Section 12: Determination of Specified Value

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 12

Section 12 of the Commercial Courts Act, 2015 provides the statutory methodology for determining the 'Specified Value' of the subject-matter in commercial suits, appeals, and applications.

  • Procedural Rule & Jurisdiction: Sub-section (2) stipulates that the aggregate value of the relief claimed in the suit, application, or counter-claim shall determine the Specified Value.
  • Jurisdiction & Compliance: This objective calculation prevents parties from artificially undervaluing or inflating claims to escape or forum-shop into Commercial Courts.

Where the defendant contests valuation, the Commercial Court is required to decide the preliminary issue of Specified Value expeditiously before embarking on trial.

Key Landmark Precedents:
  • Bharat Bhushan Bansal v. U.P. Small Industries Corpn. Ltd., (2021) 6 SCC 460: The Supreme Court affirmed that valuation of a commercial dispute must strictly follow the statutory formula in Section 12, including accrued pre-suit interest claimed in the plaint.
  • Ambalal Sarabhai Enterprises Ltd. v. K.S. Infraspace LLP, (2020) 15 SCC 585: The Court ruled that the plaintiff cannot circumvent the commercial forum by arbitrary under-valuation when the true market value satisfies the Specified Value.
Legal Commentary:

In suits for injunctive relief concerning trademarks or copyrights, plaintiffs must state the market value of the commercial right in the plaint. Where the defendant contests valuation, the Commercial Court is required to decide the preliminary issue of Specified Value expeditiously before embarking on trial.