SERIES – Jurisdiction of Civil and Commercial Courts under Indian Arbitration Law
The Commercial Courts Act, 2015, introduced a specialised institutional framework for adjudicating high value Commercial Disputes. By establishing Commercial Courts and Commercial Divisions, the legislature sought to address systemic delays and enhance the quality of commercial adjudication.
A crucial question that arose was whether execution proceedings arising from arbitral awards also fall within the jurisdiction of Commercial Courts. This question carries important implications for procedural efficiency, appellate control, and institutional coherence.
Execution is not a separate or incidental proceeding divorced from the original dispute. It is the stage at which commercial rights recognised by an arbitral award are realised. Treating execution as non-commercial would fragment commercial adjudication and undermine the very rationale behind specialised courts.
The Supreme Court’s decision in Kandla Export Corporation v. OCI Corporation clarified that the Commercial Courts Act constitutes a complete code for commercial disputes, including execution. The Court also emphasised that appellate remedies in execution matters are strictly limited under the Act, thereby preventing enforcement from being stalled through multiple appeals.
At the same time, the Court adopted a principled gatekeeping approach in Ambalal Sarabhai Enterprises Ltd. v. KS Infraspace LLP. It held that a dispute does not become commercial merely because it involves a business entity. The underlying transaction must be genuinely connected to trade or commerce. This ensures that the specialised machinery of Commercial Courts is reserved for bona fide commercial disputes.
The resulting framework strikes a careful balance. Execution jurisdiction remains asset-oriented and governed by Order XXI CPC, while the commercial character of the dispute determines whether enforcement lies before a Commercial Court or an ordinary civil court.
Authored by,
Mantri Lakshmi Sanjana
(Intern, Alliance University, Bangalore)
With guidance from K. Siddhartha, Advocate – Litigation
RVR Associates, IPR Attorneys and Advocates