Section 16 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.
Section 16 is the hinge between the Commercial Courts Act and the Code of Civil Procedure, 1908. It says that, for a suit on a commercial dispute of a Specified Value, the Code stands amended as set out in the Schedule; that Commercial Courts and Commercial Divisions must follow the Code as so amended; and that the amended Code prevails over a conflicting High Court rule or State amendment. This article reads section 16 as amended up to 3 May 2018, as per the text consulted, and gives a map of the Schedule for readers preparing a commercial suit filing.
The Code of Civil Procedure, 1908 stands amended "in their application to any suit in respect of a commercial dispute of a Specified Value" in the manner specified in the Schedule (section 16(1)). The Commercial Division and Commercial Court shall follow the Code as amended in the trial (sub-section (2)). If a High Court rule or a State amendment to the Code conflicts with the Code as amended by this Act, the Code as amended by this Act prevails (sub-section (3)).
Sub-section (1): the Code is amended for commercial suits
"The provisions of the Code of Civil Procedure, 1908 shall, in their application to any suit in respect of a commercial dispute of a Specified Value, stand amended in the manner as specified in the Schedule."
Note what the sentence limits and what it does not:
- Which suits. A suit in respect of a commercial dispute of a Specified Value. Both tests (section 2(1)(c) and 2(1)(i)) must be met.
- What changes. The Code's provisions "in their application to" such a suit. The Code is not amended for suits generally.
- How. "As specified in the Schedule", which is headed "(See section 16)".
The Code itself is not in the source consulted. This article explains what the Schedule inserts, substitutes or omits; where the Schedule merely names another provision of the Code, the provision is named and nothing is described about it.
Sub-section (2): the court must follow the amended Code
"The Commercial Division and Commercial Court shall follow the provisions of the Code of Civil Procedure, 1908, as amended by this Act, in the trial of a suit in respect of a commercial dispute of a Specified Value."
The sentence names the Commercial Division and Commercial Court. The Commercial Appellate Division and Commercial Appellate Courts are not named in it.
Sub-section (3): conflict with High Court rules or State amendments
"Where any provision of any Rule of the jurisdictional High Court or any amendment to the Code of Civil Procedure, 1908, by the State Government is in conflict with the provisions of the Code of Civil Procedure, 1908, as amended by this Act, the provisions of the Code of Civil Procedure as amended by this Act shall prevail."
In plain terms the Schedule's rules win over a conflicting High Court rule or a State amendment. Section 18 separately allows a High Court to issue practice directions to supplement the Code as it applies to commercial disputes of a Specified Value; our article on sections 14 and 17 to 20 covers it. The text does not describe any High Court's rules, and none is described here.
A note on spelling
The Schedule prints "judgement" where this series writes "judgment". The headings and running text use "judgment" and the printed spelling appears only where a provision is quoted.
Map of the Schedule
The Schedule has twelve paragraphs. The table shows what each does and where it is explained.
| Para | What it does | Explained in |
|---|---|---|
| 1 | Section 26 of the Code, sub-section (2): inserts a proviso that an affidavit shall be in the form and manner prescribed under Order VI Rule 15A | Pleadings, verification, statement of truth and interest claims |
| 2 | Substitutes a new section 35 (Costs) | Costs in commercial suits |
| 3 | Omits sub-section (2) of section 35A | Costs in commercial suits |
| 4(A) | Order V Rule 1(1): substitutes the second proviso (thirty days, up to one hundred twenty days for the written statement) | Written statement within 120 days |
| 4(B) | Order VI: new Rule 3A (forms of pleading) and Rule 15A (verification) | Pleadings, verification, statement of truth and interest claims |
| 4(C) | Order VII: new Rule 2A (interest) | Pleadings, verification, statement of truth and interest claims |
| 4(D) | Order VIII: Rule 1 proviso, new Rule 3A (denial), Rule 5 proviso, Rule 10 proviso | Written statement within 120 days |
| 4(E) | New Order XI (disclosure, discovery and inspection of documents), Rules 1 to 7 | Rule 1; Rule 2; Rules 3 and 4; Rules 5 to 7 |
| 5 | Inserts Order XIII-A (summary judgment), Rules 1 to 8 | Scope, stage and grounds; application, reply and evidence; orders, conditional order and costs |
| 6 | Omits Order XV | Case management hearing and trial timeline |
| 7 | Inserts Order XV-A (case management hearing), Rules 1 to 8 | Timeline; powers, adjournment and non-compliance |
| 8 | Order XVIII Rule 2: substitutes sub-rules (3A) to (3F) (written arguments) | Written arguments and affidavits of evidence |
| 9 | Order XVIII Rule 4: inserts sub-rules (1A) to (1C) (affidavits of evidence) | Written arguments and affidavits of evidence |
| 10 | Order XIX: inserts Rules 4, 5 and 6 (control of evidence, affidavit format) | Order XIX and Order XX |
| 11 | Order XX: substitutes Rule 1 (judgment within ninety days of the conclusion of arguments) | Order XIX and Order XX |
| 12 | Appendix-I: Statement of Truth | Pleadings, verification, statement of truth and interest claims |
Reading the Schedule's headings
The copy consulted prints paragraph 3 as "Amendment if section 35A" and paragraph 4 as "Amendment if First Schedule"; both read as "of". Paragraph 7 is headed "Insertion of Code XV-A" but the text inserts Order XV-A. Paragraph 10's closing quotation mark falls after new Rule 4 and Rules 5 and 6 follow it; read all three as inserted. These are printing features, flagged here and not corrected.
What the amended Code changes for the litigant, in order of a suit
- Pleading. Forms of pleading, verification by a Statement of Truth, and a statement of interest claimed.
- Written statement. Thirty days, extendable but not beyond one hundred twenty days from service, after which the right to file is forfeited, as printed.
- Documents. Disclosure with the plaint and written statement, inspection, and admission or denial.
- Summary judgment. An application before issues are framed.
- Case management. The first hearing, issues, timelines and powers.
- Evidence and arguments. Affidavits of evidence, written arguments and control of evidence.
- Judgment. Within ninety days of the conclusion of arguments.
- Costs. A discretion over whether, how much and when costs are paid.
For the general working of the Code's suit procedure, see our guide to suits, parties and cause of action, which describes the general rule, not the commercial-suit version.
Example. Veena Pharma Pvt Ltd files a recovery suit of a Specified Value. Because section 16(1) applies the Schedule, its plaint must come with a list of documents and a Statement of Truth, and the defendant's written statement must follow the Schedule's time limit. If the High Court's own rules require something different on any of these points, sub-section (3) says the amended Code prevails.
Need help with a commercial suit under the amended Code?
The Schedule changes the order and content of almost every step of a commercial suit. If you want your plaint, documents and Statement of Truth prepared with those rules in mind, see our commercial suit filing page.
Key takeaways
- Section 16(1) applies the Schedule's amendments to the Code only to suits on a commercial dispute of a Specified Value.
- Commercial Divisions and Commercial Courts must follow the amended Code in the trial.
- The amended Code prevails over a conflicting High Court rule or State amendment.
- The Schedule has twelve paragraphs, covering costs, pleadings, written statements, documents, summary judgment, case management, evidence and judgment.
Read next
- Costs in commercial suits under section 35 CPC
- Order XI Rule 1: disclosure of documents
- Section 15: transfer of pending cases
- 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.