Section 4 of the Commercial Courts Act, 2015: Constitution of Commercial Division of High Court
Section 4 of the Commercial Courts Act, 2015 provides the statutory framework for constituting a Commercial Division in a High Court that has ordinary original civil jurisdiction. It also requires the Chief Justice to nominate High Court judges who have experience in dealing with commercial disputes.
Text of Section 4
4. Constitution of Commercial Division of High Court.
(1) In all High Courts having ordinary original civil jurisdiction, the Chief Justice of the High Court may, by order, constitute Commercial Division having one or more Benches consisting of a single Judge for the purpose of exercising the jurisdiction and powers conferred on it under this Act.
(2) The Chief Justice of the High Court shall nominate such Judges of the High Court who have experience in dealing with commercial disputes to be Judges of the Commercial Division.
Official text: The current central enactment is available through India Code - Commercial Courts Act, 2015.
Meaning and effect of Section 4
Section 4 is an institutional provision. It identifies the High Courts in which a Commercial Division may be constituted and places the power of constitution with the Chief Justice of the High Court. The provision applies to High Courts that exercise ordinary original civil jurisdiction.
- Power to constitute: The Chief Justice may constitute the Commercial Division by an order.
- One or more Benches: The Commercial Division may consist of one or more Benches.
- Single Judge Bench: Each Bench contemplated by Section 4(1) consists of a single Judge.
- Commercial experience: Under Section 4(2), judges nominated to the Commercial Division must have experience in dealing with commercial disputes.
- Statutory jurisdiction: The Commercial Division exercises the jurisdiction and powers conferred by the Commercial Courts Act, 2015 and must be read with the other jurisdictional provisions of the Act.
What is ordinary original civil jurisdiction?
In this context, ordinary original civil jurisdiction refers to the authority of a High Court to entertain qualifying civil proceedings at the first instance, rather than only in appeal or revision. Section 4 uses this jurisdictional characteristic to identify the High Courts in which a Commercial Division may be constituted.
Important: Section 4 itself does not determine every category of commercial case that a Commercial Division can hear. For that question, the provision should be read with Section 2 on definitions, Section 7 on jurisdiction of Commercial Divisions of High Courts, and other applicable provisions of the Act.
2018 amendment to Section 4
The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Act, 2018 substituted the words "ordinary original civil jurisdiction" for "ordinary civil jurisdiction" in Section 4(1). The substitution took effect on 3 May 2018.
Relationship with the Commercial Appellate Division
Section 4 concerns the constitution of the Commercial Division. Section 5 separately provides for the constitution of the Commercial Appellate Division of the High Court. The two provisions perform different functions and should not be treated as interchangeable.
Practical significance
Section 4 ensures that commercial cases assigned to the High Court's Commercial Division are heard through a specialized judicial arrangement. The Chief Justice controls the constitution of the Division and the nomination of judges with relevant commercial-dispute experience, while the substantive reach of the Division is determined by the Act's jurisdictional provisions.
Related provisions
For a complete understanding of the structure created by the Act, also see Section 3 - Constitution of Commercial Courts, Section 3A - Designation of Commercial Appellate Courts, Section 5 - Constitution of Commercial Appellate Division, Section 6 - Jurisdiction of Commercial Court, and Section 7 - Jurisdiction of Commercial Divisions of High Courts.