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Section 7: Jurisdiction of Commercial Divisions of High Courts

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

Statutory Regulation
Legal Standard
Commercial Court / High Court
Act 4 of 2016
Section 6 All 23 Sections The Schedule (CPC Amendments) Section 8
Statutory Defined Terms in this Section: (Click any term for official legal definition)
Commercial Division Sec 2 Specified Value Sec 2

Legal Commentary & Landmark Judgments: Section 7

Section 7 of the Commercial Courts Act, 2015 defines the jurisdiction of Commercial Divisions of High Courts over all suits, applications, and arbitration matters relating to commercial disputes of Specified Value.

  • Subject-Matter Jurisdiction: All suits and applications relating to a commercial dispute of a Specified Value that are filed in a High Court having ordinary original civil jurisdiction shall be heard and disposed of by the Commercial Division.
  • Inclusion of Arbitration Matters: Specifically covers international commercial arbitrations, domestic arbitrations where specified value criteria are met, and enforcement petitions.
  • Pecuniary Threshold Compliance: The specified value must meet or exceed the statutory limit (not less than Rs. 3 Lakhs, or higher limits fixed for original side High Courts).
  • Exclusion of Non-Commercial Claims: Civil claims lacking commercial character under Section 2(1)(c) must be transferred to the ordinary civil roster.
Key Landmark Precedents:
  • Ambalal Sarabhai Enterprises Ltd. v. K.S. Infraspace LLP, (2020) 15 SCC 585: The Supreme Court held that the phrase 'used exclusively in trade or commerce' under Section 2(1)(c)(vii) must be strictly interpreted; mere potential commercial use of land does not confer Section 7 jurisdiction on Commercial Divisions.
  • Government of Maharashtra v. Borse Brothers Engineers & Contractors (P) Ltd., (2021) 6 SCC 460: Affirmed the supervisory and appellate jurisdiction of High Court Commercial Divisions over commercial arbitration awards.
Courtroom Practice & Strategic Litigation Guidance:

Ensure that the dispute exhibits active commercial transactions (e.g., invoices, supply contracts, distribution agreements); never disguise ordinary partition or simple land sale suits as commercial disputes under Section 7.

Section 6 All 23 Sections The Schedule (CPC Amendments) Section 8