Section 5 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 5 requires the Chief Justice of a High Court to constitute a Commercial Appellate Division of one or more Division Benches, and to nominate Judges with experience in commercial disputes. The Division hears the appeals that section 13(1A) sends to it and has a transfer power under section 15(5). This article reads section 5 as amended up to 3 May 2018, as per the text consulted, and helps litigants who may need legal dispute resolution support at the appellate stage.
After the State issues a notification under section 3(1) or the Chief Justice issues an order under section 4(1), the Chief Justice of the concerned High Court shall, by order, constitute a Commercial Appellate Division having one or more Division Benches. The Chief Justice nominates Judges who have experience in dealing with commercial disputes. The Division hears appeals under section 13(1A), is asked to endeavour to dispose of appeals within six months under section 14, and may withdraw and transfer suits under section 15(5).
Sub-section (1): constitution of the Division
Section 5(1) reads, in substance: after issuing notification under sub-section (1) of section 3 or order under sub-section (1) of section 4, the Chief Justice of the concerned High Court shall, by order, constitute a Commercial Appellate Division having one or more Division Benches, for the purpose of exercising the jurisdiction and powers conferred on it by the Act.
The features to note are:
- A trigger. The constitution follows either a notification under section 3(1) (the State constituting Commercial Courts) or an order under section 4(1) (the Chief Justice constituting a Commercial Division).
- "Shall". Unlike section 4(1), which says "may", section 5(1) says "shall". So once the trigger has occurred, the text uses mandatory words for the Chief Justice's order.
- By order. The instrument is an order of the Chief Justice.
- Division Benches. The Division sits in benches of more than one Judge, in contrast with the single-Judge Benches of the Commercial 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 Appellate Division". As in section 4(2), the test is experience; the text gives no list of qualifications or minimum years.
The definition in section 2(1)(aa)
"Commercial Appellate Division" means the Commercial Appellate Division in a High Court constituted under sub-section (1) of section 5. The clause is printed as "(aa)", which is a feature of how the section 2(1) clauses are lettered in the copy consulted.
What the Division does
| Provision | What the Division does |
|---|---|
| Section 13(1A) | Hears appeals against the judgment or order of a Commercial Court at the level of District Judge exercising original civil jurisdiction, or of a Commercial Division of a High Court. The appeal must be filed within the period printed in the sub-section, which is misprinted in the text consulted |
| Proviso to section 13(1A) | Appeals lie from orders specifically enumerated under Order XLIII of the Code of Civil Procedure, 1908 as amended by this Act and under section 37 of the Arbitration and Conciliation Act, 1996 |
| Section 14 | Shall endeavour to dispose of appeals within six months from the date of filing |
| Section 15(5) | May, on the application of any party, withdraw a suit or application that was not transferred in the manner specified in section 15(1) to (3), and transfer it to the Commercial Division or Commercial Court having territorial jurisdiction; the order of transfer is final and binding |
| Section 12(2) | The aggregate of claim and counterclaim in an arbitration decides whether the arbitration is subject to the jurisdiction of a Commercial Division, a Commercial Appellate Division or a Commercial Court |
| Schedule, Order XX Rule 1 | Pronounces judgment within ninety days of the conclusion of arguments |
The misprinted appeal period
Section 13(1A) prints the period as "six! days". That reads like a misprint. Section 13(1) prints sixty days for appeals to the Commercial Appellate Court. Check the official text for the period in sub-section (1A) before acting. Our article on section 13 quotes the printed words.
Transfer under section 15(5)
If a suit or application has not been transferred in the manner set out in section 15(1), (2) or (3), any party may apply to the Commercial Appellate Division, which may withdraw it from the court where it is pending and transfer it for trial or disposal to the Commercial Division or Commercial Court with territorial jurisdiction. The text says "such order of transfer shall be final and binding". Our article on section 15 goes through the other sub-sections.
How this fits with the other courts
The Act builds a pyramid. At the bottom, Commercial Courts (section 3) and, outside original-side territories, Commercial Appellate Courts at District Judge level (section 3A). In a High Court with original jurisdiction, a Commercial Division (section 4) of single-Judge Benches, above which sits the Commercial Appellate Division of Division Benches (section 5). The Schedule's rules for the trial apply to suits before the Commercial Division and Commercial Court; section 13(2) says that, notwithstanding any other law or Letters Patent, no appeal shall lie from an order or decree of a Commercial Division or Commercial Court otherwise than in accordance with the Act. For the general idea of appeals under the Code, see our guide to appeal under the CPC, which describes the general rule and not the commercial-suit version.
Example. Orion Metals Ltd loses a commercial suit decided by a Commercial Division of a High Court. It wants to challenge the decree. Section 13(1A) tells it that the appeal lies to the Commercial Appellate Division of that High Court. Orion's lawyers first confirm the period from the official text, because the copy consulted prints it with a misprint, then check whether the order is one for which the proviso allows an appeal.
Points to check in the text
- "shall" in section 5(1) and "may" in section 4(1) are the printed words; read them as printed.
- The period in section 13(1A) is misprinted; check the official text.
- The text names no High Court's order constituting a Division.
Need help with an appeal or a transfer application?
Appeals and transfer applications before a High Court Division need careful drafting and timing. Our legal dispute resolution page explains how we assist with commercial disputes at the appeal stage.
Key takeaways
- The Chief Justice shall constitute the Commercial Appellate Division after a section 3(1) notification or a section 4(1) order.
- The Division sits in Division Benches of Judges experienced in commercial disputes.
- It hears appeals under section 13(1A), is asked to endeavour to decide appeals within six months, and may transfer suits under section 15(5).
- The period in section 13(1A) is misprinted in the copy consulted; check the official text.
Read next
- Section 4: Commercial Division of a High Court
- Section 13: appeals from Commercial Courts and Commercial Divisions
- Section 15: transfer of pending cases
- Memorandum of appeal: civil appeal drafting 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.