The specified value threshold
The Commercial Courts Act 2015 applies to a commercial dispute of a specified value, which for most High Courts and District Courts is set at three lakh rupees or more, though the exact figure and the designated forum vary by state and by the pecuniary jurisdiction of ordinary civil courts in that area. A claim below the threshold, or one that does not qualify as a commercial dispute at all, is filed as an ordinary civil suit instead. Establishing which forum applies is the first step, because filing in the wrong one leads to delay and, occasionally, to a claim being returned for presentation elsewhere.
Section 12A of the Act makes mediation compulsory before filing a commercial suit, unless the plaintiff is seeking urgent interim relief. The mediation is conducted through the mediation cell attached to the relevant district legal services authority, and the parties have a limited window, generally around three months, extendable once, to reach a settlement. If mediation fails, a certificate is issued and the suit can then be filed. Skipping this step where it applies, rather than genuinely attempting it, risks the suit being rejected at the threshold.
Case management and strict timelines
Commercial courts follow a case management procedure with fixed timelines for filing written statements, completing disclosure of documents, and concluding evidence, and courts apply these timelines more strictly than in ordinary civil practice. A written statement filed late, without a properly explained delay, can be refused. This procedural discipline is meant to make commercial litigation faster than the general civil docket, though in practice the benefit depends heavily on the particular court’s workload.
Interest and the costs that follow the claim
A claimant can seek interest agreed in the contract, or, in its absence, interest under the Interest Act 1978 and general principles applied by courts in commercial matters, both for the period before the suit and pendente lite until payment. Commercial courts are also more inclined than ordinary civil courts to apply a costs-follow-the-event approach, meaning an unsuccessful party more often bears the winning side’s reasonable costs, which changes the calculation for a defendant weighing whether to contest a claim it cannot really defend.
