Sections 1 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 1 and 2 are the entry gate of the Commercial Courts Act, 2015. Section 1 gives the Act its name, says where it extends and fixes when it is deemed to have come into force; section 2 defines the words every later section depends on, such as Commercial Court, Commercial Division, document and Specified Value. This article reads both sections as amended up to 3 May 2018, as per the text consulted, for anyone planning a commercial suit filing or answering one.
The Act may be called the Commercial Courts Act, 2015 and is deemed to have come into force on 23 October 2015. It extends to the whole of India except the State of Jammu and Kashmir, as the text consulted prints it. Section 2(1) defines eight terms in clauses (a), (aa), (b), (d) to (h), and two more, "commercial dispute" in clause (c) and "Specified Value" in clause (i), each of which has its own article. Words not defined in the Act take the meaning given in the Code of Civil Procedure, 1908 and the Indian Evidence Act, 1872.
What section 1 says
Section 1 has three sub-sections.
Sub-section (1): short title. The Act "may be called the Commercial Courts Act, 2015". Its long title says it provides for Commercial Courts, Commercial Appellate Courts, Commercial Divisions and Commercial Appellate Divisions in the High Courts for adjudicating commercial disputes of specified value.
Sub-section (2): extent. The text consulted prints: "It extends to the whole of India except the State of Jammu and Kashmir." Quote it as printed and check the current extent in the official text, because this article does not go beyond the 2018 copy.
Sub-section (3): commencement. The Act "shall be deemed to have come into force on the 23rd day of October, 2015". The word "deemed" matters. The Act is dated 31 December 2015 in the text, yet section 1(3) pushes its start back to 23 October 2015. Section 23 then deals with what was done in the meantime: it repeals an Ordinance of 2015 and treats anything done under it as done under the corresponding provisions of this Act. Our article on sections 21 to 23 covers that.
Section 2(1): the definitions
Section 2(1) opens "unless the context otherwise requires". The clauses are printed in the order (a), (aa), (b), (c), (d), (e) to (i). The table sets them out.
| Clause | Term | What the text says | Where it is explained |
|---|---|---|---|
| (a) | Commercial Appellate Courts | Courts designated under section 3A | Section 3A article |
| (aa) | Commercial Appellate Division | The Division of a High Court constituted under section 5(1) | Section 5 article |
| (b) | Commercial Court | The Court constituted under section 3(1) | Section 3 article |
| (c) | commercial dispute | A dispute arising out of the twenty-two heads in items (i) to (xxii) | Section 2(1)(c) article |
| (d) | Commercial Division | The Division of a High Court constituted under section 4(1) | Section 4 article |
| (e) | District Judge | Same meaning as in article 236(a) of the Constitution of India | This article |
| (f) | document | See below | This article |
| (g) | notification | A notification published in the Official Gazette | This article |
| (h) | Schedule | The Schedule appended to the Act | Section 16 article |
| (i) | Specified Value | Value of the subject-matter as determined under section 12, not less than three lakh rupees or such higher value as the Central Government notifies | Section 12 article |
Clause (e): District Judge
The Act does not write its own description of a District Judge. It borrows the meaning given in clause (a) of article 236 of the Constitution of India. That article is not in the source text consulted, so the meaning is not reproduced here; read the Constitution if the question is who counts as a District Judge.
Clause (f): document
A "document" means any matter expressed or described upon any substance by means of letters, figures or marks, or by electronic means, or by more than one of those means, intended to be used, or which may be used, for the purpose of recording that matter. The inclusion of "electronic means" is important in a commercial suit: an e-mail chain, a scanned purchase order or a message log can be a document in the same way as a signed paper contract. The Schedule's rules on disclosure of documents run on this definition. Read them in our article on Order XI Rule 1.
Clause (g): notification
A notification is one published in the Official Gazette. The word "notify" and its cognate forms follow the same meaning. This matters because many powers in the Act work only by notification: the State Government constitutes Commercial Courts by notification, and the Central Government raises the Specified Value by notification.
Clause (h): Schedule
"Schedule" is the Schedule appended to the Act. It sets out amendments to the Code of Civil Procedure, 1908 for commercial suits (the printed heading reads "See section 16").
Section 2(2): borrowing from the Code and the Evidence Act
Words and expressions used but not defined in this Act, but defined in the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872, have the meanings assigned in that Code and that Act. So "decree", "pleader" or "evidence" is not re-defined here; the reader goes to the Code or the Evidence Act. For the general working of civil suits, see our guide to suits, parties and cause of action under the CPC, which describes the general rule, not the commercial-suit version.
Who is affected
The Act reaches anyone who is party to a commercial dispute of a Specified Value, whether a trader suing for unpaid invoices, a buyer disputing a supply contract, a lender, a licensee or a joint venture partner. The first practical step is to check three things in order: does the dispute fall within a head of clause (c), is its value at or above the Specified Value, and which court does the Act send it to. Section 2 names the courts; sections 3 to 7 allocate the work.
Example. Mehra Packaging Pvt Ltd supplies cartons to Sunrise Foods Ltd under a supply agreement and sues for unpaid invoices. Before anything else, Mehra's advisers read section 2(1)(c) and (i) to decide whether the matter is a commercial dispute of a Specified Value. Only after that do they ask whether the suit goes to a Commercial Court constituted under section 3(1) or to a Commercial Division under section 4(1).
Points to check in the text
- The clauses run (a), (aa), (b), (c), (d) to (i); the Explanation to clause (c) has items (a) and (b) only. These are printing features of the copy consulted, not extra clauses.
- Section 1(2) carries the words "except the State of Jammu and Kashmir" as printed; check the official text for the current extent.
- The definition of Specified Value in clause (i) fixes a floor of three lakh rupees as printed. This article gives no State's limit and no later figure.
Need help with a commercial dispute?
If you are weighing whether your claim is a commercial dispute and where it must be filed, our team can review the contract and the claim with you. See our commercial suit filing support for how we prepare and file such matters.
Key takeaways
- The Act is deemed to have come into force on 23 October 2015.
- Section 1(2) is printed as extending to the whole of India except the State of Jammu and Kashmir; check the current extent.
- Section 2(1) defines the courts and Divisions by reference to sections 3, 3A, 4 and 5.
- "Document" includes electronic means.
- Undefined words take their meaning from the Code of Civil Procedure, 1908 and the Indian Evidence Act, 1872.
Read next
- Section 2(1)(c): meaning of commercial dispute
- Section 12: determination of Specified Value
- Section 3: constitution of Commercial Courts
- Suits: institution, parties and cause of action under the CPC
Disclaimer: Based on a text of the Commercial Courts Act, 2015 as amended up to 3 May 2018 and on the Ninth Schedule to the Mediation Act, 2023 as enacted, as consulted on 2 October 2026. Later amendments, the current Specified Value, the pre-institution mediation rules and High Court rules should be checked. This article is general information, not legal advice; check the official text before acting.