• Written by: admin
• October 29, 2026

The commercial suit procedure in India differs sharply from an ordinary civil suit. The Commercial Courts Act, 2015 amended the Code of Civil Procedure for commercial cases and set strict deadlines at almost every stage. As a result, a single missed step can cost you a defence, a document or even the suit. This guide walks business owners, banks and NBFCs through each stage, from the first notice to judgment.

Step 1: Check Whether Your Dispute Is a “Commercial Dispute”

Section 2(1)(c) of the Act lists the transactions that qualify. These include ordinary transactions of merchants, bankers and financiers, supply and service agreements, partnership and shareholder agreements, construction contracts, franchising, and intellectual property disputes.

Next, check the value. The dispute must carry a specified value of at least ₹3 lakh. For a money claim, you calculate it as the amount claimed plus interest up to the filing date. Finally, identify the right forum. A Commercial Court at district level hears most suits, while the Commercial Division of the High Court hears high-value suits in Delhi, Mumbai, Kolkata and Chennai.

Step 2: Send a Legal Notice and Complete Pre-Institution Mediation

A well-drafted legal notice sets out your claim and often prompts an early settlement. If the other side does not respond, Section 12A requires you to attempt pre-institution mediation before you file. The Legal Services Authority runs this process, and it usually ends within three to five months. However, if your suit genuinely seeks urgent interim relief, such as an injunction or attachment, you can file directly.

Step 3: File a Verified Plaint With Complete Disclosure

The Act raises the bar for pleadings. Under Order VI Rule 15A, a party or an authorised person must verify the plaint through a statement of truth on affidavit. In addition, Order XI requires you to file every relevant document in your power, possession or custody along with the plaint, with a declaration that you hold no others.

This rule has teeth. If you leave out a document, you cannot rely on it later without the court’s leave. Therefore, collect your contracts, invoices, ledgers, correspondence and loan records before you draft.

Step 4: Written Statement Within 120 Days

The defendant must file a written statement within 30 days of summons. The court can extend this, but only up to 120 days. In SCG Contracts (India) v. K.S. Chamankar Infrastructure (2019), the Supreme Court held this outer limit mandatory. Once 120 days pass, the defendant forfeits the right to file a defence, and courts cannot condone the delay.

Step 5: Admission, Denial and Case Management

Both parties must admit or deny each other’s documents on affidavit. The court then holds the first case management hearing within four weeks. At this hearing, the judge frames issues and fixes a timetable for evidence and arguments. Under Order XV-A, oral arguments must close within six months of the first case management hearing.

Step 6: Summary Judgment Under Order XIII-A

Commercial suits offer a powerful shortcut. Either party can seek summary judgment before the court frames issues. The court can decide the claim without a full trial if the other side has no real prospect of success and no compelling reason calls for oral evidence. For lenders with clear documents, this route can save years.

Step 7: Evidence, Arguments, Judgment and Costs

Parties lead evidence through affidavits, followed by cross-examination. Next, they file written arguments within four weeks of oral arguments beginning. The court must then deliver judgment within 90 days of arguments closing. Under the amended Section 35, the losing party ordinarily pays the winner’s costs, which discourages frivolous defences.

Commercial Suit Timeline at a Glance

• Pre-institution mediation: 3 months, extendable by 2 months
• Written statement: 30 days, outer limit 120 days
• First case management hearing: within 4 weeks of admission and denial
• Arguments: close within 6 months of the first hearing
• Judgment: within 90 days of arguments

Frequently Asked Questions

How long does a commercial suit take in India?

The Act targets disposal within roughly 12 to 18 months of filing. Actual timelines depend on the court’s workload, interim applications and appeals.

What is the minimum value for a commercial suit?

The specified value must be at least ₹3 lakh, calculated on the claim amount plus interest up to filing.

Can a defendant file a written statement after 120 days?

No. The Supreme Court treats the 120-day limit as mandatory, so the defendant loses the right to file a defence.

Is mediation compulsory before filing a commercial suit?

Yes, unless the suit genuinely seeks urgent interim relief. Otherwise, the court can reject the plaint.

Can I get a judgment without a full trial?

Yes. Order XIII-A lets the court grant summary judgment when the opposing side has no real prospect of success.

Talk to a Commercial Litigation Lawyer

Lex Pleaders advises banks, NBFCs and businesses on commercial suits, from pre-litigation notices and interim relief to summary judgment and execution. Write to us at lexpleadersindia@gmail.com to discuss your matter.

Disclaimer: This article offers general information only and does not constitute legal advice.