commercial Courts at the District Judge Level and
Commercial Division and Commercial Appellate Division in the High
Courts.
 4

In this regard the decision in the case of Dolby International

A.B. and Another Vs. Das Telecom Pvt. Ltd. and Others reported
in 2018 SCC Online Del 7615.

Ease of doing business:

Ease of doing business is an index published by the World

Bank. A high ranking means the regulatory and economic
environment is more conducive for business and commercial
investment. It is an indication of a business friendly country.
Rating includes criteria like public confidence in investment,
enforcing contracts, trading across borders, resolving insolvency
etc.,

In view of Report No. 188 and 253 of Law Commission of India

made a way to the above said enactment.

Salient Features:

1. Constitution of Commercial Courts at District level and below.

2. Commercial Appellate Court.
3. Commercial Division in High Court having ordinary Civil
Jurisdiction.
4. Commercial Appellate Division.
5. Defining types of disputes which are commercial disputes.
6. Specified value of the dispute to be Rs.3,00,000/- and above.
7. Compulsory pre institution mediation mechanism.
8. Strengthening and introducing procedure for early resolution
of disputes, viz;
 5

Costs, imposition of heavy costs for delay by a party;

Pleadings should be specific and focused;

Written statement to be filed within 120 days or else forfeiture

of the right to file;

Summary Judgment on certain claims;

Discovery of documents;

Inspection of documents;

Admission and denial of documents;

Case management hearing;

Recording of evidence, process streamlined;

Redacting of evidence, power to Court to eliminate;

Time bound arguments;

Time bound disposal;

Appeal to Commercial Appellate Court;

No second appeal.

2. Definitions.-

(1) In this Act, unless the context otherwise requires,-

3[(a) "Commercial Appellate Courts" means the Commercial

Appellate Courts designated under section 3A;]
 6

4[(aa)] "Commercial Appellate Division" means the Commercial

Appellate Division in a High Court constituted under sub-
section (1) of section 5;

(b) "Commercial Court" means the Commercial Court

constituted under sub-section (1) of section 3;

(c) "commercial dispute" means a dispute arising out of-

(i) ordinary transactions of merchants, bankers, financiers and

traders such as those relating to mercantile documents,
including enforcement and interpretation of such documents;

The very purpose for which the CC Act of 2015 has been
enacted would be defeated, if every other suit merely because it is
filed before Commercial Court is entertained. This is very clear
from the decision in the case of Ambala Sarabhai Enterprises
Limited Vs. K.S. Infraspace LLP and Another in Civil Appeal No.
7843 / 2019 dated 04.10.2019.

In the case of Deepdharshan Builders Pvt. Ltd Vs. Saroj and

Three Others reported in 2018 SCC Online Bom 4885, it is held
that whether a particular dispute to immovable property falls within
the meaning of Sec.2(1)(C) is not far from difficulty. If it falls under
sub clause 7 of the definition, namely, agreements relating to
immovable property used exclusively in trade and commerce, there
is no difficulty. Such agreement shall be in respect of land which is
used as a stock in trade in such trade or commerce, to fall within
the sub clause. If the dispute arises out of a development
agreement pertaining to development and consequent sale thereof,
 7

it is held to be a commercial dispute within the meaning of this

section.

The Commercial Court would have exclusive jurisdiction if both

commercial dispute and specified value concurred to exist and not
just one of them. Refer the edition in the case of Fine Footwear
Private Limited, Bangalore vs. Skechers U.S.A. Inc, California
and Others, reported in 2019(3) AKR 703: 2019(5) Kar:LJ 358.

Summary of Decisions:

Commercial means involving or relating to commerce. A

merchant is a person who owns or runs a shop, store, or other
business. Is a person who buys and sells goods, currency, or
shares. Similar examples are dealer, buyer, seller, salesman,
marketer, merchandiser, broker, agent, businessman, distributor,
vendor, purveyor, supplier, trafficker. Trader is a person who buys
and sells goods, currency or shares; selling and buying is called a
trade and the persons who engage in that are traders. A shop
keeper, retailer, wholesaler, stockiest, runner, pusher, peddler,
hawker, etc., are traders.

A transaction is an agreement between a buyer and a seller to

exchange goods, services or financial instruments. Mercantile
means relating to or involved in trade. Mercantile documents are
those relating to trade; invoice, delivery receipts, purchase orders,
letter of credit, bills etc., maintained and issued by the trader
during the process of transactions are mercantile documents.
 8

It implies that any dispute arising out of above, relating to

mercantile documents, including enforcement and interpretation of
such documents of merchants, bankers, financers and traders shall
come within the definition of commercial disputes. Therefore, the
ordinary transactions of the above persons for within the ambit of
the act.

Examples: All types of loans lent by Bankers or Financiers,

purchases based upon invoices or purchase orders.

(ii) export or import of merchandise or services;

Comments:

A merchandiser is a person or a company that sells goods to

the public;

Examples: The services attached to tourism, banking and

accountancy etc. Services are mainly intangible and usually
consumed concurrently with their production. Supply of gas,
water, electricity, telecommunication etc.,

(iii) issues relating to admiralty and maritime law;

Comments:

Admiralty Law or Maritime Law is a body of law that governs

nautical issues and private maritime issues.
 9

(iv) transactions relating to aircraft, aircraft engines, aircraft

equipment and helicopters, including sales, leasing and financing of
the same;

(v) carriage of goods;

Comments:

Goods can be carried by land (including inland waterways), Sea, Air

or a combination of all these modes of transportations. Different
laws govern such different modes of carriage of goods; namely,
Carriage by Road Act, 2007, the Railways Act 1989, the carriage by
Air Act 1972, the (Indian) Bills of Lading Act 1856, the carriage of
goods by Sea Act, 1925; the Merchant Shipping Act, 1958, for multi
– modal transportation of goods, the multi- modal transportation of
Goods Act 1993 came into force from March 1, 2011, superseding
Erstwhile Carriers Act 1865.

(vi) construction and infrastructure contracts, including tenders;

Comments:

The Specific Relief Act 1963 has been amended with effect from
01.10.2018. The schedule refers to infrastructure projects. This
act deals with infrastructure contracts under the definition of
commercial disputes. Suffice it to say that Commercial Courts has
no jurisdiction in respect of infrastructure projects defined under
Schedule 2 in Act No.18/2018 of Specific Relief Act 1963. The
 10

infrastructure contract excluding those referred above, the

jurisdictions vest to the Commercial Courts.

(vii) agreements relating to immovable property used exclusively in

trade or commerce;

Comments:

Sec. 2(e) of the Indian Contract Act, 1872 defines agreement as

every promise and every set of promise, forming consideration for
each other. Sec. 2(26) of the General Clauses Act, 1897 defines
immovable property to include land benefits to arise out of land,
and things attached to earth, or permanently fasten to anything
attached to the earth.

The Hon’ble Apex Court in Ambalal Sarabai Enterprises Ltd.,

V/s K.S. Infra LL.B and another reported in 2019 SCC online SC
1311, while dealing with an appeal in respect of a commercial suit
filed at Vadodara has held that “It cannot be said that the
agreement is as such relating to immovable property used
exclusively in Trade or Commerce. Supreme Court has negatived
the contention of the plaintiff that Clause (vii) of Sec. 2(c), the
phraseology used is not actually used or being used and therefore,
even if at present the plot is not used and even if it is likely to be
used even in future, in that case also Sec.2(c)(vii) shall be applicable
and therefore Commercial Court would have jurisdiction; the
Supreme Court while interpreting Sec. 2(c), has held that literal and
strict interpretation as to be applied; it may be noted that the
 11

important word used in the relevant provisions are immovable

property used in the relevant provisions are ‘Immovable property
used exclusively in trade or commerce’. It is clear that the
expression used must mean actually ‘used’ or ‘being used’; if the
intention of the legislature was to expand the scope, in that case
the phraseology used would have being different as for example
‘likely to be used’ or ‘to be used’. The word denotes actually used
and it cannot be said to be either ready for ‘use’ or ‘likely to be used’
or ‘to be used’.

Examples:

1. The landlord has let out the premises to a tenant for running a
kirana store; any dispute relating to recovery of rent from the
tenant shall be a dispute falling within the definition of
Sec.2(1)(c)(vii) of the CC Act. The activity carried on by the
tenant for running the kirana store which is meant for trade,
the same shall be relating to trade as defined under the CC
Act.
2. In the above example, if the landlord intends to evict the
tenant from the premises, the premises being an immovable
property used exclusively in trade and since it is for recovery
of immovable property involving any other relief pertaining to
immovable property, the suit for ejectment shall be filed before
the Commercial Court.
3. The landlord has let out the premises to the tenant for
running an industry in an immoveable property. As a part of
 12

the same agreement, the landlord has also provided

managerial quarters to the tenant, which the tenant has been
using and he runs the industry and the residential quarters is
in his personal occupation. Now, there is a dispute between
the landlord and the tenant with respect to the management of
the industry and also with regard to the rent of the premises
in question; no doubt it’s a agreement for immoveable property
for running trade namely industry, but the question is
providing for a residential quarters in an industry, whether the
agreement is exclusively for trade or commerce?. The
intention of the legislation has to be borne in mind for the
above purpose.
4. The landlord has let out a residential premises for a tenant,
dentist; in a portion of the said residence, the tenant is using
the premises for running his dental clinic; whether the user of
premises for dental clinic deviates the objective of the user of
the main premises for residential use. Since, the main
purpose is for residential, the dispute with regard to recovery
of rent, eviction etc., does not fall within the purview of
commercial dispute and Commercial Court.
5. A suit for decree of specific performance in respect of an
agreement for purchase of an agricultural property does not
fall within the definition of commercial dispute.

(viii) franchising agreements;

 13

Comments:

Franchising is an arrangement where franchisor grants or

licenses some rights and authorities to franchisee. In return, the
franchisee pays a one time fee or commission to franchiser and
some share of revenue. Franchising is a well known marketing
strategy for business expansion.

Examples:

1. ABC is a leading educational academy which has multiple

franchises and earns royalty through licensing its trade mark
and copy righted course material.
2. XYZ coffee brand which has achieved a pan India presence
with limited investment by franchising. The franchises not
only operate under the brand name but also access
proprietary information on their successful business modals
and unique brews.

(ix) distribution and licensing agreements;

Examples:

1. Company A enters into an agreement with company B to act

as the distributor of their software in country Z. They are also
licensed by the contract to act as service providers for such
product and address consumer grievances.
2. Company A runs a chain of cafe’s. Their coffee brew is unique
and has grown in popularity. Company B, Manufacturer,
 14

enters into a contract with them and gets the license to

package and sell such a brew across the country.
3. Company A enters into an agreement with company B to act
as the distributor of their cars in country B. They are also
licensed by the contract to act as service providers for the
products, address consumer grievances and make necessary
modifications to the vehicle.
4. A tyre manufacturing company needs to sell its goods to the
market. The distributor networks through retail outlets, or
points of sale, stock points, carrying and forwarding agents,
wholesalers, retailers and consumers. In short, it involves the
distributor who spreads its products wider and faster into the
market place at lower costs, at a competitive price. The
distributor works for the marketing and selling of the
manufacturer.

(x) Management and consultancy agreements;

Comments:

A consultancy contract is entered into between an independent

contractor and a client company for availing professional service in
a specific are of work in which the consultant has expertise.

Examples:

1. A company has established a chain of hotels in country A.

The company hires a consultant to assist in strategic planning
for the expansion of its business into country B.
 15

2. A company has established a new subsidiary. Due to the

limited amount of workforce, it outsources its accountancy
and legal compliance work to professional consultants.
3. A company has been running losses. It hires a consultant to
identity cost saving opportunities in its everyday operations.
4. A reputed educational institution enters into an arrangement
with a retired educationist to carry on its educational activity,
in its institution; the educationist adopts his syllabus,
teaching mechanism, employees etc. and manages the day to
day administration of the school.
5. Similarly, a sports academy runs a regular training course for
shuttle player, who runs the day to day training schedule in
the Academy, for a management fee.
6. A developer or a builder, who is in to infrastructure contracts,
engages the services of a layout designer, architect, structural
engineer, to advise it on technical aspects, on commercial
basis, for projects or term basis.

(xi) joint venture agreements;

Comments:

A joint venture, popularly known as JV is a tactical partnership

where two or more people or companies agree to put in goods,
services and/or capital to a uniform commercial project.
 16

Examples:

1. A hotel and a hospital enter into a joint venture agreement to

provide quarantine facility during the pandemic. The hotel
provides the infrastructure for housing the patients while the
hospital provides medical service through teleconferencing and
institutional support.
2. A bank and insurance company form a joint venture to provide
special concessional insurance cover to the bank customers.
3. Two business conglomerates enter into a joint venture
agreement to combine their R&D expertise to speed up
innovations in the renewable energy sector.
4. An owner of land contracts with a developer to construct multi
storied residential apartment complex with equal sharing
rights, in the apartments to be developed; owner also executes
general power of attorney in favour of the developer, for
construction and conveyance of the completed residential
apartments in favour of intending purchasers of the residential
apartments; this arrangement is a joint venture project. Any
disputes arising between the owner and the developer or the
purchaser are commercial disputes for the purpose of this
clause. The nature or the purpose of construction though is
for residential apartments, the work being joint venture all the
disputes arising out of the joint venture are commercial
disputes. The Act recognizes certain works and its nature and
therefore purpose of the venture is not the criteria for
determining the scope of the dispute.
 17

(xii) shareholders agreements;

Comments:

Shareholder Agreements are contracts between a company

and the shareholders of a company outlining the rights, privileges
and protections available and obligations imposed on the
shareholder. Such agreements ensure fair pricing of shares and
also act as safeguards of minority interest by making shareholders
an integral part of decision making and by keeping companies
accountable.

(xiii) subscription and investment agreements pertaining to the

services industry including outsourcing services and financial
services;

Comments:

Subscription and Investor Agreements – An investment

agreement is between a company and individuals wishing to
purchase an ownership in the company. The purchaser may be an
existing shareholder or outside investor.

Examples:

1. Two entities enter into an investor agreement for real estate

development. One of them invests the capital while the other
acts as the developer.
 18

2. A private company raises equity by offering shares to its

members. A subscription agreement is executed in this
regard.

(xiv) mercantile agency and mercantile usage;

Comments:

Mercantile Agency and Mercantile Usage – Mercantile Agency

contracts between a commercial agent and his principal empower
the agent to sell goods, consign goods for sale, buy goods and
pledge such goods to raise money on behalf of the principal. It is
the agency of a factor who in the customary course of his business
has the authority to bind his principal.

Examples:

1. A engages a broker to find buyers for his car which he intends

to sell before moving to another city.
2. B engages an auctioneer to sell his Paintings to the highest
bidder.

(xv) partnership agreements;

Comments:

Partnership agreements constitute a commercial dispute; all

disputes coming under the Indian Partnership Act 1932, being the
disputes between the partners in respect of Partnership
Agreements, they are all commercial disputes.
 19

(xvi) technology development agreements;

Comments:

Technology is a process, method, system, or device by

scientific source or knowledge for gaining practical benefit. To
name a few, computer technology, cutting-edge technology, digital
technology, embrace technology, engine technology, green
technology, hybrid technology, medical technology, modern
technology, nuclear technology, recognition technology, wireless
technology. All nature of agreements executed for development of
technology fall within the ambit of this clause.

(xvii) intellectual property rights relating to registered and

unregistered trademarks, copyright, patent, design, domain names,
geographical indications and semiconductor integrated circuits;

Comments:

Intellectual property is a product of human intelligence

including creative concepts, inventions, industrial modules, brands,
trademark, sound etc. When a person puts hard labour, evolves
something new or he invents something new, it generally begins
with an idea and ultimately culminates into a product; the owner of
the said product is entitled for the benefits of intellectual property
rights; the owner of the product would be entitled to prevent others
from imitating or using the product without his prior permission;
the owner can sue such a person and restrain him by an order of
injunction from either using or imitating and to sell the products
 20

and also can sue for damages for the same. Intellectual Property
laws in India broadly cover the following: Trade Marks Act, 1999,
Copy Rights Act, 1957, The Patents Act, 1970, The Designs Act,
2000, etc.,

(xviii) agreements for sale of goods or provision of services;

Comments:

Agreements for Sale of Goods or Provision of Services – A

contract of sale of goods is a contract whereby the seller transfers or
agrees to transfer the goods to the buyer for consideration. If such
transfer is to take place on a future date or subject to the fulfillment
of a condition, would be an ‘agreement to sell’ rather than a sale.
An agreement for the provision of services or a service agreement is
an agreement under which one party agrees to provide a specific
service to another in exchange for consideration.

Examples:

1. A buys a car from B

2. Company A avails telecom services from Company B
3. A enters into a contract with a real estate developer to buy a
villa.

(xix) exploitation of oil and gas reserves or other natural

resources including electromagnetic spectrum;

Comments:

The entire range of wavelengths or frequencies of

electromagnetic radiation extending from gamma rays to the longest
 21

radio waves and including visible light are electromagnetic

spectrum. Radio waves for instant communication, microwaves for
data and heat, infrared for invisible heat, visible light rays,
ultraviolet waves for energetic Light, x-rays for penetrating radiation
are some types of electromagnetic rays.

(xx) insurance and re-insurance;

Comments:

Insurance is a term in law and economics. It is purchased to

protect themselves from losing money and a means of protection
from financial loss. It is a form of risk management, primarily used
to protect against the risk of a contingent or uncertain future loss.
The insurer indemnifies the insured. The amount of money charged
by the insurer to the policy holder for the coverage set forth in the
insurance policy is the premium. Life insurance, general
insurance, health insurance, motor vehicle insurance, travel
insurance, accident insurance home insurance, fire accident
insurance are some of the insurances.

(xxi) contracts of agency relating to any of the above; and

Comments:

Contracts of Agency – A contract of agency can be express or

implied and may or may not be for consideration. Chapter X of the
Indian Contract Act, 1872 deals with the laws relating to Agency.
Most business transactions are carried out through agency and are
 22

an important area of commercial law. Relationships relating to

principal and agent involve three main parties, i.e., the principal,
the Agent, and a third Party. General agent, special agent, sub
agent, agency coupled with an interest, and servant are few types of
agencies.

(xxii) such other commercial disputes as may be notified by

the Central Government.

Explanation.- A commercial dispute shall not cease to be a

commercial dispute merely because-

(a) it also involves action for recovery of immovable property or for

realisation of monies out of immovable property given as security or
involves any other relief pertaining to immovable property;

(b) one of the contracting parties is the State or any of its agencies
or instrumentalities, or a private body carrying out public
functions;

If a dispute is a commercial dispute within the meaning of

Sec.2(1)(C) of the Act. It shall not cease to be commercial dispute
merely because of one of the contracting parties is a State or any of
its agencies or instrumentalities, or a private body carrying out
public functions.

Following are held to be not commercial disputes:

1. Suit is for recovery of damages for loss suffered on account of

damage to the aircraft.

2. Suit for specific performance of agreement to develop land.

 23

3. Suit to quash and set aside the sale deed executed in favour of
respondent on the basis of the order passed in probate proceedings
and on the basis of the Will, with respect to immovable properties a
succession certificate was issued.

4. Suit for ejectment from property illegally used, exclusively in

trade or commerce, with the consent of plaintiff.

5. Suit for cancellation of a Power of Attorney, even if with

respect to an immovable property used exclusively in trade or
commerce and as part of a transaction of sale of such property.

6. Suit for recovery of money to be deposited in Court, for release

of title documents lying deposited by way of equitable mortgage.

7. Suit for specific performance of an Agreement of Sale and for

permanent injunction restraining the defendants from selling or
transferring the property not used exclusively for trade or commerce
purpose.

8. Dispute arose out of sale deeds.

9. Agreement/indenture of lease in respect of residential flats.

(d) "Commercial Division" means the Commercial Division in a

High Court constituted under sub-section (1) of section 4;

(e) "District Judge" shall have the same meaning as assigned to it

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 or marks, or electronic
 24

means, or by more than one of those means, intended to be used, or

which may be used, for the purpose of recording that matter;

(g) "notification" means a notification published in the Official

Gazette and the expression "notify" with its cognate meanings and
grammatical variations shall be construed accordingly;

(h) "Schedule" means the Schedule appended to the Act; and

(i) "Specified Value", in relation to a commercial dispute, shall

mean the value of the subject-matter in respect of a suit as
determined in accordance with section 12 1[which shall not be less
than three lakh rupees] or such higher value, as may be notified by
the Central Government.

(2) The words and expressions used and not defined in this Act
but defined in the Code of Civil Procedure, 1908 (5 of 1908) and the
Indian Evidence Act, 1872 (1 of 1872), shall have the same
meanings respectively assigned to them in that Code and the Act.

1. Ins. by Act 28 of 2018, s. 2 (w.e.f. 3-5-2018).

2. Subs. by s. 3, ibid., for sub-section (1) (w.e.f. 3-5-2018).

3. Ins. by s. 4, ibid., (w.e.f. 3-5-2018).

4. Clause (a) renumbered as clause (aa) by s. 4, ibid., (w.e.f. 3-5-

2018).

1. Subs. by Act 28 of 2018, s. 4, for "which shall not be less than

one crore rupees" (w.e.f. 3-5-2018).

Chapter II

1[Commercial Courts, Commercial Appellate Courts,

Commercial Divisions and Commercial Appellate Divisions].
 25

3. Constitution of Commercial Courts.-

(1) The State Government, may after consultation with the

concerned High Court, by notification, constitute such number of
Commercial Courts at District level, as it may deem necessary for
the purpose of exercising the jurisdiction and powers conferred on
those Courts under this Act:

2[Provided that with respect to the High Courts having

ordinary original civil jurisdiction, the State Government may, after
consultation with the concerned High Court, by notification,
constitute Commercial Courts at the District Judge level: Provided
further that with respect to a territory over which the High Courts
have ordinary original civil jurisdiction, the State Government may,
by notification, specify such pecuniary value which shall not be less
than three lakh rupees and not more than the pecuniary
jurisdiction exercisable by the District Courts, as it may consider
necessary.]

3[(1A) Notwithstanding anything contained in this Act, the

State Government may, after consultation with the concerned High
Court, by notification, specify such pecuniary value which shall not
be less than three lakh rupees or such higher value, for whole or
part of the State, as it may consider necessary.];

(2) The State Government shall, after consultation with the

concerned High Court specify, by notification, the local limits of the
 26

area to which the jurisdiction of a Commercial Court shall extend

and may, from time to time, increase, reduce or alter such limits.

(3) The 4[State Government may], 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 or
Judges, of a

5[Commercial Court either at the level of District Judge or a

court below the level of a District Judge].

6[3A. Designation of Commercial Appellate Courts.-

Except the territories over which the High Courts have

ordinary original civil jurisdiction, the State Government may, after
consultation with the concerned High Court, by notification,
designate such number of Commercial Appellate Courts at District
Judge level, as it may deem necessary, for the purposes of
exercising the jurisdiction and powers conferred on those Courts
under this Act.]

4. Constitution of Commercial Division of High Court.-

(1) In all High Courts, having 7[ordinary original civil jurisdiction],

the Chief Justice of the High Court may, by order, constitute
Commercial Division having one or more Benches consisting of a
single Judge for the purpose of exercising the jurisdiction and
powers conferred on it under this Act.
 27

(2) The Chief Justice of the High Court shall nominate such
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 subsection (1) of section 3 or

order under sub-section (1) of section 4, the Chief Justice of the
concerned High Court shall, by order, constitute Commercial
Appellate Division having one or more Division Benches for the
purpose of exercising the jurisdiction and powers conferred on it by
the Act. (2) The Chief Justice of the High Court shall nominate such
Judges of the High Court who have experience in dealing with
commercial disputes to be Judges of the Commercial Appellate
Division.

1. Subs. by Act 28 of 2018, s. 5, for "CONSTITUTION OF

COMMERCIAL COURTS, COMMERCIAL DIVISIONS AND
COMMERCIAL APPELLATE DIVISIONS" (w.e.f. 3-5-2018).

2. Subs. by s. 6, ibid., for the proviso (w.e.f. 3-5-2018).

3. Ins. by s. 6, ibid., (w.e.f. 3-5-2018).

4. Subs. by s. 6, ibid., for "State Government shall" (w.e.f. 3-5-

2018).

5. Subs. by s. 6, ibid., for "Commercial Court, from amongst the

cadre of Higher Judicial Service in the State" (w.e.f. 3-5-2018).

6. Ins. by s. 7, ibid., (w.e.f. 3-5-2018).

7. Subs. by s. 8, ibid., for "ordinary civil jurisdiction" (w.e.f. 3-5-

2018).
 28

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 been vested territorial jurisdiction.

Explanation.-For the purposes of this section, a commercial

dispute shall be considered to arise out of the entire territory of the
State over which a Commercial Court has been vested jurisdiction,
if the suit or application relating to such commercial dispute has
been instituted as per the provisions of sections 16 to 20 of the
Code of Civil Procedure, 1908 (5 of 1908).

The written statement in a commercial suit shall be filed

within 120 days. There is no discretion to condone the delay
beyond 120 days. Refer the decision in the case of Desh Raj Vs.
Balkishan (dead through LRs.) reported in (2020) 2 SCC 708. It
is further held that, unless extreme hardship or delays occurring
due to factors beyond control of parties despite pro-active diligence
may be just and equitable instances for condonation of delay.

Commercial Court has to consider facts as to when cause of

action arose, stage at which plaintiff instituted filing suit when it to
moved for hearing before granting ex parte injunction relating to
copyright infringement suit. Refer the edition in the case of Kinjol
Lalit Bhai Dave vs. Red Ribbon Entertainment Private Limited –
AIR 2019 Gujarat 86 (DB).
 29

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
sub-section (4) of section 22 of the Designs Act, 2000 (16 of 2000)
or section 104 of the Patents Act, 1970 (39 of 1970) shall be heard
and disposed of by the Commercial Division of the High Court in all
the 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 for the

time being in force, 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, and any such
challenge, subject to the provisions of section 13, shall be raised
only in an appeal against the decree of the Commercial Court.
 30

Comments:
Any dispute as to the jurisdiction, namely, about the territorial
jurisdiction, maintainability or rejection of the Commercial suit, if
filed and there is an order passed by the Commercial Court with
regard to the same, no Civil Revision application or petition shall be
entertained against the said interlocutory order and therefore such
order operates as final. The party being aggrieved by passing of
such order on jurisdiction or maintainability etc., may challenge the
interlocutory order only after final disposal, if he is aggrieved in the
appeal filed against the order of Commercial Court. However,
nothing prevents the person aggrieved to challenge the order under
Article 227 of Constitution, before the High Court and the High
Court may always exercise its supervisory jurisdiction.

9. [Transfer of suit if counterclaim in a commercial dispute is

of Specified Value].-

Omitted by the Commercial Courts, Commercial Division and

Commercial Appellate Division of High Courts (Amendment) Act,
2018 (28 of 2018), s. 9 (w.e.f. 3-5-2018)

10. Jurisdiction in respect of arbitration matters.-

Where the subject-matter of an arbitration is a commercial

dispute of a Specified Value and-

(1) If such arbitration is an international commercial arbitration,

all applications or appeals arising out of such arbitration under the
provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996)
 31

that have been filed in a High Court, shall be heard and disposed of
by the Commercial Division where such Commercial Division has
been constituted in such High Court.

(2) If such arbitration is other than an international commercial

arbitration, all applications or appeals arising out of such
arbitration under the provisions of the Arbitration and Conciliation
Act, 1996 (26 of 1996) that have been 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 in
such High Court.

(3) If such arbitration is other than an international commercial

arbitration, all applications or appeals arising out of such
arbitration under the provisions of the Arbitration and Conciliation
Act, 1996 (26 of 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 over such
arbitration where such Commercial Court has been constituted.

Where the subject matter of an arbitration is not a commercial

dispute, it will not fall under the definition of commercial dispute so
as to attract the jurisdiction of Commercial Court.

Example:
1. The agreement is between the owner of the house property and
interior designer engaged for renovation, designing and
 32

refurbishing; the dispute having arisen, with arbitration being

dispute resolution clause, arbitrator passed an award. The
challenge of the award, out of above contract being not out of a
commercial dispute falling within the definition, such application or
appeals shall be erred and disposed by the Civil Court and not by
Commercial Court established under the Act.

11. Bar of jurisdiction of Commercial Courts and Commercial

Divisions.-

Notwithstanding anything contained in this Act, a Commercial

Court or a 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.

Comments:

This is analogous to Section 9 of CPC, 1908. The suits of

which there cognizance either expressively or impliedly barred
under Sec.9 CPC shall not be entertained or decided in any suit or
application or proceedings relating to commercial dispute. The bar
of suits applicable to Civil Court applies to Commercial Court too.

Sec.11 of the Act envisages that Commercial Courts or

Commercial Division shall not entertain or decide any suit,
application or proceedings relating to commercial disputes in
respect of which the jurisdiction of Civil Court is expressly or
 33

impliedly barred under any other law for the time being in force.
Therefore, the definition of commercial dispute though is applicable
to Bankers and Financiers, the same is limited to specified value,
the subject matter of which is not more than Rupees Twenty Lakhs.
If the specified value of the subject matter or the dispute is more
than Rupees Three Lakhs but less than Rupees Twenty Lakhs,
dispute would lie before the Commercial Court and if the specified
value of the subject matter of the dispute is more than Rupees
Twenty Lakhs, the remedy is only to approach Debts Recovery
Tribunal.

If there is a clause of conciliation as dispute resolution clause

then the disputes are barred from Commercial Courts. If a party
under the conciliation agreement rejects the invitation to
conciliation then there is no bar either to approach Commercial
Court or Pre Institution Mediation under Chapter 3(a) of the Act.

Chapter III

Specified Value

12. Determination of Specified Value.-

(1) The Specified Value of the subject-matter of the commercial

dispute in a suit, appeal or application shall be determined in the
following manner:-

(a) Where the relief sought in a suit or application is for recovery

of money, the money sought to be recovered in the suit or
application inclusive of interest, if any, computed up to the date of
 34

filing of the suit or application, as the case may be, shall be taken
into account for determining such Specified Value;

(b) Where the relief sought in a suit, appeal or application relates

to movable property or to a right therein, the market value of the
movable property as on the date of filing of the suit, appeal or
application, as the case may be, shall be taken into account for
determining such Specified Value;

(c) Where the relief sought in a suit, appeal or application relates

to immovable property or to a right therein, the market value of the
immovable property, as on the date of filing of the suit, appeal or
application, as the case may be, shall be taken into account for
determining Specified Value; 1[and] (d) where the relief sought in a
suit, appeal or application relates to any other intangible right, the
market value of the said rights as estimated by the plaintiff shall be
taken into account for determining Specified Value; 23

(2) The aggregate value of the claim and counterclaim, if any as

set out in the statement of claim and the 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, as the case may be.

(3) No appeal or civil revision application under section 115 of the

Code of Civil Procedure, 1908 (5 of 1908), as the case may be, shall
lie from an order of a Commercial Division or Commercial Court
 35

finding that it has jurisdiction to hear a commercial dispute under

this Act.

Comments:
Specified value is the valuation of the subject matter of the
suit/appeal/application and it shall not be less that Rupees three
lakhs as provided under Section 2 (1)(i) of the Act.

The specified value shall be determined as per this section.

a) In a suit for recovery of money, the money sought inclusive of

interest, up to the date of filing of the suit;
b) Relating to a moveable property or right therein, the market
value of the said moveable property, at the time of filing the
suit;
c) Relating to an immoveable property or right therein, the
market value of such immoveable property at the time of filing
of the suit;
d) Relating to any other intangible right, market value of such
right at the time of filing, as estimated by the plaintiff.

Specified Value:
Section 2(1)(c) of the Act defines commercial dispute as one
arising out of transactions enumerated in sub-clause (i) to (xxi)
therein. Act No.4 of 2016 came into effect from 23/10/2015 and
for the specified value of Rupees One Crore and above.

Now, by virtue of Act No.28 of 2018, the specified value is

reduced to rupees three lakhs with retrospective effect from
 36

03/05/2018. The commercial disputes of the specified value of

Rupees 3,00,000 and above but below rupees one crore filed before
03/05/2018 cannot be entertained by commercial courts, as
Section 19 of Act No.28 of 2018 specifies that the provisions of the
amended Act are prospective.

Sec.3 (1-A) envisages that the State Government may after

consultation with the concerned High Court, by notification specify
such pecuniary value (specified Value) which shall not be less that
Rs.3 lakhs in respect of certain region at such higher value as it
may consider necessary. In other words, the floor pecuniary limit
cannot be less that Rs.3 lakhs whereas it can prescribe higher floor
limit as minimum pecuniary value for whole or part of the State.

Court fee Valuation

The valuation for the purposes for determining the specified
value and the Court fee payable are different. The specified value
determines the pecuniary limit whereas the Court fee valuation
determines the Court fee payable on the plaint.

Intangible right:
Valuation by the plaintiff:
In a plaint presented before the Civil Court relating to a
commercial dispute, but where the “specified value” is valued less
than Rupees Three Lakhs, the plaintiffs valuation shall be accepted
and the defendant cannot question the jurisdiction of the suit, on
the ground that the plaintiff has deliberately undervalued the suit
to avoid filing it before the commercial court.
 37

Court Fee payable:

There is no special mention about the court fee payable on a
dispute filed under the provisions of Commercial Court Act 2015;
the provisions of Court Fees Act as applicable shall be applicable to
the suits, appeals and applications filed under the Commercial
Courts Act.

Limitation:
Likewise, there is no special clause or provision with respect to
the applicability of Limitation Act, except in so far as what has been
envisaged under Chapter III-A, applicable with effect from
03.05.2018. The proviso to clause 3 of Section 12-A in Chapter III-
A provides that the period during which the parties remained
occupied with the Pre-Institution Mediation, such period shall not
be computed for the purpose of limitation under the Limitation Act,
1963 (Central Act No.36/1963). Otherwise the limitation as
applicable to the suits, appeals and application are also applicable
to the Commercial Court. The Commercial Court is also a Civil
Court and therefore too, the Court Fee and Limitation applicable to
the Courts are applicable to the Commercial Courts.

Examples
1. Suit for ejectment: A suit filed by the landlord for
termination of the lease of the tenant from the premises used
for trade or commerce, shall be a commercial dispute. It falls
under the purview of sub clause (vii) of clause (c) of Section 2
 38

of the Act. The market value of the immovable property as on

the date of filing of the suit shall be the specified value.
2. Suit for declaration in respect of an immovable property: A
suit is filed under Section 34 of The Specific Relief Act, 1963.
The relief is for declaration in respect of an immoveable
property. Market value of the immoveable property shall be
the specified value.
3. Suit for recovery of rent filed by the landlord against the
tenant: The tenant is carrying on a mobile showroombusiness
in the demised premises on the monthly rent of Rs.5,000.00.
The tenant is in arrears of rent amounting to Rs.75,000.00.
The market value of the premises is more than Rs.3 lakhs.
But, the valuation of the Court fee for the purposes of Court
fee is Rs.75,000.00.

The Act is completely silent about the Court fee payable on suits
and appeals, hence it follows as a corollary that the Court fee
payable on disputes that go before the Commercial Courts would be
as provided as the respective State enactments or High Court Fee
Rules wherever the High Courts have ordinary original Civil
jurisdiction. The Commercial Court is nothing but an oridinary
Civil Court constituted under the Act and therefore it will fall within
the definition of Court under Sec.3(2) of AP Court Fee and Suit
Valuation Act, 1956. Hence Ad-volerm fees is payable under
Schedule – I and not fixed Court fee under Schedule – II thereof.
Refer the edition in the case of M/s.Soma Hyderabad City centre
 39

private limited vs. Telangana State Road Transport Corporation

reported in (2019) 3 ALD 362 (TS) (DB).

4[Chapter IIIA

12A. Pre-Institution Mediation and Settlement-

(1) A suit, which does not contemplate any urgent interim relief
under this Act, shall not be instituted unless the plaintiff exhausts
the remedy of pre-institution mediation in accordance with such
manner and procedure as may be prescribed by rules made by the
Central Government.

COMMENTS

Pre-Institution Mediation and Settlement.

This chapter is inserted by the Commercial Courts,

Commercial Division and Commercial Appellate Division of High
Courts (Amendment) Act, 2018 (Act No.28 of 2018) with
retrospective effect from 03/05/2018. The main purpose and
objective of the amendment is to provide a separate and unique
mechanism of pre-institution mediation for settlement of
commercial dispute. A new concept and a mechanism are
introduced through this chapter, which ushers a ray of hope in the
dynamics of civil litigations & for vibrant commerce activity in India.
When a dispute arises in any relationship as defined in Section 2 of
the Act, litigants have options now, one being a compulsory and the
other being an alternative and emergent option.
 40

Once a dispute emerges, disputant under this Act, may file a

commercial suit before the Commercial Court, if the subject matter
of specified value is not less than Rupees three lakhs, by directly
seeking for a relief against the opposite party, without exhausting
the remedy of Pre-Institution Mediation in accordance with this
chapter, for an urgent interim relief, and not otherwise.

The disputant shall compulsorily explore the mechanism of

Pre-Institution Mediation, for settlement of the dispute in
accordance with procedures contemplated in this chapter and The
Commercial Courts (Pre-Institution Mediation and Settlement)
Rules, 2018. Thus, there is a bar on the commercial disputant
from directly approaching Courts for necessary relief and stipulates
a mandatory mechanism for exploring a settlement of dispute, by
Pre-Institution mediation Process. The mechanism is called Pre-
Institution since it provides a platform for the disputant to exhaust
a possible settlement by adopting the process of mediation, before
approaching the institution, namely the Commercial Court.

Important to note that this concept of Pre-Institution is

available only to such disputes which are commercial disputes as
envisaged under Section 2 of this Act where the specified value of
the subject matter of the dispute is not less than Rupees three
lakhs.
 41

(2) The Central Government may, by notification, authorise the

Authorities constituted under the Legal Services Authorities Act,
1987 (39 of 1987), for the purposes of pre-institution mediation.

(3) Notwithstanding anything contained in the Legal Services

Authorities Act, 1987 (39 of 1987), the Authority authorised by the
Central Government under sub-section (2) shall complete the
process of mediation within a period of three months from the date
of application made by the plaintiff under sub-section (1): Provided
that the period of mediation may be extended for a further period of
two months with the consent of the parties: Provided further that,
the period during which the parties remained occupied with the
pre-institution mediation, such period shall not be computed for the
purpose of limitation under the Limitation Act, 1963 (36 of 1963).

(4) If the parties to the commercial dispute arrive at a settlement,

the same shall be reduced into writing and shall be signed by the
parties to the dispute and the mediator.

(5) The settlement arrived at under this section shall have the
same status and effect as if it is an arbitral award on agreed terms
under sub-section (4) of section 30 of the Arbitration and
Conciliation Act, 1996 (26 of 1996).]

1. Ins. by Act 28 of 2018, s. 10 (w.e.f. 3-5-2018).

2. The word "and" omitted by s. 10, ibid., (w.e.f. 3-5-2018).

3. Clause (e) omitted by s. 10, ibid., (w.e.f. 3-5-2018).

 42

4. Ins. by s. 11, ibid. (w.e.f. 3-5-2018).

COMMENTS

Pre-Institution Mediation mechanism contemeplated in this

chapter is governed by The Commercial Courts (Pre-Institution
Mediation and Settlement) Rules, 2018. The rules inter alia provide
that the process shall be completed within a period of 3 months
from the date of application made by the party approaching the
Authority, which is extendable for a further period of 2 months
only, with the consent of the parties. Such period during which the
parties remained occupied with the Pre-Institution Mediation shall
not be computed for the purpose of limitation under the Limitation
Act.

Section and the proviso imply that the period of limitation for
filing the suit under this Act gets extended by such period of days,
the party was occupied in Pre-Institution Mediation.

Examples

1. The cause of action to file the Commercial suit will end by

29/02/2020; the applicant approaches the Commercial
Court Pre-Institution Mediation on 23rd January, 2020, by
filing Form 1 before the District Legal Services Authority;
the District Legal Services Authority, hereinafter referred to
as DLSA, receives the application and issues notice to the
opposite party to appear before it. The mediation process
before the DLSA results in a failure report for some reasons
 43

and the mediation process cannot continue and the DLSA

endorses the applicant accordingly by issuing a certificate
in the form on 21/03/2020 shall only be treated as the
period occupied by the applicant for the purpose of
limitation.
If the applicant files a commercial suit, on 29/03/2020,
such period occupied in Pre-Institution mediation shall not
be computed for the purpose of limitation.

2. The title to a residential immovable property is disputed.

Cause of action to file the suit will end by 28/02/2020; the
applicant approaches the Commercial Court Pre-Institution
Mediation on 23rd January, 2020, by filing Form 1 before
the District Legal Services Authority; the Legal Services
Authority, hereinafter referred to as LSA, receives the
application and issues notice to the opposite party to
appear before it. The mediation process before the LSA
results in a failure report for some reasons and the
mediation process cannot continue and the LSA endorses
the applicant accordingly by issuing a certificate in the form
on 21/03/2020. The period from 23/01/2020 to
21/03/2020 is the period occupied by the applicant for the
purpose of limitation before Pre Institution Mediation.

The applicant being unsuccessful in Pre institution

mediation approaches the Commercial Court, by filing a
suit for declaration, possession and injunction against the
 44

defendant in respect of his residential property, on

29/03/2020, after a delay of 28 days. The
applicant/plaintiff takes shelter under proviso to clause (3)
of Section 12-A and seeks for condonation of delay in filing
the commercial suit. It will not save the delay because the
relief sought pertains to a dispute not falling within the
definition of commercial dispute under Section 2 of the
Commercial Courts Act, 2015. Sub clause (1) of Sec. 12-A
starts with a rider, that a suit which does not contemplate
any urgent relief under this Act, that is to say, the benefit of
limitation under sub clause (3) of Sec. 12 of the Act would
be available to only such dispute which is a Commercial
dispute under Sec. 2 of the Act.

Chapter IV

Appeals

13. Appeals from decrees of Commercial Courts and

Commercial Divisions.-

(1) 1[Any person aggrieved by the judgment or order of a

Commercial Court below the level of a District Judge may appeal to
the Commercial Appellate Court within a period of sixty days from
the date of judgment or order.

(1A) Any person aggrieved by the judgment or order of a

Commercial Court at the level of District Judge exercising original
civil jurisdiction or, as the case may be, Commercial Division of a
 45

High Court may appeal to the Commercial Appellate Division of that

High Court within a period of sixty days from the date of the
judgment or order: Provided that an appeal shall lie from such
orders passed by a Commercial Division or a Commercial Court
that are specifically enumerated under Order XLIII of the Code of
Civil Procedure, 1908 (5 of 1908) as amended by this Act and
section 37 of the Arbitration and Conciliation Act, 1996 (26 of
1996).]

(2) Notwithstanding anything contained in any other law for the

time being in force 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 2[Commercial Appellate Court and the Commercial

Appellate Division] shall endeavour to dispose of appeals filed before
it within a period of six months from the date of filing of such
appeal.

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 (26 of 1996), relating to a
 46

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.

COMMENTS

It is a transitionary provision for the suits and applications

which are pending as on the date of constitution of the Commercial
Court and Commercial Division Courts.

Section 15(1) relates to all suits and applications including

under the provisions of Arbitration and Conciliation Act, 1996, such
cases relating to a commercial dispute of a specified value and
pending in the High Court, shall be transferred to the Commercial
Division of the High Court.

(2) All suits and applications, including applications under the

Arbitration and Conciliation Act, 1996 (26 of 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 the Commercial Court shall be transferred
either under sub-section (1) or sub-section (2).
 47

COMMENTS

Section 15(2) relates to all suits and applications including the

proceedings under the provisions of Arbitration and Conciliation
Act, 1996 relating to a commercial dispute of a specified value,
pending in Civil Court shall stand transferred to the Commercial
Court.

However, suits or applications which were reserved for final

judgment, shall not be transferred to Commercial Court.

(3) Where any suit or application, including an application under

the Arbitration and Conciliation Act, 1996 (26 of 1996), relating to a
commercial dispute of Specified Value shall stand transferred to the
Commercial Division or Commercial Court under sub-section (1) or
sub-section (2), the provisions of this Act shall apply to those
procedures that were not complete at the time of transfer.

COMMENTS

Section 15(3) stipulates that all such suits and applications

once transferred shall be dealt with as provided under Section
16(2), where the code of Civil Procedure as amended by the Act will
be applicable for trial of the suit.

(4) The Commercial Division or Commercial Court, as the case

may be, may hold case management hearings in respect of such
transferred suit or application in order to prescribe new timelines or
issue such further directions as may be necessary for a speedy and
 48

efficacious disposal of such suit or application in accordance 3[with

Order XV-A] of the Code of Civil Procedure, 1908 (5 of 1908):
Provided that the proviso to sub-rule (1) of Rule 1 of Order V of the
Code of Civil Procedure, 1908 (5 of 1908) shall not apply to such
transferred suit or application and the court may, in its discretion,
prescribe a new time period within which the written statement
shall be filed.

COMMENTS

Section 15(4) – By Act No.28 of 2018, Order XV-A is

substituted in place of XIV-A. It is to empower the Commercial
Court & Commercial Court & Commercial Division of High Court to
hold case management hearing in respect of such transferred suit,
as provided under order XV-A CPC which is inserted by Act No.28 of
2018 in so far as this Act is concerned.

Order XV-A, as amended deals with case management

hearing, which is separately discussed. Thus, for suits or
application, case management hearing is mandatory. Order XIV-A
CPC referred under Act No.4 of 2016 appears to be a typographical
error, which has been substituted by Act No.28 of 2018 rightly as
Order XV-A.

Amended provisions of Order V Rule 1, applicable to

Commercial Courts are however not applicable to such cases which
are transferred from other Courts. There the time limit for the filing
of the written statement and the forfeiture of the right does not
 49

apply to such cases. The Court may prescribe in its discretion a

new time limit for filing the written statement.

(5) In the event that such suit or application is not transferred in

the manner specified in sub-section (1), sub-section (2) or sub-
section (3), the Commercial Appellate Division of the High Court
may, on the application of any of the parties to the suit, withdraw
such suit or application from the court before which it is pending
and transfer the same for trial or disposal to the Commercial
Division or Commercial Court, as the case may be, having territorial
jurisdiction over such suit, and such order of transfer shall be final
and binding.

COMMENTS

Section 15(5) envisages that on an application of any party to

the suit, Commercial Appellate Division of the High Court to
withdraw such suit or application from the court where it is
pending and transfer the same for trial or disposal to the
Commercial Division or Commercial Court, as the case may be
having territorial jurisdiction and such order of transfer shall be
final & binding. This is applicable only where the transfer has not
taken place under the above in the automatic or suo moto process.
It only provides for an window to the suits which are not transferred
under the earlier provisions; it puts the onus on the parties to make
an application to the Commercial Appellate Court, for transfer of a
case to a commercial Court.
 50

Provisions of Section 12(3) also has to be born in mind, where

it envisages that no appeal or revision shall lie against an order on
a finding of a Commercial Court regarding its jurisdiction to hear a
Commercial Dispute.

This transitionary provision is applicable to only the suits and

applications which are pending as on the date of the enactment and
is not applicable to pending appeals.

The case in which there is no pleading at all that the property in a

question is exclusively being used for the commercial purpose and
there is also no assertion that it is likely to be used for the exclusive
commercial purpose. Valuation of the property is not a sole
yardstick to transfer the proceedings to the Commercial Court.
Held, simply because a transaction of immovable property is
questioned the same ipso facto would not constitute commercial
dispute and as such the conclusion which has been arrived at by
the court below is found to be perverse, contrary to the provisions of
law itself. (M/s. Uday Autolink Pvt. Ltd. vs. Govindji Becharji
Thakor (Dead) by LR’s AIR 2019 Guj 130).

Chapter VI

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 (5 of 1908)

shall, in their application to any suit in respect of a commercial
 51

dispute of a Specified Value, stand amended in the manner as

specified in the Schedule.

(2) The Commercial Division and Commercial Court shall follow

the provisions of the Code of Civil Procedure, 1908 (5 of 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 (5 of
1908), by the State Government is in conflict with the provisions of
the Code of Civil Procedure, 1908, as amended by this Act, the
provisions of the Code of Civil Procedure as amended by this Act
shall prevail.

Comments:

On a conjoint reading, it is clear that, wherever amendments

have been specified in the said Act to the Code of Civil Procedure,
1908, the shall be prevail. In other respects, the CPC shall be
followed by the Commercial Court and the commercial Division of
the HIGH Court. If there is any conflict with the provisions of the
said Act with any provisions contained in any other law for the time
being in force, the provisions of the amended (schedule to the Act),
namely CPC would prevail and have overriding effect.

The Hon’ble Supreme Court has held in Desh Raj Vs

Balkishan(D) through LRs Ms Rohin, 2020 SCC online 49 and
M/s SCG contracts India Pvt Ltd Vs K S Chamankar
 52

Infrastructure Pvt. Ltd. AIR 2019 SC 269, that there are two
regimes of Civil Procedure, Commercial disputes are governed by
CPC as amended by Sec. 16 of the Act. All other non-commercial
disputes fall within the ambit of unamended provisions of CPC.

Chapter VII

Miscellaneous

17. Collection and disclosure of data by 1[Commercial Courts,

Commercial Appellate Courts], Commercial Divisions and
Commercial Appellate Divisions.-

The statistical data regarding the number of suits,

applications, appeals or writ petitions filed before the 1[Commercial
Courts, Commercial Appellate Courts], Commercial Division, or
Commercial Appellate Division, as the case may be, the pendency of
such cases, the status of each case, and the number of cases
disposed of, shall be maintained and updated every month by each
1[Commercial Courts, Commercial Appellate Courts], Commercial
Division, Commercial Appellate Division and shall be 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 (5 of 1908) insofar as such provisions apply
to the hearing of commercial disputes of a Specified Value.
 53

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 providing for training of Judges
who may be appointed to the 2[Commercial Courts, Commercial
Appellate Courts], Commercial Division or the 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 for the time being in
force other than this Act.

1. Subs. by Act 28 of 2018, s. 15, for "Commercial Courts" and

"Commercial Court" (w.e.f. 3-5-2018).

2. Subs. by s. 16, ibid., for "Commercial Court" (w.e.f. 3-5-2018).

1[21A. Power of Central Government to make rules.-

(1) The Central Government may, by notification, make rules for

carrying out the provisions of this Act.
 54

(2) In particular, and without prejudice to the generality of the

foregoing power, such rules may provide for or any of the following
matters, namely:-

(a) The manner and procedure of pre-institution mediation under

sub-section (1) of section 12A;

(b) Any other matter which is required to be, or may be,

prescribed or in respect of which provision is to be made by rules
made by the Central Government.

(3) Every rule made by the Central Government under this Act shall
be laid, as soon as may be after it is made, before each House of
Parliament, while it is in session, for a total period of thirty days
which may be comprised in one session, or in two or more
successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the
rule, or both Houses agree that the rule should not be made, the
rule shall thereafter have effect only in such modified form or be of
no effect, as the case may be; so, however, that any such
modification or annulment shall be without prejudice to the validity
of anything previously done under that rule.]

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 the provisions
 55

of this Act as may appear to it to be necessary or expedient for

removing the difficulty: Provided that no such order shall be made
under this section 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 (Ord. 8 of 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.

1. Ins. by Act 28 of 2018, s. 17 (w.e.f. 3-5-2018).

The Schedule

(See section 16)

1. Amendment of section 26.-

In section 26 of the Code of Civil Procedure, 1908 (5 of 1908)

(hereafter referred to as the Code), in sub-section (2), the following
proviso shall be inserted, namely:- "Provided that such an affidavit
shall be in the form and manner as prescribed under Order VI of
Rule 15A.".
 56

2. Substitution of new section for section 35.-

For section 35 of the Code, the following section shall be

substituted, namely:-'

35. Costs.-

(1) In relation to any commercial dispute, the Court,

notwithstanding anything contained in any other law for the time
being in force or Rule, has the discretion to determine:

(a) whether costs are payable by one party to another;

(b) the quantum of those costs; and

(c) when they are to be paid. Explanation.-For the purpose of

clause

(a) the expression "costs" shall mean reasonable costs relating to-

(i) the fees and expenses of the witnesses incurred;

(ii) legal fees and expenses incurred;

(iii) any other expenses incurred in connection with the

proceedings.

(2) If the Court decides to make an order for payment of costs, the
general rule is that the unsuccessful party shall be ordered to pay
the costs of the successful party: Provided that the Court may make
an order deviating from the general rule for reasons to be recorded
in writing.
 57

Illustration:

The Plaintiff, in his suit, seeks a money decree for breach of

contract, and damages. The Court holds that the Plaintiff is entitled
to the money decree. However, it returns a finding that the claim for
damages is frivolous and vexatious. In such circumstances the
Court may impose costs on the Plaintiff, despite the Plaintiff being
the successful party, for having raised frivolous claims for damages.

(3) In making an order for the payment of costs, the Court shall
have regard to the following circumstances, including-

(a) the conduct of the parties;

(b) whether a party has succeeded on part of its case, even if that
party has not been wholly successful;

(c) whether the party had made a frivolous counterclaim leading

to delay in the disposal of the case;

(d) whether any reasonable offer to settle is made by a party and

unreasonably refused by the other party; and

(e) whether the party had made a frivolous claim and instituted a
vexatious proceeding wasting the time of the Court.

(4) The orders which the Court may make under this provision
include an order that a party must pay-

(a) a proportion of another party's costs;

(b) a stated amount in respect of another party's costs;

(c) costs from or until a certain date;

(d) costs incurred before proceedings have begun;

 58

(e) costs relating to particular steps taken in the proceedings;

(f) costs relating to a distinct part of the proceedings; and

(g) interest on costs from or until a certain date.'

3. Amendment of section 35A.-

In Section 35-A of the Code, sub-section (2) shall be omitted.

4. Amendment of first Schedule.-

In the First Schedule to the Code,-

(A) in the Order V, in Rule 1, in sub-rule (1), for the second

proviso, the following proviso shall be substituted, namely:-

"Provided further that where the defendant fails to file the

written statement within the said period of thirty days, he shall be
allowed to file the written statement on such other day, as may be
specified by the Court, for reasons to be recorded in writing and on
payment of such costs as the Court deems fit, but which shall not
be later than one hundred twenty days from the date of service of
summons and on expiry of one hundred twenty days from the date
of service of summons, the defendant shall forfeit the right to file
the written statement and the Court shall not allow the written
statement to be taken on record."

(B) in Order VI,-

(i) after Rule 3, the following Rule shall be inserted, namely:-

 59

"3-A. Forms of pleading in Commercial Courts.-In a commercial

dispute, where forms of pleadings have been prescribed under the
High Court Rules or Practice Directions made for the purposes of
such commercial disputes, pleadings shall be in such forms.";

(ii) after Rule 15, the following Rule shall be inserted, namely:-

"15-A. Verification of pleadings in a commercial dispute.-

(1) Notwithstanding anything contained in Rule 15, every pleading

in a commercial dispute shall be verified by an affidavit in the
manner and form prescribed in the Appendix to this Schedule.

(2) An affidavit under sub-rule (1) above shall be signed by the

party or by one of the parties to the proceedings, or by any other
person on behalf of such party or parties who is proved to the
satisfaction of the Court to be acquainted with the facts of the case
and who is duly authorised by such party or parties.

(3) Where a pleading is amended, the amendments must be

verified in the form and manner referred to in sub-rule (1) unless
the Court orders otherwise.

(4) Where a pleading is not verified in the manner provided under

sub-rule (1), the party shall not be permitted to rely on such
pleading as evidence or any of the matters set out therein.
 60

(5) The Court may strike out a pleading which is not verified by a
Statement of Truth, namely, the affidavit set out in the Appendix to
this Schedule.";

(C) in Order VII, after Rule 2, the following Rule shall be inserted,
namely:-

"2A. Where interest is sought in the suit.-

(1) Where the plaintiff seeks interest, the plaint shall contain a
statement to that effect along with the details set out under sub-
rules (2) and (3).

(2) Where the plaintiff seeks interest, the plaint shall state
whether the plaintiff is seeking interest in relation to a commercial
transaction within the meaning of section 34 of the Code of Civil
Procedure, 1908 (5 of 1908) and, furthermore, if the plaintiff is
doing so under the terms of a contract or under an Act, in which
case the Act is to be specified in the plaint; or on some other basis
and shall state the basis of that.

(3) Pleadings shall also state-

(a) the rate at which interest is claimed;

(b) the date from which it is claimed;

(c) the date to which it is calculated;

(d) the total amount of interest claimed to the date of calculation;

and
 61

(e) the daily rate at which interest accrues after that date."

(D) in Order VIII,-

(i) in Rule 1, for the proviso, the following proviso shall be

substituted, namely:-

"Provided that where the defendant fails to file the written

statement within the said period of thirty days, he shall be allowed
to file the written statement on such other day, as may be specified
by the Court, for reasons to be recorded in writing and on payment
of such costs as the Court deems fit, but which shall not be later
than one hundred twenty days from the date of service of summons
and on expiry of one hundred twenty days from the date of service
of summons, the defendant shall forfeit the right to file the written
statement and the Court shall not allow the written statement to be
taken on record."

(ii) after Rule 3, the following Rule shall be inserted, namely:-

"3A. Denial by the defendant in suits before the Commercial

Division of the High Court or the Commercial Court.-

(1) Denial shall be in the manner provided in sub-rules (2), (3), (4)
and (5) of this Rule.

(2) The defendant in his written statement shall state which of the
allegations in the particulars of plaint he denies, which allegations
 62

he is unable to admit or deny, but which he requires the plaintiff to

prove, and which allegations he admits.

(3) Where the defendant denies an allegation of fact in a plaint, he

must state his reasons for doing so and if he intends to put forward
a different version of events from that given by the plaintiff, he must
state his own version.

(4) If the defendant disputes the jurisdiction of the Court he must

state the reasons for doing so, and if he is able, give his own
statement as to which Court ought to have jurisdiction.

(5) If the defendant disputes the plaintiff's valuation of the suit,

he must state his reasons for doing so, and if he is able, give his
own statement of the value of the suit.";

(iii) in Rule 5, in sub-rule (1), after the first proviso, the following
proviso shall be inserted, namely:-

"Provided further that every allegation of fact in the plaint, if

not denied in the manner provided under Rule 3A of this Order,
shall be taken to be admitted except as against a person under
disability.";

(iv) in Rule 10, 1the following proviso shall be inserted, namely:-

"1[Provided that] no Court shall make an order to extend the

time provided under Rule 1 of this Order for filing of the written
statement."
 63

(E) for Order XI of the Code, the following Order shall be

substituted, namely:-

1. The words "after the first proviso" omitted by Act 28 of 2018, s.

18 (w.e.f. 3-5-2018).

"Order XI

Disclosure, Discovery and Inspection of Documents in Suits

Before The Commercial Division of a High Court or a
Commercial Court

1. Disclosure and discovery of documents.-

(1) Plaintiff shall file a list of all documents and photocopies of all
documents, in its power, possession, control or custody, pertaining
to the suit, along with the plaint, including:-

(a) documents referred to and relied on by the plaintiff in the

plaint;

(b) documents relating to any matter in question in the

proceedings, in the power, possession, control or custody of the
plaintiff, as on the date of filing the plaint, irrespective of whether
the same is in support of or adverse to the plaintiff's case;

(c) nothing in this Rule shall apply to documents produced by

plaintiffs and relevant only-

(i) for the cross-examination of the defendant's witnesses, or

(ii) in answer to any case set up by the defendant subsequent to

the filing of the plaint, or

(iii) handed over to a witness merely to refresh his memory.

 64

(2) The list of documents filed with the plaint shall specify
whether the documents in the power, possession, control or custody
of the plaintiff are originals, office copies or photocopies and the list
shall also set out in brief, details of parties to each document, mode
of execution, issuance or receipt and line of custody of each
document.

(3) The plaint shall contain a declaration on oath from the

plaintiff that all documents in the power, possession, control or
custody of the plaintiff, pertaining to the facts and circumstances of
the proceedings initiated by him have been disclosed and copies
thereof annexed with the plaint, and that the plaintiff does not have
any other documents in its power, possession, control or custody.

Explanation.-A declaration on oath under this sub-rule shall be

contained in the Statement of Truth as set out in the Appendix.

(4) In case of urgent filings, the plaintiff may seek leave to rely on
additional documents, as part of the above declaration on oath and
subject to grant of such leave by Court, the plaintiff shall file such
additional documents in Court, within thirty days of filing the suit,
along with a declaration on oath that the plaintiff has produced all
documents in its power, possession, control or custody, pertaining
to the facts and circumstances of the proceedings initiated by the
plaintiff and that the plaintiff does not have any other documents,
in its power, possession, control or custody.
 65

(5) The plaintiff shall not be allowed to rely on documents, which

were in the plaintiff's power, possession, control or custody and not
disclosed along with plaint or within the extended period set out
above, save and except by leave of Court and such leave shall be
granted only upon the plaintiff establishing reasonable cause for
non-disclosure along with the plaint.

(6) The plaint shall set out details of documents, which the
plaintiff believes to be in the power, possession, control or custody
of the defendant and which the plaintiff wishes to rely upon and
seek leave for production thereof by the said defendant.

(7) The defendant shall file a list of all documents and

photocopies of all documents, in its power, possession, control or
custody, pertaining to the suit, along with the written statement or
with its counterclaim if any, including-

(a) the documents referred to and relied on by the defendant in

the written statement;

(b) the documents relating to any matter in question in the

proceeding in the power, possession, control or custody of the
defendant, irrespective of whether the same is in support of or
adverse to the defendant's defence;

(c) nothing in this Rule shall apply to documents produced by the

defendants and relevant only-

(i) for the cross-examination of the plaintiff's witnesses,

(ii) in answer to any case set up by the plaintiff subsequent to the

filing of the plaint, or
 66

(iii) handed over to a witness merely to refresh his memory.

(8) The list of documents filed with the written statement or

counterclaim shall specify whether the documents, in the power,
possession, control or custody of the defendant, are originals, office
copies or photocopies and the list shall also set out in brief, details
of parties to each document being produced by the defendant, mode
of execution, issuance or receipt and line of custody of each
document.

(9) The written statement or counterclaim shall contain a

declaration on oath made by the deponent that all documents in the
power, possession, control or custody of the defendant, save and
except for those set out in sub-rule (7) (c)

(iii) pertaining to the facts and circumstances of the proceedings

initiated by the plaintiff or in the counterclaim, have been disclosed
and copies thereof annexed with the written statement or
counterclaim and that the defendant does not have in its power,
possession, control or custody, any other documents.

(10) Save and except for sub-rule (7) (c)

(iii) defendant shall not be allowed to rely on documents, which

were in the defendant's power, possession, control or custody and
not disclosed along with the written statement or counterclaim,
save and except by leave of Court and such leave shall be granted
only upon the defendant establishing reasonable cause for non-
disclosure along with the written statement or counterclaim.
 67

(11) The written statement or counterclaim shall set out details of

documents in the power, possession, control or custody of the
plaintiff, which the defendant wishes to rely upon and which have
not been disclosed with the plaint, and call upon the plaintiff to
produce the same.

(12) Duty to disclose documents, which have come to the notice of

a party, shall continue till disposal of the suit.

1. Subs. by Act 28 of 2018, s. 18, for "Provided further that" (w.e.f.

3-5-2018).

2. Discovery by interrogatories.-

(1) In any suit the plaintiff or defendant by leave of the court may
deliver interrogatories in writing for the examination of the opposite
parties or any one or more of such parties, and such interrogatories
when delivered shall have a note at the foot thereof stating which of
such interrogatories each of such persons is required to answer:
Provided that no party shall deliver more than one set of
interrogatories to the same party without an order for that purpose:
Provided further that interrogatories which do not relate to any
matters in question in the suit shall be deemed irrelevant,
notwithstanding that they might be admissible on the oral cross-
examination of a witness.

(2) On an application for leave to deliver interrogatories, the

particular interrogatories proposed to be delivered shall be
submitted to the court, and that court shall decide within seven
 68

days from the day of filing of the said application, in deciding upon
such application, the court shall take into account any offer, which
may be made by the party sought to be interrogated to deliver
particulars, or to make admissions, or to produce documents
relating to the matters in question, or any of them, and leave shall
be given as to such only of the interrogatories submitted as the
court shall consider necessary either for disposing fairly of the suit
or for saving costs.

(3) In adjusting the costs of the suit inquiry shall at the instance
of any party be made into the propriety of exhibiting such
interrogatories, and if it is the opinion of the taxing officer or of the
court, either with or without an application for inquiry, that such
interrogatories have been exhibited unreasonably, vexatiously, or at
improper length, the costs occasioned by the said interrogatories
and the answers thereto shall be paid in any event by the party in
fault.

(4) Interrogatories shall be in the form provided in Form No. 2 in

Appendix C to the Code of Civil Procedure, 1908 (5 of 1908), with
such variations as circumstances may require.

(5) Where any party to a suit is a corporation or a body of

persons, whether incorporated or not, empowered by law to sue or
be sued, whether in its own name or in the name of any officer of
other person, any opposite party may apply for an order allowing
 69

him to deliver interrogatories to any member or officer of such

corporation or body, and an order may be made accordingly.

(6) Any objection to answering any interrogatory on the ground

that it is scandalous or irrelevant or not exhibited bona fide for the
purpose of the suit, or that the matters inquired into are not
sufficiently material at that stage, or on the ground of privilege or
any other ground may be taken in the affidavit in answer.

(7) Any interrogatories may be set aside on the ground that they
have been exhibited unreasonably or vexatiously, or struck out on
the ground that they are prolix, oppressive, unnecessary or
scandalous and any application for this purpose may be made
within seven days after service of the interrogatories.

(8) Interrogatories shall be answered by affidavit to be filed within

ten days, or within such other time as the court may allow.

(9) An affidavit in answer to interrogatories shall be in the form

provided in Form No. 3 in Appendix C to the Code of Civil
Procedure, 1908 (5 of 1908), with such variations as circumstances
may require.

(10) No exceptions shall be taken to any affidavit in answer, but

the sufficiency or otherwise of any such affidavit objected to as
insufficient shall be determined by the court.

(11) Where any person interrogated omits to answer, or answers

insufficiently, the party interrogating may apply to the court for an
 70

order requiring him to answer, or to answer further, as the case

may be, and an order may be made requiring him to answer, or to
answer further, either affidavit or by viva voce examination, as the
court may direct.

3. Inspection.-

(1) All parties shall complete inspection of all documents

disclosed within thirty days of the date of filing of the written
statement or written statement to the counterclaim, whichever is
later. The Court may extend this time limit upon application at its
discretion, but not beyond thirty days in any event.

(2) Any party to the proceedings may seek directions from the
Court, at any stage of the proceedings, for inspection or production
of documents by the other party, of which inspection has been
refused by such party or documents have not been produced
despite issuance of a notice to produce.

(3) Order in such application shall be disposed of within thirty

days of filing such application, including filing replies and
rejoinders (if permitted by Court) and hearing.

(4) If the above application is allowed, inspection and copies

thereof shall be furnished to the party seeking it, within five days of
such order.
 71

(5) No party shall be permitted to rely on a document, which it

had failed to disclose or of which inspection has not been given,
save and except with leave of Court.

(6) The Court may impose exemplary costs against a defaulting

party, who wilfully or negligently failed to disclose all documents
pertaining to a suit or essential for a decision therein and which are
in their power, possession, control or custody or where a Court
holds that inspection or copies of any documents had been
wrongfully or unreasonably withheld or refused.

4. Admission and denial of documents.-

(1) Each party shall submit a statement of admissions or denials

of all documents disclosed and of which inspection has been
completed, within fifteen days of the completion of inspection or any
later date as fixed by the Court.

(2) The statement of admissions and denials shall set out

explicitly, whether such party was admitting or denying:-

(a) correctness of contents of a document;

(b) existence of a document;

(c) execution of a document;

(d) issuance or receipt of a document;

(e) custody of a document.

 72

Explanation.-A statement of admission or denial of the existence of

a document made in accordance with sub-rule (2) (b) shall include
the admission or denial of the contents of a document.

(3) Each party shall set out reasons for denying a document
under any of the above grounds and bare and unsupported denials
shall not be deemed to be denials of a document and proof of such
documents may then be dispensed with at the discretion of the
Court.

(4) Any party may however submit bare denials for third party
documents of which the party denying does not have any personal
knowledge of, and to which the party denying is not a party to in
any manner whatsoever.

(5) An Affidavit in support of the statement of admissions and

denials shall be filed confirming the correctness of the contents of
the statement.

(6) In the event that the Court holds that any party has unduly
refused to admit a document under any of the above criteria,-costs
(including exemplary costs) for deciding on admissibility of a
document may be imposed by the Court on such party.

(7) The Court may pass orders with respect to admitted

documents including for waiver of further proof thereon or rejection
of any documents.
 73

5. Production of documents.-

(1) Any party to a proceeding may seek or the Court may order, at
any time during the pendency of any suit, production by any party
or person, of such documents in the possession or power of such
party or person, relating to any matter in question in such suit.

(2) Notice to produce such document shall be issued in the Form

provided in Form No. 7 in Appendix C to the Code of Civil
Procedure, 1908 (5 of 1908).

(3) Any party or person to whom such notice to produce is issued

shall be given not less than seven days and not more than fifteen
days to produce such document or to answer to their inability to
produce such document.

(4) The Court may draw an adverse inference against a party

refusing to produce such document after issuance of a notice to
produce and where sufficient reasons for such non-production are
not given and order costs.

6. Electronic records.-

(1) In case of disclosures and inspection of Electronic Records (as

defined in the Information Technology Act, 2000 (21 of 2000)),
furnishing of printouts shall be sufficient compliance of the above
provisions.
 74

(2) At the discretion of the parties or where required (when parties

wish to rely on audio or video content), copies of electronic records
may be furnished in electronic form either in addition to or in lieu of
printouts.

(3) Where Electronic Records form part of documents disclosed,

the declaration on oath to be filed by a party shall specify-

(a) the parties to such Electronic Record;

(b) the manner in which such electronic record was produced and
by whom;

(c) the dates and time of preparation or storage or issuance or

receipt of each such electronic record;

(d) the source of such electronic record and date and time when
the electronic record was printed;

(e) in case of email ids, details of ownership, custody and access

to such email ids;

(f) in case of documents stored on a computer or computer

resource (including on external servers or cloud), details of
ownership, custody and access to such data on the computer or
computer resource;

(g) deponent's knowledge of contents and correctness of contents;

(h) whether the computer or computer resource used for

preparing or receiving or storing such document or data was
functioning properly or in case of malfunction that such
malfunction did not affect the contents of the document stored;

(i) that the printout or copy furnished was taken from the
original computer or computer resource.
 75

(4) The parties relying on printouts or copy in electronic form, of

any electronic records, shall not be required to give inspection of
electronic records, provided a declaration is made by such party
that each such copy, which has been produced, has been made
from the original electronic record.

(5) The Court may give directions for admissibility of Electronic

Records at any stage of the proceedings.

(6) Any party may seek directions from the Court and the Court
may of its motion issue directions for submission of further proof of
any electronic record including metadata or logs before admission of
such electronic record.

7. Certain provisions of the Code of Civil Procedure, 1908 not

to apply.-

For avoidance of doubt, it is hereby clarified that Order XIII Rule 1,

Order VII Rule 14 and Order VIII Rule 1A of the Code of Civil
Procedure, 1908 (5 of 1908) shall not apply to suits or applications
before the Commercial Divisions of High Court or Commercial
Courts.".

5. Insertion of new Order XIII-A.-

After Order XIII of the Code, the following Order shall be inserted,
namely:-
 76

'Order XIII-A

Summary Judgment

1. Scope of and classes of suits to which this Order applies.-

(1) This Order sets out the procedure by which Courts may decide
a claim pertaining to any Commercial Dispute without recording
oral evidence.

(2) For the purposes of this Order, the word "claim" shall include-

(a) part of a claim;

(b) any particular question on which the claim (whether in whole

or in part) depends; or

(c) a counterclaim, as the case may be.

(3) Notwithstanding anything to the contrary, an application for

summary judgment under this Order shall not be made in a suit in
respect of any Commercial Dispute that is originally filed as a
summary suit under Order XXXVII.

2. Stage for application for summary judgment.-

An applicant may apply for summary judgment at any time after

summons has been served on the defendant: Provided that, no
application for summary judgment may be made by such applicant
after the Court has framed the issues in respect of the suit.
 77

3. Grounds for summary judgment.-

The Court may give a summary judgment against a plaintiff or

defendant on a claim if it considers that-

(a) the plaintiff has no real prospect of succeeding on the claim or

the defendant has no real prospect of successfully defending the
claim, as the case may be; and

(b) there is no other compelling reason why the claim should not
be disposed of before recording of oral evidence.

4. Procedure.-

(1) An application for summary judgment to a Court shall, in

addition to any other matters the applicant may deem relevant,
include the matters set forth in sub-clauses (a) to (f) mentioned
hereunder:-

(a) the application must contain a statement that it is an

application for summary judgment made under this Order;

(b) the application must precisely disclose all material facts and
identify the point of law, if any;

(c) in the event the applicant seeks to rely upon any documentary
evidence, the applicant must,-

(i) include such documentary evidence in its application, and

(ii) identify the relevant content of such documentary evidence on

which the applicant relies;

(d) the application must state the reason why there are no real
prospects of succeeding on the claim or defending the claim, as the
case may be;
 78

(e) the application must state what relief the applicant is seeking
and briefly state the grounds for seeking such relief.

(2) Where a hearing for summary judgment is fixed, the

respondent must be given at least thirty days' notice of:-

(a) the date fixed for the hearing; and

(b) the claim that is proposed to be decided by the Court at such

hearing.

(3) The respondent may, within thirty days of the receipt of notice
of application of summary judgment or notice of hearing (whichever
is earlier), file a reply addressing the matters set forth in clauses (a)
to (f) mentioned hereunder in addition to any other matters that the
respondent may deem relevant:-

(a) the reply must precisely-

(i) disclose all material facts;

(ii) identify the point of law, if any; and

(iii) state the reasons why the relief sought by the applicant should
not be granted;

(b) in the event the respondent seeks to rely upon any

documentary evidence in its reply, the respondent must-

(i) include such documentary evidence in its reply; and

(ii) identify the relevant content of such documentary evidence on

which the respondent relies;

(c) the reply must state the reason why there are real prospects of
succeeding on the claim or defending the claim, as the case may be;
 79

(d) the reply must concisely state the issues that should be
framed for trial;

(e) the reply must identify what further evidence shall be brought
on record at trial that could not be brought on record at the stage of
summary judgment; and

(f) the reply must state why, in light of the evidence or material
on record if any, the Court should not proceed to summary
judgment.

5. Evidence for hearing of summary judgment.-

(1) Notwithstanding anything in this Order, if the respondent in

an application for summary judgment wishes to rely on additional
documentary evidence during the hearing, the respondent must:-

(a) file such documentary evidence; and

(b) serve copies of such documentary evidence on every other

party to the application at least fifteen days prior to the date of the
hearing.

(2) Notwithstanding anything in this Order, if the applicant for

summary judgment wishes to rely on documentary evidence in reply
to the defendant’s documentary evidence, the applicant must:-

(a) file such documentary evidence in reply; and

(b) serve a copy of such documentary evidence on the respondent

at least five days prior to the date of the hearing.

(3) Notwithstanding anything to the contrary, sub-rules (1) and

(2) shall not require documentary evidence to be:-

(a) filed if such documentary evidence has already been filed; or

 80

(b) served on a party on whom it has already been served.

6. Orders that may be made by Court.-

(1) On an application made under this Order, the Court may

make such orders that it may deem fit in its discretion including
the following:-

(a) judgment on the claim;

(b) conditional order in accordance with Rule 7 mentioned

hereunder;

(c) dismissing the application;

(d) dismissing part of the claim and a judgment on part of the

claim that is not dismissed;

(e) striking out the pleadings (whether in whole or in part); or

(f) further directions to proceed for case management under

Order XV-A.

(2) Where the Court makes any of the orders as set forth in sub-
rule (1) (a) to (f), the Court shall record its reasons for making such
order.

7. Conditional order.-

(1) Where it appears to the Court that it is possible that a claim or

defence may succeed but it is improbable that it shall do so, the
Court may make a conditional order as set forth in Rule 6 (1) (b).

(2) Where the Court makes a conditional order, it may:-

(a) make it subject to all or any of the following conditions:-

 81

(i) require a party to deposit a sum of money in the Court;

(ii) require a party to take a specified step in relation to the claim

or defence, as the case may be;

(iii) require a party, as the case may be, to give such security or
provide such surety for restitution of costs as the Court deems fit
and proper;

(iv) impose such other conditions, including providing security for

restitution of losses that any party is likely to suffer during the
pendency of the suit, as the Court may deem fit in its discretion;
and

(b) specify the consequences of the failure to comply with the

conditional order, including passing a judgment against the party
that have not complied with the conditional order.

8. Power to impose costs.-

The Court may make an order for payment of costs in an

application for summary judgment in accordance with the
provisions of sections 35 and 35A of the Code.'.

6. Omission of Order XV.-

Order XV of the Code shall be omitted.

7. Insertion of Order XV-A.-

 82

7. After Order XV of the Code, the following Order shall be inserted,

namely:-

"Order XVA

Case Management Hearing

1. First Case Management Hearing.-

The Court shall hold the first Case Management Hearing, not later
than four weeks from the date of filing of affidavit of admission or
denial of documents by all parties to the suit.

2. Orders to be passed in a Case Management Hearing.-

In a Case Management Hearing, after hearing the parties, and once

it finds that there are issues of fact and law which require to be
tried, the Court may pass an order-

(a) framing the issues between the parties in accordance with

Order XIV of the Code of Civil Procedure, 1908 (5 of 1908) after
examining pleadings, documents and documents produced before
it, and on examination conducted by the Court under Rule 2 of
Order X, if required;

(b) listing witnesses to be examined by the parties;

(c) fixing the date by which affidavit of evidence to be filed by

parties;

(d) fixing the date on which evidence of the witnesses of the

parties to be recorded;

(e) fixing the date by which written arguments are to be filed

before the Court by the parties;
 83

(f) fixing the date on which oral arguments are to be heard by the
Court; and

(g) setting time limits for parties and their advocates to address
oral arguments.

3. Time limit for the completion of a trial.-

In fixing dates or setting time limits for the purposes of Rule 2 of

this Order, the Court shall ensure that the arguments are closed
not later than six months from the date of the first Case
Management Hearing.

4. Recording of oral evidence on a day-to-day basis.-

The Court shall, as far as possible, ensure that the recording of

evidence shall be carried on, on a day-to-day basis until the cross-
examination of all the witnesses is complete.

5. Case Management Hearings during a trial.-

The Court may, if necessary, also hold Case Management Hearings

anytime during the trial to issue appropriate orders so as to ensure
adherence by the parties to the dates fixed under Rule 2 and
facilitate speedy disposal of the suit.

6. Powers of the Court in a Case Management Hearing.-

(1) In any Case Management Hearing held under this Order, the
Court shall have the power to-

(a) prior to the framing of issues, hear and decide any pending
application filed by the parties under Order XIII-A;
 84

(b) direct parties to file compilations of documents or pleadings

relevant and necessary for framing issues;

(c) extend or shorten the time for compliance with any practice,
direction or Court order if it finds sufficient reason to do so;

(d) adjourn or bring forward a hearing if it finds sufficient reason

to do so;

(e) direct a party to attend the Court for the purposes of

examination under Rule 2 of Order X;

(f) consolidate proceedings;

(g) strike off the name of any witness or evidence that it deems
irrelevant to the issues framed;

(h) direct a separate trial of any issue;

(i) decide the order in which issues are to be tried;

(j) exclude an issue from consideration;

(k) dismiss or give judgment on a claim after a decision on a

preliminary issue;

(l) direct that evidence be recorded by a Commission where

necessary in accordance with Order XXVI;

(m) reject any affidavit of evidence filed by the parties for

containing irrelevant, inadmissible or argumentative material;

(n) strike off any parts of the affidavit of evidence filed by the
parties containing irrelevant, inadmissible or argumentative
material;

(o) delegate the recording of evidence to such authority appointed

by the Court for this purpose;

(p) pass any order relating to the monitoring of recording the

evidence by a commission or any other authority;
 85

(q) order any party to file and exchange a costs budget;

(r) issue directions or pass any order for the purpose of managing
the case and furthering the overriding objective of ensuring the
efficient disposal of the suit.

(2) When the Court passes an order in exercise of its powers

under this Order, it may-

(a) make it subject to conditions, including a condition to pay a

sum of money into Court; and

(b) specify the consequence of failure to comply with the order or

a condition.

(3) While fixing the date for a Case Management Hearing, the
Court may direct that the parties also be present for such Case
Management Hearing, if it is of the view that there is a possibility of
settlement between the parties.

7. Adjournment of Case Management Hearing.-

(1) The Court shall not adjourn the Case Management Hearing for
the sole reason that the advocate appearing on behalf of a party is
not present:

Provided that an adjournment of the hearing is sought in

advance by moving an application, the Court may adjourn the
hearing to another date upon the payment of such costs as the
Court deems fit, by the party moving such application.

(2) Notwithstanding anything contained in this Rule, if the Court

is satisfied that there is a justified reason for the absence of the
 86

advocate, it may adjourn the hearing to another date upon such

terms and conditions it deems fit.

8. Consequences of non-compliance with orders.-

Where any party fails to comply with the order of the Court passed
in a Case Management Hearing, the Court shall have the power to-

(a) condone such non-compliance by payment of costs to the

Court;

(b) foreclose the non-compliant party's right to file affidavits,

conduct cross-examination of witnesses, file written submissions,
address oral arguments or make further arguments in the trial, as
the case may be, or

(c) dismiss the plaint or allow the suit where such non-
compliance is wilful, repeated and the imposition of costs is not
adequate to ensure compliance."

8. Amendment of Order XVIII.-

In Order XVIII of the Code, in Rule 2, for sub-rules (3A), (3B), (3C),
(3D), (3E) and (3F), the following shall be substituted, namely:-

"(3A) A party shall, within four weeks prior to commencing the oral
arguments, submit concisely and under distinct headings written
arguments in support of his case to the Court and such written
arguments shall form part of the record.

(3B) The written arguments shall clearly indicate the provisions of

the laws being cited in support of the arguments and the citations
 87

of judgments being relied upon by the party and include copies of

such judgments being relied upon by the party.

(3C) A copy of such written arguments shall be furnished

simultaneously to the opposite party.

(3D) The Court may, if it deems fit, after the conclusion of

arguments, permit the parties to file revised written arguments
within a period of not more than one week after the date of
conclusion of arguments.

(3E) No adjournment shall be granted for the purpose of filing the

written arguments unless the Court, for reasons to be recorded in
writing, considers it necessary to grant such adjournment.

(3F) It shall be open for the Court to limit the time for oral
submissions having regard to the nature and complexity of the
matter."

9. Amendment of Order XVIII.-

In Order XVIII of the Code, in Rule 4, after sub-rule (1), the

following sub-rules shall be inserted, namely:-

"(1A) The affidavits of evidence of all witnesses whose evidence is

proposed to be led by a party shall be filed simultaneously by that
party at the time directed in the first Case Management Hearing.

(1B) A party shall not lead additional evidence by the affidavit of

any witness (including of a witness who has already filed an
 88

affidavit) unless sufficient cause is made out in an application for

that purpose and an order, giving reasons, permitting such
additional affidavit is passed by the Court.

(1C) A party shall however have the right to withdraw any of the
affidavits so filed at any time prior to commencement of cross-
examination of that witness, without any adverse inference being
drawn based on such withdrawal: Provided that any other party
shall be entitled to tender as evidence and rely upon any admission
made in such withdrawn affidavit."

10. Amendment to Order XIX.-

In Order XIX of the Code, after Rule 3, the following Rules shall be
inserted, namely:-

"4. Court may control evidence.-

(1) The Court may, by directions, regulate the evidence as to

issues on which it requires evidence and the manner in which such
evidence may be placed before the Court.

(2) The Court may, in its discretion and for reasons to be recorded
in writing, exclude evidence that would otherwise be produced by
the parties.

5. Redacting or rejecting evidence.-

A Court may, in its discretion, for reasons to be recorded in writing-

 89

(i) redact or order the redaction of such portions of the affidavit of

examination-in-chief as do not, in its view, constitute evidence; or

(ii) return or reject an affidavit of examination-in-chief as not

constituting admissible evidence.

6. Format and guidelines of affidavit of evidence.-

An affidavit must comply with the form and requirements set forth
below:-

(a) such affidavit should be confined to, and should follow the
chronological sequence of, the dates and events that are relevant for
proving any fact or any other matter dealt with;

(b) where the Court is of the view that an affidavit is a mere

reproduction of the pleadings, or contains the legal grounds of any
party's case, the Court may, by order, strike out the affidavit or
such parts of the affidavit, as it deems fit and proper;

(c) each paragraph of an affidavit should, as far as possible, be

confined to a distinct portion of the subject;

(d) an affidavit shall state-

(i) which of the statements in it are made from the deponent's

own knowledge and which are matters of information or belief; and

(ii) the source for any matters of information or belief;

 90

(e) an affidavit should-

(i) have the pages numbered consecutively as a separate

document (or as one of several documents contained in a file);

(ii) be divided into numbered paragraphs;

(iii) have all numbers, including dates, expressed in figures; and

(iv) if any of the documents referred to in the body of the affidavit

are annexed to the affidavit or any other pleadings, give the
annexures and page numbers of such documents that are relied
upon."

11. Amendment of Order XX.-

In Order XX of the Code, for Rule 1, the following Rule shall be

substituted, namely:-

"(1) The 1[Commercial Court, Commercial Appellate Court],

Commercial Division, or Commercial Appellate Division, as the case
may be, shall, within ninety days of the conclusion of arguments,
pronounce judgment and copies thereof shall be issued to all the
parties to the dispute through electronic mail or otherwise.".

2[12. After Appendix H, the following Appendix shall be inserted,

namely:-
 91

"Appendix-I

Statement of Truth

(Under First Schedule, Order VI- Rule 15A and Order XI- Rule 3)

I the deponent do hereby solemnly affirm and declare as under:

1. I am the party in the above suit and competent to swear this

affidavit.

2. I am sufficiently conversant with the facts of the case and have

also examined all relevant documents and records in relation
thereto.

3. I say that the statements made in paragraphs are true to my

knowledge and statements made in paragraphs are based on
information received which I believe to be correct and statements
made in paragraphs are based on legal advice.

4. I say that there is no false statement or concealment of any

material fact, document or record and I have included information
that is according to me, relevant for the present suit.

5. I say that all documents in my power, possession, control or

custody, pertaining to the facts and circumstances of the
proceedings initiated by me have been disclosed and copies thereof
annexed with the plaint, and that I do not have any other
documents in my power, possession, control or custody.
 92

6. I say that the above-mentioned pleading comprises of a total of

pages, each of which has been duly signed by me.

7. I state that the Annexures hereto are true copies of the

documents referred to and relied upon by me.

8. I say that I am aware that for any false statement or

concealment, I shall be liable for action taken against me under the
law for the time being in force.

Place:

Date:

DEPONENT

VERIFICATION

I,....do hereby declare that the statements made above are true to
my knowledge.

Verified at [place] on this [date]

 93

COMMERCIAL COURTS

1. Verifying with an affidavit as provided under Order VI rule

15A of CPC and a Statement of Truth as provided in Appendix-I.

2. Pre Institution Mediation: Court to examine whether the suit

is presented after exhausting the remedy of Pre-Institution
Mediation under Chapter IIIA r/w Sec. 12-A of the Act or any
application is filed seeking urgent interim relief.

[13+2 months time for PIM and time spent to be excluded tor
imitation purpose]

3. Time for filing Written statement: From the date of service

of summons - 30+90 days, but not later than 120 days

4. Replication/Rejoinder: From the date of W/st - 30 days

5. Inspection/discovery/disclosure of documents: From the

date of completion of pleadings 30 days

6. Statement of Admission and denial of documents: From

the date of completion of inspection of documents 15 days

Acts to be performed with reference Whether Compulsory or

to documents Optional
1. Disclosure and discovery of Compulsory
documents
2. Discovery by interrogatories Optional
3 Inspection Compulsory

1. The parties have to

94

complete inspection of
documents within 30 days
from the date of filing the
written statement or the
counter claim, as the case
may be.

2. A party may file an

application for inspection
or production of documents
of which inspection has
been refused by the|
opposite party or
documents have not been
produced despite issuance
of notice to produce as
contemplated under Rule 2
of Order XI CPC.

3. If more time is required

to inspect, a party can
make application for
extension of time assigning
reasons. The Court shall
call for reply and hear the
application within 30 days.

4. It may at its discretion

extend the time, but not
beyond 30 days maximum
and it shall grant only 5
days time for to furnish
such documents.

5. If the party so ordered

fails to do so or
unreasonably withholds or
refuses to provide such
information/document, the
 95

Court may order him to

cost.

4 Admission and denial of Compulsory

documents
Affidavit of Confirmation:
1. correctness of contents of a Once the admission and
document denials are complete, the
parties have to file affidavit
2. Existence of a document in support of the same
confirming the correctness
3. Execution of a documentary of the contents of the
statement therein
4. Issuance of receipt of a
document The Court may pass orders
with respect to admitted
5. Custody of a document
documents including
waiver of further proof
thereof or rejection of any
document.

Marking of admitted
documents to be done at
this stage
5 Production of documents On an application by a
party requiring the other
side to produce documents,
not less than 7 days and
not more than 15 days time
to produce such
documents or to explain
the inability produce it
Electronic records Above is applicable even to
electronic records
 96

7. Examination of Parties: Simultaneously during the stage of

admission and denial of documents or independently after that, the
Court may examine pleadings, documents and also direct a
party/parties to attend the hearing for the purpose of such
examination [Order X rule 2 CPC]

8. Summary Judgment: Only if the lis can be decided on admitted

and exhibited documents.

However, before framing of issues, the parties can make

application for summary judgment on a claim, part claim or a
counter claim at anytime after service of summons on the
defendant.

On filing of such application, opponent to be given 30 days

notice.

If the opponent wishes to rely on documentary evidence, he

can do so by serving copies on every other party to the application
at least 15 days prior to the date of hearing.

Then the applicant to file such documentary evidence in reply

and also serve a copy of the same on the opponent at least 5 days
prior to the date of hearing

[NOTE: This procedure is not applicable to a commercial dispute

originally filed as a summary suit under Order XXXVII CPC.]
 97

Distinction between Order XXXVII CPC

&
Order XII-A of the Commercial Courts Act

Order XXXVII of the Code of Civil Order XIII-A of

Procedure Commercial Courts Act
1. A summary suit is filed by the Any party to a commercial
plaintiff dispute can make an
application for summary
judgment.
2. The judgment is sought in respect Judgment is sought in
of the whole suit claim. respect of a claim or part of
a claim, counter claim.
3 Order XIII A CPC has no Summary judgment is
application to Summary suits. applicable only to
commercial disputes
4 Plaintiff to satisfy that the Applicant to satisfy that the
defendant has no valid defense to opponent has no real
contest the suit. prospect of succeeding and
there is no other
compelling reason as to
why the claim should not
be disposed of before
recording of oral evidence.
5 Filing of written statement Filing of written statement
permissible only if the Court grants is independent of this
leave proceeding and is usually
completed before this
stage.
6. Evidence, if any, either oral or In reply to the application,
documentary, is only after the opposite party may file
conversion of suit as regular suit only documentary evidence
and after framing issues and state the issues
invoved in the dispute for
trial and further evidence
that will be brought on
record at trial.
7. Suit is decreed summarily or leave Claim is allowed partly,
granted conditionally or fully or conditionally,
 98

unconditionally to try the same as dismissed with or without

a regular suit. costs.

Court may direct deposit of

a sum of money: direct the
party to take specified step
in relation to the claim or
defense.

Court may also order for

striking out pleadings on
whole or in part; or

Direct a party to provide

security.

10. Case Management Hearing under Order XV-A : From the

date of filing affidavit of admissions and denials of documents- First
case management hearing to take place within 4 weeks

i) Issues

ii) Pending IAs disposal

iii) Fixing of dates for filing affidavit evidence and cross

examination etc.

iv) Fixing date for written arguments

v) Fixing dates for oral arguments (oral argts. to be completed

within 6 months from 1st CMH)

vi) Fixing dates for revised written arguments

 99

v) Judgment (90 days from the date of completion of oral

arguments)

CALENDAR OF HEARING

Sl.No. Date Stage

1 Affidavits in lieu of evidence of the parties
and their witness/s after duly serving the
same on the other side by e-mail/Courier.
2 Further Examination-in-Chief of the
Plaintiff/witness and marking of
documents.
3 Cross examination of the Plaintiff/witness
by the Defendant/s
4 Further cross examination of the Plaintiff/
witness/s by the defendants (if any).
5 Further Examination-in-Chief of the
defendant/s and witness/s and marking
documents.
6 For cross examination of the defendant/s
and witness/s.
7 For further cross examination of the
Defendant (if any)
8 For written arguments of the parties after
due service on the other side
9 Plaintiff’s oral arguments.
10 Further arguments of Plaintiff (if any).
11 Defendant’s oral arguments.
12 Further arguments of the Defendant (if
any).
13 For revised written arguments after duly
serving the same on the otherside
14 For Judgment.

Arbitration Suits

1. Sec.34 A and C Act scope is limited.

 100

2. AS has to be filed within 90 days from the date of Award.

3. If AS is filed after 90 days the it shall be accompanied by

application for condonation of delay.

4. Defendant has to file objection statement.

5. Copies of LCR if not produced, it has to be called for

6. If fraud coercion is pleaded against the arbitrators, then

evidence is necessary, or else only argts.

Eviction suit, commercial execution will have to be

entertained. For execution 0.75 percent CF has to be paid.

IO can be passed in AS prohibiting from alienation.

90 days has be fixed for disposal of IA.

No ex parte ABJ can be granted only after notice. After appearance

conditional order has to be passed by giving 15 days time to offer
security.

If not complied, ABJ has to be made absolute.

O.39 order 30 days for disposal.

Order 1 Rule 10 can be entertained. No amendment.

Order 32 Rule 4 cannot be permitted after fling of suit.

Order 14 recasting of issues not applicable.

 101

Summary suits. Summons has to be served within 10 days. It

is duty of plaintiff. Only affidavit evidence. No marking documents.

Arbitration suit under old Act Sec.33.

Important tips regarding commercial suits and related

subjects

1. After filing of the suit, if certificate of pre-institution mediation

is not produced, then we have to return the plaint to exhaust the
remedy. However, Sec.12A is not applicable for suits received on
transfer.

2. If IA filed for interim relief, then we can dispense such

certificate and grant IO provided bona fides are made out. Refer
Sec.12A

3. We can pass order if prima facie case is made out.

4. WS has to be filed within 120 days, not beyond that. 90+30

days.

5. After completion of pleadings, it shall be posted for case

management hearing. Sec.15A Rule 2 of CPC.

6. We have to direct the parties to file original documents relied

upon by them in the suit.
 102

7. Both side should inspect the documents and file admission

and denial statement in the form of affidavit.

8. After framing issues, both sides are to be directed to file chief

examination affidavit of all the witness to be examined by them in
the suit.

9. Thereafter, witnesses are to be cross examined. No longer date

can be given.

10. Documents can be received by condoning the delay under

Order 11 Rule 5 for plaintiff and rule 9 for defendants.

11. No re-opening or recall

12. Then argts. Short date and judgment within 60 days. Suit has
to be disposed within 500 days from the date of institution of suit.

13. Notice to produce can be made only before framing issues.