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MINISTRY OF LAW AND JUSTICE
(Legislative Department)
I,{ew Delhi, the 3rd May, 2018/Vaisakha 13, 1940 (Saka)
THE COMMERCIAL COURTS, COMMERCIAL DIVISION AND
COMMERCIAL APPELLATE DIVISION OF HIGH COURTS
(AMENDMENT) ORDINANCE, 2018
No. 3 or 2018
Promulgated by the President in the Sixff-ninth Year of the Republic of
India.
An Ordinance to amend the Commercial Courts, Commercial Division and
Commercial Appellate Division of High Courts Act, 2015.
WHEREAS Parliament is not in session and the President is satisfied that
circumstances exist which render it necessary forhim to take immediate action;
NoW THEREponr, in exercise of the powers conferred by clause (1) of
article 123 of the Constitution, the President is pleased to promulgate the following
Ordinance :-
1" (1) This Ordinance may be called the Commercial Courts, Comrnercial Short title and
Division and CommercialAppellate Division of High Courts (Amendment) Ordinance, com'nencement
20t 8"
(2) Save as otherwise provided, it shall come into force at once.
4tl
412
Ed€rr6 {MT{, ftqifi s sf,r 2or8
Amendment of
long title.
Amendment of
scction 1.
Amendment of
section 2.
Substitution of
Chapter heading.
Amendment of
section 3.
2. In the Commercial Courts, Commercial Division and
Commercial Appellate Division of High Courts Acq 2015 4of20r6"
(hereinafter referred to as the principal Act), in the long title,
after the words "Commercial Courts", the words ", Commercial
Appellate Courts" shall be inserted.
3. In section 1 of the principal Act, for sub-section (1), the
following sub-section shall be substituted, namely:-
"(1) This Act may be called the Commercial Courts Act,
2015.".
4.In section 2 of the principal Act, in sub-section (l),-
(I) clause (a) shall be renumbered as clause (aa) thereof,
and before clause (aa) as so renumbered, the follow'ing
clause shall be inserted,namely:-
'(a) "Commercial Appellate Courts" means the
Commercial Appellate Courts designated under section
3A;';
(II) in clause (i), for the words "which shall not be less
than one crore rupees", the words "which shall not be less
than three lakh rupees" shall be substituted.
S.In the principal Act, in Chapter II, for the Chapter heading,
the following Chapter heading shall be substituted, namely:-
.COMMERCIAL COURTS, COMMERCIAL APPELLATE COURTS,
COMMERCIAL DIVISIONS AND COMMERCIAL APPELLATE
DIVISIONS".
6.In section 3 of the principal AcL-
(a) in sub-section (l),for the proviso, the following
provisos shall be substituted, namely:*
"Provided that with respect to the High Courts
having ordinary original civil jurisdiction, the State
Govemment may, after consultation with the concemed
High Court, by notification, constitute Commercial
Courts at the District Judgelevel:
Frovided further that with respect to a territory
over which the High Courts.have ordinary original civil
jurisdiction, the State Govemment may, by notification,
speciff such pecuniary value which shall not be less
than three lakh rupees and not more than the pecuniary
jurisdiction exercisable by the Distriet Courts, as it may
consider necessary.";
Bffiflr'ra {rErrFr, ftqis s qI 2ors
arz (r)
(b) after sub-section (1), the fbiioiving sub-section shall
be inserted, namely: -
"(1A) Not*'ithstanding an1'thing contained in this
Act, the State Government may, afler consultation with
concerned High Court, by notification, speciSr such
pecuniary value rvhich shall not be less than three lakh
rupees or such higher value, for whole or pafi of the
State, as it may consider necessary.";
(c) in sub-section(3), -
(i) for the words "State Covernment shail", the
words "State Government may" shail be substituted;
(iD for the words "Commercial Court,from
amongst the cadre of Higher Judicial Service in the
State", the following words shall be substituted,
namely:-
"Commercial Court either at the level of
District Judge or a court below the level of a
District Judge.".
7. After section 3 of the principal Act, the following section
shall be inserted, namely:-
"3A. Exceptthe territories over which the High Courts
have ordinary original civil jurisdiction. the State
Govemment may, after consultation r.vith the concerned
High Court, by notification, designate such number of
Commercial Appellate Courts at District Judge level, as it
may deem necessary, for the purposes of exercising the
jurisdiction and powers conferred on those Courts under this
Act.".
8. In section 4 of the principal Act,in sub-section (1), for the
words "ordinary civil jurisdiction", the words "ordinary original
civil jurisdiction" shall be substituted.
9. Section 9 of the principal Act shall be omitted.
10. In section 12 of the principal Act, in sub-section (1),-
(i) in clause (c), after the words "Specified Value;",
the word "and" shall be inserted;
(ii) in clause (d), the word "and", occurring at the end,
shall be omitted;
lnsenion of new
section 3A.
Designation of
Commercial
Appellate
Courts.
Amendment
section 4.
0mission
section 9.
Amendment
section 12.
of
412 (21
Edsrrcttq-qr, ftHis sqr 2or8
lnsertion of new
Cl",apter IIIA.
Pre-lnstitution
Mediation and
Setllement,
(iii) clause (e) shall be omitted.
1l.After Chapter III of the principal Act, the follorving Chaptcr
shall be inserted, namely'':-
..CHAPTER IIIA
PRE,.INSTITUTION MEDIATION AND SE'|TLEMENT
12A. (1) A suit, rvhich does not contemplate any urgent
interim relief under this Act, shali not be instituted unless
the plaintiff exhausts the remedy of pre-institution
mediation in accordance with such manner and procedure as
may be prescribed by rules made by the Central
Govemment.
(2) The Cental Govemment may, by notification,
authorise the Authorities constituted under the Legal
Services Authorities Act, 1987, for the purposes of pre-
institution mediation.
(3) Notwithstanding anything contained in the Legal
Services Authorities Act, 1987, the Authority authorised by
the Central Govemment under sub-section (2) shall
complete the process of mediation r.vithin a period of three
months from the date of application made by the plaintiff
under sub-section (1):
Provided that the period of mediation may beextended
for a further period of two months with the consent of the
parties:
39 o{'1987.
39 of 1987.
Provided further that, the period during rvhich the
parties remained occupied with the prc-institution 36 of 1963.
mediation, such period shall not be computed for the
purpose of limitation under the Limitation Act, 1963.
(4) If the parties to the commercial dispute arrive at a
settlement, the same shall be reduced into writing and shall
be signed by the parties to the dispute and the mediator.
(5) The settlement arrived at under this section shall have 26 of 1996
the same status and effect as if it is anarbitral award on
agreed terms under sub-section(4) of section 30 of the
Arbihation and Conciliation Act, 1996.".
Amendment of
12. In section 13 of the principal Act, for sub-section (1),
section 13'
the following shallbe substituted, namely:-
"(1) Any person aggrieved by the judgment or order
of a Commercial Court below the level ofa District Judge
, ftFis sqr 2ots
4t2 (3)
5 of 1908.
26 of 1996.
may appeal to the Comrnercial Appellate Court within a
period of sixty days from the date ofjudgment or order.
(iA) Any person aggrieved by the judgment or order
of a Commercial Court at the levelof District Judge
exercising original civil jurisdiction or, as the case may
be, Commercial Division of a High Court may appeal to
the Commercial Appellate Division of that High Court
within a period of sixfv days from the date of the
judgment or order:
Provided that an appeal shall lie from such orders
passed by a Commercial Division or a Commercial Court
that are specificaily 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;',.
13. In section 14 of the principal Act, for the words Amendment of
'oCommercial Appellate Division", the words "Cornmercial section 14'
Appellate Court and the Commercial Appellate Division" shall
be substituted.
14. In section 15 of the principal Act, in sub-section (4), for
the words, figures and letter '\ryith Order XfV-A", the words,
figures and letters "with Order XV-A" shall be substituted.
15. In section 17 of the principal Act, for the words
"Commercial Courts" and "Commercial Court", wherever they
occur, the words "Commercial Courts, Commercial Appellate
Courts" shall be substituted.
16. In section 20 of the principal Act, for the words
"Commercial Court", the words "Commetcial Courts,
Commercial Appellate Courts" shall be substituted.
17. After section 21 of the principal Act, the following
section shall be inserted, namely:-
"214. (1) The Central Government o&y, by
notification, make rules for carrying out the provisions of
this AcL
(2) in particular, and without prejudice to the generalit_v
of the foregoing power, such rules may provide for or any
of the following matters, namely:-'
(a) the manner and procedure of pre-
institution mediation under sub-section (1) of section
t2A;
Amendment
section 15.
Amendmenl
section 17.
Amendment of
section 20.
Insertion of new
section 21A.
Power
of
Central
Govemment to
make rules.
412 (41
effier-rartqqd, frnis sqr 2ot8
Amendment
Schedule.
(b)
any other matter which is required to be,
or may be, prescribed or in respect of rvhich provision
is to be made by rules made by the Central
Covernment.
(3) Every rule made by the Central Govemmenl under
this Act shali be laid, as soon as may be after it is made,
before each House of Parliament, while it is in session, for a
total period of thirfy days which may be comprised in one
session, or in tvvo or more successive sessions, and if, before
the expiry of the session immediately follorving the session
or the successive sessions aforesaid, both Houses agree in
making any modification in the rule, or both Houses agree
that the rule should not be made, the rule shall thereafter
have effect only in such modified form or be of no effect, as
the case may be; so, however, that any such modification or
annuhnent shall be without prejudice to the validity of
anything previously done under that ruIe.".
18. In the Schedule to the principal Act,-
(i) in Paragraph 4, in sub-paragraph (D). in item (iv),-
(a) in the opening portion, the words "after the first
proviso," shall be omitted;
(b) for the words "Provided further that". the words
"Provided that" shall be substituted;
(ii) in paragraph 11, for the words "Commercial Court",
the words "Commercial Court, Commercial Appellate
Coufi" shall be substituted;
(iii) after paragraph 11, the follorving shall be inserted
and shall be deemed to have been inserted with effect from
the 23rd October, 2015, namely:-
"12. After Appendix H, the foilowing Appendix
shall be inserted, namely:-
.APPENDIX-I
STATEMENT OF TRUTH
(Under First Schedule, Order VI- Rule l54. and
Order XI- Rule 3)
I----- the deponent do hereby solemnly affinn and declare as
under:
1. Iam the parry in the above suit and competent to swear this
alldavit.
Bffi€rr€ {qrd, frqis s ET 2018
4tz (s)
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 that the statements made in -----paragraphs are true to
my knowledge and statements made in -----paragraphs are
based on information received which I believe to be correct and
statements made in --paragraphs 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 rne 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 --pages, each of which has been duly 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 shali be liable for action taken against me under
the law for the time being in force,
Place:
Date:
DEPONENT
VERIFICATION
do hereby declare that the
statements made above are true to my knowiedge.
Verified at [place] on this [date]
DEPONEhIT".'.
19. Save as otherwise provided, the provisions of this
Ordinance shall apply only to cases relating to commercial
disputes filed on or after the date of commencement of this
Ordinance.
RAM NAIH KOVIND,
President.
DR. G. NARAYANA RAJU,
_
,Secretary to the Govt. of India.
Application of
Ordinance to
cases filed on or
afler
1ts
commencemcnt
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