Commercial courts
Topic: Justice Delivery: Subordinate Courts, Tribunals, Legal Aid and Judicial Reforms · NCERT: Beyond NCERT
Meaning
Commercial courts are special courts under the Commercial Courts Act 2015. They hear business disputes, such as disputes over contracts, worth ₹3 lakh or more (the limit since 2018). Under section 12A, the parties must try mediation before filing a case, unless urgent relief is needed. Mediation means a neutral person helps the parties reach their own deal. These courts aim to settle business disputes faster and make it easier to enforce contracts in India.
Example
In Patil Automation (2022), the Supreme Court held that pre-filing mediation under section 12A is mandatory. A commercial suit filed without trying mediation first, when no urgent relief is sought, cannot go ahead.
Don't confuse with
- National Company Law Tribunal (NCLT): the NCLT is a tribunal for company law and insolvency matters. Commercial courts are civil courts for business disputes in general.
Related concepts
- Alternative dispute resolution
- Arbitration
- Conciliation
- Mediation
- Mediation Act 2023
- India International Arbitration Centre