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Commercial Courts Act - Notes 5


CHAPTER VI: Amendments to the Provisions of the Code of Civil Procedure, 1908

Section 16: Amendments to the Code of Civil Procedure, 1908 in its Application to Commercial Disputes

Application of Amendments to CPC for Commercial Disputes

  • All provisions of the Code of Civil Procedure, 1908 (CPC) apply to any suit regarding a commercial dispute of Specified Value as amended in the Schedule to the Act.

Procedure for Trial by Commercial Division and Commercial Court

  • The Commercial Division and Commercial Court must follow these amended provisions in all trials of commercial disputes of Specified Value.

Precedence Over Conflicting Rules or Amendments

  • If there is any conflict between the CPC as amended by this Act and High Court rules or State amendments to the CPC, the CPC as amended by this Act will prevail.

Key Examples of Amendments (as per the Schedule)

  • Mandatory "Statement of Truth" affidavit verifying every pleading (Order VI Rule 15A).

  • Strict case management and schedule for proceedings.

  • Complete filing and disclosure of documents at the outset (Order XI as amended).

  • Provision for summary judgments (Order XIII-A).

  • Enhanced timetables for disposal of cases and appeals.

CHAPTER VII: Miscellaneous

Section 17: Collection and Disclosure of Data

Maintenance of Statistical Data

  • All Commercial Courts, Commercial Appellate Courts, Commercial Divisions, and Commercial Appellate Divisions must collect data on:

    • Number of suits, applications, appeals, or writs filed

    • Pendency and status of cases

    • Number of cases disposed of.

Monthly Updating and Publication

  • Data must be maintained, updated monthly, and published on the respective High Court website.

Section 18: Power of High Court to Issue Directions

Issuance of Practice Directions

  • The High Court may issue practice directions via notification to supplement the Act or relevant CPC provisions.

Applicability

  • Such directions can provide for procedure in the hearing of commercial disputes of Specified Value, ensuring smoother operation and alignment with the Act.

Section 19: Infrastructure Facilities

Provision by State Government

  • The State Government is required to provide necessary infrastructure (courtrooms, technology, staff etc.) for effective functioning of Commercial Courts and Commercial Divisions in High Courts.

Section 20: Training and Continuous Education

Training Facilities for Judges

  • The State Government, in consultation with the relevant High Court, may establish facilities for the training and continuing education of judges appointed to Commercial Courts, Commercial Appellate Courts, Commercial Divisions, or Appellate Divisions.

Section 21: Act to Have Overriding Effect

Supremacy Clause

  • Provisions of this Act override inconsistent provisions in any other law for the time being in force, or any instrument having legal effect, unless otherwise provided by this Act.

Section 21A: Power of Central Government to Make Rules

Rulemaking Power

  • The Central Government may, by notification, make rules for implementing the Act's provisions.

Particular Matters for Rulemaking

  • Procedure for pre-institution mediation under section 12A

  • Any other matter required or permissible for rules under the Act.

Laying of Rules before Parliament

  • Every rule made must be laid before Parliament for a cumulative total of 30 days; Parliament may modify or annul rules, without affecting prior acts done under them.

Section 22: Power to Remove Difficulties

Removal of Difficulties by Order

  • Central Government can issue orders (published in the Official Gazette) to remove difficulties in implementing the Act, provided such orders are not inconsistent with the Act.

Time Limitation

  • No order may be made for removing difficulties more than two years after Act commencement.

Laying Orders before Parliament

  • Every such order must be laid before Parliament as soon as possible after being made.

Section 23: Repeal and Savings

Repeal of Prior Ordinance

  • The Commercial Courts, Commercial Division, and Commercial Appellate Division of High Courts Ordinance, 2015 is repealed.

Savings Clause

  • All actions taken or things done under the repealed Ordinance are deemed to be done or taken under the corresponding provisions of this Act.

This breakdown provides comprehensive detail for each section and subsection, capturing the operative provisions, procedural changes, and administrative requirements as legislated.

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