Commercial Courts Act: The Schedule (CPC Amendments)
Amendments to the Provisions of the Code of Civil Procedure, 1908 in their Application to Commercial Disputes of Specified Value [See Section 16].
Amendments to the Provisions of the Code of Civil Procedure, 1908 in their Application to Commercial Disputes of Specified Value [See Section 16].
In commercial disputes, costs follow the event. The Commercial Court shall order the unsuccessful party to pay the costs of the successful party, including fees of advocates, witness expenses, court fees, and other litigation expenses, unless written reasons are recorded otherwise. Frivolous or vexatious claims and unnecessary adjournments attract mandatory exemplary costs.
Defendant shall file Written Statement within 30 days of service of summons. The Court may extend time up to a maximum of 120 days from the date of service of summons for reasons recorded in writing and upon payment of costs.
Mandatory Forfeiture: On expiry of 120 days from service of summons, the defendant’s right to file the Written Statement stands permanently forfeited, and the Court shall not take the Written Statement on record. Confirmed by the Supreme Court of India in SCG Contracts (India) Pvt. Ltd. v. K.S. Chamankar Infrastructure (2019) 12 SCC 210.
Every pleading in a commercial dispute (Plaint, Written Statement, Counterclaim, Replication) must be verified by an Affidavit in the form of a Statement of Truth. Any pleading without a Statement of Truth cannot be treated as evidence. If false statements are made in the Statement of Truth, the Court may initiate proceedings for contempt of court and perjury.
Where any party from whom a Written Statement is required fails to present the same within 120 days, the Court shall pronounce judgment against them or make such order in relation to the suit as it thinks fit, and on the expiry of 120 days, no further extension can be granted under Section 148 CPC or inherent powers under Section 151 CPC.
Substitution of Order XI establishes an exhaustive document discovery protocol:
A party may apply for Summary Judgment at any stage before issues are framed. The Commercial Court may decide a claim or part of a claim without recording oral evidence if:
The Commercial Court must hold the First Case Management Hearing within 4 weeks from the date of filing of affidavit of admission/denial of documents. The Court frames issues, determines witness examination schedules, fixes time limits for oral arguments, and schedules trial completion within 6 months from the First Case Management Hearing.
The Commercial Court must pronounce judgment within 90 days from the date of conclusion of final oral arguments.