A Bill to provide for the constitution of Commercial Courts, Commercial Division and

Commercial Appellate Division in the High Courts for adjudicating commercial

disputes of specified value and matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Commercial Courts, Commercial Division and

Commercial Appellate Division of High Courts Act, 2015.

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

(3) It shall be deemed to have come into force on the 23rd day of October, 2015.

Short title,

extent and

commence-

ment.

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PUBLISHED BY AUTHORITY

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No. 43] NEW DELHI, MONDAY, DECEMBER 7, 2015/AGRAHAYANA 16, 1937 (SAKA)

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Separate paging is given to this Part in order that it may be filed as a separate compilation.

LOK SABHA

————

The following Bills were introduced in Lok Sabha on 7th December, 2015:—

BILL NO. 253 OF 2015

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

2. (1) In this Act, unless the context otherwise requires,––

(a) “Commercial Appellate Division” means the Commercial Appellate Division

in a High Court constituted under sub-section (1) of section 5;

(b) “Commercial Court” means the Commercial Court constituted under

sub-section (1) of section 3;

(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 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;

(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) insurance 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;

Definitions.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(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 (1) 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 Act; 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 Act but defined in the

Code of Civil Procedure, 1908 and the Indian Evidence Act, 1872, shall have the same

meanings respectively assigned to them in that Code and the Act.

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 Act:

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.

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 Act.

(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.

Constitution

Commercial

Courts.

Constitution

Commercial

Division of

High Court.

5 of 1908.

1 of 1872.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

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 Act.

(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 counterclaim filed 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.

Constitution

Commercial

Appellate

Division.

5 of 1908.

Jurisdiction

Commercial

Court.

Jurisdiction

Commercial

Divisions of

High Courts.

Bar against

revision

application or

petition

against an

interlocutory

order.

16 of 2000.

39 of 1970.

Transfer of

suit if

counterclaim

in a

commercial

dispute is of

Specified

Value.

5 of 1908.

Jurisdiction in

respect of

arbitration

matters.

26 of 1996.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(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 filed 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 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.

CHAPTER III

SPECIFIED VALUE

12. (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;

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 counterclaim is raised in any suit, appeal or application, the value

of the subject-matter of the commercial dispute in such counterclaim as on the date of

the counterclaim shall be taken into account.

(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.

(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

Act.

26 of 1996.

Bar of

jurisdiction of

Commercial

Courts and

Commercial

Divisions.

Determination

of Specified

Value.

5 of 1908.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

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 Act and section 37 of the 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 or Commercial Court otherwise than in accordance with the provisions of this Act.

14. The Commercial Appellate Division shall endeavour to dispose of appeals filed

before it within a period of six months from the date of filing of such appeal.

CHAPTER V

TRANSFER OF PENDING SUITS

15. (1) All suits and applications, including applications under the Arbitration and

Conciliation Act, 1996, relating to a commercial dispute of a Specified Value pending in a

High Court where a Commercial Division has been constituted, shall be transferred to the

Commercial Division.

(2) All suits and applications, including applications under the Arbitration and

Conciliation Act, 1996, relating to a commercial dispute of a Specified Value pending in any

civil court in any district or area in respect of which a Commercial Court has been constituted,

shall be transferred to such Commercial Court:

Provided that no suit or application where the final judgment has been reserved by

the Court prior to the constitution of the Commercial Division or the Commercial Court shall

be transferred either under sub-section (1) or sub-section (2).

(3) Where any suit or application, including an application under the Arbitration and

Conciliation Act, 1996, relating to a commercial dispute of Specified Value shall stand

transferred to the Commercial Division or Commercial Court under sub-section (1) or

sub-section (2), the provisions of this Act shall apply to those procedures that were not

complete at the time of transfer.

(4) The Commercial Division or Commercial Court, as the case may be, may hold case

management hearings in respect of such transferred suit or application in order to prescribe

new timelines or issue such further directions as may be necessary for a speedy and

efficacious disposal of such suit or application in accordance with Order XIV-A of the Code

of Civil Procedure, 1908:

Provided that the proviso to sub-rule (1) of Rule 1 of Order V of the Code of Civil

Procedure, 1908 shall not apply to such transferred suit or application and the court may, in

its discretion, prescribe a new time period within which the written statement shall be filed.

(5) In the event that such suit or application is not transferred in the manner specified

in sub-section (1), sub-section (2) or sub-section (3), the Commercial Appellate Division of

the High Court may, on the application of any of the parties to the suit, withdraw such suit

or application from the court before which it is pending and transfer the same for trial or

disposal to the Commercial Division or Commercial Court, as the case may be, having

territorial jurisdiction over such suit, and such order of transfer shall be final and binding.

Appeals from

decrees of

Commercial

Courts and

Commercial

Divisions.

5 of 1908.

26 of 1996.

Expeditious

disposal of

appeals.

Transfer of

pending cases.

26 of 1996.

5 of 1908.

SEC. 2]

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CHAPTER VI

AMENDMENTS TO THE PROVISIONS OF THE CODE OF CIVIL PROCEDURE, 1908

16. (1) The provisions of the Code of Civil Procedure, 1908 shall, in their application

to any suit in respect of a commercial dispute of a Specified Value, stand amended in the

manner as specified in the Schedule.

(2) The Commercial Division and Commercial Court shall follow the provisions of the

Code of Civil Procedure, 1908, as amended by this Act, in the trial of a suit in respect of a

commercial dispute of a Specified Value.

(3) Where any provision of any Rule of the jurisdictional High Court or any amendment

to the Code of Civil Procedure, 1908, by the State Government is in conflict with the provisions

of the Code of Civil Procedure, 1908, as amended by this Act, the provisions of the Code of

Civil Procedure as amended by this Act shall prevail.

CHAPTER VII

MISCELLANEOUS

17. The statistical data regarding the number of suits, applications, appeals or writ

petitions filed before the Commercial Court, Commercial Division, or Commercial Appellate

Division, as the case may be, the pendency of such cases, the status of each case, and the

number of cases disposed of, shall be maintained and updated every month by each

Commercial Court, Commercial Division, Commercial Appellate Division and shall be

published on the website of the relevant High Court.

18. The High Court may, by notification, issue practice directions to supplement the

provisions of Chapter II of this Act or the Code of Civil Procedure, 1908 insofar as such

provisions apply to the hearing of commercial disputes of a Specified Value.

19. The State Government shall provide necessary infrastructure to facilitate the

working of a Commercial Court or a Commercial Division of a High Court.

20. The State Government may, in consultation with the High Court, establish

necessary facilities providing for training of Judges who may be appointed to the Commercial

Court, Commercial Division or the Commercial Appellate Division in a High Court.

21. 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 or in any instrument having effect by virtue of any law for the time being in

force other than this Act.

22. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central

Government may, by order published in the Official Gazette, make such provisions, not

inconsistent with the provisions of this Act as may appear to it to be necessary or expedient

for removing the difficulty:

Provided that no such order shall be made under this section after the expiry of a

period of two years from the date of commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be, after it is

made, before each House of Parliament.

23. (1) The Commercial Courts, Commercial Division and Commercial Appellate

Division of High Courts Ordnance, 2015 is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said

Ordinance, shall be deemed to have been done or taken under the corresponding provisions

of this Act.

Amendments

to the Code

of Civil

Procedure,

1908 in its

application

t o

commercial

disputes.

5 of 1908.

Collection

and disclosure

of data by

Commercial

Courts,

Commercial

Divisions and

Commercial

Appellate

Divisions.

Power of

High Court to

issue

directions.

5 of 1908.

Infrastructure

facilities.

Training and

continuous

education.

Act to have

overriding

effect.

Power to

remove

difficulties.

Repeal and

savings.

Ord. 8 of

2015.

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[PART II—

SCHEDULE

(See section 16)

1. In section 26 of the Code of Civil Procedure, 1908 (hereafter referred to as the Code),

in sub-section (2), the following proviso shall be inserted, namely:––

“Provided that such an affidavit shall be in the form and manner as prescribed

under Order VI of Rule 15A”.

2. For section 35 of the Code, the following section shall be substituted, namely:––

‘35. (1) In relation to any commercial dispute, the Court, notwithstanding

anything contained in any other law for the time being in force or Rule, has the

discretion to determine:

(a) whether costs are payable by one party to another;

(b) the quantum of those costs; and

Explanation.—For the purpose of clause (a), the expression “costs” shall

mean reasonable costs relating to—

(i) the fees and expenses of the witnesses incurred;

(ii) legal fees and expenses incurred;

(iii) any other expenses incurred in connection with the

proceedings.

(2) If the Court decides to make an order for payment of costs, the general rule

is that the unsuccessful party shall be ordered to pay the costs of the successful

party:

Provided that the Court may make an order deviating from the general rule for

reasons to be recorded in writing.

Illustration

The Plaintiff, in his suit, seeks a money decree for breach of contract, and

damages. The Court holds that the Plaintiff is entitled to the money decree. However,

it returns a finding that the claim for damages is frivolous and vexatious.

In such circumstances the Court may impose costs on the Plaintiff, despite the

Plaintiff being the successful party, for having raised frivolous claims for damages.

(3) In making an order for the payment of costs, the Court shall have regard to

the following circumstances, including—

(a) the conduct of the parties;

(b) whether a party has succeeded on part of its case, even if that party

has not been wholly successful;

in the disposal of the case;

(d) whether any reasonable offer to settle is made by a party and

unreasonably refused by the other party; and

(e) whether the party had made a frivolous claim and instituted a vexatious

proceeding wasting the time of the Court.

Amendment

of section 26.

Substitution

of new

section for

section 35.

5 of 1908.

Costs.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(4) The orders which the Court may make under this provision include an order

that a party must pay––

(a) a proportion of another party’s costs;

(b) a stated amount in respect of another party’s costs;

(d) costs incurred before proceedings have begun;

(e) costs relating to particular steps taken in the proceedings;

(f) costs relating to a distinct part of the proceedings; and

(g) interest on costs from or until a certain date.’.

3. In section 35A of the Code, sub-section (2) shall be omitted.

4. In the First Schedule to the Code,––

(A) in the Order V, in Rule 1, in sub-rule (1), for the second proviso, the

following proviso shall be substituted, namely:––

“Provided further that where the defendant fails to file the written

statement within the said period of thirty days, he shall be allowed to file

the written statement on such other day, as may be specified by the

Court, for reasons to be recorded in writing and on payment of such

costs as the Court deems fit, but which shall not be later than one hundred

twenty days from the date of service of summons and on expiry of one

hundred twenty days from the date of service of summons, the defendant

shall forfeit the right to file the written statement and the Court shall not

allow the written statement to be taken on record.”;

(B) in Order VI,––

(i) after Rule 3, the following Rule shall be inserted, namely:––

“3A. Forms of pleading in Commercial Courts––In a

commercial dispute, where forms of pleadings have been prescribed

under the High Court Rules or Practice Directions made for the

purposes of such commercial disputes, pleadings shall be in such

forms.”;

(ii) after Rule 15, the following Rule shall be inserted, namely:––

‘‘15A. Verification of pleadings in a commercial dispute.—

(1) Notwithstanding anything contained in Rule 15, every

pleading in a commercial dispute shall be verified by an affidavit in

the manner and form prescribed in the Appendix to this Schedule.

(2) An affidavit under sub-rule (1) above shall be signed by

the party or by one of the parties to the proceedings, or by any

other person on behalf of such party or parties who is proved to the

satisfaction of the Court to be acquainted with the facts of the case

and who is duly authorised by such party or parties.

(3) Where a pleading is amended, the amendments must be

verified in the form and manner referred to in sub-rule (1) unless the

Court orders otherwise.

(4) Where a pleading is not verified in the manner provided

under sub-rule (1), the party shall not be permitted to rely on such

pleading as evidence or any of the matters set out therein.

(5) The Court may strike out a pleading which is not verified

by a Statement of Truth, namely, the affidavit set out in the Appendix

to this Schedule.”;

Amendment

of section

35A.

Amendment

of First

Schedule.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

“2A. Where interest is sought in the suit,—

(1) Where the plaintiff seeks interest, the plaint shall contain

a statement to that effect along with the details set out under sub-

rules (2) and (3).

(2) Where the plaintiff seeks interest, the plaint shall state

whether the plaintiff is seeking interest in relation to a commercial

transaction within the meaning of section 34 of the Code of Civil

Procedure, 1908 and, furthermore, if the plaintiff is doing so under

the terms of a contract or under an Act, in which case the Act is to

be specified in the plaint; or on some other basis and shall state the

basis of that.

(3) Pleadings shall also state—

(a) the rate at which interest is claimed;

(b) the date from which it is claimed;

(d) the total amount of interest claimed to the date of

calculation; and

(e) the daily rate at which interest accrues after that

date.”;

(D) in Order VIII,––

(i) in Rule 1, for the proviso, the following proviso shall be substituted,

namely:––

“Provided that where the defendant fails to file the written statement

within the said period of thirty days, he shall be allowed to file the written

statement on such other day, as may be specified by the Court, for reasons

to be recorded in writing and on payment of such costs as the Court

deems fit, but which shall not be later than one hundred twenty days from

the date of service of summons and on expiry of one hundred twenty

days from the date of service of summons, the defendant shall forfeit the

right to file the written statement and the Court shall not allow the written

statement to be taken on record.”;

(ii) after Rule 3, the following Rule shall be inserted, namely:––

“3A. Denial by the defendant in suits before the Commercial Division

of the High Court or the Commercial Court—

(1) Denial shall be in the manner provided in sub-rules (2),

(3), (4) and (5) of this Rule.

(2) The defendant in his written statement shall state which

of the allegations in the particulars of plaint he denies, which

allegations he is unable to admit or deny, but which he requires the

plaintiff to prove, and which allegations he admits.

(3) Where the defendant denies an allegation of fact in a

plaint, he must state his reasons for doing so and if he intends to

put forward a different version of events from that given by the

plaintiff, he must state his own version.

(4) If the defendant disputes the jurisdiction of the Court he

must state the reasons for doing so, and if he is able, give his own

statement as to which Court ought to have jurisdiction.

5 of 1908.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(5) If the defendant disputes the plaintiff’s valuation of the

suit, he must state his reasons for doing so, and if he is able, give

his own statement of the value of the suit.”;

(iii) in Rule 5, in sub-rule (1), after the first proviso, the following proviso

shall be inserted, namely:––

‘‘Provided further that every allegation of fact in the plaint, if not

denied in the manner provided under Rule 3A of this Order, shall be taken

to be admitted except as against a person under disability.” ;

(iv) in Rule 10, after the first proviso, the following proviso shall be

inserted, namely:––

‘‘Provided further that no Court shall make an order to extend the

time provided under Rule 1 of this Order for filing of the written statement.”;

(E) for Order XI of the Code, the following Order shall be substituted, namely:—

“ORDER XI

DISCLOSURE, DISCOVERY AND INSPECTION OF DOCUMENTS IN SUITS BEFORE THE COMMERCIAL

DIVISION OF A HIGH COURT OR A COMMERCIAL COURT

1. (1) Plaintiff shall file a list of all documents and photocopies of all documents,

in its power, possession, control or custody, pertaining to the suit, along with the

plaint, including:—

(a) documents referred to and relied on by the plaintiff in the plaint;

(b) documents relating to any matter in question in the proceedings, in

the power, possession, control or custody of the plaintiff, as on the date of

filing the plaint, irrespective of whether the same is in support of or adverse to

the plaintiff’s case;

and relevant only––

(i) for the cross-examination of the defendant’s witnesses, or

(ii) in answer to any case set up by the defendant subsequent to

the filing of the plaint, or

(iii) handed over to a witness merely to refresh his memory.

(2) The list of documents filed with the plaint shall specify whether the

documents in the power, possession, control or custody of the plaintiff are originals,

office copies or photocopies and the list shall also set out in brief, details of parties to

each document, mode of execution, issuance or receipt and line of custody of each

document.

(3) The plaint shall contain a declaration on oath from the plaintiff that all

documents in the power, possession, control or custody of the plaintiff, pertaining to

the facts and circumstances of the proceedings initiated by him have been disclosed

and copies thereof annexed with the plaint, and that the plaintiff does not have any

other documents in its power, possession, control or custody.

Explanation.––A declaration on oath under this sub-rule shall be contained in

the Statement of Truth as set out in the Appendix.

(4) In case of urgent filings, the plaintiff may seek leave to rely on additional

documents, as part of the above declaration on oath and subject to grant of such

leave by Court, the plaintiff shall file such additional documents in Court, within

thirty days of filing the suit, along with a declaration on oath that the plaintiff has

Disclosure

and discovery

documents.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

produced all documents in its power, possession, control or custody, pertaining to

the facts and circumstances of the proceedings initiated by the plaintiff and that the

plaintiff does not have any other documents, in its power, possession, control or

custody.

(5) The plaintiff shall not be allowed to rely on documents, which were in the

plaintiff’s power, possession, control or custody and not disclosed along with plaint

or within the extended period set out above, save and except by leave of Court and

such leave shall be granted only upon the plaintiff establishing reasonable cause for

non–disclosure along with the plaint.

(6) The plaint shall set out details of documents, which the plaintiff believes to

be in the power, possession, control or custody of the defendant and which the

plaintiff wishes to rely upon and seek leave for production thereof by the said

defendant.

(7) The defendant shall file a list of all documents and photocopies of all

documents, in its power, possession, control or custody, pertaining to the suit, along

with the written statement or with its counterclaim if any, including—

(a) the documents referred to and relied on by the defendant in the written

statement;

(b) the documents relating to any matter in question in the proceeding in

the power, possession, control or custody of the defendant, irrespective of

whether the same is in support of or adverse to the defendant’s defence;

defendants and relevant only––

(i) for the cross-examination of the plaintiff’s witnesses,

(ii) in answer to any case set up by the plaintiff subsequent to the

filing of the plaint, or

(iii) handed over to a witness merely to refresh his memory.

(8) The list of documents filed with the written statement or counterclaim shall

specify whether the documents, in the power, possession, control or custody of the

defendant, are originals, office copies or photocopies and the list shall also set out in

brief, details of parties to each document being produced by the defendant, mode of

execution, issuance or receipt and line of custody of each document.

(9) The written statement or counterclaim shall contain a declaration on oath

made by the deponent that all documents in the power, possession, control or custody

of the defendant, save and except for those set out in sub-rule (7) (c) (iii) pertaining

to the facts and circumstances of the proceedings initiated by the plaintiff or in the

counterclaim, have been disclosed and copies thereof annexed with the written

statement or counterclaim and that the defendant does not have in its power,

possession, control or custody, any other documents.

(10) Save and except for sub-rule (7) (c) (iii), defendant shall not be allowed to

rely on documents, which were in the defendant’s power, possession, control or

custody and not disclosed along with the written statement or counterclaim, save and

except by leave of Court and such leave shall be granted only upon the defendant

establishing reasonable cause for non-disclosure along with the written statement or

counterclaim.

(11) The written statement or counterclaim shall set out details of documents in

the power, possession, control or custody of the plaintiff, which the defendant wishes

to rely upon and which have not been disclosed with the plaint, and call upon the

plaintiff to produce the same.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(12) Duty to disclose documents, which have come to the notice of a party,

shall continue till disposal of the suit.

2. (1) In any suit the plaintiff or defendant by leave of the court may deliver

interrogatories in writing for the examination of the opposite parties or any one or

more of such parties, and such interrogatories when delivered shall have a note at the

foot thereof stating which of such interrogatories each of such persons is required to

answer:

Provided that no party shall deliver more than one set of interrogatories to the

same party without an order for that purpose:

Provided further that interrogatories which do not relate to any matters in

question in the suit shall be deemed irrelevant, notwithstanding that they might be

admissible on the oral cross-examination of a witness.

(2) On an application for leave to deliver interrogatories, the particular

interrogatories proposed to be delivered shall be submitted to the court, and that

court shall decide within seven days from the day of filing of the said application, in

deciding upon such application, the court shall take into account any offer, which

may be made by the party sought to be interrogated to deliver particulars, or to make

admissions, or to produce documents relating to the matters in question, or any of

them, and leave shall be given as to such only of the interrogatories submitted as the

court shall consider necessary either for disposing fairly of the suit or for saving

costs.

(3) In adjusting the costs of the suit inquiry shall at the instance of any party be

made into the propriety of exhibiting such interrogatories, and if it is the opinion of

the taxing officer or of the court, either with or without an application for inquiry, that

such interrogatories have been exhibited unreasonably, vexatiously, or at improper

length, the costs occasioned by the said interrogatories and the answers thereto

shall be paid in any event by the party in fault.

(4) Interrogatories shall be in the form provided in Form No. 2 in Appendix C to

the Code of Civil Procedure, 1908, with such variations as circumstances may require.

(5) Where any party to a suit is a corporation or a body of persons, whether

incorporated or not, empowered by law to sue or be sued, whether in its own name or

in the name of any officer of other person, any opposite party may apply for an order

allowing him to deliver interrogatories to any member or officer of such corporation or

body, and an order may be made accordingly.

(6) Any objection to answering any interrogatory on the ground that it is

scandalous or irrelevant or not exhibited bona fide for the purpose of the suit, or that

the matters inquired into are not sufficiently material at that stage, or on the ground of

privilege or any other ground may be taken in the affidavit in answer.

(7) Any interrogatories may be set aside on the ground that they have been

exhibited unreasonably or vexatiously, or struck out on the ground that they are

prolix, oppressive, unnecessary or scandalous and any application for this purpose

may be made within seven days after service of the interrogatories.

(8) Interrogatories shall be answered by affidavit to be filed within ten days, or

within such other time as the court may allow.

(9) An affidavit in answer to interrogatories shall be in the form provided in

Form No. 3 in Appendix C to the Code of Civil Procedure, 1908, with such variations as

circumstances may require.

(10) No exceptions shall be taken to any affidavit in answer, but the sufficiency

or otherwise of any such affidavit objected to as insufficient shall be determined by

the court.

5 of 1908.

Discovery by

interrogatories.

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[PART II—

(11) Where any person interrogated omits to answer, or answers insufficiently,

the party interrogating may apply to the court for an order requiring him to answer, or

to answer further, as the case may be, and an order may be made requiring him to

answer, or to answer further, either affidavit or by viva voce examination, as the court

may direct.

3. (1) All parties shall complete inspection of all documents disclosed within

thirty days of the date of filing of the written statement or written statement to the

counterclaim, whichever is later. The Court may extend this time limit upon application

at its discretion, but not beyond thirty days in any event.

(2) Any party to the proceedings may seek directions from the Court, at any

stage of the proceedings, for inspection or production of documents by the other

party, of which inspection has been refused by such party or documents have not

been produced despite issuance of a notice to produce.

(3) Order in such application shall be disposed of within thirty days of filing

such application, including filing replies and rejoinders (if permitted by Court) and

hearing.

(4) If the above application is allowed, inspection and copies thereof shall be

furnished to the party seeking it, within five days of such order.

(5) No party shall be permitted to rely on a document, which it had failed to

disclose or of which inspection has not been given, save and except with leave of

Court.

(6) The Court may impose exemplary costs against a defaulting party, who

wilfully or negligently failed to disclose all documents pertaining to a suit or essential

for a decision therein and which are in their power, possession, control or custody or

where a Court holds that inspection or copies of any documents had been wrongfully

or unreasonably withheld or refused.

4. (1) Each party shall submit a statement of admissions or denials of all

documents disclosed and of which inspection has been completed, within fifteen

days of the completion of inspection or any later date as fixed by the Court.

(2) The statement of admissions and denials shall set out explicitly, whether

such party was admitting or denying:—

(a) correctness of contents of a document;

(b) existence of a document;

(d) issuance or receipt of a document;

(e) custody of a document.

Explanation.––A statement of admission or denial of the existence of a document

made in accordance with sub-rule (2)(b) shall include the admission or denial of the

contents of a document.

(3) Each party shall set out reasons for denying a document under any of the

above grounds and bare and unsupported denials shall not be deemed to be denials

of a document and proof of such documents may then be dispensed with at the

discretion of the Court.

(4) Any party may however submit bare denials for third party documents of

which the party denying does not have any personal knowledge of, and to which the

party denying is not a party to in any manner whatsoever.

Inspection.

Admission

and denial of

documents.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(5) An Affidavit in support of the statement of admissions and denials shall be

filed confirming the correctness of the contents of the statement.

(6) In the event that the Court holds that any party has unduly refused to admit

a document under any of the above criteria,– costs (including exemplary costs) for

deciding on admissibility of a document may be imposed by the Court on such party.

(7) The Court may pass orders with respect to admitted documents including

for waiver of further proof thereon or rejection of any documents.

5. (1) Any party to a proceeding may seek or the Court may order, at any time

during the pendency of any suit, production by any party or person, of such documents

in the possession or power of such party or person, relating to any matter in question

in such suit.

(2) Notice to produce such document shall be issued in the Form provided in

Form No. 7 in Appendix C to the Code of Civil Procedure, 1908.

(3) Any party or person to whom such notice to produce is issued shall be

given not less than seven days and not more than fifteen days to produce such

document or to answer to their inability to produce such document.

(4) The Court may draw an adverse inference against a party refusing to produce

such document after issuance of a notice to produce and where sufficient reasons for

such non–production are not given and order costs.

6. (1) In case of disclosures and inspection of Electronic Records (as defined in

the Information Technology Act, 2000), furnishing of printouts shall be sufficient

compliance of the above provisions.

(2) At the discretion of the parties or where required (when parties wish to rely

on audio or video content), copies of electronic records may be furnished in electronic

form either in addition to or in lieu of printouts.

(3) Where Electronic Records form part of documents disclosed, the declaration

on oath to be filed by a party shall specify––

(a) the parties to such Electronic Record;

(b) the manner in which such electronic record was produced and by

whom;

each such electronic record;

(d) the source of such electronic record and date and time when the

electronic record was printed;

(e) in case of email ids, details of ownership, custody and access to such

email ids;

(f) in case of documents stored on a computer or computer resource

(including on external servers or cloud), details of ownership, custody and

access to such data on the computer or computer resource;

(g) deponent’s knowledge of contents and correctness of contents;

(h) whether the computer or computer resource used for preparing or

receiving or storing such document or data was functioning properly or in case

of malfunction that such malfunction did not affect the contents of the document

stored;

(i) that the printout or copy furnished was taken from the original computer

or computer resource.

Production of

documents.

5 of 1908.

Electronic

records.

21 of 2000.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(4) The parties relying on printouts or copy in electronic form, of any electronic

records, shall not be required to give inspection of electronic records, provided a

declaration is made by such party that each such copy, which has been produced, has

been made from the original electronic record.

(5) The Court may give directions for admissibility of Electronic Records at any

stage of the proceedings.

(6) Any party may seek directions from the Court and the Court may of its

motion issue directions for submission of further proof of any electronic record

including metadata or logs before admission of such electronic record.

7. For avoidance of doubt, it is hereby clarified that Order XIII Rule 1, Order VII

Rule 14 and Order VIII Rule 1A of the Code of Civil Procedure, 1908 shall not apply to

suits or applications before the Commercial Divisions of High Court or Commercial

Courts.”.

5. After Order XIII of the Code, the following Order shall be inserted, namely:—

‘ORDER XIII-A

SUMMARY JUDGMENT

1. (1) This Order sets out the procedure by which Courts may decide a claim

pertaining to any Commercial Dispute without recording oral evidence.

(2) For the purposes of this Order, the word “claim” shall include—

(a) part of a claim;

(b) any particular question on which the claim (whether in whole or in

part) depends; or

(3) Notwithstanding anything to the contrary, an application for summary

judgment under this Order shall not be made in a suit in respect of any Commercial

Dispute that is originally filed as a summary suit under Order XXXVII.

2. An applicant may apply for summary judgment at any time after summons

has been served on the defendant:

Provided that, no application for summary judgment may be made by such

applicant after the Court has framed the issues in respect of the suit.

3. The Court may give a summary judgment against a plaintiff or defendant on

a claim if it considers that––

(a) the plaintiff has no real prospect of succeeding on the claim or the

defendant has no real prospect of successfully defending the claim, as the case

may be; and

(b) there is no other compelling reason why the claim should not be

disposed of before recording of oral evidence.

4. (1) An application for summary judgment to a Court shall, in addition to any

other matters the applicant may deem relevant, include the matters set forth in

sub-clauses (a) to (f) mentioned hereunder:—

(a) the application must contain a statement that it is an application for

summary judgment made under this Order;

(b) the application must precisely disclose all material facts and identify

the point of law, if any;

Certain

provisions of

the Code of

Civil

Procedure,

1908 not to

apply.

Insertion of

new Order

XIII-A.

Scope of and

classes of suits

to which this

Order applies.

Stage for

application

for summary

judgment.

Procedure.

Grounds for

summary

judgment.

5 of 1908.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

the applicant must,––

(i) include such documentary evidence in its application, and

(ii) identify the relevant content of such documentary evidence on

which the applicant relies;

(d) the application must state the reason why there are no real prospects

of succeeding on the claim or defending the claim, as the case may be;

(e) the application must state what relief the applicant is seeking and

briefly state the grounds for seeking such relief.

(2) Where a hearing for summary judgment is fixed, the respondent must be

given at least thirty days’ notice of:—

(a) the date fixed for the hearing; and

(b) the claim that is proposed to be decided by the Court at such hearing.

(3) The respondent may, within thirty days of the receipt of notice of application

of summary judgment or notice of hearing (whichever is earlier), file a reply addressing

the matters set forth in clauses (a) to (f) mentioned hereunder in addition to any other

matters that the respondent may deem relevant:—

(a) the reply must precisely––

(i) disclose all material facts;

(ii) identify the point of law, if any; and

(iii) state the reasons why the relief sought by the applicant should

not be granted;

(b) in the event the respondent seeks to rely upon any documentary

evidence in its reply, the respondent must—

(i) include such documentary evidence in its reply; and

(ii) identify the relevant content of such documentary evidence on

which the respondent relies;

succeeding on the claim or defending the claim, as the case may be;

(d) the reply must concisely state the issues that should be framed for

trial;

(e) the reply must identify what further evidence shall be brought on

record at trial that could not be brought on record at the stage of summary

judgment; and

(f) the reply must state why, in light of the evidence or material on record

if any, the Court should not proceed to summary judgment.

5. (1) Notwithstanding anything in this Order, if the respondent in an application

for summary judgment wishes to rely on additional documentary evidence during the

hearing, the respondent must:—

(a) file such documentary evidence; and

(b) serve copies of such documentary evidence on every other party to

the application at least fifteen days prior to the date of the hearing.

Evidence for

hearing of

summary

judgment.

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[PART II—

(2) Notwithstanding anything in this Order, if the applicant for summary judgment

wishes to rely on documentary evidence in reply to the defendant’s documentary

evidence, the applicant must:—

(a) file such documentary evidence in reply; and

(b) serve a copy of such documentary evidence on the respondent at

least five days prior to the date of the hearing.

(3) Notwithstanding anything to the contrary, sub-rules (1) and (2) shall not

require documentary evidence to be:—

(a) filed if such documentary evidence has already been filed; or

(b) served on a party on whom it has already been served.

6. (1) On an application made under this Order, the Court may make such orders

that it may deem fit in its discretion including the following:—

(a) judgment on the claim;

(b) conditional order in accordance with Rule 7 mentioned hereunder;

(d) dismissing part of the claim and a judgment on part of the claim that is

not dismissed;

(e) striking out the pleadings (whether in whole or in part); or

(f) further directions to proceed for case management under Order XV-A.

(2) Where the Court makes any of the orders as set forth in sub-rule (1) (a) to (f),

the Court shall record its reasons for making such order.

7. (1) Where it appears to the Court that it is possible that a claim or defence

may succeed but it is improbable that it shall do so, the Court may make a conditional

order as set forth in Rule 6 (1) (b).

(2) Where the Court makes a conditional order, it may:—

(a) make it subject to all or any of the following conditions:—

(i) require a party to deposit a sum of money in the Court;

(ii) require a party to take a specified step in relation to the claim or

defence, as the case may be;

(iii) require a party, as the case may be, to give such security or

provide such surety for restitution of costs as the Court deems fit and

proper;

(iv) impose such other conditions, including providing security for

restitution of losses that any party is likely to suffer during the pendency

of the suit, as the Court may deem fit in its discretion; and

(b) specify the consequences of the failure to comply with the conditional

order, including passing a judgment against the party that have not complied

with the conditional order.

8. The Court may make an order for payment of costs in an application for

summary judgment in accordance with the provisions of sections 35 and 35A of the

Code.’.

6. Order XV of the Code shall be omitted.

Orders that

may be made

by Court.

Conditional

order.

Power to

impose costs.

Omission of

Order XV.

SEC. 2]

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7. After Order XV of the Code, the following Order shall be inserted, namely:—

“ORDER XV-A

CASE MANAGEMENT HEARING

1. The Court shall hold the first Case Management Hearing, not later than four

weeks from the date of filing of affidavit of admission or denial of documents by all

parties to the suit.

2. In a Case Management Hearing, after hearing the parties, and once it finds

that there are issues of fact and law which require to be tried, the Court may pass an

order––

(a) framing the issues between the parties in accordance with Order XIV

of the Code of Civil Procedure, 1908 after examining pleadings, documents and

documents produced before it, and on examination conducted by the Court

under Rule 2 of Order X, if required;

(b) listing witnesses to be examined by the parties;

(d) fixing the dates on which evidence of the witnesses of the parties to

be recorded;

(e) fixing the date by which written arguments are to be filed before the

Court by the parties;

(f) fixing the date on which oral arguments are to be heard by the Court; and

(g) setting time limits for parties and/or their advocates to address oral

arguments.

3. In fixing dates or setting time limits for the purposes of Rule 2 of this Order,

the Court shall ensure that the arguments are closed not later than six months from

the date of the first Case Management Hearing.

4. The Court shall, as far as possible, ensure that the recording of evidence

shall be carried on, on a day-to-day basis until the cross-examination of all the

witnesses is complete.

5. The Court may, if necessary, also hold Case Management Hearings anytime

during the trial to issue appropriate orders so as to ensure adherence by the parties to

the dates fixed under Rule 2 and facilitate speedy disposal of the suit.

6. (1) In any Case Management Hearing held under this Order, the Court shall

have the power to—

(a) prior to the framing of issues, hear and decide any pending application

filed by the parties under Order XIII-A;

(b) direct parties to file compilations of documents or pleadings relevant

and necessary for framing issues;

or Court order if it finds sufficient reason to do so;

(d) adjourn or bring forward a hearing if it finds sufficient reason to do so;

(e) direct a party to attend the Court for the purposes of examination

under Rule 2 of Order X;

(f) consolidate proceedings;

Insertion of

Order XV-A.

First Case

Management

Hearing.

Orders to be

passed in a

Case Manage-

ment

Hearing.

Time limit

for the

completion

of a trial.

Recording of

oral evidence

on a day-to-

day basis.

Case

Management

Hearings

during a trial.

Powers of the

Court in a

Case

Management

Hearing.

5 of 1908.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(g) strike off the name of any witness or evidence that it deems irrelevant

to the issues framed;

(h) direct a separate trial of any issue;

(i) decide the order in which issues are to be tried;

(j) exclude an issue from consideration;

(k) dismiss or give judgment on a claim after a decision on a preliminary

issue;

(l) direct that evidence be recorded by a Commission where necessary in

accordance with Order XXVI;

(m) reject any affidavit of evidence filed by the parties for containing

irrelevant, inadmissible or argumentative material;

(n) strike off any parts of the affidavit of evidence filed by the parties

containing irrelevant, inadmissible or argumentative material;

(o) delegate the recording of evidence to such authority appointed by

the Court for this purpose;

(p) pass any order relating to the monitoring of recording the evidence by

a commission or any other authority;

(q) order any party to file and exchange a costs budget;

(r) issue directions or pass any order for the purpose of managing the

case and furthering the overriding objective of ensuring the efficient disposal

of the suit.

(2) When the Court passes an order in exercise of its powers under this Order,

it may—

(a) make it subject to conditions, including a condition to pay a sum of

money into Court; and

(b) specify the consequence of failure to comply with the order or a

condition.

(3) While fixing the date for a Case Management Hearing, the Court may direct

that the parties also be present for such Case Management Hearing, if it is of the view

that there is a possibility of settlement between the parties.

7. (1) The Court shall not adjourn the Case Management Hearing for the sole

reason that the advocate appearing on behalf of a party is not present:

Provided that an adjournment of the hearing is sought in advance by moving

an application, the Court may adjourn the hearing to another date upon the payment

of such costs as the Court deems fit, by the party moving such application.

(2) Notwithstanding anything contained in this Rule, if the Court is satisfied

that there is a justified reason for the absence of the advocate, it may adjourn the

hearing to another date upon such terms and conditions it deems fit.

8. Where any party fails to comply with the order of the Court passed in a Case

Management Hearing, the Court shall have the power to—

(a) condone such non-compliance by payment of costs to the Court;

(b) foreclose the non-compliant party’s right to file affidavits, conduct

cross-examination of witnesses, file written submissions, address oral arguments

or make further arguments in the trial, as the case may be, or

Adjournment

of Case

Management

Hearing.

Consequen-

ces of non-

compliance

with orders.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

wilful, repeated and the imposition of costs is not adequate to ensure

compliance.”.

8. In Order XVIII of the Code, in Rule 2, for sub-rules (3A), (3B), (3C), (3D), (3E)

and (3F), the following shall be substituted, namely:––

“(3A) A party shall, within four weeks prior to commencing the oral

arguments, submit concisely and under distinct headings written arguments in

support of his case to the Court and such written arguments shall form part of

the record.

(3B) The written arguments shall clearly indicate the provisions of the

laws being cited in support of the arguments and the citations of judgments

being relied upon by the party and include copies of such judgments being

relied upon by the party.

(3C) A copy of such written arguments shall be furnished simultaneously

to the opposite party.

(3D) The Court may, if it deems fit, after the conclusion of arguments,

permit the parties to file revised written arguments within a period of not more

than one week after the date of conclusion of arguments.

(3E) No adjournment shall be granted for the purpose of filing the written

arguments unless the Court, for reasons to be recorded in writing, considers it

necessary to grant such adjournment.

(3F) It shall be open for the Court to limit the time for oral submissions

having regard to the nature and complexity of the matter.”.

9. In Order XVIII of the Code, in Rule 4, after sub-rule (1), the following sub-rules

shall be inserted, namely:––

“(1A) The affidavits of evidence of all witnesses whose evidence is

proposed to be led by a party shall be filed simultaneously by that party at the

time directed in the first Case Management Hearing.

(1B) A party shall not lead additional evidence by the affidavit of any

witness (including of a witness who has already filed an affidavit) unless

sufficient cause is made out in an application for that purpose and an order,

giving reasons, permitting such additional affidavit is passed by the Court.

(1C) A party shall however have the right to withdraw any of the affidavits

so filed at any time prior to commencement of cross-examination of that witness,

without any adverse inference being drawn based on such withdrawal:

Provided that any other party shall be entitled to tender as evidence and

rely upon any admission made in such withdrawn affidavit.”.

10. In Order XIX of the Code, after Rule 3, the following Rules shall be inserted,

namely:––

“4. (1) The Court may, by directions, regulate the evidence as to issues

on which it requires evidence and the manner in which such evidence may be

placed before the Court.

(2) The Court may, in its discretion and for reasons to be recorded in

writing, exclude evidence that would otherwise be produced by the parties.”.

5. A Court may, in its discretion, for reasons to be recorded in writing––

(i) redact or order the redaction of such portions of the affidavit of

examination-in-chief as do not, in its view, constitute evidence; or

(ii) return or reject an affidavit of examination-in-chief as not

constituting admissible evidence.

Amendment

of Order

XVIII.

Amendment

of Order

XVIII.

Amendment

to Order

XIX.

Court may

control

evidence.

Redacting or

rejecting

evidence.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

6. An affidavit must comply with the form and requirements set forth

below:—

(a) such affidavit should be confined to, and should follow the

chronological sequence of, the dates and events that are relevant for

proving any fact or any other matter dealt with;

(b) where the Court is of the view that an affidavit is a mere

reproduction of the pleadings, or contains the legal grounds of any party’s

case, the Court may, by order, strike out the affidavit or such parts of the

affidavit, as it deems fit and proper;

confined to a distinct portion of the subject;

(d) an affidavit shall state—

(i) which of the statements in it are made from the deponent’s

own knowledge and which are matters of information or belief; and

(ii) the source for any matters of information or belief;

(e) an affidavit should—

(i) have the pages numbered consecutively as a separate

document (or as one of several documents contained in a file);

(ii) be divided into numbered paragraphs;

(iii) have all numbers, including dates, expressed in figures; and

(iv) if any of the documents referred to in the body of the

affidavit are annexed to the affidavit or any other pleadings, give

the annexures and page numbers of such documents that are relied

upon.”.

11. In Order XX of the Code, for Rule 1, the following Rule shall be substituted,

namely:––

“(1) The Commercial Court, Commercial Division, or Commercial Appellate

Division, as the case may be, shall, within ninety days of the conclusion of

arguments, pronounce judgment and copies thereof shall be issued to all the

parties to the dispute through electronic mail or otherwise.”.

Format and

guidelines of

affidavit of

evidence.

Amendment

of Order XX.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

APPENDIX

STATEMENT OF TRUTH

[Under First Schedule, Order VI-Rule 15A and Order XI-Rule (3)]

STATEMENT OF TRUTH BY [party position and name of party in full] I, the deponent

above-named, do hereby solemnly affirm and declare as under:

1. I am [name of party and relevant details] in the above suit and competent to swear

this affidavit.

2. I am sufficiently conversant with the facts of the case and have also examined all

relevant documents and records in relation thereto.

3. I say the statements made in [mention specific paragraph numbers] paragraphs are

true to my knowledge and statements made in [mention specific paragraph numbers]

paragraphs are based on information received which I believe to be correct and statements

made in [mention specific paragraph numbers] are based on legal advice.

4. I say that there is no false statement or concealment of any material fact, document

or record and I have included information that is according to me, relevant for the present

suit.

5. I say that all documents in my power, possession, control or custody, pertaining to

the facts and circumstances of the proceedings initiated by me have been disclosed and

copies thereof annexed with the plaint, and that I do not have any other documents in my

power, possession, control or custody.

6. I say that the above-mentioned pleading comprises of a total of [number of pages]

pages, each of which has been signed by me.

7. I state that the Annexures hereto are true copies of the documents referred to and

relied upon by me.

8. I say that I am aware that for any false statement or concealment, I shall be liable for

action taken against me under the law.

Place:

Date:

VERIFICATION

The statements made above are true to my knowledge.

Verified at [place] on this [date]

DEPONENT

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

STATEMENT OF OBJECTS AND REASONS

The proposal to provide for speedy disposal of high value commercial disputes has

been under consideration of the Government for quite some time. The high vlaue commercial

disputes involve complex facts and question of law. Therefore, there is a need to provide for

an independent mechanism for their early resolution. Early resolution of commercial disputes

shall create a positive image to the investor world about the independent and responsive

Indian legal system.

2. The Law Commission of India in its 188th Report had recommended the constitution

of the Commercial Division in each High Court. Accordingly, the Commercial Division of

High Courts Bill, 2009 was introduced and passed by the Lok Sabha. However, during the

discussion of the aforesaid Bill in the Rajya Sabha, some Members raised certain issues and

in view thereof, the matter was again referred to the Law Commission of India for its examination.

The Law Commission of India, in its 253rd Report, has recommended for the establishment

of the Commercial Courts, the Commercial Division and the Commercial Appellate Divisions

in the High Courts for disposal of commercial disputs of specified value.

3. Based on the recommendations of the Law Commission made in its 253rd Report, a

Bill namely, the Commerical Courts, Commercial Division and Commercial Appellate Division

of High Courts Bill, 2015 was introduced in the Rajya Sabha on 24th April, 2015 and the same

is at present under the consideration of the Department related Parliamentary Standing

Committee on Personnel, Public Grievances, Law and Justice. As provided in the said Bill,

2015, all the suits, appeals or applications related to commercial disputes of specified value

i.e. one crore or above, are to be dealt with by the Commercial Courts or the Commcericial

Division of the High Court.

4. By way of the Delhi High Court (Amendment) Act, 2015, the ordinary original

jurisdiction of the Delhi High Court has been increased from rupees twenty lakhs to rupees

two crore and there is a provision for transfer of pending case from the Delhi High Court to

District Courts. On the enactment of Commercial Courts, Commercial Division and Commercial

Appellate Division of High Courts Bill, 2015, some of the Commercial Disputes which are to

be transferred to the District Courts from the Delhi High Court may again be required to be

transferred to the Commercial Division of the High Court of Delhi. It would cause delay in the

disposal of cases as well as inconvenience to the parties and counsels and may also result in

confusion. Therefore, it became necessary that the provisions of the Delhi High Court

(Amendment) Act, 2015 and establishment of the Commercial Courts and Commercial Division

of the High Courts may be brought into force simultaneously.

5. As Parliament was not in session and urgent steps were needed to be taken, the

Commercial Courts, Commercial Division and Commercial Appellate Division in High Courts

Ordinance, 2015 was promulgated on 23rd October, 2015.

6. It is proposed to introduced the Commercial Courts, Commercial Division and

Commercial Appellate Division of High Courts Bill, 2015 to replace the Commercial Courts,

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

which, inter alia, provides for the following namely:—

(i) constitution of the Commercial Courts at District level except for the territory

over which any High Court is having ordinary original civil jurisdiction;

(ii) constitution of the Commercial Divisions in those High Courts which are

already exercising ordinary civil jurisdiction and they shall have territorial jurisdiction

over such areas on which it has original jurisdiction;

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(iii) constitution of the Commercial Appellate Division in all the High Courts to

hear the appeals against the Orders of the Commercial Courts and the Orders of the

Commercial Division of the High Court;

(iv) the minimum pecuniary jurisdiction of such Commercial Courts and

Commercial Division is proposed as one crore rupees; and

(v)

to amend the Code of Civil Procedure, 1908 as applicable to the Commercial

Courts and Commercial Divisions which shall prevail over the existing High Courts

Rules and other provisions of the Code of Civil Procedure, 1908 so as to improve the

efficiency and reduce delays in disposal of commercial cases.

7. The proposed Bill shall accelerate economic growth, improve the international image

of the Indian Justice delivery system, and the faith of the investor world in the legal culture

of the nation.

8. The Bill seeks to replace the aforesaid Ordinance.

NEW DELHI;

D.V. SADANANDA GOWDA.

The 25th November, 2015.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

BILL NO. 265 OF 2015

A Bill further to amend the Payment of Bonus Act, 1965.

BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:—

1. (1) This Act may be called the Payment of Bonus (Amendment) Act, 2015.

(2) It shall be deemed to have come into force on the 1st day of April, 2015.

2. In section 2 of the Payment of Bonus Act, 1965 (hereinafter referred to as the

principal Act), in clause (13), for the words ‘‘ten thousand rupees’’, the words ‘‘twenty-one

thousand rupees’’ shall be substituted.

3. In section 12 of the principal Act,—

(i) for the words ‘‘three thousand and five hundred rupees’’ at both the places

where they occur, the words ‘‘seven thousand rupees or the minimum wage for the

scheduled employment, as fixed by the appropriate Government, whichever is higher’’

shall respectively be substituted;

Short title

and

commencement.

Amendment

of section 2.

Amendment

of section 12.

21 of 1965.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

STATEMENT OF OBJECTS AND REASONS

The Payment of Bonus Act, 1965 (the Act) was enacted with a view to provide for the

payment of bonus to persons employed in certain establishments on the basis of profits or

on the basis of production or productivity and for matters connected therewith. Thereafter,

the Act was amended several times and last amended in the year 2007.

2. According to clause (13) of section 2 of the Act, employee means any person (other

than an apprentice) employed on a salary or wage not exceeding ten thousand rupees per

mensem in any industry to do any skilled or unskilled, manual, supervisory, managerial,

administrative, technical or clerical work for hire or reward, whether the terms of employment

be express or implied. However, according to section 12 of the Act, the bonus payable to an

employee whose salary or wage exceeds three thousand and five hundred rupees per mensem

shall be calculated as if his salary or wage were three thousand and five hundred rupees per

mensem.

3. The Central Government has been receiving representations from trade unions,

individuals and various associations for enhancement or for removal of the above ceilings.

After due consideration, the Central Government has decided to enhance the eligibility limit

for payment of bonus from ten thousand rupees per mensem to twenty-one thousand rupees

per mensem. The Central Government has also decided to raise the calculation ceiling from

three thousand and five hundred rupees per mensem to seven thousand rupees per mensem

or the minimum wage for the scheduled employment, as fixed by the appropriate Government,

whichever is higher.

4. Section 38 of the Act empowers the Central Government to make rules for the

purpose of giving effect to the provisions of the Act. Since, the said section does not

provide for the previous publication of the rules, it is proposed to insert an enabling provision

providing for previous publication for the purpose of inviting objections and suggestions in

tune with the other legislations pertaining to welfare of labour.

5. The Bill seeks to achieve the above objectives.

NEW DELHI;

BANDARU DATTATREYA.

The 30th November, 2015.

————

PRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OF THE CONSTITUTION

OF INDIA

[Copy of letter No. F.No. S-33021/2/2015-WB (Pt) dated 27 November, 2015 from

Shri Bandaru Dattatreya, Minister of State for Labour and Employment to the Secretary

General, Lok Sabha]

The President, having been informed of the subject matter of the Payment of Bonus

(Amendment) Bill, 2015, recommends the introduction and consideration of the Bill in the

House under clauses (1) and (3) of article 117 of the Constitution of India.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

FINANCIAL MEMORANDUM

Clause 2 of the Bill seeks to amend clause (13) of section 2 of the Payment of Bonus

Act, 1965 (the Act), to enhance the eligibility limit for the payment of bonus from ten thousand

rupees per mensem to twenty-one thousand rupees per mensem. Clause 3 of the Bill seeks to

amend section 12 of the Act for enhancing the ceiling from three thousand and five hundred

rupees per mensem to seven thousand rupees per mensem or the minimum wage for the

scheduled employment, as fixed by the appropriate Government, whichever is higher.

2. In view of above, if calculation ceiling is adopted by the Government of India, the

additional approximate expenditure for payment of ad hoc bonus to the employees of the

establishments under the Central Government and employees belonging to Railways and

Posts (Productivity Linked Bonus) would involve to the extent of three thousand one hundred

and twenty-eight crores of rupees.

3. The Bill does not involve any other recurring or non-recurring expenditure.

————

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 4 of the Bill seeks to amend sub-section (1) of section 38 of the Payment of

Bonus Act, 1965 (the Act) so as to empower the Central Government to make rules, subject to

the condition of previous publication, by notification in the Official Gazette, to carry out the

provisions of this Act.

2. The rules made under the proposed legislation shall be required to be laid before

both Houses of Parliament.

3. The matters in respect of which said rules may be made are matters of procedure and

administrative detail and it is not practicable to provide for them in the Bill itself. The delegation

of legislative power is, therefore, of a normal character.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

BILL NO. 266 OF 2015

A Bill further to amend the Industries (Development and Regulation) Act, 1951.

BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:—

1. This Act may be called the Industries (Development and Regulation) Amendment

Act, 2015.

2. In the Industries (Development and Regulation) Act, 1951 (hereinafter referred to

as the principal Act), after section 29D, the following section shall be inserted, namely:—

“29E. Notwithstanding anything contained in any judgment, decree or order of

any court, tribunal or other authority, any power exercised, or action taken or done or

purported to have been taken or done, by the Central Government or, as the case may

be, the State Government, shall be deemed to be, and shall always deemed to have

Short title.

Insertion of

new section

29E.

65 of 1951.

Validation.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

STATEMENT OF OBJECTS AND REASONS

The Industries (Development and Regulation) Act, 1951 was enacted to provide for

the development and regulation of certain industries. Section 2 of the said Act declares that

it is expedient in the public interest that the Union should take under its control the industries

specified in the First Schedule to the Act. Any industry engaged in the manufacture or

production of any of the articles mentioned under each heading or sub-headings of the First

Schedule to the Act would thus be under the control of the Union. The heading 26 of the First

Schedule to the Act provides for Fermentation Industries which includes Alcohol and other

products of fermentation industries.

2. According to the distribution of legislative powers contained in the Seventh Schedule

to the constitution, entry 8 of List II—State List enumerates the subject matter “Intoxicating

liquors, that is to say, the production, manufacture, possession, transport, purchase and sale

of intoxicating liquors” and entry 24 thereof, enumerates the subject matter “Industries

subject to the provisions of entries 7 and 52 of List I”. While entry 7 of List I—Union List

provides for the subject matter “Industries declared by Parliament by law to be necessary for

the purpose of defence or for the prosecution of war”, entry 52 thereof, provides for

“Industries, the control of which by the Union is declared by Parliament by law to be expedient

in the public interest”. Thus, the authority to regulate the subject matter ‘‘intoxicating liquors’’

appears to vest both with the Union and the States. This has resulted in prolonged litigation.

3. The Supreme Court of India, in the case of Bihar Distillery and another versus Union

of India and others (AIR 1997 SC 1208), has held that in the interest of proper delineation of

the spheres of the Union and the States, the line of demarcation should be drawn at the stage

of clearance or removal of the rectified spirit. Where the removal or clearance is for industrial

purposes (other than the manufacture of potable liquor), the levy of duties of excise and all

other control shall be with the Union and where the removal or clearance is for obtaining or

manufacturing potable liquors, the levy of duties of excise and all other control shall be with

the States.

4. In the backdrop of the above judgment of the Supreme Court, the Law Commission

of India had recommended in its 158th Report that the heading 26 of the First Schedule to the

Act be substituted as “Fermentation Industries but not including Alcohol”.

5. The recommendation of the Law Commission of India was examined in depth by the

Government. If the subject “Alcohol” is taken out of the First Schedule to the Act, both

industrial alcohol and potable alcohol would come under the purview of the State Government

which is not in consonance with the judgment of the Supreme Court. Moreover, the effect of

implementation of the recommendation of the Law Commission would be that the subject

“Alcohol” which covers both industrial alcohol and potable alcohol would no longer be a

Central subject.

6. Therefore, it is proposed to amend the First Schedule to the Industries (Development

and Regulation) Act, 1951 by substituting the heading 26 thereof, as “26 Fermentation

Industries (other than Potable Alcohol)”, so that it would be in conformity with the judgment

of the Supreme Court and also ensure that the industries engaged in the manufacture of

alcohol meant for potable purposes shall be under the total and exclusive control of States in

all respects. The Central Government would continue to be responsible for formulating

policy and regulating foreign collaboration (foreign direct investment and foreign technology

collaboration agreements) for all products of fermentation industries, including industrial

alcohol and potable alcohol.

7. The Bill seeks to achieve the above objectives.

NEW DELHI;

NIRMALA SITHARAMAN.

The 18th November, 2015.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

BILL NO. 264 OF 2015

A Bill further to amend the Atomic Energy Act, 1962.

BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:—

1. (1) This Act may be called the Atomic Energy (Amendment) Act, 2015.

(2) It shall come into force on such date as the Central Government may, by notification

in the Official Gazette, appoint.

2. In section 2 of the Atomic Energy Act, 1962 (hereinafter referred to as the principal

Act), in sub-section (1), for clause (bb), the following clause shall be substituted,

namely:—

‘(bb) “Government company” means a company in which—

(i) not less than fifty-one per cent. of the paid-up share capital is held by

the Central Government; or

Short title

and com-

mencement.

Amendment

of section 2.

33 of 1962.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(ii) the whole of the paid-up share capital is held by one or more of the

companies specified in sub-clause (i) and which, by its articles of association,

empowers the Central Government to constitute and reconstitute its Board of

Directors;’.

3. In the principal Act, in section 14, after sub-section (1), the following sub-sections

shall be inserted, namely:—

“(1A) No licence under sub-clause (c) of clause (ii) of sub-section (1) shall be

granted to a person other than a Department of the Central Government or any

authority or an institution or a corporation established by the Central Government,

or a Government company.

(1B) Any licence granted to a Government company under sub-section (1)

shall stand cancelled in case the licensee ceases to be a Government company and,

notwithstanding anything contained in any other law for the time being in force, all

assets thereof shall vest in the Central Government free from any liability and the

Central Government shall take such measures for safe operation of the plant and

disposal of nuclear material so vested in it, as may be necessary in accordance with

the provisions of section 3.”.

Amendment

of section 14.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

STATEMENT OF OBJECTS AND REASONS

The Atomic Energy Act, 1962 empowers the Central Government to produce, develop,

use and dispose of atomic energy either by itself or through any authority or corporation

established by it or by a Government company and carry out research in any matters

connected therewith.

2. At present, only two Public Sector Undertakings (PSUs), namely, Nuclear Power

Corporation of India Limited (NPCIL) and Bhartiya Nabhikiya Vidyut Nigam Limited

(BHAVINI), which are under the administrative control of the Department of Atomic Energy,

are operating nuclear power plants in the country. Formation of Joint Venture companies by

NPCIL with other PSUs of India for civil nuclear power projects is under consideration to

meet the additional funding requirements for expanding nuclear power programme and

augmenting the nuclear power generation capacity of India.

3. The expression “Government company” has been defined in the Act to mean a

company in which not less than fifty-one per cent. of the paid-up share capital is held by the

Central Government. The Act thus precludes a Government company from entering into

Joint Ventures with other PSUs for the above said purposes for the reason that any Joint

Venture company formed by two PSUs may not be subject to the control of the Central

Government as a shareholder.

4. The Atomic Energy (Amendment) Bill, 2015 seeks to overcome this difficulty by

amending the definition of “Government company” under clause (bb) of sub-section (1)

of section 2 of the said Act with a view to expand its scope by including such Joint Venture

companies as may be formed between NPCIL and other PSUs. This Bill also proposes to

make a consequential amendment in section 14 of the said Act to enable the Central

Government to issue licence to such Joint Venture companies to set up nuclear power

plants, take measures for their safe operation and to ensure disposal of nuclear material. It

further provides for cancellation of licence in case the licensee ceases to be a Government

company.

5. The Bill seeks to achieve the above objects.

NEW DELHI;

JITENDRA SINGH.

The 27th November, 2015.

————

ANOOP MISHRA

Secretary General

GMGIPMRND—3416GI(S3)—09-12-2015.

PRINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI—2015.