Tuesday, November 3, 2015

Constitution of Commercial Courts Chapter 2

CHAPTER II

CONSTITUTION of COMMERCIAL COURTS, COMMERCIAL DIVISIONS AND COMMERCIAL APPELLATE DIVISIONS

3. ( 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 Ordinance:
Provided that no Commercial Court shall be constituted for the territory over which the High Court has ordinary original civil jurisdiction. / ' '
(2) The State Government shall, after consultation. with the concerned High Court specify, by notification, the local limits of the area to which the jurisdiction of a Commercial Court shall extend and may, from time to time, increase, reduce or alter such
limits.
(3) The State Government shall, with the concurrence of the Chief Justice of the High Court appoint one or more persons having experience in dealing with commercial disputes to be the Judge or Judges, of a Commercial Court, from amongst the cadre of Higher Judicial Service in the State.
Chief Justice of the High Court appoint one or more persons having experience in dealing with commercial disputes to be the Judge or Judges, of a Commercial Court, from amongst the cadre of Higher Judicial Service in the State.
4. ( 1) In all High Courts, having ordinary 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 Ordinance.
(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.
5. (1) After issuing notification under sub-section (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 Ordinance.
(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. '
6. 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. '
7. 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 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 or section 104 of the Patents Act, 1970 shall be heard and disposed of by the Commercial Division of the High Court in all the areas over which the High Court exercises ordinary original civil jurisdiction.
8. 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.
9. (1) Notwithstanding anything contained in the Code of Civil Procedure, 1908, in the event that a counter-claim tiled in a suit before a civil court relating to a commercial dispute is of Specified Value, such suit shall be transferred by the civil court to the Commercial Division or Commercial Court, as the case may be, having territorial jurisdiction over such suit. (2) In the event that such suit is not transferred in the manner contemplated in sub—section (1), the Commercial Appellate Division of the High Court exercising supervisory jurisdiction over the civil court in question may, on the application-of any of the parties to the suit, withdraw such suit pending before the civil court and transfer the same for trial or disposal to the Commercial Court or Commercial Division or, as the case may be, having territorial jurisdiction over such suit, and such order of transfer shall be final and binding.
10. 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 that have been filed in a High Court, shall be heard and disposed of by the Commercial Appellate Division where such Commercial Appellate 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 that have been filed on the original side of the High Court, shall be heard and disposed of by the Commercial Appellate Division where such Commercial Appellate Division has been constituted in such High Court.
(3) 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 that would ordinarily lie before any principal civil court of original jurisdiction in a district (not being a High Court) shall be tiled in, and heard and disposed of by the Commercial Court exercising territorial jurisdiction over such arbitration where such Commercial Court has been constituted. '
11. Notwithstanding anything contained in this Ordinance, 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.