November 2020


The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 (“the Act”) which has made amendments to the Civil Procedure Code, 1908 (“CPC”) was enacted to provide speedy disposal of high value commercial disputes to invite investor confidence. The Act is an effort on behalf of the Government to streamline the process of ease of doing business in this country.
It is an endeavour to provide strict timelines for completion of processes so that the adjudicatory process is not rendered a protracted affair.


 “Commercial Dispute” has been defined under Section 2(1)(c) of the Act. The definition of is exhaustive in nature and covers a wide variety of disputes arising out of the specified transactions from (i) to (xxii). Whereas Section 9 of the CPC provides the jurisdiction of Civil Courts to try all suits of civil nature except those expressly or impliedly barred. “Suit of Civil Nature” was defined by the Hon’ble Supreme Court in Most Rev. P.M.A. Metropolitan v. Moran Mar Marthoma1 as being wider than the word ‘civil proceeding’. The expression ‘civil’ has been defined by the Black’s Law Dictionary as “relating to private rights and remedies that are sought by action or suit, as distinct
from criminal proceedings”
. It was observed that the width of ‘civil’ has been stretched further by using the word ‘nature’ along with it.