All Commercial Appeals From District Court Orders To Now Be Listed Before Division Benches: Delhi High Court

A Single Bench of Justice Sanjeev Sachdeva has directed that all appeals filed under Section 13(1A) of the Commercial Courts Act, 2015, arising out of orders or judgments passed by a Commercial Court at the level of District Judge, including Additional District Judge will be listed before the Division Benches.

The directions have been issued after a legal question arose in a petition before the Delhi High Court, as to whether, in terms of Section 13 (1A) of the Commercial Courts Act, 2015 appeals arising out of orders or judgments passed by District Judge of Commercial court exercising Original Civil jurisdiction are to be heard by a Single Judge or Division Bench of the High Court.

The Court noted that the legislative scheme of the Commercial Courts Act makes it clear that a specific forum of Commercial Appellate Division has been stipulated under Section 13(1A) of the Act for adjudicating appeals arising out of judgments and orders passed by either the Commercial Court at the level of District Judges or the Commercial Division of the High Court, comprising of a Single Judge of the High Court.

The Act, under the provision of Section 5 has also stated that the Chief Justice of the concerned High Court has to constitute Commercial Appellate Division having one or more Division Benches. Therefore, the Act lays down a mandate the Commercial Appellate Division will be constituted of one or more Division Bench in contradiction to the Commercial Division of the High Court which would comprise of a Single Judge of the High Court.

The High Court's Registry, through its Report had informed the Court that the appeals arising out of orders passed by the Commercial Division of the High Court in commercial matters filed under Section 13 of the Act is registered under the category "FAO(OS)(Comm)" and is listed before the Commercial Appellate Division. But since the appeals against the orders of the District Judge of Commercial Court is filed under the category "FAO" and the Roster Bench for hearing "FAO" is that of a Single Bench, the appeals were being listed before the Single Judge.