Section 4 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 4 allows the Chief Justice of a High Court that has ordinary original civil jurisdiction to constitute a Commercial Division of one or more single-Judge Benches. It also requires the Chief Justice to nominate Judges who have experience in commercial disputes. This article reads section 4 as amended up to 3 May 2018, as per the text consulted, with sections 2(1)(d), 7 and 15(1), and is relevant to anyone planning a commercial suit filing in a High Court that hears suits on its original side.
In "all High Courts, having ordinary original civil jurisdiction", the Chief Justice may by order constitute a Commercial Division having one or more Benches, each consisting of a single Judge. The Chief Justice nominates Judges "who have experience in dealing with commercial disputes". Commercial disputes of a Specified Value filed in such a High Court are then heard by that Division under section 7, and pending ones move to it under section 15(1).
Sub-section (1): who constitutes the Division, and how
Section 4(1) says that in all High Courts "having ordinary original* civil jurisdiction" (the asterisk marks a word that the text shows as amended in 2018), the Chief Justice of the High Court "may, by order, constitute Commercial Division having one or more Benches consisting of a single Judge for the purpose of exercising the jurisdiction and powers conferred on it under this Act".
Points to take from the wording:
- Which High Courts. Only those with ordinary original civil jurisdiction. A High Court without that jurisdiction does not form a Commercial Division under section 4.
- Who acts. The Chief Justice, not the State Government. Compare section 3, where the State Government constitutes Commercial Courts by notification after consultation with the High Court.
- Instrument. An order, not a notification.
- Composition. One or more Benches, each of a single Judge.
- "May". The power is discretionary in the text; section 4 itself does not say that the Chief Justice must constitute a Division.
Sub-section (2): nominating Judges
The Chief Justice "shall nominate such Judges of the High Court who have experience in dealing with commercial disputes to be Judges of the Commercial Division". The word "shall" attaches to the nomination, and the test is experience. The text gives no list of qualifications and no minimum years; none should be assumed.
The definition in section 2(1)(d)
"Commercial Division" means the Commercial Division in a High Court constituted under sub-section (1) of section 4. So a division exists for the Act's purposes only after an order under section 4(1).
What the Commercial Division hears
Section 7 gives the Division its work: all suits and applications relating to commercial disputes of a Specified Value filed in a High Court having ordinary original civil jurisdiction shall be heard and disposed of by the Commercial Division of that High Court. It has two provisos. The first sends to the Division all suits and applications relating to commercial disputes "stipulated by an Act to lie in a court not inferior to a District Court" and filed or pending on the original side. The second covers suits and applications transferred to the High Court by sub-section (4) of section 22 of the Designs Act, 2000 or section 104 of the Patents Act, 1970. Our article on sections 6 and 7 goes through them.
Section 15(1) moves pending matters: all suits and applications, including applications under the Arbitration and Conciliation Act, 1996, relating to a commercial dispute of a Specified Value pending in a High Court where a Commercial Division has been constituted, shall be transferred to it. See our article on section 15.
Link to the Appellate Division
Section 5(1) begins with the words "After issuing notification under sub-section (1) of section 3 or order under sub-section (1) of section 4". So the Chief Justice constitutes the Commercial Appellate Division after a Commercial Court is notified or a Commercial Division is ordered. Appeals from a Commercial Division go to the Commercial Appellate Division under section 13(1A).
Commercial Court and Commercial Division compared
| Feature | Commercial Court (section 3) | Commercial Division (section 4) |
|---|---|---|
| Where it sits | District level, at District Judge level or below | In a High Court with ordinary original civil jurisdiction |
| Who sets it up | State Government | Chief Justice of the High Court |
| Instrument | Notification, after consultation with the High Court | Order |
| Bench | A Judge appointed with the concurrence of the Chief Justice | One or more Benches of a single Judge |
| Appeal to | Commercial Appellate Court or Commercial Appellate Division (section 13) | Commercial Appellate Division (section 13(1A)) |
Who is affected
A business with a high-value claim in a city where the High Court has ordinary original civil jurisdiction may find that its suit has to be filed before the Commercial Division. A party that is already litigating a pending commercial suit of a Specified Value in such a High Court should check whether section 15(1) moves it. For the general split of jurisdiction between courts, see our guide to the jurisdiction of civil courts, which describes the general rule, not the commercial-suit version.
Example. Brightline Components Ltd has a claim for a supply contract in a city where the High Court has ordinary original civil jurisdiction. Its lawyers first check that the claim is a commercial dispute (section 2(1)(c)), then that it is of a Specified Value, then whether the Chief Justice has constituted a Commercial Division. If so, section 7 sends the suit to that Division.
Points to check in the text
- "original*" carries an asterisk, which the text uses for words changed in 2018; no wording before that change is described here.
- The text does not say how many Benches any High Court has, and it names no High Court's order.
- Whether a particular High Court has issued an order under section 4(1) is a matter of fact outside the text consulted.
Need help with a suit in the High Court?
If your commercial dispute is likely to go before a Commercial Division, early planning of the claim, documents and value matters. See our commercial suit filing page to find out how we assist with filing.
Key takeaways
- Section 4 applies only to High Courts having ordinary original civil jurisdiction.
- The Chief Justice may constitute a Commercial Division by order, with one or more single-Judge Benches.
- Judges are nominated by the Chief Justice on the basis of experience in commercial disputes.
- Section 7 sends commercial disputes of a Specified Value to the Division and section 15(1) transfers pending matters.
Read next
- Section 5: Commercial Appellate Division
- Sections 6 and 7: jurisdiction of Commercial Courts and Commercial Divisions
- Section 15: transfer of pending cases
- 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.