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Section 5: Constitution of Commercial Appellate Division

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

Statutory Regulation
Legal Standard
Commercial Court / High Court
Act 4 of 2016
Section 4 All 23 Sections The Schedule (CPC Amendments) Section 6
Statutory Defined Terms in this Section: (Click any term for official legal definition)
Commercial Appellate Division Sec 2 High Court Sec 2

Legal Commentary & Landmark Judgments: Section 5

Section 5 of the Commercial Courts Act, 2015 provides for the constitution of the Commercial Appellate Division in every High Court, consisting of Division Benches to hear commercial appeals.

  • Division Bench Composition: The Chief Justice of every High Court shall constitute one or more Commercial Appellate Divisions consisting of Division Benches (two Judges).
  • Judges of Proven Commercial Acumen: The Chief Justice nominates Judges who have specialized experience in commercial law, arbitration, intellectual property, and corporate litigation.
  • Appellate Competence: Hears appeals from Commercial Courts (District Judge level) and Commercial Divisions of High Courts under Section 13.
  • Exclusion of Intra-court Interlocutory Appeals: Restricts appeals strictly to those permissible under Section 13, barring miscellaneous Letters Patent Appeals.
Key Landmark Precedents:
  • Kandla Export Corpn. v. OCI Corpn., (2018) 14 SCC 715: The Supreme Court authoritatively held that Section 13 read with Section 5 provides an exhaustive code for commercial appeals; no appeal lies to the Commercial Appellate Division against orders not specifically enumerated in Order XLIII CPC or Section 37 Arbitration Act.
  • Government of Maharashtra v. Borse Brothers Engineers & Contractors (P) Ltd., (2021) 6 SCC 460: Reaffirmed that the Commercial Appellate Division is designed to eliminate multi-layered appellate delays.
Courtroom Practice & Strategic Litigation Guidance:

In commercial appeals before the Division Bench under Section 5, ensure that the impugned order falls strictly within Order XLIII Rule 1 CPC or Section 37 of the Arbitration Act, otherwise the Commercial Appellate Division will dismiss it at the threshold.

Section 4 All 23 Sections The Schedule (CPC Amendments) Section 6