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SECTION 12 & 12A COMMERICAL COURT ACTS

 

Chapter III: Specified Value

Section 12: How to Calculate the Specified Value

This part explains how to work out the “specified value” (i.e., the value of the dispute) in commercial cases:

A. When the Case is About Money

  • Money Disputes:
    The specified value is the total money being claimed, including any interest up to the day the case was filed.

B. When the Case is About Movable Property

  • Movable Property:
    If the case concerns something that can be moved (like goods or equipment) or rights connected to it, the market value of these items on the day the case was filed is used as the specified value.

C. When the Case is About Immovable Property

  • Immovable Property:
    If the case is about immovable property (like land or buildings) or rights linked to it, the value is the market price of the property on the day the case was started.

D. When the Case is About Intangible Rights

  • Intangible Rights:
    For cases about non-physical rights (like intellectual property), the value is what the plaintiff (person who files the case) estimates as the market value.

Section 12(2): Value in Arbitration

  • For arbitration cases about commercial disputes, you add up the value of all claims and counterclaims (arguments from both sides). This total helps decide which commercial court or division should hear the case.

Section 12(3): No Appeal Against Court’s Decision on Its Jurisdiction

  • If a Commercial Court or Division says it has the authority to hear a commercial dispute, you generally cannot appeal this decision or ask for a revision under section 115 of the Civil Procedure Code.

Chapter IIIA: Pre-Institution Mediation and Settlement

Section 12A: What Must Happen Before Filing a Suit

A. Mediation Before Suit

  • Mandatory Mediation:
    If the lawsuit does not demand any urgent temporary court orders, the plaintiff must first try to settle the matter through mediation (a neutral third party helping both sides negotiate) before they can file the case in court.

  • Rules for Mediation:
    The process will follow rules set by the Central Government.

B. Who Conducts the Mediation

  • The Central Government can allow authorities under the Legal Services Authorities Act, 1987, to handle this pre-institution mediation process.

C. Time Limit for Mediation

  • The mediation must be finished within three months from the date the plaintiff applies, but the time can be extended by up to two months if both sides agree.

  • The time spent in mediation does not count toward the time limit for filing the case (as per the Limitation Act).

D. If Settlement Is Reached

  • Written Settlement:
    If both sides agree, the settlement must be put in writing and signed by both parties and the mediator.

E. The Effect of Settlement

  • Same Value as Arbitral Award:
    The settlement reached through this mediation has the same effect as an arbitral award (a binding decision made by an arbitrator), so it is enforceable like a court decree.


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