Jurisdiction of Commercial Divisions of High Courts

All suits and applications relating to commercial disputes of a Specified Value filed in a High Court having ordinary original civil jurisdiction shall be heard and disposed of by the Commercial Division of that High Court: Provided that all suits and applications relating to commercial disputes, stipulated by an Act to lie in a court not inferior to a District Court, and filed or pending on the original side of the High Court, shall be heard and disposed of by the Commercial Division of the High Court: Provided further that all suits and applications transferred to the High Court by virtue of sub-section (4) of section 22 of the Designs Act, 2000 (16 of 2000) or section 104 of the Patents Act, 1970 (39 of 1970) shall be heard and disposed of by the Commercial Division of the High Court in all the areas over which the High Court exercises ordinary original civil jurisdiction. For avoidance of doubt, it is hereby clarified that Order XIII Rule 1, Order VII Rule 14 and Order VIII Rule 1A of the Code of Civil Procedure, 1908 (5 of 1908) shall not apply to suits or applications before the Commercial Divisions of High Court or Commercial Courts. (1) Where it appears to the Court that it is possible that a claim or defence may succeed but it is improbable that it shall do so, the Court may make a conditional order as set forth in Rule 6 (1) (b). (2) Where the Court makes a conditional order, it may:— (a) make it subject to all or any of the following conditions:— (i) require a party to deposit a sum of money in the Court; (ii) require a party to take a specified step in relation to the claim or defence, as the case may be; (iii) require a party, as the case may be, to give such security or provide such surety for restitution of costs as the Court deems fit and proper; (iv) impose such other conditions, including providing security for restitution of losses that any party is likely to suffer during the pendency of the suit, as the Court may deem fit in its discretion; and (b) specify the consequences of the failure to comply with the conditional order, including passing a judgment against the party that have not complied with the conditional order. After Order XV of the Code, the following Order shall be inserted, namely:— “ORDER XV A CASE MANAGEMENT HEARING 1. First Case Management Hearing.—The Court shall hold the first Case Management Hearing, not later than four weeks from the date of filing of affidavit of admission or denial of documents by all parties to the suit. 2. Orders to be passed in a Case Management Hearing.—In a Case Management Hearing, after hearing the parties, and once it finds that there are issues of fact and law which require to be tried, the Court may pass an order–– (a) framing the issues between the parties in accordance with Order XIV of the Code of Civil Procedure, 1908 (5 of 1908) after examining pleadings, documents and documents produced before it, and on examination conducted by the Court under Rule 2 of Order X, if required; (b) listing witnesses to be examined by the parties; (c) fixing the date by which affidavit of evidence to be filed by parties; (d) fixing the date on which evidence of the witnesses of the parties to be recorded; (e) fixing the date by which written arguments are to be filed before the Court by the parties; (f) fixing the date on which oral arguments are to be heard by the Court; and (g) setting time limits for parties and their advocates to address oral arguments. 3. Time limit for the completion of a trial.—In fixing dates or setting time limits for the purposes of Rule 2 of this Order, the Court shall ensure that the arguments are closed not later than six months from the date of the first Case Management Hearing. 4. Recording of oral evidence on a day-today basis.—The Court shall, as far as possible, ensure that the recording of evidence shall be carried on, on a day-to-day basis until the cross-examination of all the witnesses is complete. 5. Case Management Hearings during a trial.—The Court may, if necessary, also hold Case Management Hearings anytime during the trial to issue appropriate orders so as to ensure adherence by the parties to the dates fixed under Rule 2 and facilitate speedy disposal of the suit. 6. Powers of the Court in a Case Management Hearing.—(1) In any Case Management Hearing held under this Order, the Court shall have the power to— (a) prior to the framing of issues, hear and decide any pending application filed by the parties under Order XIII-A; (b) direct parties to file compilations of documents or pleadings relevant and necessary for framing issues; (c) extend or shorten the time for compliance with any practice, direction or Court order if it finds sufficient reason to do so; (d) adjourn or bring forward a hearing if it finds sufficient reason to do so; (e) direct a party to attend the Court for the purposes of examination under Rule 2 of Order X; (f) consolidate proceedings; (g) strike off the name of any witness or evidence that it deems irrelevant to the issues framed; (h) direct a separate trial of any issue; (i) decide the order in which issues are to be tried; (j) exclude an issue from consideration; (k) dismiss or give judgment on a claim after a decision on a preliminary issue; (l) direct that evidence be recorded by a Commission where necessary in accordance with Order XXVI; (m) reject any affidavit of evidence filed by the parties for containing irrelevant, inadmissible or argumentative material; (n) strike off any parts of the affidavit of evidence filed by the parties containing irrelevant, inadmissible or argumentative material; (1) The Court shall not adjourn the Case Management Hearing for the sole reason that the advocate appearing on behalf of a party is not present: Provided that an adjournment of the hearing is sought in advance by moving an application, the Court may adjourn the hearing to another date upon the payment of such costs as the Court deems fit, by the party moving such application. (2) Notwithstanding anything contained in this Rule, if the Court is satisfied that there is a justified reason for the absence of the advocate, it may adjourn the hearing to another date upon such terms and conditions it deems fit.