Chapter 4, The commercial Courts, commercial Division and Commercial Appellate Division of High Courts Ordinance,2015

CHAPTER IV

 APPEALS

13. (1) Any person aggrieved by the decision of the Commercial Court or 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 judgment or order, as the case may be:

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 as amended by this Ordinance and section 37 of the s Arbitration and Conciliation Act, 1996.

(2) Notwithstanding anything contained in any other law for the time being in force or Letters Patent of a High Court, no appeal shall lie from any order or decree of a Commercial Division pr Commercial Court otherwise than in accordance with due provisions of this Ordinance.

dispose of appeals iiled before it within a period of six months

14. The Commercial Appellate Division shall endeavour to ‘ from the date of filing of such appeal.

CHAPTER V TRANSFER OF PENDING SUITS

15. (I) All suits and applications, including applications under the Arbitration and Conciliation Act, 1996, relating to a  commercial dispute of Speciiied Value pending in a High Court where a Commercial Division has been constituted, shall be transferred to the Commercial Division.
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 Dwrsion.

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 Corrimcrcial Appellate Division. '

6. The Commercial Court shall have jurisdiction to try all suits and applications relating to a commercial dispute of a Specified Valuearising 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:

Chapter 3, The commercial Courts, commercial Division and Commercial Appellate Division of High Courts Ordinance,2015

CHAPTER III SPECIFIED VALUE

12. (l) '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 he, shall be taken into account for determining such Specified Value;

(c) where the relief sought in a suit, appeal or application relates to immovable property or to a right therein, the market value of the immovable 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 Specified Value;

(d) 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 -

(e) where the counter claim is raised in any suit, appeal or application, the value of the subject matter of the commercial dispute in such counter-claim as on the date of the counter- claim shall be taken into account.

(2) The aggregate value of the claim. and counter-claim, if any, as set out in the statement of claim and the counter-claim, 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; .' -. '

(3) No appeal or civil revision application under section 115 of the Code of Civil Procedure, 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 Ordinance.

The commercial Courts, commercial Division and Commercial Appellate Division of High Courts Ordinance,2015

CHAPTER 1

PRELIMINARY

 
(1) This Ordinance may be called the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015.

(2) It extends to the whole of India, except the State of Jammu and Kashmir.

(3) It shall come into force at once.

2. (1) In this Ordinance, unless the context otherwise requires,—

(a) “Commercial Appellate Division” .means the . Commercial Appellate Division in a High constituted under sub-section (1) of section 5; ~ '

(b) “Commercial Court” means the Commercial Court constituted under sub-section (l)‘of Section 3;

(c) “commercial dispute” means a dispute arising out of—

(i) ordinary transactions of merchants, bankers, financiers and traders such as those relating to mercantile documents, including enforcement and interpretation of such documents;

(ii) export or import of merchandise or services;

(iii) issues relating to admiralty and maritime law;

(iv) transactions relating to aircrah, aircraft engines,aircraft equipment and helicopters, including sales, leasing- and financing of the same;

(v) carriage of goods;

(vi) construction and infrastructure contracts, including tenders;

' (vii) agreements relating to immovable property used exclusively in trade or commerce; '

(viii) franchising agreements; (ix) distribution and licensing agreements;

(x) management and consultancy agreements;

(Xi) joint venture agreements; (Xii) shareholders agreements; .

(xiii) subscription and investment agreements pertaining to the services industry including outsourcing services and financial services;

(xiv) mercantile agency and mercantile usage; (xv) partnership agreements; (xvi) technology development agreements;

(xvii) intellectual property rights relating to registered and unregistered trademarks, copyright, patent, design, domain names, geographical indications and semiconductor integrated circuits;

(xviii) agreements for sale of goods or provision of services;

(xix) exploitation of oil and gas reserves or other natural resources including electromagnetic spectrum;

(xx) insmance and re-insurance;

(xxi) contracts of agency relating to any of the above; and ‘

'(xxii) such other commercial disputes as may be notified by the Central Government.

Explanation—A commercial dispute shall not cease to be a commercial dispute merely because—-

(a) 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;

(b) one of the contracting parties is the State or any of its agencies or instrumentalities, or a private body carrying out public functions;

(d) “Commercial Division” means the Commercial . Division in a High Court constituted under sub-section (l) of section 4;
(e) “District Judge" shall have the same meaning as assigned to it in clause (a) of article 236 .of the Constitution of India;

(f) “document” means any matter expressed or described upon any substance by means of letters, figures or marks, or electronic means, or by more than one of those means,

intended to be used, or which may be used, for the purpose of recording that matter;

(g) “notification” means a notification published in the Official Gazette and the expression “notify” with its cognate meanings and grammatical variations shall be construed accordingly;

(h) “Schedule” means the Schedule appended to the Ordinance; and

(i) “Specified'Value”, in 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 one crore rupees or such higher value, as may be notified by the Central Government".

(2) The words and expressions used and not defined in this Ordinance but defined in the Code of Civil Procedure, 1908 and the Evidence Act, 1872, shall have the same meanings respectively assigned to them in that Code and the Act.

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.

Constitution of commercial Division of High Court

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 Dwrsion.