Last reviewed: October 2026 · General information only, not legal advice.
What Is a Commercial Dispute?
The Commercial Courts Act, 2015 covers disputes arising from ordinary transactions of merchants, bankers and traders, sale of goods and services, supply and distribution agreements, construction and infrastructure contracts, partnership and shareholder agreements, franchising, intellectual property and similar business dealings CCA 2(1)(c). The dispute must have a specified value of ₹3 lakh or more.
Unless urgent interim relief is sought, a commercial suit cannot be filed without first attempting pre-institution mediation through the Legal Services Authority CCA 12A. The Supreme Court held this mandatory in Patil Automation (2022). Mediation is to be completed within 3 months (extendable by 2 months), and a settlement reached has the force of an arbitral award.
Step 2: Filing the Suit
- Filed in the Commercial Court at district level, or in the Commercial Division of a High Court with original jurisdiction (such as the Delhi High Court for higher-value suits).
- The plaint must be verified by a statement of truth and disclose all documents.
- The defendant must file the written statement within 120 days; after that, the right is lost (SCG Contracts, 2019).
- The court can give summary judgment without trial where the defendant has no real prospect of success CPC Order XIII-A.
- Case management hearings fix strict timelines, and costs follow the event.
Alternatives to a Commercial Suit
- Summary suit under Order XXXVII CPC for written contracts and fixed sums
- MSME Facilitation Council if you are a registered micro or small supplier
- Arbitration if your contract has an arbitration clause. Read our arbitration guide →
- Cheque bounce case if a cheque was dishonoured
- IBC petition for undisputed debts of ₹1 crore or more against a company
Frequently Asked Questions
What is the minimum value for a commercial suit?
A commercial dispute must have a specified value of ₹3 lakh or more to be heard by a Commercial Court under the Commercial Courts Act, 2015.
Is pre-institution mediation mandatory?
Yes, unless the suit seeks urgent interim relief. The Supreme Court held in Patil Automation (2022) that a commercial suit filed without pre-institution mediation under Section 12A is liable to be rejected.
What happens if the defendant does not file a written statement in 120 days?
In commercial suits, the defendant forfeits the right to file a written statement after 120 days from service of summons, and the court cannot extend the time beyond that.