The Commercial Courts, Commercial Division & Commercial Appellate Division of High Courts Act, 2015

1. Kalpeshkumar L Gupta
Assistant Professor of Law
kalpesh.gupta@aurouniversity.edu.in
2016
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An Act to provide for the constitution of commercial 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.
Received the assent of the President on the December 31, 2015
Object of the Act

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- This act may be called the Commercial Courts, Commercial
Division and Commercial Appellate Division of High Courts
Act, 2015
- It extends to the whole of India except the State of J & K.
- It shall be deemed to have come into force on October 23,
2015
Short title, extent & commencement (Section 1)

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Commercial Dispute means a dispute arising out of
- Ordinary transaction of merchants, bankers, financiers and
traders such as those relating to mercantile documents,
including enforcement and interpretation of such
documents;
- Export or import of merchandise or services;
- Issues relating to admiralty and maritime law;
- Transaction relating to aircraft, aircraft engines, aircraft
equipment and helicopters, including sales, leasing and
financing of the same;
- Carriage of goods;
- Construction and infrastructure contracts, including tenders;
Commercial Dispute (Section 2(c))

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- Construction and infrastructure contracts, including tenders;
- Agreements relating to immovable property used exclusively
in trade or commerce.
- Franchising agreements.
- Distribution and licensing agreements;
- Management and consultancy agreements;
- Joint venture agreements;
- Shareholders agreements;
- Subscription and investment agreements pertaining to the
services industry including outsourcing services and financial
services;
Commercial Dispute (Section 2(c))

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- Mercantile agency and mercantile usage;
- Partnership agreements;
- Technology development agreements
- IPRs relating to registered and unregistered TM, Copyright,
Patent, Design, Domain Names, Gis and semiconductor
integrated circuits;
- Agreements for sale of goods or provision of services
- Exploitation of oil and gas reserves or other natural
resources including electromagnetic spectrum.
- Insurance and re-insurance
- Contract of agency relating to any of the above and
Commercial Dispute (Section 2(c))

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- Such other commercial disputes as may be notified by the
central govt.
Explanation – A commercial dispute shall not cease to be a
commercial dispute merely because –
- 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;
- one of the contracting parties is the State or any of its
agencies or instrumentalities, or a private body carrying
out public functions.
Commercial Dispute (Section 2(c))

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Specified Value is 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 which shall not be less than 1 Crore or
such higher value, as may be notified by the Central Govt.
Specified Value (Section 2(i))

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- The State Govt., may after consultation with the concerned
HC, by notification, constitute such number of Commercial
Courts at District Level.
- Jurisdiction of commercial court shall be extended and may,
from time to time, increase, reduce or alter such limits.
Commercial Courts (Section 3)

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- In all HCs having ordinary civil jurisdiction, the Chief Justice
of the HC 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.
- The Chief Justice of HC shall nominate such judges of the HC
who have experience in dealing with commercial disputes to
be judges of the commercial division.
Commercial Divisions of High Court (Section 4)

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- Chief Justice of the concerned HC shall, by order constitute
Commercial Appellate Division having one or more Division
Benches.
Commercial Appellate Division (Section 5)

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- The commercial court shall have jurisdiction to try all suits
and application relating to a commercial dispute of Specified
Value arising out of the entire territory of the state over
which it has been vested territorial jurisdiction.
Jurisdiction of Commercial Court (Section 6)

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- All suits and application relating to commercial disputes of a
Specified Value filed in a HC having ordinary civil jurisdiction
shall be heard and disposed of by the Commercial Division of
the HC.
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 HC,
shall be heard and disposed of by the Commercial Division of the
HC.
Provided further that all suits and application transferred to the
HC by virtue of sub-section (4) of section 22 of the Design Act,
2000 or section 104 of the Patents Act, 1970 shall be heard and
disposed of by the Commercial Division of the HC in all the areas
over which the HC exercises ordinary original civil jurisdiction.
Jurisdiction of Commercial Divisions of HCs (Section 7)

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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.
Bar of Jurisdiction of Commercial Courts and
Commercial Divisions (Section 11)

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(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
- 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 upto the
date of filing of the suit or application, as the case may be,
shall be taken into account for determining such specified
value;
- Where the relief sought in a suit, appeal or application
relates to movable property/immovable 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.
Determination of Specified Value (Section 12)

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- 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 and
- Where the counterclaim is raised in any suit, appeal or
application, the value of the subject-matter of the
commercial dispute in such counterclaim as on the date of
the counterclaim shall be taken into account.
(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.
Determination of Specified Value (Section 12)

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(3) No Appeal or civil revision application under Section 115 of
the Civil Procedure Code, 1908, as the case may be, shall lie
from an order of a Commercial Division or Commercial Court
finding that it has jurisdiction to hear a commercial dispute
under this act.
Determination of Specified Value (Section 12)

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Appeals (Section 13)
Commercial Court or
Commercial Division of HC
60 Days Endeavour for
disposal 6
months (Sec 14)
Commercial Appellate
Division of HC

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All suits and applications, including applications under
Arbitration and Conciliation Act, 1996, relating to a commercial
dispute of a Specified value pending in a High Court where a
Commercial Division has been constituted, shall be transferred
to the Commercial Division.
All suits and applications, including applications under
Arbitration and Conciliation Act, 1996, relating to a commercial
dispute of a Specified value pending in any civil court in any
district or area in respect of which a Commercial Court has been
constituted, shall be transferred to such Commercial Court.
Transfer of Pending Cases (Section 15)

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- The provisions of the Code of Civil Procedure, 1908 shall, in
their application to any suit in respect of a commercial
dispute of a specified value, stand amended in the manner
as specified in the Schedule.
- The Commercial Division and Commercial Court shall follow
the provisions of the Code of Civil Procedure Code, 1908 as
amended by this act, in the trial of a suit in respect of a
commercial dispute of a specified value.
Amendment of the Provisions of the Code of Civil
Procedure, 1908 (Section 16)

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The state govt. shall provide necessary infrastructure to
facilitate the working of a commercial court or a commercial
division of a high court.
Infrastructure facilities (Section 19)

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The State Govt. may, in consultation with the HC, establish
necessary facilities providing training of judges who may be
appointed to the Commercial Court, Commercial Division or the
Commercial Appellate Division in a High Court.
Training & Continuous Education (Section 20)

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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.
Act to have overriding effect (Section 21)

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