Section 6 of the Commercial Courts Act, 2015: Jurisdiction of Commercial Court
Section 6 of the Commercial Courts Act, 2015 defines the territorial and subject-matter jurisdiction of a Commercial Court. In substance, a Commercial Court may try suits and applications concerning a commercial dispute of Specified Value when the dispute arises within the territory over which that Commercial Court has jurisdiction.
A Commercial Court has jurisdiction to try suits and applications relating to a commercial dispute of Specified Value arising from the territory over which that court has been vested with territorial jurisdiction. For this purpose, the place where the dispute arises is determined by applying Sections 16 to 20 of the Code of Civil Procedure, 1908.
What Section 6 means
Section 6 does not by itself make every civil dispute a commercial case. Jurisdiction depends on several connected provisions of the Act. The dispute must first fall within the statutory meaning of a commercial dispute under Section 2, it must satisfy the requirement of Specified Value under Section 12, and it must fall within the territorial jurisdiction of the Commercial Court.
Under Section 2(1)(i), as amended by the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Act, 2018, the Specified Value cannot be less than Rs. 3 lakh, or such higher value as may be notified by the Central Government. The value of the subject matter is determined in accordance with Section 12.
Essential requirements for Commercial Court jurisdiction
- There must be a commercial dispute. The dispute must fall within Section 2(1)(c), which covers specified categories of commercial transactions and business-related disputes.
- The dispute must be of Specified Value. Section 2(1)(i), read with Section 12, governs the monetary value requirement.
- The Commercial Court must have territorial jurisdiction. Section 6 links territorial jurisdiction to the ordinary civil-court rules contained in Sections 16 to 20 of the Code of Civil Procedure, 1908.
- No statutory exclusion should apply. Section 11 of the Act preserves bars on jurisdiction where civil-court jurisdiction is expressly or impliedly excluded under another law.
Territorial jurisdiction under Sections 16 to 20 CPC
The Explanation to Section 6 connects a commercial dispute with the territory of a Commercial Court by reference to Sections 16 to 20 of the Code of Civil Procedure, 1908. Depending on the nature of the suit, jurisdiction may therefore turn on factors such as the location of immovable property, the place where the cause of action arose, or the place where the defendant resides or carries on business.
| Provision | General subject | Relevance to Section 6 |
|---|---|---|
| Section 16 CPC | Suits relating to immovable property | Generally links jurisdiction to the place where the property is situated. |
| Section 17 CPC | Immovable property situated within jurisdiction of different courts | Addresses suits where property extends across more than one court's territorial limits. |
| Section 18 CPC | Uncertain local limits of jurisdiction | Applies where there is uncertainty about the court within whose territorial limits property is situated. |
| Section 19 CPC | Compensation for wrongs to person or movable property | Provides alternative territorial bases in the situations covered by that section. |
| Section 20 CPC | Other suits | Generally looks to the defendant's residence or business and the place where the cause of action wholly or partly arises. |
Relationship with other provisions of the Commercial Courts Act
Section 6 should be read with the broader jurisdictional framework of the Act. Section 3 deals with the constitution of Commercial Courts; Section 7 concerns the jurisdiction of Commercial Divisions of High Courts; Section 10 deals with arbitration matters; and Section 11 addresses statutory bars to jurisdiction.
Practical effect of Section 6
Before filing a commercial suit or application, a litigant should identify the nature of the dispute, calculate its Specified Value, verify the notified Commercial Court having the relevant pecuniary competence, and apply the territorial rules under the CPC. Where the suit does not contemplate urgent interim relief, Section 12A on pre-institution mediation may also require compliance before institution.
Official statutory sources
For the authoritative statutory text and amendments, refer to the Government of India sources below:
India Code - Commercial Courts Act, 2015
India Code - Official Central Acts database
Frequently asked questions
Does Section 6 apply to every civil suit involving a business?
No. The dispute must satisfy the statutory definition of a commercial dispute and the Specified Value requirement, in addition to the applicable territorial and other jurisdictional conditions.
What is the minimum Specified Value under the Commercial Courts Act?
The statutory floor is Rs. 3 lakh under Section 2(1)(i), subject to any higher value that may lawfully be notified.
How is territorial jurisdiction decided under Section 6?
The Explanation to Section 6 applies the territorial principles in Sections 16 to 20 of the Code of Civil Procedure, 1908.
Is Section 12A relevant when filing in a Commercial Court?
Yes. In suits that do not contemplate urgent interim relief, the pre-institution mediation requirement under Section 12A must be considered before filing.