The Commercial courts act, 2015: A Systematized Transaction and Court

This article is written by Akshat Dahate, a 3rd-year Law student at  ILS Law College Pune. In this article, he explained the Commercial courts act, 2015.


The Commercial courts act, 2015 is a systematic compound to articulate commercial transactions and cases. In other words, the act shifts direction from civil courts to commercial courts.

Read: The Current Status Of Conciliation In India & Required Reforms

The requirement for systemizing the order functioning is too speedy disposal of high-value commercial disputes and to welcome foreign investments. The commercial courts will intake or look into business matters pointing to contracts, export or import, financing, and more. The court will act to smooth the business functions and will resolve matters in sense.

Following these factors, the 253rd report of law commission approached the parliament to establish a commercial court in accordance to that the commercial division and Commercial Appellate Division of High Courts Bill, 2015was introduced and following with ordinance the act was implemented on 23rd October 2015. The imposition of this commercial court action will be followed by all the states, except the state of Jammu and Kashmir. The pattern of the setting of courts is at the District level to enhance their powers and jurisdictions.

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The most certain factor for parties to understand or to keep in mind is pre – institution Mediation and settlement, before filing a case under a commercial court.  The parties have to act in a settlement in the form of mediation. In common understanding pre- institution Mediation is compulsory in sense. This is states under section 12A of this particular act asking the direction of settlement of the dispute before approaching the commercial court.

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To safeguard parties’ time in case of any kind of disputes pointed in this act the parties are initially granted a period of three months to file the documents and complete the procedure of mediation. In the urgent filing of the case, the plaintiff has to give notice pointing within 30 days. If we follow the case, M.K. food products vs. S.H. food products a petition was filed in the commercial court pointing to urgent relief but was rejected but the court deeming for it does not constitutes an urgent matter.

The parties also have to proceed with the statement of truth as the term suggests parties have to give control, disclose, proper documentation, and has to state-required facts. These documents can also be compound as electronic records following Information Technology Act, 2000. If we Ideally look for Jurisdiction of commercial courts, section 6 undertakes this part and section 7 of the act follows Jurisdiction of commercial divisions of high courts. To resolve all suits and applications regarding commercial matters. And the commercial court a1cts is an appeal court for District level matters.

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  1. The commercial court act defines the term ‘Commercial Dispute’ and sets every kind of transaction that gives rise to a commercial dispute. The definition broadly includes commercial contract disputes ranging from infringement of Intellectual Property Rights, exploitation of natural resources, insurance, to disputes between bankers, traders, merchants, etc.  The Act also talks about disputes concerning partnership agreements,  shareholder agreements, joint venture agreements, mercantile documents,  etc. This is stated under section 2(C) of this act also pointing to issues relating to admiralty and maritime law.
  2. According to section(i) of the Commercial courts Act, the term specified value is coined concerning commercial disputes, 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 three lakh rupees or such higher value, as may be notified by the  Central Government.
  3. The commercial court shall have jurisdiction to try all suits and applications relating to a commercial dispute if a specified value arises out of the entire territory of the state over which it has vested territorial jurisdiction.
  4. The act function in manner 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.
  5. The commercial court also takes the transfer of pending suits or cases and brings in multiple amendments to the Code of Civil Procedure, 1908 which have been mentioned under this section.

Read: Jurisdiction of Civil Court & Its Bar


The commercial courts act, 2015 intends to actively enhance the commercial process of the judicial system in India. The act prominently works to speedy disposal of high-value commercial disputes. The act drives a fine line between the segregation of jurisdiction of various courts and appeals. The act formulates a strong for systemizing the order functioning. This particular act developed the scope for Mediation by following the Arbitration and Conciliation  Act of 1996. The act mainly sets a road map for working commercial life in India.

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