Section 10 of the Commercial Courts Act, 2015: Jurisdiction in Respect of Arbitration Matters

Section 10 determines which Commercial Court or Commercial Division will hear applications and appeals arising under the Arbitration and Conciliation Act, 1996 when the subject-matter of the arbitration is a commercial dispute of "Specified Value".

What Section 10 Covers

The provision applies where the subject-matter of the arbitration is both a commercial dispute and of Specified Value. It then identifies the proper commercial forum according to whether the arbitration is an international commercial arbitration, a domestic arbitration before a High Court exercising original civil jurisdiction, or a domestic arbitration that would otherwise lie before the principal civil court of original jurisdiction in a district.

Meaning of "Specified Value"

Section 2(1)(i) of the Commercial Courts Act defines "Specified Value", in relation to a commercial dispute, by reference to the value determined under Section 12. Following the 2018 amendment, the statutory minimum is Rs. 3 lakh, or such higher value as may be notified in accordance with the Act.

Section 12 explains how the value is to be determined for money claims, movable or immovable property, intangible rights and other categories of commercial disputes.

Section 10 - Clause-wise Explanation

1. International commercial arbitration

Where the arbitration is an international commercial arbitration, applications or appeals under the Arbitration and Conciliation Act, 1996 that are filed in a High Court are to be heard and disposed of by the Commercial Division, wherever a Commercial Division has been constituted in that High Court.

2. Domestic arbitration on the original side of a High Court

Where the arbitration is not an international commercial arbitration, and the relevant application or appeal under the Arbitration and Conciliation Act, 1996 is filed on the original side of a High Court, it is to be heard and disposed of by the Commercial Division where such a Division has been constituted.

3. Domestic arbitration before a district-level civil court

Where the arbitration is not an international commercial arbitration and the application or appeal would ordinarily lie before the principal civil court of original jurisdiction in a district, other than a High Court, it must be filed in and heard by the Commercial Court exercising territorial jurisdiction over the arbitration, where such Commercial Court has been constituted.

Jurisdiction at a Glance

Type of arbitration matter	Forum under Section 10
International commercial arbitration; application or appeal filed in a High Court	Commercial Division of that High Court, where constituted
Domestic arbitration; application or appeal filed on the original side of a High Court	Commercial Division of that High Court, where constituted
Domestic arbitration; matter would ordinarily lie before the principal civil court of original jurisdiction in a district	Commercial Court having territorial jurisdiction, where constituted

Why Section 10 Is Important

Section 10 channels qualifying arbitration-related proceedings into the specialised commercial court system. Before filing an application or appeal under the Arbitration and Conciliation Act, the party should therefore examine the nature of the arbitration, the Specified Value, the territorial jurisdiction and the commercial court structure notified for the relevant State or High Court.

Practical note: The existence and territorial or pecuniary jurisdiction of a Commercial Court may depend on State Government and High Court notifications. The applicable local notification should be checked before filing.