Section 1: Short title, extent and commencement

Commercial Courts Act, 2015 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Commercial Court / High Court
Act 4 of 2016
Statutory Defined Terms in this Section: (Click any term for official legal definition)

Legal Commentary & Landmark Judgments: Section 1

Section 1 of the Commercial Courts Act, 2015 establishes the short title, territorial extent across India, and retroactive commencement from 23rd October 2015, laying the foundation for a specialized fast-track adjudicatory ecosystem for commercial disputes.

  • Short Title & Scope: Formally titled the Commercial Courts Act, 2015 (amended substantially by Act 28 of 2018 to reduce specified value thresholds to three lakh rupees).
  • Territorial Extent: Extends to the whole of India, applying uniformly across all States and Union Territories.
  • Retrospective Enactment Anchor: Deemed to have come into force on the 23rd day of October, 2015, replacing the initial Presidential Ordinance.
  • Special Procedure Precedence: Overrides general CPC procedures through Section 16 to ensure strict time-bound commercial case management.
Key Landmark Precedents:
  • Patil Automation (P) Ltd. v. Rakheja Engineers (P) Ltd., (2022) 10 SCC 1: The Supreme Court traced the legislative trajectory under Section 1, affirming that the Act was enacted to accelerate commercial adjudication, boost investor confidence, and streamline the Ease of Doing Business.
  • Ambalal Sarabhai Enterprises Ltd. v. K.S. Infraspace LLP, (2020) 15 SCC 585: Held that the provisions of the Commercial Courts Act must be strictly applied according to their plain grammatical meaning without expanding the statutory definition of commercial disputes.
Courtroom Practice & Strategic Litigation Guidance:

In plaints involving commercial contracts, explicitly cite Section 1 read with Section 2(1)(c) and Section 12A to assert jurisdiction and verify that the specified value exceeds the notified local pecuniary threshold (Rs. 3 Lakhs or higher).