At a glance
| Governing law | Commercial Courts Act, 2015 (amended 2018) and Code of Civil Procedure, 1908 |
|---|---|
| Specified value | ₹3 lakh or more |
| Pre-institution mediation | Mandatory under Section 12A unless urgent interim relief is sought |
| Written statement | Strict 120-day outer limit from service of summons |
| Arbitration | Arbitration and Conciliation Act, 1996; courts can grant interim measures under Section 9 |
| Limitation | Generally 3 years from the cause of action for contract and money claims |
Disputes we handle
Breach of contract
Claims for damages, specific performance, termination disputes and injunctions.
Money recovery
Recovery suits, summary suits under Order XXXVII CPC, and cheque bounce complaints under Section 138 NI Act.
Arbitration
Domestic and international arbitration, Section 9 interim relief, challenges and enforcement of awards.
Shareholder and partnership
Founder disputes, partnership dissolution, and oppression and mismanagement before the NCLT.
IP and technology disputes
Licensing disputes, software delivery failures and IP infringement suits.
Construction and infrastructure
Contractor claims, delay and termination disputes, and bank guarantee invocation.
How a commercial suit proceeds
Case assessment
Review of documents, limitation, jurisdiction, arbitration clause and the strength of the claim.
Legal notice
A reasoned demand notice often prompts payment or settlement.
Pre-institution mediation
Mediation through the Legal Services Authority under Section 12A; time spent is excluded from limitation.
Filing the suit
Plaint with statement of truth, documents and any application for urgent interim relief.
Case management
Timelines fixed for disclosure, admission and denial of documents, evidence and arguments.
Judgment and execution
Decree, costs and execution proceedings to actually recover the money or enforce the order.
Choosing the right forum
Before filing, check whether your contract has an arbitration clause, whether the debtor is a company that could be taken to the NCLT under the Insolvency and Bankruptcy Code, and whether a summary suit or cheque bounce complaint offers a faster path. The right forum often decides how quickly you recover.
Frequently asked questions
What is a commercial dispute under Indian law?
Section 2(1)(c) of the Commercial Courts Act lists disputes arising from transactions between merchants, bankers and traders, construction and infrastructure contracts, IP rights, partnership and shareholder agreements, technology agreements and many others. If the value is ₹3 lakh or more, the Commercial Courts Act applies.
Is mediation compulsory before filing a commercial suit?
Yes, under Section 12A, unless the suit seeks urgent interim relief. The Supreme Court has held the requirement mandatory. Mediation must be completed within the prescribed period, which does not count towards limitation.
How long does a commercial suit take?
Commercial Courts work to tighter timelines than ordinary civil courts, but contested suits still commonly take 2 to 4 years. Summary suits, settlements and arbitration can be faster.
Can I recover interest and costs?
Yes. Courts can award interest under the contract or at a reasonable rate, and the Commercial Courts Act follows the principle that the losing party generally pays the costs of the winning party.
Should I file a suit or go to the NCLT?
If the debtor is a company and the default is ₹1 crore or more, insolvency proceedings may create strong pressure to pay. But the NCLT is not a recovery forum, and a genuine pre-existing dispute can defeat an operational creditor's application. The choice needs case-specific advice.
Talk to Inovatree about commercial litigation
Inovatree Consultants LLP works from Delhi NCR, Mumbai and Kolkata with clients across India. Learn more about the firm on inovatree.in:
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Last reviewed 24 October 2026. This guide summarises the law in general terms. Every matter turns on its own facts, so take advice before acting.