THE COMMERCIAL COURT ACT, 2015

The Commercial Courts Act, 2015 was enacted for speedy settlement of commercial disputes in India.

Before the enactment of this Act, business-related cases were decided in a slow manner in regular civil courts. The delay in settlement of cases affected both the companies and the investors.

To remedy this situation, the Commercial Courts Act, 2015 was passed which established specialised Commercial Courts and Commercial Divisions in High Courts. These courts ensured that experienced judges handle such cases efficiently in time bound manner.

The Act applies to disputes related to business transactions, contracts, intellectual properties, banking, insurance, and other commercial matters where the claim amount is Rs. 3 lakhs or more (The original limit was Rs. 1 crore but reduced in 2018) to make faster settlements in more number of cases.

One of the key features of the Act is the introduction of pre-institution mediation, which requires parties to attempt mediation before filing a case,  except in urgent matters.

The Act also sets strict timelines to prevent unnecessary delays and ensures that commercial disputes are settled in a time-bounds manner.

By transferring business-related cases to specialized courts, the burden on regular civil courts has got reduced.