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About Commercial Court State of Rajasthan, Jaipur

The objective of the Commercial Court is to provide for the just and efficient determination of commercial disputes. Proceedings are managed by Judges and Associate Judges with extensive commercial expertise and experience

The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 ("Act")

The efficiency of the legal system and the pace at which disputes are resolved by courts are very important factors in deciding the growth of investment and the overall economic and social development of a country. The inefficiency of our justice delivery system is well known and well documented. The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 ("Act") is an important step taken by the Government to expedite the justice delivery system at least as regards commercial disputes.

Objective of the Commercial Court

The objective of the Commercial Court is to provide for the just and efficient determination of commercial disputes. Proceedings are managed by Judges andAssociate Judges with extensive commercial expertise and experience

Commercial Dispute” means a dispute arising out of

ordinary transactions of merchants, bankers, financiers and traders such as those relating to mercantile documents, including enforcement andinterpretation of such documents; export or import of merchandise or services; issues relating to admiralty and maritime law; transactions relating to aircraft, aircraft engines, aircraft equipmentand helicopters, including sales, leasing and financing of the same; carriage of goods; construction and infrastructure contracts, including tenders agreements relating to immovable property used exclusively in tradeor commerce; franchising agreements; distribution and licensing agreements; management and consultancy agreements; joint venture agreements; shareholders agreements; subscription and investment agreements pertaining to the servicesindustry including outsourcing services and financial services; mercantile agency and mercantile usage; partnership agreements; technology development agreements; intellectual property rights relating to registered and unregisteredtrademarks, copyright, patent, design, domain names, geographical indicationsand semiconductor integrated circuits; agreements for sale of goods or provision of services; exploitation of oil and gas reserves or other natural resources including electromagnetic spectrum; insurance and re-insurance;


A commercial dispute shall not cease to be a commercialdispute merely because 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; one of the contracting parties is the State or any of its agencies or instrumentalities, or a private body carrying out public functions;

Key features of the ordinance

Constitution of Commercial Courts The Act provides for constitution of various commercial courts: Commercial Courts The Act makes provision for the constitution of Commercial Courts in every district of the state as well as union territory where the High Court of that concerned state or union territory does not have original jurisdiction. At present, there are only five High Courts which exercise original jurisdiction over the commercial disputes namely, the High Courts of Bombay, Calcutta, Delhi, Himachal Pradesh and Madras. However, with the coming of this Act, now each state will have its own commercial courts to decide upon commercial disputes. Commercial DivisionsThose High Courts which do not have original jurisdiction over cases related to commercial contracts will now have a Commercial Division to be set up within itself which is empowered to hear all applications with respect to commercial transactions. Commercial Appellate DivisionsThese divisions will be set up in every High Court to hear appeals against (i) orders of Commercial Division of High Court; and (ii) orders of Commercial Courts. The appeal has to be filed within sixty days from the date of judgment. The Commercial Appellate Division is required to dispose of such an appeal within six months from the date of filing such Appeal. However, the Ordinance does not mention a statutory right to appeal to the Supreme Court from an order of the Commercial Appellate Division. Accordingly, a limit of one is imposed on a number of appeals allowed in case of commercial disputes. The Act also bars any revision application filed against any interlocutory orders passed by Commercial Court. The constitution of these commercial courts was felt necessary since the present law did not provide for any such courts specially designated to hear commercial disputes. The judges of district court predominately hear such kind of disputes. Similarly, the five High Courts which exercise the jurisdiction to hear such disputes have certain designated judges to hear commercial disputes. However, such judges do not exclusively deal with the matters involving commercial disputes. The Ordinance proposes to constitute and establish Specialized Commercial Courts to hear only Commercial Disputes.

Valuation of Disputes

Under the Ordinance, the Specialised Commercial Courts have jurisdiction to hear those cases pertaining to commercial matters where the value of the subject matter is more Rs. 1,00,00,000. The Bill also prescribes the manner of determining the value of a commercial dispute.

Jurisdiction over Arbitration Matters

As far as Arbitration is concerned, the Act provides that all the matters dealing with international commercial arbitration must be brought within the ambit of High Court irrespective of the fact whether the High Court exercises such jurisdiction or not. However, there is a proviso added to this clause which provides that the matters pertaining to the appointment of arbitrators in international commercial contracts must be excluded from the purview of High Court’s jurisdiction. Commercial Court will also have the power to hear appeals filed against domestic arbitrations involving Indian parties, which initially lie before any civil court other than High Court exercising territorial jurisdiction over such arbitration.