DR Ambedkar IAS Academy


The_Commercial_Courts_Act_2015 provides for commercial courts and commercial divisions of high courts to adjudicate commercial disputes with a value of at least one crore rupees.

The bill reduces this limit to three lakh rupees.
The Ordinance allows state governments to establish commercial courts at the district level, even in territories where high courts have ordinary original civil jurisdiction.

In areas where high courts do not have original jurisdiction, state governments may set up commercial appellate courts at the district level to consider appeals from commercial courts below the level of a district judge.

The term ‘Commercial Dispute’ has been given an inclusive definition, with the intent to, include
almost all disputes that could entail with respect to a ‘commercial transaction’ understood in the
most generic way. As such the definition broadly includes disputes relating to transactions between
merchants, bankers, financiers, traders, etc. and also includes disputes in relation to shareholders
agreements, mercantile documents, partnership agreements, joint venture agreements, intellectual
property rights, insurance, etc.
The Act constitutes a two layer set-up., i.e.
I The Commercial Courts/Commercial Divisions; and
II The Commercial Appellate Divisions.
Except where High Courts have ordinary original civil jurisdiction the State Governments are to
set-up Commercial Courts at the District level; and wherever the High Courts have ordinary
original civil jurisdiction, the Chief Justice is to set-up a Commercial Division bench presided by a
single Judge;
The Commercial Appellate Division presided by bench of two Judges is to be constituted by
the Chief Justice of each of the High Courts, to hear appeals from decisions of the Commercial
Court or Commercial Division.

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