The Commercial Courts Act, 2015

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S.1 Short title, extent and commencement.

¹[(1) This Act may be called the Commercial Courts Act, 2015.]

(2) It extends to the whole of India ²***.

(3) It shall be deemed to have come into force on the 23rd day of October, 2015.

S.2 Definitions.

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

¹[(a) "Commercial Appellate Courts" means the Commercial Appellate Courts designated under section 3A;]

²[(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;

S.3 Constitution of Commercial Courts.

CHAPTER II

¹[COMMERCIAL COURTS, COMMERCIAL APPELLATE COURTS, COMMERCIAL DIVISIONS AND COMMERCIAL APPELLATE DIVISIONS].

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:

S.3A Designation of Commercial Appellate Courts.

¹[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.]

S.4 Constitution of Commercial Division of High Court.

(1) In all High Courts, having ¹[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.

(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.

S.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.

S.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).

S.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 whic

S.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.

S.9 Transfer of suit if counterclaim in a commercial dispute is of Specified Value.

[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)

S.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) 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 ha

S.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.

S.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 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;

S.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 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

S.14 Expeditious disposal of appeals.

The ¹[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.

S.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 commercial dispute of a Specified Value pending in a High Court where a Commercial Division has been constituted, shall be transferred to the Commercial Division.

(2) All suits and applications, including applications under the Arbitration and Conciliation Act, 1996 (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 u

S.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 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 (5 of 1908), as amended by this Act, the provisions of the Code of Civil Procedure as amended by this Act shall prevail.

S.17 Collection and disclosure of data by Commercial Courts, Commercial Divisions and Commercial Appellate Divisions.

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.

S.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.

S.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.

S.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 ¹[Commercial Courts, Commercial Appellate Courts], Commercial Division or the Commercial Appellate Division in a High Court.

S.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.

S.21A Power of Central Government to make rules

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.

(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 th

S.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 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

S.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.

S.12A Pre-Institution Mediation and Settlement.

¹[CHAPTER IIIA

PRE-INSTITUTION MEDIATION AND SETTLEMENT

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 preinstitution mediation in accordance with such manner and procedure as may be prescribed by rules made by the Central Government.

(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 Gover

Legal Comments

Section 12A introduction - Mandatory pre-institution mediation before filing certain commercial suits; applies unless urgent interim relief is contemplated - [G S Srinivasa Rao vs V Purnachandra Rao]
Territorial scope of 12A - Mandate applies to commercial disputes as defined by the Act; urgent relief cases carved out from mandatory mediation - [Mamta Jaiswal VS APL Metals Ltd. ]
Honing the purpose - Section 12A aims to expedite resolution via mediation; bypass allowed only when urgent relief is contemplated or granted - [Mamta Jaiswal VS APL Metals Ltd. ]
Urgency as exception - If the plaint contemplates urgent interim relief, leave for mediation may be presumed and bypass permissible - [G S Srinivasa Rao vs V Purnachandra Rao]
Means of bypass - Courts may permit bypass of pre-institution mediation for suits seeking urgent relief; otherwise plaint should be rejected under Order VII Rule 11 if non-compliant - [Mamta Jaiswal VS APL Metals Ltd. ]
Rejection of plaint for non-compliance - Where no urgent relief is contemplated and mediation not attempted, plaint may be rejected; such rejection considered a decreeable order - [Shristi Infrastructure Development Corporation Limited VS Sarga Hotel Private Limited]
Proviso on pandemic/extraordinary circumstances - Courts have recognized COVID-era extensions and exceptions to limitation and mediation timelines, but Section 12A remains mandatory absent urgent relief - [In Re Cognizance for Extension of Limitation VS XXXX], [Executive Trading Company Private Limited VS Grow Well Mercantile Private Limited]
Interplay with interim relief orders - When urgent relief is sought, mediation obligation may be dispensed with; the court may proceed with injunction or other reliefs - [02100134464], [00900047538]
Interpretation approach - Courts employ purposive construction to harmonize Section 12A with object of expediting dispute resolution; plain reading remains mandatory where no urgency is shown - [Mamta Jaiswal VS APL Metals Ltd. ]
Consequence of non-compliance - Non-compliance with 12A can lead to rejection of plaint; even suo motu powers have been discussed for rejection under Order VII Rule 11 - [CHIBBA AGRO PVT. LTD. VS NARENDER KUMAR GUPTA], [Patil Automation Private Limited VS Rakheja Engineers Private Limited]
Exemption from mediation - Courts may grant exemption from pre-institution mediation in trademark/IP cases where urgent relief is warranted or where precedents allow exemption - [UNDER ARMOUR INC vs PRO-TRAIN SPORTS LLP & ORS.'>Under Armour, Inc vs Pro-Train Sports Llp], [GLAXOSMITHKLINE PHARMACEUTICALS LIMITED vs KAMLESH KUMAR SUTHAR AND ORS'>Glaxosmithkline Pharmaceuticals Limited vs Kamlesh Kumar Suthar]
Mediation as ADR framework - Beyond court-mediated processes; successful mediation can be enforced like an arbitral award, reinforcing the policy of negotiated resolution - [Mamta Jaiswal VS APL Metals Ltd. ]
Interim protections and 12A - Interim injunctions in IP disputes may be granted with exemptions from mediation; balance of convenience and irreparable harm are considered - [Atlafbhai Rajabali Dosani, Prop. of M/s Gurukrupa Enterprise VS Superintendent, Ghatak 82(Amreli), Ragne 19, Division 9], [Hero Electric Vehicles Private Limited vs Nitish Kumar]
Summary/urgent relief in commercial suits - For suits involving urgent relief, Section 12A’s mediation requirement may be satisfied by ongoing or imminent relief considerations; otherwise, summary procedures interact with 12A rules - [Executive Trading Company Private Limited VS Grow Well Mercantile Private Limited]
Limitation and 12A interplay - In some judgments, extension of limitation periods during extraordinary circumstances interacts with 12A compliance when considering urgency; not a replacement for mediation itself - [In Re Cognizance for Extension of Limitation VS XXXX], [Manoj Kumar Sharma S/o Late Mr. Babulal Sharma VS Rajasthan State Information Commission, Through Its Secretary]
System-wide guidance on exemptions - Some decisions emphasize that exemptions from mediation must be grounded in clear urgency and cannot be used to bypass mediation as a matter of routine - [UNDER ARMOUR INC vs PRO-TRAIN SPORTS LLP & ORS.'>Under Armour, Inc vs Pro-Train Sports Llp], [G S Srinivasa Rao vs V Purnachandra Rao]
Jurisdictional caution - Courts have reasserted that impairment of pre-institution mediation can affect maintainability, but other statutes (e.g., specific relief acts) may influence interim relief considerations - [00900047539], [Emami Limited VS Hindustan Unilever Limited]
Procedural consistency with Order VII/R7 - Rejection under Order VII Rule 11 may be warranted where 12A obligations are not satisfied or where the suit is not maintainable - [Patil Automation Private Limited VS Rakheja Engineers Private Limited], [Haldibari Tea Manufacturers LLP VS Mahindra Tubes Limited]
Infrastructure/mediation readiness - Courts have underscored the need for adequate mediation infrastructure and trained mediators; absence may justify temporary exemptions or delayed enforcement of 12A - [In Re Cognizance for Extension of Limitation VS XXXX], [PSA Polymers Private Limited vs Rajender Malhotra]
Ex parte injunctions and mediation exemptions - Courts may grant ex parte injunctions with mediation exemptions, especially in IP/brand cases where public interest and consumer harm are implicated - [UNDER ARMOUR INC vs PRO-TRAIN SPORTS LLP & ORS.'>Under Armour, Inc vs Pro-Train Sports Llp], [00900047538]
Coexistence with other ADR provisions - Section 89 CPC and alternate dispute resolution mechanisms interact with 12A to encourage mediated settlements without compromising urgent relief where appropriate - [UNDER ARMOUR INC vs PRO-TRAIN SPORTS LLP & ORS.'>Under Armour, Inc vs Pro-Train Sports Llp]
Notable cautionary summary - 12A is mandatory in general; exemptions are narrow and typically tied to urgent relief; courts consistently view bypass as exceptional and requiring justification - [G S Srinivasa Rao vs V Purnachandra Rao], [Mamta Jaiswal VS APL Metals Ltd. ]
Statutory amendments and prospective effect - Amending Acts and Supreme Court guidance shape how 12A is applied; some decisions discuss prospective application and transitional considerations - [Patil Automation Private Limited VS Rakheja Engineers Private Limited], [UNDER ARMOUR INC vs PRO-TRAIN SPORTS LLP & ORS.'>Under Armour, Inc vs Pro-Train Sports Llp]
Practical takeaway for practitioners - Before filing a commercial suit, assess whether urgent relief is contemplated; if yes, prepare for possible exemption of mediation and proceed; if no, initiate pre-institution mediation and seek exemptions only with compelling urgency - [G S Srinivasa Rao vs V Purnachandra Rao], [Kohinoor Seed Fields India Pvt. Ltd. VS Veda Seed Sciences Pvt. Ltd. ]