Section 12 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.
The Act applies only to commercial disputes of a "Specified Value", and section 12 says how that value is worked out. For a money claim, it counts the money sought including interest up to the date of filing; for property and other rights, it uses market value as on the date of filing. This article reads section 12 with section 2(1)(i), as amended up to 3 May 2018, as per the text consulted, and helps those preparing a commercial suit filing to value the claim correctly.
"Specified Value" means the value of the subject-matter of a suit as determined under section 12, which "shall not be less than three lakh rupees or such higher value, as may be notified by the Central Government" (section 2(1)(i)). Section 12(1) fixes the method in four clauses: money claims including interest to the date of filing; market value of movable property; market value of immovable property; and, for other intangible rights, market value as estimated by the plaintiff. Section 12(2) covers arbitrations and section 12(3) bars appeal or revision against an order finding jurisdiction.
The floor: section 2(1)(i)
Section 2(1)(i) defines "Specified Value", in relation to a commercial dispute, as "the value of the subject-matter in respect of a suit as determined in accordance with section 12 which shall not be less than three lakh* rupees or such higher value, as may be notified by the Central Government". The asterisk after "lakh" is the text's own mark for a word shown as amended in 2018. The amount of three lakh rupees is quoted as printed. The text consulted does not give any higher notified value, so none is stated here. Check the current notified figure from an official source.
Section 12(1): the method
The sub-section opens "The Specified Value and* of the subject-matter of the commercial dispute in a suit, appeal or application shall be determined in the following manner". The "and*" is a stray printing mark in the copy consulted and is flagged, not corrected. Note that the sub-section covers a suit, appeal or application, not just suits.
| Clause | Relief sought | What is taken into account |
|---|---|---|
| (a) | Recovery of money (suit or application) | The money sought to be recovered, inclusive of interest, if any, computed up to the date of filing |
| (b) | Movable property or a right in it (suit, appeal or application) | The market value of the movable property as on the date of filing |
| (c) | Immovable property or a right in it (suit, appeal or application) | The market value of the immovable property as on the date of filing |
| (d) | Any other intangible right | The market value of the said rights as estimated by the plaintiff |
| (e) | Printed as "omitted" | Nothing |
Clause (a): money claims and interest
Where the relief is for recovery of money, the amount to be counted is the money sought "inclusive of interest, if any, computed up to the date of filing of the suit or application". Two consequences follow. First, interest accrued before filing is added to the principal for the value test. Second, the date matters: the computation stops at the date of filing. Interest that will accrue after filing is not part of the figure under this clause.
Example. Kiran Traders claims the price of goods supplied together with interest on the overdue amount. If the principal alone is below the Specified Value but principal plus interest computed up to the filing date reaches it, clause (a) counts both. Kiran's plaint must therefore also state the interest claimed. The Schedule's Order VII Rule 2A requires specific details of any interest claimed; see our article on pleadings and interest claims.
Clause (b) and (c): movable and immovable property
For both, the test is market value on the date of filing the suit, appeal or application. The wording "or to a right therein" means a claim to a right in property is valued in the same way as a claim to the property itself.
Clause (d): intangible rights
For "any other intangible right", the text takes "the market value of the said rights as estimated by the plaintiff". The plaintiff's estimate is the starting point; the text says nothing about how the estimate is tested. Intellectual property disputes under section 2(1)(c)(xvii) are the obvious kind of case here, though the text does not say that IP claims are valued under clause (d).
Clause (e)
Printed as "(e) omitted". There is no text to explain.
Section 12(2): arbitrations
The aggregate value of the claim and counterclaim, if any, as set out in the statement of claim and the counterclaim in an arbitration of a commercial dispute "shall be the basis for determining whether such arbitration is subject to the jurisdiction of a Commercial Division, Commercial Appellate Division or Commercial Court, as the case may be." This links with section 10 on arbitration applications. See our article on section 10.
Section 12(3): no appeal or revision on a finding of jurisdiction
"No appeal or civil revision application under section 115 of the Code of Civil Procedure, 1908, as the case may be, shall lie from an order of a Commercial Division or Commercial Court finding that it has jurisdiction to hear a commercial dispute under this Act." Section 115 of the Code is named only; its content is not described. The point is practical: a party who says the claim is under-valued, or not a commercial dispute at all, cannot appeal or revise an order that rejects that objection. Our article on sections 8, 9 and 11 puts this alongside the other limits.
Valuation and the written statement
The Schedule adds a rule for the defendant: if the defendant disputes the plaintiff's valuation of the suit, the written statement must state the reasons and, if able, give the defendant's own value (Order VIII Rule 3A(5)). Valuation is therefore an issue the defendant is expected to raise early, in the written statement.
Who is affected
Everyone who wants the Act's special procedure, or who wants to resist it. A plaintiff with a borderline claim should compute the figure carefully, including interest to the filing date, and a defendant should check the value before the written statement is due. Counsel should also check the current notified value, which is outside the text consulted.
Points to check in the text
- The "and*" in section 12(1) is a stray mark.
- Clause (e) is printed as "omitted".
- The Specified Value floor is three lakh rupees as printed in section 2(1)(i); no higher value and no State figure is in the source.
- Section 3 lets the State specify pecuniary values within limits; see the article on section 3.
Need help valuing a commercial claim?
A wrong valuation can send a suit to the wrong forum. If you would like a second review of how your claim is valued before filing, see our commercial suit filing page.
Key takeaways
- Specified Value is the value of the subject-matter as determined under section 12, not less than three lakh rupees or a higher notified value.
- Money claims count principal plus interest computed up to the date of filing.
- Property claims use market value as on the date of filing.
- Other intangible rights use market value as estimated by the plaintiff.
- No appeal or revision lies from an order finding that the court has jurisdiction.
Read next
- Section 2(1)(c): meaning of commercial dispute
- Section 3: constitution of Commercial Courts
- Sections 6 and 7: jurisdiction of Commercial Courts and Commercial Divisions
- Plaint: structure, essential parts and drafting
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.