A presentation on Commercial Courts Act, 2016

1. COMMERCIAL COURTS ACT, 2016
Object & Contents
(A brief presentation)
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2. OBJECT OF THE ACT
An Act to constitute
• Commercial Courts
• Commercial Appellate Courts
------------------------------------------------
• Commercial Division in High Courts
• Commercial Appellate Division in High Courts
For the purpose of
• Adjudicating commercial disputes of specified value &
• Matters connected therewith/incidental thereto
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3. PPT CONTENTS
1. Object/Date of coming into force of the Act/Chapters
2. Key Definitions (Commercial Dispute & Specified Value)
3. Constitution/Designation & Jurisdiction of courts
4. Transfer of pending cases/Mediated Settlement/Appeal
5. Other key provisions/Nomenclatures/Specific plea to be taken
6. Amendments to CPC/Schedule
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4. ACT CAME INTO FORCE ON
23.10.2015
03.05.2018 (2018 Amendment)
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5. 7 CHAPTERS
• I Preliminary
• II CC, CAC, CD & CAD
• III Specified Value
• IIIA Pre-Institution Mediation and Settlement
• IV Appeals
• V Transfer of pending suits
• VI Amendments to CPC
• VII Miscellaneous
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6. 6 KEY DEFINITIONS
• Commercial Court [s.2© r/w 3(1)]
• Commercial Appellate Court [s.3A]
• Commercial Division [s.4(1)]
• Commercial Appellate Division [s.5(1)]
• Commercial dispute [s.2(c)]
• Specified Value [s.2(i) r/w 12]
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7. COMMERCIAL DISPUTE means (s.2c)
A dispute arising out of 22 Categories
1. Ordinary transactions of merchants/bankers/financiers/traders (such as relating to mercantile
documents including enforcement/interpretation of such documents)
2. Export/import of merchandise/services
3. Issues relating to admiralty & maritime law
4. Transactions relating to aircraft/aircraft engines/aircraft equipment/helicopters (including
sales/leasing/financing of same)
5. Carriage of goods
6. Construction/infra contracts (including tenders)
7. Agreements relating to immovable property (used exclusively in trade/commerce)
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8. COMMERCIAL DISPUTE means
22 Categories
8. Franchising agreements; Distribution & Licensing agreements
10. Management & Consultancy agreements
11. JV/Shareholders agreements
13. Subscription/Investment agreements (relating to services industry including
outsourcing/financial services)
14. Mercantile agency & mercantile usage
15. Partnership agreements
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9. COMMERCIAL DISPUTE means
22 Categories
16. Technology development agreements
17. IPR (related to regd./un-regd TM, copyright, patent, design, domain names,
geographical indications, semi-conductor integrated circuits)
18. Agreements for sale of goods/provision of services
19. Exploitation of oil and gas reserves/other natural resources (including
electromagnetic spectrum)
20. Insurance/Re-insurance
21. Contracts of agency relating to any of the above
22. Other commercial disputes notified by CG
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10. A commercial dispute shall not cease to be one merely
bec.:
Explanation
a. it involves action for
recovery of immovable property/
realisation of monies out of immovable property given as security/
any other relief pertaining to immoveable property
b. one of the contracting parties is
the State/its agencies/instrumentalities/pvt. body carrying public functions
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11. SPECIFIED VALUE (2(I))
• In relation to a commercial dispute, means
 value of the subject-matter of suit as determined per s.12
 which shall not be less than: Rs.3lac[1crore]/such higher value,
notified by CG
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12. BASIS OF DETERMINING SPECIFIED VALUE(S.12)
In a Where relief relates to Basis to determine SV
Suit/Appeal/
Application:
Recovery of money Money sought to be recovered including interest up to
date of filing
Movable property/right
therein
Market value (as on suit/appeal/appln filing date)
Immoveable
property/right therein
Market value (as on -do-)
Intangible right Market value of said right (as estimated by Pltf)
Arbitration: Aggregate value of claim + counterclaim (set out in the
statement of claim & counter claim)
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13. CONSTITUTION/DESIGNATION OF COURTS [S.3, 3A, 4, 5]
Court Level
Constitution of Commercial Courts(CC) [3] District SG to constitute CC at District Level
Where HC have original civil jurisdiction, SG to
constitute CC at District Judge level
Designation of Commercial Appellate
Court(CAC) [3A]
District Except territories over which HC’s have original
civil jurisdiction, SG to designate CAC’s at
District Judge level
Constitution of Commercial Division(CD) of
High Court [4]
HC In all HC’s having original civil jurisdiction, CJ of
HC to constitute CD
CD can comprise 1/more Benches of single
Judge
Constitution of Commercial Appellate
Division (CAD)[5]
HC CJ of HC to constitute 1/more Division Benches
as CAD comprising judges who have
in dealing with commercial disputes
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14. JURISDICTION
Non-Arbitration matters (s.6, 7)
Commercial
Court(6)
Has jurisdiction: to try all suits + applications—(relating to a commercial dispute--of
Specified Value)--arising out of entire territory of State --over which it has been vested
territorial jurisdiction
[Note: ‘Place of suing’ rules in s.16 to 20, CPC applies]
s.16: Suits to be instituted where subject-matter is situated
s.17: Suits for immoveable property situated within jurisdiction of different courts
s.18: Place of institution of suit where local limits of jurisdiction of courts are uncertain
s.19: Suits for compensation for wrongs to person or movables
s.20: Other suits to be instituted where defendant reside or cause of action arises
Commercial Division
of HC(7)
Has jurisdiction: -to try
All suits + applications—(relating to commercial disputes--of Specified Value)--filed in a
HC having original civil jurisdiction
All suits/applications transferred to HC u/s 22(4) Designs Act, 2000 or u/s 104, Patents Act
in all areas over which HC has original civil jurisdiction(per 2nd proviso to s.7 of CC Act)
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15. JURISDICTION
Arbitration matters (s.10)
Where the subject matter of an arbitration is a commercial dispute of a specified value and
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If arbitration is All applications/appeals
out of such arbitration
To be heard by/filed before
(i) an international
commercial
arbitration,
filed in a HC Commercial Division of HC
(ii) other than an
international
commercial
arbitration
filed on original side of HC -do-
that would lie before any
principal civil court of
jurisdiction in a district (not
being a HC), be
Commercial Court (having territorial
over such arbitration, where CC is constituted)

16. CPC AMENDEMENTS (s.16)
• CPC in its application to any suit in respect of a commercial dispute of a
Specified Value, stands amended as specified in the Schedule
• If any rule of HC or state amendments to CPC is in conflict with CPC as
amended by this Act, CPC as amended by this Act prevails
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17. (PRE-INSTITUTION) MEDIATION & SETTLEMENT (S.12A)
• A suit not contemplating urgent interim relief, be not instituted unless Pltf
exhausts pre-institution mediation as per CG rules (CG to authorise Authorities
u/Legal Services Authorities Act, 1987 for the purpose of pre-institution
mediation)
• Mediation to be completed within 3 months (unless extended for further 2
months with parties’ consent)
• Time spent in mediation excluded from limitation computation
• Mediated Settlement has status of ‘arbitral award’ u/s 30(4) of Arbitration Act.
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18. APPEALS (S.13)
Judgment/Order of Appeal to
Commercial Court
(below level of DJ)
Commercial Appellate Court (@ District Level)
Commercial Court
(DJ rank exercising original civil jurisdiction)
Commercial Division of HC
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Note:
•Appealable orders u/Or.XLIII, CPC are appealable; Appealable orders u/s.37, Arbitration Act are appealable
•Act overrides any other law including Letters Patent; No appeal to lie from order/decree of Commercial Court/Commercial Division, other
than in acc. with this Act.
•CAC/CAD to endeavour to dispose appeals within 6 months from filing of appeal.

19. TRANSFER OF PENDING CASES (S.15)
• All suits/applications (related to commercial dispute of a specified value) to be
transferred to a Commercial Court/Commercial Division respectively
• If not transferred automatically, parties can apply to Commercial Appellate
Division of HC to transfer the case to CC/CD having territorial jurisdiction over
such case; such transfer order is final & binding!
• CC Act procedure to apply that were not complete at the time of transfer
• CC/CDC to hold case management hearings to fix new timelines/issue further
directions necessary for speedy disposal
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20. OTHER KEY PROVISIONS
• Commercial Court/Commercial Division cannot entertain action over a
commercial dispute over which civil court jurisdiction is expressly/impliedly
barred u/any law (s.11)
• No revision to lie against any interim order of a Commercial Court (including an
order on jurisdiction); can be challenged only in appeal against final decree (s.8)
• Appeal period: 60 days from date of judgment/order (s.13)
• Act overrides other laws (s.21)
• Training: SG to establish facility for training judges to be appointed to
CC/CAC/CD/CAD (s.20)
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21. NOMENCLATURES
Nomenclature
Commercial Division C.S (COMM DIV) _________ of 20___
Commercial Arbitration Division O.P (Commercial Div) _____ of 20___
Commercial Appellate Division Appeal (CAD) ____________ of 20___
OSA (CAD) ______________ of 20___
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22. SPECIFIC PLAINT AVERMENT
(Madras HC Practise Note dt. 31.01.18)
Specific averment
in one dedicated para of plaint
dealing with facts + effect that
o subject matter of commercial suit is a ‘commercial dispute’ as defined in
s.2(1)(c) and
o is of ‘specified value’ as defined in s.2(1)(i) r/q s.12 of the Act ( or 2nd proviso
to s.7) to be made
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23. SCHEDULE (Illustrative)
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Sl Sec./
Order
Rule Nature of
change
Subject Substance of
amendment
Details
Section
35,35A
Costs Terms &
Conditions
1 V,
VIII
1
10
Amended Written
Statement
Time limit
Forfeiture -30 days time to file w.statement
-Extendable on costs upto 180
days from service of summons
-Forfeiture of right to file written
statement ; no court can extend
further time
2 VI 3A Inserted Pleadings Form of pleading
to be in
prescribed form
3 15A Inserted Verification of
Pleading
Unverified
pleading cannot
be relied

24. Schedule (contd…)
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4 VII 2A Inserted Interest Pleading
5 VIII 3A Inserted Written Statement
Denials
Pleading
6 5 -do- Deemed admission if not
denied as specified
7 XI Substituted Disclosure &
Discovery of
Documents
8 XIII-A Inserted Summary judgment

25. Schedule (contd.)
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9 XV-A Inserted Case Management Hearing
10 XVIII Amended Written Arguments
11 XIX 4 Inserted Evidence
12 XX 1 Amended Email copies of judgments
13 Appendix
14 I Inserted Statement of Truth + Verification

26. SUMMING-UP
1. Object/Date of coming into force of the Act/Chapters
2. Key Definitions (Commercial Dispute & Specified Value)
3. Constitution/Designation & Jurisdiction of courts
4. Transfer of pending cases/Mediated Settlement/Appeal
5. Other key provisions/Nomenclatures/Specific plea to be taken
6. Amendments to CPC/Schedule
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27. Giridhar & Sai, Advocates
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