Section 2 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.
Whether a dispute is a "commercial dispute" decides whether the Commercial Courts Act, 2015 can apply to it at all. Section 2(1)(c) answers by listing twenty-two heads of dispute and adding an Explanation on two situations that do not take a dispute out of the list. This article reads clause (c) as amended up to 3 May 2018, as per the text consulted, and helps you place a real contract dispute against it before you plan a commercial suit filing.
A commercial dispute is a dispute "arising out of" one of the heads in items (i) to (xxii) of section 2(1)(c). The heads run from ordinary transactions of merchants, bankers, financiers and traders to export and import, construction contracts, franchising, joint ventures, intellectual property, insurance and any other dispute the Central Government notifies. A dispute does not stop being commercial merely because it also seeks recovery of immovable property or because the State or a public body is a party. The clause only defines the subject; the value test is separate, in section 2(1)(i).
The structure of the clause
Clause (c) says a commercial dispute "means a dispute arising out of" the listed heads. Two points follow from the wording. First, the test is the source of the dispute, not the label the parties give it. Second, the clause alone is not enough: the Act also needs the dispute to be of a Specified Value, which is covered in our article on determination of Specified Value.
The twenty-two heads
The table below keeps the printed items in order and gives a plain-language note on each.
| Item | Head as printed (shortened) | Plain note |
|---|---|---|
| (i) | Ordinary transactions of merchants, bankers, financiers and traders, such as those relating to mercantile documents, including their enforcement and interpretation | Mercantile documents and their enforcement or interpretation |
| (ii) | Export or import of merchandise or services | Cross-border sale and service contracts |
| (iii) | Admiralty and maritime law | Shipping and maritime claims |
| (iv) | Aircraft, aircraft engines, aircraft equipment and helicopters, including sales, leasing and financing | Aviation asset deals |
| (v) | Carriage of goods | Freight and transport contracts |
| (vi) | Construction and infrastructure contracts, including tenders | Works contracts and tender disputes |
| (vii) | Agreements relating to immovable property used exclusively in trade or commerce | Commercial premises only |
| (viii) | Franchising agreements | Franchisor and franchisee disputes |
| (ix) | Distribution and licensing agreements | Dealer, distributor and licence terms |
| (x) | Management and consultancy agreements | Service and advisory contracts |
| (xi) | Joint venture agreements | Disputes between venturers |
| (xii) | Shareholders agreements | Disputes among shareholders under an agreement |
| (xiii) | Subscription and investment agreements pertaining to the services industry, including outsourcing services and financial services | Investor and service-sector deals |
| (xiv) | Mercantile agency and mercantile usage | Agents and trade custom |
| (xv) | Partnership agreements | Partner disputes under an agreement |
| (xvi) | Technology development agreements | Development and technology contracts |
| (xvii) | Intellectual property rights relating to registered and unregistered trademarks, copyright, patent, design, domain names, geographical indications and semiconductor integrated circuits | IP disputes of the listed kinds |
| (xviii) | Agreements for sale of goods or provision of services | The widest everyday head |
| (xix) | Exploitation of oil and gas reserves or other natural resources including electromagnetic spectrum | Resource contracts |
| (xx) | Insurance and re-insurance | Policy and treaty disputes |
| (xxi) | Contracts of agency relating to any of the above | Agency under any listed head |
| (xxii) | Such other commercial disputes as may be notified by the Central Government | Anything added by notification |
No notification under item (xxii) is part of the text consulted, so this article lists none.
How to read the heads
Item (i) is wide. It speaks of "ordinary transactions" of merchants, bankers, financiers and traders. A dispute over mercantile documents, including their enforcement and interpretation, is the text's own example.
Item (vii) is narrow. It covers agreements relating to immovable property "used exclusively in trade or commerce". The word "exclusively" is part of the printed test, so a lease of premises that serve a mixed purpose needs careful reading before anyone assumes this head applies.
Item (xvii) names the IP rights. Trademarks (registered and unregistered), copyright, patent, design, domain names, geographical indications and semiconductor integrated circuits are listed. The specific statutes that govern infringement suits are separate; see our posts on section 134 of the Trade Marks Act, 1999 and section 104 of the Patents Act, 1970 for the general rule.
Item (xviii) is the everyday head. Any agreement for sale of goods or provision of services falls here. A supplier chasing unpaid invoices, or a buyer alleging defective supply, will usually argue under this head.
The Explanation: two things that do not change the character
A commercial dispute "shall not cease to be a commercial dispute merely because":
- (a) it also involves an action for recovery of immovable property, or for realisation of monies out of immovable property given as security, or involves any other relief pertaining to immovable property; or
- (b) one of the contracting parties is the State or any of its agencies or instrumentalities, or a private body carrying out public functions.
So a claim that also seeks realisation of monies out of immovable property given as security, or a supply contract with a public sector buyer, is not pushed out of the Act only for those reasons. The word "merely" is the limit: the dispute must still arise out of a listed head.
Practical examples
Example 1. Kaveri Exports Pvt Ltd ships garments to a buyer abroad and the buyer rejects the consignment. The dispute arises out of export of merchandise (item (ii)) and also out of an agreement for sale of goods (item (xviii)). Either head is enough.
Example 2. Apex Builders enters a works contract with a municipal body after a tender and the municipal body withholds payment. Item (vi) covers construction contracts, including tenders, and Explanation (b) says that the public body as a party does not by itself change the character of the dispute.
Example 3. A family quarrel over residential property between two cousins does not arise out of any listed head, because item (vii) needs property used exclusively in trade or commerce.
Points to check in the text
- The Explanation has items (a) and (b) only in the copy consulted.
- The clause letters of section 2(1) run (a), (aa), (b), (c), (d) to (i); that is a feature of the printed text.
- The text is silent on any decision about borderline cases; this article gives no case law.
For disputes that sit between this Act and another route, such as a delayed payment to a micro or small supplier, the general routes are explained in our post on MSME Samadhaan. Which route suits a claim depends on the facts.
Need help with deciding whether your claim is a commercial dispute?
Placing a claim against the heads in clause (c) is often the first step in a recovery or breach-of-contract matter. If you want a second pair of eyes before filing, see our commercial suit filing page for how we work.
Key takeaways
- A commercial dispute is one arising out of the twenty-two heads of section 2(1)(c).
- Item (xxii) allows the Central Government to notify other commercial disputes.
- The Explanation keeps a dispute commercial even when it also involves immovable property relief or when the State or a public body is a party.
- Value is tested separately under section 2(1)(i) and section 12.
Read next
- Sections 1 and 2: short title, commencement and definitions
- Section 12: determination of Specified Value
- Sections 6 and 7: jurisdiction of Commercial Courts and Commercial Divisions
- Breach of contract: remedies and damages
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.