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Thursday, 27 June 2024

What is difference in procedure for trial of civil suit before civil court and commercial courts?

 In India, the procedures for trial of civil suits before a regular civil court and those under the Commercial Courts Act, 2015, are distinct. The differences are mainly due to the nature of the disputes they handle and the procedural requirements aimed at expediting commercial litigation. Here’s a detailed comparison:

Civil Court Procedures (under the Code of Civil Procedure, 1908):

  1. Nature of Disputes:

    • Civil courts handle a wide array of civil disputes, including property disputes, family matters, contract disputes, tort claims, etc.
  2. Pleadings:

    • The plaint and written statement are filed with general requirements. There is some flexibility regarding amendments to pleadings.
  3. Case Management:

    • Civil courts typically have a more lenient approach to case management. Adjournments can be granted more freely, which can extend the duration of cases.
  4. Timelines:

    • No strict adherence to timelines, leading to potentially prolonged litigation due to adjournments and delays.
  5. Discovery and Production of Documents:

    • Discovery is less formal, with courts exercising discretion over the necessity and extent of document production.
  6. Evidence:

    • Presentation of evidence can be spread over multiple hearings, with examinations and cross-examinations occurring over a long period.
  7. Interim Orders:

    • Interim reliefs, such as injunctions, are granted based on principles of prima facie case, balance of convenience, and irreparable injury.
  8. Appeals:

    • Multiple levels of appeals are allowed, which can further prolong the resolution of disputes.

Commercial Courts Act Procedures:

  1. Nature of Disputes:

    • The Act specifically deals with "commercial disputes" as defined, including disputes related to trade, business contracts, intellectual property rights, partnership agreements, and more, with a specified value threshold.
  2. Pleadings:

    • Pleadings (plaint and written statement) must adhere to specific formats with detailed statements of facts and issues, supported by affidavits and certifications of truth.
  3. Case Management:

    • Strict case management principles are enforced. Case management hearings are held to establish timelines for the completion of various stages of the trial.
  4. Timelines:

    • The Act mandates strict adherence to timelines for filing written statements (within 120 days), completion of discovery, and other procedural steps, aiming to expedite the trial process.
  5. Discovery and Production of Documents:

    • Parties are required to file comprehensive lists of documents and conduct discovery within a specified period. Emphasis is placed on electronic records and a more formal approach to document production.
  6. Evidence:

    • Evidence must be filed in advance and presented in a streamlined manner. Oral arguments and witness examinations are conducted efficiently within scheduled timeframes.
  7. Interim Orders:

    • Similar principles as in civil courts apply, but the process is more streamlined to prevent unnecessary delays.
  8. Appeals:

    • The Act limits appeals to one stage after the decision of the commercial court or the commercial division of a High Court, with the aim of reducing prolonged litigation.

Key Differences Summarized:

  • Nature of Disputes: Civil courts handle a broad range of civil matters, while commercial courts focus on specific commercial disputes with a defined monetary threshold.
  • Pleadings: Commercial court pleadings are more detailed and formalized.
  • Case Management: Commercial courts have stricter case management practices to ensure expedited resolution.
  • Timelines: Commercial courts enforce strict timelines for procedural steps, unlike the more lenient timelines in civil courts.
  • Discovery and Evidence: Commercial courts have more formal and expedited processes for discovery and evidence presentation.
  • Appeals: The Commercial Courts Act limits the appeal process to one stage to avoid prolonged litigation, whereas civil courts allow multiple levels of appeals.

These procedural differences are designed to ensure that commercial disputes are resolved more efficiently, reflecting the need for speedy justice in commercial matters to enhance the ease of doing business in India.

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