The Commercial Courts Act 2015: Complete Guide for District Judge Interview

 Overview and Background

The Commercial Courts Act 2015 was enacted as a landmark legislation to establish specialized commercial courts and streamline the resolution of high-value commercial disputes in India. This Act addresses the critical need for faster, more efficient dispute resolution in commercial matters, directly supporting India's Ease of Doing Business initiative.

Key Objective: To create a specialized legal framework that reduces delays in commercial litigation and makes India more attractive for business and investment.

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Simplified Amended CPC as applicable to Commercial court Act for District Judge Interview

 1. Theme of Commercial CPC Amendments

• 3S Formula: Speed + Sincerity + Sanctions

• Applies to: Commercial disputes of specified value (Commercial Courts Act)

2. Written Statement (WS) – Hard Deadline Formula

• Basic: WS within 30 days from service of summons

• Extension: Court may allow up to +90 days, with reasons + costs

• Absolute cap: 30 + 90 = 120 days (max)

• After 120 days: Right to file WS forfeited; WS cannot be taken on record

• Relevant: O.V r.1 proviso, O.VIII r.1 proviso, O.VIII r.10 proviso

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Delhi HC: Invoking perjury jurisdiction at the interlocutory stage, with trial already underway and issues framed, would risk interfering with and prejudicing the main civil proceedings

 In my opinion, an application under section 340 of the cr.pc ought to be normally considered at the time of final decision of the case only and not at the interim stage as the defendants/applicant have pressed in the present case. It is the settled legal position that the said provision cannot be resorted to, to satisfy a private grudge of the litigant. In fact the very genesis of this provision is to prevent complaints being filed of offences having being committed in relation to the court proceedings; it was felt that if such complaints are permitted to be filed, the same may be used to force the other party into giving up its claim/defence or to dissuade witnesses from appearing before the courts under threat of criminal prosecution. It was held as far back as in Rewashankar Moolchand v. Emperor MANU/NA/0017/1939 : AIR 1940 Nagpur 72 that proceedings under Section 340Cr.PC should not be resorted to when the criminal case is calculated to hamper fair trial of issue in the civil court before which the matter would probably go on for longer. This court also in Jindal Polyster Ltd. v. Rahul Jaura MANU/DE/2772/2005 : 124 (2005) DLT 613 and in Kuldeep Kapoor v. Susanta Sengupta MANU/DE/2870/2005 : 126 (2006) DLT 149 has held that applications under section 340 of the Cr.pc should be dealt with at the final stage only and not at the interim stage. I also find a consistency of view in this regard in the other High Courts. The law is that a prosecution for perjury should not be ordered by the court before the close of the proceedings in the case in which false evidence is given. It is highly wrong for a court to take action under the said provision against a witness or a party for giving false evidence when trial is underway. {Para 18}

21. Formation of prima facie opinion that a person charged has intentionally given false evidence is a condition precedent for directing lodging of a complaint. The existence of mens rea or criminal intention behind act complained of will have to be looked into and considered before any action under section 340 of the cr.pc is recommended. Before setting the criminal law into motion, the court should exercise great care and caution and it must be satisfied that there is reasonable foundation for the charge in respect of which prosecution is directed. No prosecution ought to be ordered unless reasonable probability of conviction is found. Considering the nature of the documents and evidence in relation whereto offences are alleged to have been committed.

"6. The mere fact that a person has made a contradictory statement in a judicial proceeding is not by itself always sufficient to justify a prosecution under Sections 199 and 200 of the Penal Code, 1860 (45 of 1860) (hereinafter referred to as "IPC"); but it must be shown that the defendant has intentionally given a false statement at any stage of the judicial proceedings or fabricated false evidence for the purpose of using the same at any stage of the judicial proceedings. Even after the above position has emerged also, still the court has to form an opinion that it is expedient in the interests of justice to initiate an inquiry into the offences of false evidence and offences against public justice and more specifically referred to in Section 340(1)CrPC, having regard to the overall factual matrix as well as the probable consequences of such a prosecution. 

17. The law governing the initiation of criminal proceedings under Section 379 read with Section 215 of the BNSS, for offences under Sections 227, 229, 236, 237, and 246 of the BNS, provides that for a statement to constitute 'false evidence' under Section 227 BNS, the falsity must be clear, deliberate, and established through unimpeachable evidence. Mere inconsistencies in versions or bare denials do not meet this threshold. The Written Statement reflects Defendant No. 2's explanation that he had purchased the alleged pirated version of ISP under a bona fide belief of its genuineness, a contention the veracity of which can only be determined upon leading of evidence.

23. Before filing of the complaint under Section 379 read with Section 215 of the BNSS, the Court along with a clear and deliberate falsehood supported by an unimpeachable evidence has to record a finding to the effect that it is expedient in the interests of justice having regard to the effect or impact, such commission of offence has upon administration of justice. 

IN THE HIGH COURT OF DELHI

CS (COMM) 914/2023

Decided On: 24.11.2025

Koninklijke Philips N.V. and Ors. Vs. Karma Mindtech and Ors.

Hon'ble Judges/Coram:

Tejas Karia, J.

Citation: 2025 DHC 10345, MANU/DE/9185/2025.

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Major highlights of Commercial Courts (Amendment) Bill, 2024.

 Few salient features are elaborated -

Post-Mediation - new proviso to Section 12A that the Court shall refer the parties to mediation after an urgent interim relief was sought, has been granted or denied by the Court. The procedure of pre-institution mediation shall apply to such reference.

Section 14 – Filing of appeal only after issuing a prior notice to other party.

New Section 19A – Proceedings to be held in electronic mode including – issuance, service and execution of summons, examination of witnesses, recording of evidence and all appellate proceedings or any other proceeding may be held in electronic mode or audio video electronic means.

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Questions and answers on law (Part 76)

Q 1:- If five accused are charged for the offence and two are absconded how judge will decide the case?

 Ans:- In cases with five accused where two are absconding, the judge typically proceeds with the trial against the three present accused by splitting the trial, ensuring speedy justice for those in custody.

This approach avoids stalling the entire case due to absconders, as affirmed in Supreme Court rulings and procedural norms under the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, which replaced the CrPC.

Standard Procedure

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Supreme Court: Provisions of Commercial courts Act will prevail over the Arbitration Act

  Thus, the Objects and Reasons of Commercial Courts Act, 2015 is to provide for speedy disposal of the commercial disputes which includes the arbitration proceedings. To achieve the said Objects, the legislature in its wisdom has specifically conferred the jurisdiction in respect of arbitration matters as per Section 10 of the Act, 2015. At this stage, it is required to be noted that the Act, 2015 is the Act later in time and therefore when the Act, 2015 has been enacted, more particularly Sections 3 & 10, there was already a provision contained in Section 2(1)(e) of the Act, 1996. As per settled position of law, it is to be presumed that while enacting the subsequent law, the legislature is conscious of the provisions of the Act prior in time and therefore the later Act shall prevail. It is also required to be noted that even as per Section 15 of the Act, 2015, all suits and applications including applications under the Act, 1996, relating to a commercial dispute of specified value shall have to be transferred to the Commercial Court. Even as per Section 21 of the Act, 2015, Act, 2015 shall have overriding effect. It provides that 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. {Para 10}

IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 6876 of 2022, 6878 of 2022 and 6877 of 2022

Decided On: 19.10.2022

Jaycee Housing Pvt. Ltd. and Ors. Vs. Registrar (General), Orissa High Court, Cuttack and Ors.

Hon'ble Judges/Coram:

M.R. Shah and Krishna Murari, JJ.

Author: M.R. Shah, J.

Citation:  MANU/SC/1363/2022.

Read full judgment here: Click here.

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Supreme Court: Designated Commercial Courts Subordinate To Rank Of Principal Civil Judge In The District Can Hear Appeals/Application Under Arbitration Act

 Thus, the Objects and Reasons of Commercial Courts Act, 2015 is to provide for speedy disposal of the commercial disputes which includes the arbitration proceedings. To achieve the said Objects, the legislature in its wisdom has specifically conferred the jurisdiction in respect of arbitration matters as per Section 10 of the Act, 2015. At this stage, it is required to be noted that the Act, 2015 is the Act later in time and therefore when the Act, 2015 has been enacted, more particularly Sections 3 & 10, there was already a provision contained in Section 2(1)(e) of the Act, 1996. As per settled position of law, it is to be presumed that while enacting the subsequent law, the legislature is conscious of the provisions of the Act prior in time and therefore the later Act shall prevail. It is also required to be noted that even as per Section 15 of the Act, 2015, all suits and applications including applications under the Act, 1996, relating to a commercial dispute of specified value shall have to be transferred to the Commercial Court. Even as per Section 21 of the Act, 2015, Act, 2015 shall have overriding effect. It provides that 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. {Para 10}

11. Therefore, considering the afore-stated provisions of the Act, 2015 and the Objects and Reasons for which the Act, 2015 has been enacted and the Commercial Courts, Commercial Division and Commercial Appellate Division in the High Courts are established for speedy disposal of the commercial disputes including the arbitration disputes, Sections 3 & 10 of the Act, 2015 shall prevail and all applications or appeals arising out of arbitration under the provisions of Act, 1996, other than international commercial arbitration, shall be filed in and heard and disposed of by the Commercial Courts, exercising the territorial jurisdiction over such arbitration where such commercial courts have been constituted. If the submission on behalf of the Appellants that all applications/appeals arising out of arbitration under the provisions of Act, 1996, other than the international commercial arbitration, shall lie before the principal civil Court of a district, in that case, not only the Objects and Reasons of enactment of Act, 2015 and establishment of commercial courts shall be frustrated, even Sections 3, 10 & 15 shall become otiose and nugatory. If the submission on behalf of the Appellants is accepted, in that case, though with respect to other commercial disputes, the applications or appeals shall lie before the commercial courts established and constituted Under Section 3 of Act, 2015, with respect to arbitration proceedings, the applications or appeals shall lie before the principal civil Court of a district. There cannot be two fora with respect to different commercial disputes.

Under the circumstances, notification issued by the State of Odisha issued in consultation with the High Court of Orissa to confer jurisdiction upon the court of learned Civil Judge (Senior Division) designated as Commercial Court to decide the applications or appeals arising out of arbitration under the provisions of Act, 1996 cannot be said to be illegal and bad in law. On the contrary, the same can be said to be absolutely in consonance with Sections 3 & 10 of Act, 2015. We are in complete agreement with the view taken by the High Court holding so.

 IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 6876 of 2022, 6878 of 2022 and 6877 of 2022

Decided On: 19.10.2022

Jaycee Housing Pvt. Ltd. and Ors. Vs. Registrar (General), Orissa High Court, Cuttack and Ors.

Hon'ble Judges/Coram:

M.R. Shah and Krishna Murari, JJ.

Author: M.R. Shah, J.

Citation:  MANU/SC/1363/2022.

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Bombay HC: A dispute arising out of a singular transaction of assignment of debt cannot be considered a 'commercial dispute'

In the facts of this case, the dispute relating to the transaction of assignment of debt by the Plaintiff No. 1 in favour of the Defendant No.1 not being a dispute arising out of an ordinary transaction of a merchant, financier or a trader, and obviously not a banker nor a dispute arising out of any of the items mentioned in Section 2(1)(c) (ii) to (xiii), the dispute relating to the breach of the agreement dated 7th July, 2023 would not be a commercial dispute arising out of ordinary transactions of merchants, bankers, financiers and traders as defined under Section 2(1)(c)(i) of the said Act nor any other items at (ii) to (xiii) even if the purpose be otherwise commercial and therefore, would not fall within the jurisdiction of the Commercial Division of this Court. If the dispute as held is not commercial dispute, even if the dispute is above the specified value that would be of no consequence. Also the reliance upon the other sections of the said Act including Sections 4, 7 and 15 as well as the preamble of the said Act would in my view not assist the case of Mr. Narvekar’s clients.{Para 27}

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

INTERIM APPLICATION (L) NO. 6341 OF 2024

IN

SUMMARY SUIT NO. 18 OF 2023

VARANIUM CLOUD LIMITED …APPLICANT

IN THE MATTER BETWEEN

ROLTA PRIVATE LIMITED AND ANR. …PLAINTIFFS

VS

VARANIUM CLOUD LIMITED AND ANR. …DEFENDANTS

CORAM :ABHAY AHUJA, J.

PRONOUNCED ON: 11 TH NOVEMBER, 2024

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Supreme Court: Money Recovery Suit Won't Be Commercial Suit Unless Disputed Property Is 'Actually Used' In Trade and Commerce

 The above issue was considered in Ambalal Sarabhai Enterprises

Limited v. K.S. Infraspace LLP & Anr. reported in (2020) 15 SCC 585 where the implication of Section 2(1)(c)(vii) was construed. In

the concurring judgment, the following was expressed by Justice

Banumathi:

“37. A dispute relating to immovable property per se

may not be a commercial dispute. But it becomes a

commercial dispute, if it falls under sub-clause

(vii) of Section 2(1)(c) of the Act viz. “the

agreements relating to immovable property used

exclusively in trade or commerce”. The words “used

exclusively in trade or commerce” are to be

interpreted purposefully. The word “used” denotes

“actually used” and it cannot be either “ready for

use” or “likely to be used” or “to be used”. It

should be “actually used”. Such a wide interpretation

would defeat the objects of the Act and the fast

tracking procedure discussed above.” {Para }

 S U P R E M E C O U R T O F I N D I A

 RECORD OF PROCEEDINGS

SPECIAL LEAVE PETITION (CIVIL) Diary No(s). 2986/2024

S.P. VELAYUTHAM & ANR. Vs M/S EMAAR MGF LAND LIMITED.

CORAM : HON'BLE MR. JUSTICE HRISHIKESH ROY

 HON'BLE MR. JUSTICE PRASHANT KUMAR MISHRA

 Date : 26-02-2024 .

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Bombay HC: The Commercial court should award actual costs while deciding commercial suits

The meaning is plain. In an action under the Commercial Courts Act, costs follow the event. The losing party pays. If it is not to pay, i.e., if an order of no costs is to be made, then reasons are required. The conduct of the parties is relevant, including the gravity or frivolity of the claim, and whether or not judicial time is wasted. The earlier cap on compensatory costs is removed. The statutory intent is equally plain: no litigant in the commercial division can ordinarily escape a litigation loss without an accompanying order of costs. The amendment contemplates actual costs and compensatory costs both. {Para 36}

 IN THE HIGH COURT OF BOMBAY

Notice of Motion (L) No. 693 of 2017 in Suit (L) No. 196 of 2017

Decided On: 21.03.2017

Dashrath B. Rathod and Ors. Vs. Fox Star Studios India Pvt. Ltd. and Ors.

Hon'ble Judges/Coram:

G.S. Patel, J.

Citation: 2018(1) MHLJ 474, MANU/MH/0490/2017.

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Delhi HC: Provisions of Case Management hearing Under the Commercial courts Act empowers the court to set time limit for addressing oral arguments by the parties

The counsel for the plaintiff states that a direction is sought for limiting the time for addressing oral arguments. {Para 4}

Rule 2 inter alia includes fixing the date on which oral arguments are to be heard by the Court and setting time limits for the parties and their advocates to address oral arguments.{Para 8}.

12. The counsel for the defendant of course controverts but is unable to. However, on enquiry as to how much time the defendant will take to address arguments, refuses to commit.

13. The application is disposed of, binding the plaintiff to the aforesaid time limits and clarifying, that after the opening arguments of the counsel for the plaintiff, the Court shall, if need be, limit the time for addressing oral arguments on behalf of the defendant.

 In the High Court of Delhi at New Delhi

(Before Rajiv Sahai Endlaw, J.)

Roland Corporation Vs  Sandeep Jain

CS (COMM) 565/2018, 

Decided on January 15, 2019

Citation:

2019 SCC OnLine Del 6557 : (2019) 196 AIC 723

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Which commercial disputes the Commercial court can entertain as per The Commercial courts Act?

 The Legislature, in the Commercial Courts Act has not defined commercial disputes as disputes arising out of all commercial transactions. Instead, the Legislature has opted to specify the 22 transactions listed in clauses (i) to (xxii) of Section 2(1)(c) of the Commercial Courts Act, as the transactions, disputes arising wherefrom will constitute a commercial dispute. That being the position, every dispute arising from a commercial transaction, without the same falling in any of the clauses, cannot constitute a commercial dispute within the meaning of Commercial Courts Act. {Para 15}

 In the High Court of Delhi at New Delhi

(Before Rajiv Sahai Endlaw, J.)

Qatar Airways Q.C.S.C.  Vs  Airports Authority of India & anr. 

C.S. (C.O.M.M.) No. 52/2017

Decided on April 26, 2017

Citation: 2017 SCC OnLine Del 8088 : (2017) 240 DLT 731 : (2017) 178 AIC 614.

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Delhi High Court: Definition of Commercial dispute in the Commercial courts Act is exhaustive and not inclusive

The submission of Mr. Lall that this Court should construe the expression "commercial dispute" widely to include all commercial disputes, even if they do not strictly fall within clauses (i) to (xxii) of Section 2(1) (c), cannot be accepted for the reason that the Parliament has consciously given the precise definition as to what a commercial dispute "means". It is not an inclusive definition and the specific matters which qualify as relating to "commercial disputes" have been specifically set out in clauses (i) to (xxii) aforesaid. {Para 21}

 IN THE HIGH COURT OF DELHI

CS (OS) 3187/2015 and I.A. Nos. 22366-22368/2015

Decided On: 03.02.2016

Havells India Limited Vs. The Advertising Standards Council of India

Hon'ble Judges/Coram:

Vipin Sanghi, J.

Citation: (2016) 227 DLT 719, MANU/DE/0297/2016.

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Supreme Court explains the difference in factors to be considered while deciding condonation of delay application either U/S 5 or U/S 14 of Limitation Act

Also, it must be remembered that merely because sufficient cause has been made out in the facts of a given case, there is no right in the Appellant to have delay condoned. This was felicitously put in Ramlal v. Rewa Coalfields Ltd.,   MANU/SC/0042/1961 : (1962) 2 SCR 762 as follows: {Para 60}

It is, however, necessary to emphasise that even after sufficient cause has been shown a party is not entitled to the condonation of delay in question as a matter of right. The proof of a sufficient cause is a condition precedent for the exercise of the discretionary jurisdiction vested in the court by Section 5. If sufficient cause is not proved nothing further has to be done; the application for condoning delay has to be dismissed on that ground alone. If sufficient cause is shown then the Court has to enquire whether in its discretion it should condone the delay. This aspect of the matter naturally introduces the consideration of all relevant facts and it is at this stage that diligence of the party or its bona fides may fall for consideration; but the scope of the enquiry while exercising the discretionary power after sufficient cause is shown would naturally be limited only to such facts as the Court may regard as relevant. It cannot justify an enquiry as to why the party was sitting idle during all the time available to it. In this connection we may point out that considerations of bona fides or due diligence are always material and relevant when the Court is dealing with applications made Under Section 14 of the Limitation Act. In dealing with such applications the Court is called upon to consider the effect of the combined provisions of Sections 5 and 14. Therefore, in our opinion, considerations which have been expressly made material and relevant by the provisions of Section 14 cannot to the same extent and in the same manner be invoked in dealing with applications which fall to be decided only Under Section 5 without reference to Section 14. (page 771).

 IN THE SUPREME COURT OF INDIA

Civil Appeal No. 995 of 2021.

Decided On: 19.03.2021

Government of Maharashtra (Water Resources Department) Vs. Borse Brothers Engineers & Contractors Pvt. Ltd.

Hon'ble Judges/Coram:

Rohinton Fali Nariman, B.R. Gavai and Hrishikesh Roy, JJ.

Author: Rohinton Fali Nariman, J.

Citation: (2021)6 SCC 460,2021SCCONLINE SC 233, MANU/SC/0195/2021.

Read full Judgment here : Click here.

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To what extent provisions of S 5 of limitation Act are applicable to arbitration appeal under Commercial courts Act?

 Given the aforesaid and the object of speedy disposal sought to be achieved both under the Arbitration Act and the Commercial Courts Act, for appeals filed Under Section 37 of the Arbitration Act that are governed by Articles 116 and 117 of the Limitation Act or Section 13(1A) of the Commercial Courts Act, a delay beyond 90 days, 30 days or 60 days, respectively, is to be condoned by way of exception and not by way of rule. In a fit case in which a party has otherwise acted bona fide and not in a negligent manner, a short delay beyond such period can, in the discretion of the court, be condoned, always bearing in mind that the other side of the picture is that the opposite party may have acquired both in equity and justice, what may now be lost by the first party's inaction, negligence or laches. {Para 61}

 IN THE SUPREME COURT OF INDIA

Civil Appeal No. 995 of 2021.

Decided On: 19.03.2021

Government of Maharashtra (Water Resources Department) Vs. Borse Brothers Engineers & Contractors Pvt. Ltd.

Hon'ble Judges/Coram:

Rohinton Fali Nariman, B.R. Gavai and Hrishikesh Roy, JJ.

Author: Rohinton Fali Nariman, J.

Citation: (2021)6 SCC 460,2021SCCONLINE SC 233, MANU/SC/0195/2021

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Madras HC: Commercial court can dispense with written argument and hear oral argument in cases where Ex-parte evidence was recorded

 A perusal of the above would reveal that there is a departure made from the usual procedure, particularly in that part of CPC, which remains untouched by said Act. That departure is, written arguments are to be filed before oral arguments are advanced. A perusal of amended CPC as amended by said Act would reveal that written arguments supra has to be filed in accordance with Order XVIII Rule 2 Sub Rules (3A) to (3F). This takes us to the question as to in a given case like this, where there is no contest, where ex parte evidence has been recorded, whether the Court i.e., Commercial Division can hear oral submissions and dispose of the suit before filing of written arguments. {Para 25}

27. A perusal of the same reveals that in case of transferred suits, this Commercial Division can prescribe new time lines and can also issue further directions as may be necessary for speedy and efficacious disposal of suit. In the instant case, in the light of the sole defendant remaining ex parte and in the light of ex parte evidence being recorded, I am of the view that no reasonable purpose will be served by directing the plaintiff to file written arguments, more so, in accordance with Order XVIII Rule 2 Sub Rules (3A) to (3F). It will serve the interest of efficacious disposal, if the written arguments step is skipped and oral arguments are heard. Therefore, I have skipped written arguments and I have heard oral arguments today, after recording of ex parte evidence in the instant suit. 

IN THE HIGH COURT OF MADRAS

C.S. No. 28 of 2015, A. No. 208 of 2015, O.A. Nos. 41 and 42 of 2015

Decided On: 26.09.2018

Tablets (India) Ltd. Vs. D.R. Johns Lab Pharma Pvt. Ltd.

Hon'ble Judges/Coram:

M. Sundar, J.

Citation: 2018(8) MLJ 70, MANU/TN/5765/2018.

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Delhi High court: No time should be permitted to be wasted on interim applications and the advocate should consent for the suitable order if they know the probable outcome of such application

 It is also found that whenever applications are filed, the opposite party/counsel, out of habit, while appearing on advance notice, seek time for filing reply. Most of such interim applications need no reply. Moreover, the law on various aspects which come up for consideration in such interim applications, is by and large settled and any counsel worth his salt knows the outcome of such applications. In such situations, no time should be permitted to be wasted on such applications and if the counsel knows that the application, even after reply and arguments would be allowed, should consent thereto. Else, the Commercial Courts Act, insofar as aimed at expediting disposal, will remain a piece of legislation only on paper.

 In the High Court of Delhi at New Delhi

(Before Rajiv Sahai Endlaw, J.)

Vifor (International) Ltd. Vs  Suven Life Sciences Ltd.

CS(COMM) 1680/2016

Decided on March 11, 2019

Citation: 2019 SCC OnLine Del 7514

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Supreme Court: Rules for interpretation of the term "A dispute relating to immovable property" as per The Commercial courts Act

 A dispute relating to immovable property per se may not be a commercial dispute. But it becomes a commercial dispute, if it falls under Sub-clause (vii) of Section 2(1)(c) of the Act viz. "the agreements relating to immovable property used exclusively in trade or commerce". The words "used exclusively in trade or commerce" are to be interpreted purposefully. The word "used" denotes "actually used" and it cannot be either "ready for use" or "likely to be used" or "to be used". It should be "actually used". Such a wide interpretation would defeat the objects of the Act and the fast tracking procedure discussed above. {Para 37}

 IN THE SUPREME COURT OF INDIA

Civil Appeal No. 7843 of 2019.

Decided On: 04.10.2019

Ambalal Sarabhai Enterprises Ltd. Vs. K.S. Infraspace LLP and Ors.

Hon'ble Judges/Coram:

A.S. Bopanna and R. Banumathi, JJ.

Authored By : A.S. Bopanna, R. Banumathi

Citation: MANU/SC/1378/2019,(2020) 15 SCC585.

Read full Judgment here: Click here.

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Supreme Court: Provisions of CPC as amended by Commercial Courts Act are to be construed strictly and are to be interpretated in narrow sense

 A perusal of the Statement of Objects and Reasons of the Commercial Courts Act, 2015 and the various amendments to Code of Civil Procedure and insertion of new Rules to the Code applicable to suits of commercial disputes show that it has been enacted for the purpose of providing an early disposal of high value commercial disputes. A purposive interpretation of the Objects and Reasons and various amendments to Code of Civil Procedure leaves no room for doubt that the provisions of the Act require to be strictly construed. If the provisions are given a liberal interpretation, the object behind constitution of Commercial Division of Courts, viz. putting the matter on fast track and speedy resolution of commercial disputes, will be defeated. If we take a closer look at the Statement of Objects and Reasons, words such as 'early' and 'speedy' have been incorporated and reiterated. The object shall be fulfilled only if the provisions of the Act are interpreted in a narrow sense and not hampered by the usual procedural delays plaguing our traditional legal system. {Para 36}

 IN THE SUPREME COURT OF INDIA

Civil Appeal No. 7843 of 2019.

Decided On: 04.10.2019

Ambalal Sarabhai Enterprises Ltd. Vs. K.S. Infraspace LLP and Ors.

Hon'ble Judges/Coram:

A.S. Bopanna and R. Banumathi, JJ.

Authored By : A.S. Bopanna, R. Banumathi

Citation: MANU/SC/1378/2019,(2020) 15 SCC585.

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Bombay HC: The time for filing written statement in Commercial suit runs from the date of receipt of copy of plaint and not merely writ of summons

This is indeed not the purport or ambit of the CCA at all. That Act seeks to fast-track the disposal of commercial suits. But that cannot come at the cost of equity and justice, including procedural fairness. No statute can be read like this. It is, therefore, impossible to accept the argument that time against the defendant for filing the written statement runs from the date of a bare-bones writ of summons without a copy of the plaint; and that it makes no difference when the plaintiff sends him a copy for no law or rule fixes any time within which the plaintiff must furnish a copy. The other side result in an equal absurdity, for no time is fixed either within which the defendant must seek a copy of the plaint from the plaintiff or his advocate. No statute can be read to lead to a self-annihilating or self-destructive or self-contradictory manner.8 It is plainly the duty of a court to construe a statute not literally but to give effect to its meaning and intent, and to avoid any interpretation that yields an absurdity. A construction that defeats the statute's objective must be rejected.9 {Para 25}

26. The consequence is inevitable. The writ of summons was wrongly issued. There is no valid service of the writ of summons at all. All that Metso can be said to have received is notice of institution of the suit. It was never served with the writ of summons properly so called. A non-conforming writ of summons is no writ of summons at all and service of a non-conforming writ of summons is no service at all. Technically speaking, therefore, no question of limitation in this case runs against the Defendant. And there is also no question of assessing any delay or the grounds for delay.

 In the High Court of Bombay

(Before G.S. Patel, J.)

Atlanta Limited  Vs Metso India Pvt. Ltd. 

Interim Application No. 425 of 2019 and Commercial Suit No. 765 of 2019

Decided on August 4, 2021, 

Citation: 2021 SCC OnLine Bom 1594 : AIR 2021 Bom 300 : (2021) 5 AIR Bom R 627

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