Section 3A 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 3A lets a State Government designate Commercial Appellate Courts at District Judge level. Those courts hear appeals from Commercial Courts that sit below the level of a District Judge. This article reads the section as amended up to 3 May 2018, as per the text consulted, for readers weighing an appeal through legal dispute resolution, and places it beside sections 2(1)(a), 13, 14, 17 and 20, where Commercial Appellate Courts appear again.
Except in territories where the High Court has ordinary original civil jurisdiction, the State Government may, after consultation with the High Court and by notification, designate Commercial Appellate Courts at District Judge level, in such number as it considers necessary. These courts hear appeals under section 13(1) from a Commercial Court below the level of a District Judge, filed within sixty days. They are separate from the Commercial Appellate Division of a High Court. The text does not name any State's designated courts.
What section 3A says
Section 3A is printed within quotation marks in the text consulted and is marked as amended in 2018. It reads, in substance:
- It applies except to the territories over which the High Courts have ordinary original civil jurisdiction.
- The State Government acts after consultation with the concerned High Court, by notification.
- It may designate "such number of Commercial Appellate Courts at District Judge level, as it may deem necessary".
- The purpose is exercising the jurisdiction and powers conferred on those courts under the Act.
The copy consulted carries slips such as "Commcrcial", "Stare Government", "lcvel" and "confered". None changes a number or the sense.
"Designate" and "constitute"
Section 3 says the State Government "constitutes" Commercial Courts. Section 3A says it "designates" Commercial Appellate Courts at District Judge level. The text does not describe how a court is designated beyond the words "by notification", so nothing more should be read into the choice of verb.
Where it does not apply
The territories over which a High Court has ordinary original civil jurisdiction are left out of section 3A. For those territories the Act's appellate forum is the High Court's Commercial Appellate Division, constituted under section 5 and reached through section 13(1A). Our article on section 5 explains that Division.
Who is affected
Any litigant whose commercial case is decided by a Commercial Court below the level of a District Judge. That includes a supplier whose claim is dismissed and a buyer who has to defend a decree. Both need to know that the appeal lies to a Commercial Appellate Court, not to the High Court, and that the period printed in section 13(1) is sixty days from the date of the judgment or order. The text of section 13 says nothing about extending that period, so note the date at once and take advice early.
Where Commercial Appellate Courts appear in the Act
The definition in section 2(1)(a) says "Commercial Appellate Courts" means the Commercial Appellate Courts designated under section 3A. The courts then appear in several places.
| Section | What it says about Commercial Appellate Courts |
|---|---|
| 2(1)(a) | Defines them by reference to section 3A |
| 3A | The State designates them at District Judge level, outside original-side territories |
| 13(1) | A person aggrieved by the judgment or order of a Commercial Court below the level of a District Judge may appeal to the Commercial Appellate Court within a period of sixty days from the date of judgment or order |
| 14 | The Commercial Appellate Court and the Commercial Appellate Division shall endeavour to dispose of appeals within six months from the date of filing |
| 17 | Statistical data on suits, applications, appeals or writ petitions, pendency, status and disposals shall be maintained every month and published on the High Court's website |
| 20 | The State Government may, in consultation with the High Court, establish facilities for training of Judges appointed to Commercial Appellate Courts and other commercial forums |
| Schedule, Order XX Rule 1 | The Commercial Appellate Court is among the courts that must pronounce judgment within ninety days of the conclusion of arguments |
How the appeal chain looks
The Act has two appeal tracks, based on the level of the court that passed the order.
- A Commercial Court below the level of a District Judge: the appeal goes to the Commercial Appellate Court (section 13(1)).
- A Commercial Court at the level of District Judge exercising original civil jurisdiction, or a Commercial Division of a High Court: the appeal goes to the Commercial Appellate Division of the High Court (section 13(1A)).
That is why section 3A matters mostly to disputes filed in a lower-level Commercial Court. Appeals against the courts' orders are covered in our article on section 13. For the general idea of how first and second appeals work under the Code, see our guide to appeals under the CPC, which describes the general rule.
An example
Example. Navjyot Textiles sues a dealer for an unpaid price in a Commercial Court presided over by a Judge below the level of a District Judge, and loses on a preliminary point. Under section 13(1), the appeal goes to the Commercial Appellate Court, and the sixty-day period runs from the date of the judgment or order. Navjyot's lawyers note two points: first, section 13(1) fixes sixty days as printed, so a diary entry should be made at once; second, section 13(2) says no appeal lies from an order or decree of a Commercial Court or Commercial Division otherwise than in accordance with the Act. Whether the particular order is appealable at all is a separate question; see the proviso to section 13(1A), which is explained in our article on section 13.
Points to check in the text
- Section 3A is printed within quotation marks and carries the 2018 marking; the slips noted above do not alter meaning.
- The text names no State's designated Commercial Appellate Courts and gives no notification; check the State notification.
- The appeal period for a Commercial Court at District Judge level is printed with a misprint in section 13(1A); see the article on section 13 for how to read it.
Need help with an appeal in a commercial matter?
Appeal periods are short and the forum depends on the level of the court that decided the case. If you need help working out where and by when to appeal, see our legal dispute resolution page for how we assist.
Key takeaways
- Section 3A empowers the State to designate Commercial Appellate Courts at District Judge level.
- It is excluded for territories where the High Court has ordinary original civil jurisdiction.
- Appeals from Commercial Courts below District Judge level go to the Commercial Appellate Court within sixty days (section 13(1)).
- The Act asks these courts to endeavour to dispose of appeals within six months (section 14).
- No State's designated courts are named in the text consulted.
Read next
- Section 3: constitution of Commercial Courts
- Section 5: Commercial Appellate Division
- Section 13: appeals from Commercial Courts and Commercial Divisions
- Appeal under the CPC: first appeal and second appeal
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.