Home  /  Commercial Courts Act, 2015  /  Section 4

Section 4: Constitution of Commercial Division of High Court

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

Statutory Regulation
Legal Standard
Commercial Court / High Court
Act 4 of 2016
Section 3A All 23 Sections The Schedule (CPC Amendments) Section 5
Statutory Defined Terms in this Section: (Click any term for official legal definition)
Commercial Division Sec 2 High Court Sec 2

Legal Commentary & Landmark Judgments: Section 4

Section 4 of the Commercial Courts Act, 2015 mandates the constitution of a Commercial Division in High Courts having ordinary original civil jurisdiction (e.g., Delhi, Bombay, Calcutta, Madras).

  • Chief Justice's Power of Constitution: The Chief Justice of the High Court having ordinary original civil jurisdiction shall set up one or more Commercial Divisions consisting of Single Judge benches.
  • Specialized Judicial Expertise: Judges nominated to the Commercial Division must possess expertise and experience in dealing with commercial disputes.
  • Pecuniary Jurisdiction Alignment: Exercises jurisdiction over commercial disputes where the Specified Value exceeds the notified threshold for that High Court's original side.
  • Dynamic Case Allocation: Enables specialized case management and day-to-day continuous trial hearings.
Key Landmark Precedents:
  • Kandla Export Corpn. v. OCI Corpn., (2018) 14 SCC 715: The Supreme Court analyzed the constitution of Commercial Divisions under Section 4, holding that their jurisdiction is conditioned by the Specified Value and governed strictly by the statutory framework.
  • Ambalal Sarabhai Enterprises Ltd. v. K.S. Infraspace LLP, (2020) 15 SCC 585: Affirmed that suits not satisfying the commercial dispute definition cannot be entertained by Commercial Divisions of High Courts.
Courtroom Practice & Strategic Litigation Guidance:

When drafting an original side commercial suit in chartered High Courts, substantiate the specified value in paragraph 1 of the plaint and ensure that the dispute falls squarely within the nominated commercial roster.

Section 3A All 23 Sections The Schedule (CPC Amendments) Section 5