JURISDICTION OF COMMERCIAL

COURTS

Prepared by:-

Shivani Pasbola
 Constitution of Commercial
Courts

 Sec.3:- Constitution of Commercial

Courts:(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 Act.
 Appointment of Presiding
Officers in Commercial Courts

 Sec.3(3):- The State Government may, 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 either at the level of District Judge or a
court below the level of a District Judge
 Notification

 Vide notification dated 31st October,2017 issued

by the Government of Uttarakhand, a
commercial Court has been established at
Dehradun,having jurisdiction over entire State
of Uttarakhand.

 The Hon’ble High Court of Uttarakhand vide

notification dated 1st December,2018 appointed
Presiding Officer in the said court.
 Jurisdiction of The Commercial
Courts:-
 Section 6 of The Commercial Courts Act,2015
deals with the Jurisdiction of Commercial Court.
All cases and petitions of commercial disputes
arising out of the full territory of the State over
which it has been conferred territorial
jurisdiction are resolved by the Commercial
courts. The requirements of Sections 16, 17,
18, 19, and 20 of the Code of Civil Procedure
1908 apply to business disputes.
 Sec. 6:- Jurisdiction of Commercial Court:—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(5 of
1908).
12. Determination of Specified Value.—(1) 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 be, 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;
S. 12(2):- The aggregate value of the claim and
counterclaim, if any as set out in the statement of claim
and
the counterclaim, 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.

S. 12(3):- No appeal or civil revision application under

section 115 of the Code of Civil Procedure, 1908
(5 of 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 the Act.
 Pecuniary Jurisdiction of
Commercial Courts

 Sec.3(1A):- Notwithstanding anything contained

in this Act, the State Government may, after
consultation with the concerned High Court, by
notification, specify such pecuniary value which
shall not be less than three lakh rupees or
such higher value, for whole or part of the
State, as it may consider necessary.
 Sec. 3 (1A) Inserted by Amendment of 2018
 Territorial Jurisdiction of
Commercial Courts

 Sec. 3(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.
 Subject Jurisdiction of
Commercial Courts
 The Commercial Courts has the jurisdiction to deal
with the Commercial Disputes as defined in Sec
2(1)(c) of the Act.
 ―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;
 Subject Jurisdiction of
Commercial Courts

 (iv) Transactions relating to aircraft, 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;
 Subject Jurisdiction of
Commercial Courts
 (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;

 Subject Jurisdiction of
Commercial Courts
 (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) Insurance and re-insurance;
 Subject Jurisdiction of
Commercial Courts
 (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 money out of immovable

property given as security or involves any other
relief pertaining to immovable property;
 Subject Jurisdiction of
Commercial Courts
 (b) One of the contracting parties is the State or any of its
agencies or instrumentalities, or a private body carrying out
public functions;
 Ambalal Sarabhai Enterprises Ltd. v. K.S. Infraspace
 Civil Appeal No. 7843 of 2019 (Arising Out of SLP (Civil) No.
9391 of 2019). D/d. 4.10.2019.
 Commercial Courts Act, 2015, Section 2(1)(c)(vii) -
Immovable property - Commercial dispute - Commercial
dispute in relation to immovable property means dispute
arising out of agreements relating to immovable property
used exclusively in trade or commerce - Expression "used"
must mean "actually used" or "being used" - If intention of
legislature was to expand scope, in that case phraseology
"likely to be used" or "to be used" would have been
employed.
 Arbitration and Jurisdiction
 Sec.10. Jurisdiction in respect of arbitration matters:— 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(26 of
1996)that have been filed in a High Court, shall be heard and
disposed of by the Commercial Division where such Commercial
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(26 of 1996)that have been filed on the original side of
the High Court, shall be heard and disposed of by the
Commercial Division where such Commercial Division has
been constituted in such High Court.
 Arbitration and Jurisdiction

 Sec. 10 (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(26 of 1996)that would ordinarily lie before any
principal civil court of original jurisdiction in a district (not
being a High Court) shall be filed in, and heard and
disposed of by the Commercial Court exercising
territorial jurisdiction over such arbitration where
such Commercial Court has been constituted.
 Arbitration and Jurisdiction
Case Law :-
Jaycee Housing Pvt. Ltd. Vs. Registrar General Orissa High
Court Civil Appeal No. 6876 of 2022. D/d. 19.10.2022.
Arbitration and Conciliation Act, 1996, Sections 2(1)(e), 9, 14 and 34 -
Odisha Civil Courts Act, 1984, Section 3, 9 read with Section 10 -
Commercial Courts - Whether in exercise of powers under Section 3 of
Commercial Courts Act, 2015, State Government can confer jurisdiction to
hear applications under sections 9, 14 and 34 of Arbitration and
Conciliation Act, 1996, upon Commercial Courts which are subordinate to
rank of Principal Civil Judge in District, contrary to provisions of section
2(1)(e) of Arbitration Act? - Challenged - Held, notification issued by State
of Odisha issued in consultation with High Court of Orissa to confer
jurisdiction upon court of Civil Judge (Senior Division) designated as
Commercial Court to decide applications or appeals arising out of
arbitration under provisions of Act, 1996 cannot be said to be illegal and
bad in law and on contrary, same can be said to be absolutely in
consonance with Sections 3 and 10 of Act, 2015.
 Bar Of Jurisdiction

 Sec. 11. Bar of jurisdiction of Commercial

Courts and Commercial Divisions:-
Notwithstanding anything contained in this Act, 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.
Thank You..