Option 1 Commercial Courts – Corporate Debt Recovery

Option 1

THE COMMERCIAL COURTS, COMMERCIAL DIVISION AND COMMERCIAL APPELLATE DIVISION OF HIGH COURTS ACT , 2015

(Kindly refer to the link in the title to access the full Act)

As per Section 6, Commercial Courts can try suits relating to commercial transactions having the “specified value”.  Section 2(i) of the Act defines “specified value”.

Salient Features:

1. Establishment of specialized commercial courts for speedy and effective dispute resolution

2. Total time from filing of Suit till final decree prescribed to be approximately 16 months

3. ‘Cost to follow event’ concept introduced

4. Arbitration matters to go before specialized commercial courts

5. Limited Right To Appeal/Revision

6. Fresh Procedure For Hearing Suits

7. Strict Timelines

Structure of Commercial Courts:

Indicative timelines/measures have been prescribed to ensure that speedy resolution such as:

1. Closure of arguments not later than six (6) months from the date of first case management hearing;

2. Written arguments to be submitted before four (4) weeks of the oral hearing following revised written arguments, if any post oral hearing within one (1) week.

3. Judgment to be pronounced within ninety (90) days of the conclusion of arguments;

4. Recording of evidence on a day to day basis;

5. Six (6) month period for disposal of appeals;

6. Adjournments not permitted on account of appearing advocate not being present;

Flow of the Case (Indicative Timeline):