/2022 INSC 0940/
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.  6876 OF 2022
Jaycee Housing Pvt. Ltd. & Ors.        ...Appellant(S)
Versus
Registrar (General), Orissa High Court,         …Respondent(S)
Cuttack & Ors. 
With 
CIVIL APPEAL NO. 6878 OF 2022
With 
CIVIL APPEAL NO. 6877 OF 2022
J U D G M E N T
M.R. SHAH, J.
1. Feeling   aggrieved   and   dissatisfied   with   the   impugned
common judgment and order  dated 12.04.2022 passed by
the   High   Court   of   Orissa   at   Cuttack   in   respective   writ
petitions,  by   which,   the   Division  Bench   of  the  High   Court
has   dismissed   the   respective   writ   petitions   in   which   the
appellants   herein   –   original   writ   petitioners   challenged   a
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notification   dated   13.11.2020,   issued   by   the   State   of
Odisha through its Principal Secretary, Law Department in
establishing   the  Court   of   the   Civil   Judge   (Senior   Division)
as   Commercial   Courts   for   the   purposes   of   exercising
jurisdiction and powers under the Commercial Courts Act,
2015,   the   original   writ   petitioners   have   preferred   the
present appeals. 
2. In   exercise   of   powers   conferred   by   Section   3   and   sub­
section (1) of Section 9 read with Section 10 of the Odisha
Civil   Courts   Act,   1984   and   Section   30   of   the   Commercial
Courts Act, 2015 (hereinafter referred to as the Act, 2015),
the State Government on the recommendation of and after
consultation with the High Court of Orissa has established
the   Courts   of   Civil   Judge   (Senior   Division)   as   Commercial
Courts   for   the   purposes   of   exercising   the   jurisdiction   and
powers under the Act, 2015. 
2.1 The   original   writ   petitioners   –   appellants   herein   initially
filed   the   proceedings   under   Section   34   of   the   Arbitration
and   Conciliation   Act,   1996   (hereinafter   referred   to   as   the
Arbitration   Act,   1996)   in   the   Court   of   learned   District
Judge.   However,   on   establishment   of   the   Commercial
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Courts   under   the   aforesaid   notification,   the   said
proceedings were transferred to the Commercial Court i.e.,
the   Court   of   Civil   Judge   (Senior   Division)   [designated   as
Commercial   Court].   Therefore,   the   appellants   herein
challenged   the   aforesaid   notification   and   designating   the
Courts   of   Civil   Judge   (Senior   Division)   as   Commercial
Courts under the Act, 2015 before the High Court by  way
of   present   writ   petitions.   It   was   the   case   on   behalf   of   the
appellants   –   original   writ   petitioners   that   constituting
and/or   designating   the   Courts   of   Civil   Judge   (Senior
Division) as Commercial Courts and to exercise the powers
under the Commercial Courts Act would be in conflict with
the   provisions   of   Section   2(1)(e)   of   the   Arbitration   Act,
1996.   It   was   the   case   on   behalf   of   the   appellants   herein
that under Section 2(1)(e) of the Arbitration Act, 1996, only
the Principal Civil Court of original jurisdiction in a district
(Court  of Principal District Judge)  shall  be  the “Court”  for
the purpose of deciding the disputes under the Arbitration
Act, 1996 and in case of an arbitration it does not include
any Civil Court of a grade inferior to such Principal District
Judge.     Therefore,   it   was   the   case   on   behalf   of   the
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appellants that to confer the jurisdiction upon the Court of
Civil  Judge  (Senior  Division)   to  exercise  the  powers  under
the   Commercial   Courts   Act   including   the   proceedings
under   the   Arbitration   Act,   1996   would   be   contrary   to
Section   2(1)(e)   of   the   Arbitration   Act,   1996,   which   is   the
Special Act. By the impugned common judgment and order
the High Court has dismissed the said writ petitions which
has given rise to the present appeals. 
3. Ms.   Uttara   Babbar,   learned   counsel   has   appeared   on
behalf   of   the   respective   appellants   –   original   writ
petitioners and Shri Gaurav Aggarwal, learned counsel has
appeared as Amicus Curiae appointed by the Court. 
3.1 Ms.   Babbar,   learned   counsel   appearing   on   behalf   of   the
appellants   has   vehemently   submitted   that   there   is   a
conflict   between   Section   3   of   the   Act,   2015   and   Section
2(1)(e)   of   the   Arbitration   Act,   1996.   It   is   submitted   that
Section   2(1)(e)   of   the   Arbitration   Act,   1996   provides   that
the Principal Civil Court of original jurisdiction in a district
shall   be   the   “Court”   in   the   case   of   an   arbitration   other
than   international   commercial   arbitration.   It   is   submitted
that Section 2(1)(e) of the Arbitration Act, 1996 specifically
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provides that it does not include any Civil Court of a grade
inferior   to   such   Principal   Civil   Court.   It   is   submitted   that
therefore,   under   Section   2(1)(e)(i)   of   the   Arbitration   Act,
1996,   all   courts   inferior   to   Principal   Civil   Court   are
excluded. It is submitted that wherever an application has
to   lie   to   a   “court”   (under   the   Commercial   Courts   Act),   it
must lie to the Principal Civil Court and the jurisdiction of
all inferior courts is excluded. 
3.2 It is  submitted that  when  in exercise of  the powers under
Section 3 of the Act, 2015, jurisdiction to hear applications
under   Sections   9,   14,   34   of   the   Arbitration   Act,   1996,   is
conferred   on   commercial   courts   which   are   subordinate   to
the   Principal   Civil   Court   of   original   jurisdiction   in   the
district,   there   is   a   clear   conflict   with   the   provisions   of
Section 2(1)(e) of the Arbitration Act, 1996.
3.3 It   is   further   submitted   by   Ms.   Babbar,   learned   counsel
appearing   on   behalf   of   the   appellants   that   the   “Court”
under   Section   2(1)(e)   of   the   Arbitration   Act,   1996   is   the
superior most court in the district and as such legislature
intended to  minimize  the  supervisory  role  of the  courts in
the arbitral process. Reliance is placed on the decisions of
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this Court in the cases of   State of Maharashtra and Anr.
Vs. Atlanata Ltd.; (2014) 11 SCC 619  and  State of West
Bengal   and   Ors.   Vs.   Associated   Contractors;   (2015)   1
SCC 32. 
3.4 It   is   further   submitted   by   Ms.   Babbar,   learned   counsel
appearing   on   behalf   of   the   appellants   that   the   Arbitration
and   Conciliation   Act,   being   a   special   statute   vis­à­vis   the
Commercial Courts Act, shall prevail over the Commercial
Courts Act in the case of any conflict as held by this Court
in   the   cases   of   Fuerst   Day   Lawson   Ltd.   Vs.   Jindal
Exports   Ltd.;   (2011)   8   SCC   333   and   Kandla   Export
Corporation   and   Anr.   Vs.   OCI   Corporation   and   Anr.;
(2018)   14   SCC   715,   the   Arbitration   and   Conciliation   Act
shall prevail. 
3.5 It is further  submitted that the High Court has proceeded
on   an   erroneous   premise   that   the   Arbitration   and
Conciliation   Act   must   yield   to   the   Commercial   Courts   Act
as   both   are   special   statutes,   and   the   Commercial   Courts
Act   is   the   later   statute.   It   is   submitted   that   aforesaid   is
contrary  to   the   aforesaid  two   decisions  of   this   Court.  It  is
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submitted  that   as   observed  and   held  by   this   Court   in   the
case   of   Fuerst   Day   Lawson   Ltd.   (supra)   the   Arbitration
Act is a self­contained code and exhaustive and therefore,
the   same   shall   prevail   over   the   Commercial   Courts   Act
being   a   Special   Act.     It   is   further   submitted   that   the
decision   of   this   Court   in   the   case   of   Kandla   Export
Corporation  (supra) has been subsequently approved by a
bench   of   three   Hon’ble   Judges   in   the   case   of   BGS   SGS
SOMA   JV   Vs.   NHPC   Ltd.;   (2020)   4   SCC   234.   It   is
submitted   that   in   the   said   decision,   this   Court   has
categorically   held   that   the   Arbitration   Act   is   a   complete
code   and   a   Special   Act   which   excludes   the   general   law,
including  the Commercial Courts Act. It is submitted that
therefore the view taken by the High Court in the common
impugned   judgment   and   order   is   just   contrary   to   the
decision   of   this   Court   in   the   case   of   Kandla   Exports
Corporation   (supra)   and   another   decision   referred
hereinabove. 
3.6 It   is   further   submitted   by   Ms.   Babbar,   learned   counsel
appearing on behalf of the appellants that the objective of
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the   Arbitration   Act   is   to   ensure   speedy   disposal   of   cases
which   minimal   court’s   interference.   If   the   Civil   Judge
(Senior  Division) is designated as Commercial  Court, then
the   litigant   would   be   provided   another   challenge   to   the
High   Court   under   Article   227   even   after   disposal   of   the
appeal   by   the   District   Judge,   which   shall   defeat   the
objective of speedy disposal. Reliance is placed on para 27
of the decision of this Court in the case of  Kandla Exports
Corporation  (supra).
3.7 Ms.   Babbar,   learned   counsel   appearing   on   behalf   of   the
appellants has pointed that there is a conflict in the views
of   various   High   Courts.   It   is   submitted   that   the   Gujarat
High   Court   and   the   Madhya   Pradesh   High   Court   have
taken the view that the Arbitration Act will prevail over the
Commercial   Courts   Act   and   on   other   hand   the   Bombay
High  Court,  Rajasthan  High  Court  and  Orissa High  Court
have taken a contrary view. 
3.8 Making the above submissions and relying upon the above
decisions,   it   is   prayed   to   declare   and   hold   that   the
notification   issued   by   the   State   of   Odisha   conferring   the
powers upon the Commercial Court – Court of Civil Judge
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(Senior   Division)   to   exercise   the   powers   under   the
Commercial   Courts   Act   in   respect   of   arbitration   disputes
as   illegal,   bad   in   law   and   consequently   to   quash   and   set
aside   the   impugned   common   judgment   and   order   passed
by the High Court.
4. Shri Gaurav Aggarwal, learned counsel and Amicus Curiae
has   taken   us   to   the   object   and   purpose   of   enactment   of
Commercial   Courts   Act   and   establishment   of   the
Commercial Courts, Commercial Division and Commercial
Appellate   Division   of   the   High   Court.   It   is   submitted   that
the   Commercial   Courts   Act   and   the   establishment   of
Commercial   Courts   are   with   a   view   to   facilitate   early
disposal   of   the   high   value   disputes/commercial   disputes.
It   is   submitted   that   with   a   view   to   achieving   the   object   of
speedy disposal of the commercial disputes, the legislature
has   enacted   the   Commercial   Courts   Act,   2015.   It   is
submitted that under  Section 3 of the Commercial Courts
Act,   2015,   a   commercial   Court   can   be   set   up   and   a
commercial   Appellate   Court   can   be   set   up   under   Section
3A   of   the   Commercial   Courts   Act,   2015.   It   is   submitted
that   a   dispute   relating   to   arbitration   is   a   commercial
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dispute   under   Section   2(c)   of   the   Commercial   Courts   Act,
2015.   It   is   submitted   that   Section   10   of   the   Commercial
Courts   Act,   2015   is   a   special   provision   in   respect   of
arbitration matters. It is submitted that as per sub­section
(3)   of   Section   10,   if   the   arbitration   is   other   than   an
international   commercial   arbitration,   all   applications   or
appeals   arising   out   of   such   arbitration   under   the
provisions   of   the   Arbitration   Act   that   would   ordinarily   lie
before any principal civil court of original jurisdiction in a
district, shall be filed in, and heard and disposed of by the
Commercial   Court   exercising   territorial   jurisdiction   over
such   arbitration   where   such   Commercial   Court   has   been
constituted.   It   is   submitted   that   the   Commercial   Courts
Act – being a later Act and has been enacted for a specific
purpose   for   speedy   disposal   of   the   commercial   disputes,
the   same   shall   prevail.   It   is   submitted   that   when   the
legislature   in   its   wisdom   in   a   later   enactment   has
specifically provided as per sub­section (3) of Section 10 of
the   Commercial   Courts   Act,   2015   that   all
applications/appeals   arising   out   of   the   Arbitration   Act
other than the international commercial arbitration would
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be   heard   and   disposed   of   by   the   Commercial   Court,   the
same shall prevail. It is submitted that if the submissions
made   on   behalf   of   the   appellants   is   accepted   in   that   case
Section   10   would   become   otiose   or   redundant   and/or
nugatory. It is submitted that therefore, it is requested not
to have the interpretation which shall result any provision
of the Act nugatory and/or otiose.
4.1 Now so far as the reliance placed upon the decision of this
Court in the case of  Kandla Export Corporation  (supra) is
concerned,   it   is   vehemently   submitted   that   the   said
decision   does   not   imply   that   all   provisions   of   the
Arbitration   Act   would   prevail   over   the   Commercial   Courts
in case of any conflict and inconsistency. 
4.2 It is  submitted that  similarly   the decision  of this Court in
the   case   of   BGS   SGS   SOMA   JV   (supra)   shall   not   be
applicable to the facts of the case on hand, it is submitted
that in the said decision it is held that Section 13(1) of the
Commercial   Courts   Act   does   not   provide   for   independent
right of appeal, but merely provides forum of filing appeal.
4.3 Making  the  above  submissions  it  is prayed  to  dismiss  the
present   appeals   and   hold   that   in   the   present   case   the
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notification   issued   by   the   State   Government   conferring
powers upon the Commercial Court – Court of Civil Judge
(Senior   Division)   to   exercise   the   powers   under   the
Commercial Courts Act is neither illegal nor bad in law.     
5. We   have   heard   Ms.   Uttara   Babbar,   learned   counsel
appearing   for   the   appellants   and   Shri   Gaurav   Aggarwal,
learned Amicus Curiae.
6. The question of law arising for consideration in the present
appeal is, whether in exercise of powers under Section 3 of
the   Commercial   Courts   Act,   2015,   the   State   Government
can confer jurisdiction to hear applications under Sections
9, 14 and 34 of the Arbitration and Conciliation Act, 1996,
upon   Commercial   Courts   which   are   subordinate   to   the
rank of the Principal Civil Judge in the District, contrary to
the provisions of Section 2(1)(e) of the Arbitration Act?
7. While   considering   the   aforesaid   question   of   law,   relevant
provisions of the Arbitration Act, 1996 and the Commercial
Courts   Act,   2015   are   required   to   be   referred   to   and
considered,   namely,   Section   2(1)(e)   of   the   Arbitration   Act
and Sections 3, 10, 15 & 21 of the Commercial Courts Act,
2015, which read as under:
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“ Section 2(1)(e) of the Arbitration Act, 1996 :
(e) “Court” means – 
(i)   in   the   case   of   an   arbitration   other   than   international
commercial   arbitration,   the   principal   Civil   Court   of   original
jurisdiction   in   a   district,   and   includes   the   High   Court   in
exercise   of   its   ordinary   original   civil   jurisdiction,   having
jurisdiction to decide the questions forming the subject­matter
of the arbitration if the same had been the subject­matter of a
suit, but does not include any Civil Court of a grade inferior to
such principal Civil Court, or any Court of Small Causes;
(ii)   in   the   case   of   international   commercial   arbitration,   the
High Court in exercise of its ordinary original civil jurisdiction,
having   jurisdiction   to   decide   the   questions   forming   the
subject­matter   of   the   arbitration   if   the   same   had   been   the
subject­matter   of   a   suit,   and   in   other   cases,   a   High   Court
having   jurisdiction   to   hear   appears   from   decrees   of   courts
subordinate to that High Court”
Sections   3,   10,   15   &   21   of   the   Commercial   Courts   Act,
2015:
3.   Constitution   of   Commercial   Courts   ­   (1)   The   State
Government,   may   after   consultation  with   the   concerned  High
Court, by notification, constitute such number of Commercial
Courts   at   District   level,   as   it   may   deem   necessary   for   the
purpose of exercising the jurisdiction and powers conferred on
those courts under this Act:
Provided that with respect to the High Courts having ordinary
original   civil   jurisdiction,   the   State   Government   may,   after
consultation   with   the   concerned   High   Court,   by   notification,
constitute Commercial Courts at the District Judge level:
Provided further that with respect to a territory over which the
High Courts have ordinary original civil jurisdiction, the State
Government   may,   by   notification,   specify   such   pecuniary
value which shall not be less than three lakh rupees and not
more   than   the   pecuniary   jurisdiction   exercisable   by   the
District Courts, as it may consider necessary.]
(1­A)   Notwithstanding   anything   contained   in   this   Act,   the
State Government may, after consultation with the concerned
High   Court,   by   notification,   specify   such   pecuniary   value
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which shall not be less than three lakh rupees or such higher
value,   for   whole   or   part   of   the   State,   as   it   may   consider
necessary.]
(2)   The   State   Government   shall,   after   consultation,   with   the
concerned  High  Court  specify,  by  notification, the  local  limits
of   the   area   to   which   the   jurisdiction   of   a   Commercial   Court
shall   extend   and   may,   from   time   to   time,   increase,   reduce   or
alter such limits.
(3)   The   [State   Government   may],   with   the   concurrence   of   the
Chief   Justice   of   the   High  Court   appoint   one   or   more   persons
having   experience   in   dealing   with   commercial   disputes   to   be
the   Judge   or   Judges,   of   a   [Commercial   Court   either   at   the
level   of   District   Judge   or   a   court   below   the   level   of   a   District
Judge].
10.   Jurisdiction   in   respect  of   arbitration   matters  ­  Where
the   subject­matter   of   an   arbitration   is   a   commercial
dispute of a specified value and—
(1)   If   such   arbitration   is   an   international   commercial
arbitration,   all   applications   or   appeals   arising   out   of   such
arbitration   under   the   provisions   of   the   Arbitration   and
Conciliation   Act,   1996   (26   of   1996)   that   have   been   filed   in   a
High Court, shall be heard and disposed of by the Commercial
Division   where   such   Commercial   Division   has   been
constituted in such High Court.
(2)   If   such   arbitration   is   other   than   an   international
commercial arbitration, all applications or appeals arising out
of such arbitration under the provisions of the Arbitration and
Conciliation Act, 1996 (26 of 1996) that have been filed on the
original side of the High Court, shall be heard and disposed of
by   the   Commercial   Division   where   such   Commercial   Division
has been constituted in such High Court.
(3)   If   such   arbitration   is   other   than   an   international
commercial arbitration, all applications or appeals arising out
of such arbitration under the provisions of the Arbitration and
Conciliation   Act,   1996   (26   of   1996)   that   would   ordinarily   lie
before   any   principal   civil   court   of   original   jurisdiction   in   a
district   (not   being   a   High   Court)   shall   be   filed   in,   and   heard
and disposed of by the Commercial Court exercising territorial
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jurisdiction   over   such   arbitration   where   such   Commercial
Court has been constituted.
15.   Transfer   of   Pending   Cases —   (1)   All   suits   and
applications, including applications under the Arbitration and
Conciliation   Act,   1996   (26   of   1996),   relating   to   a   commercial
dispute of a Specified Value pending in a High Court where a
Commercial   Division   has   been   constituted,   shall   be
transferred to the Commercial Division.
(2) All suits and applications, including applications under the
Arbitration and Conciliation Act, 1996 (26 of 1996), relating to
a commercial dispute of a specified value pending in any civil
court in any district or area in respect of which a Commercial
Court   has   been   constituted,   shall   be   transferred   to   such
Commercial Court:
Provided that no suit  or application where the final judgment
has been reserved by the court prior to the constitution of the
Commercial   Division   or   the   Commercial   Court   shall   be
transferred either under sub­section (1) or sub­section (2).
(3)   Where   any   suit   or   application,   including   an   application
under the Arbitration and Conciliation Act, 1996 (26 of 1996),
relating to a commercial dispute of specified value shall stand
transferred   to   the   Commercial   Division   or   Commercial   Court
under sub­section (1) or sub­section (2), the provisions of this
Act shall apply to those procedures that were not complete at
the time of transfer.
(4) The Commercial Division or Commercial Court, as the case
may   be,   may   hold   case   management   hearings   in   respect   of
such transferred suit or application in order to prescribe new
timelines or issue such further directions as may be necessary
for   a   speedy   and   efficacious   disposal   of   such   suit   or
application   in   accordance   [with   Order   XV­A]   of   the   Code   of
Civil Procedure, 1908 (5 of 1908):
Provided that  the proviso  to sub­rule (1)  of Rule  1  of Order  V
of the Code of Civil Procedure, 1908 (5 of 1908) shall not apply
to  such  transferred   suit   or   application   and   the   court   may,   in
its   discretion,   prescribe   a   new   time   period   within   which   the
written statement shall be filed.
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(5) In the event that such suit or application is not transferred
in   the   manner   specified   in   sub­section   (1),   sub­section   (2)   or
sub­section (3), the Commercial Appellate Division of the High
Court may, on the application of any of the parties to the suit,
withdraw such suit or application from the court before which
it is pending and transfer the same for trial or disposal to the
Commercial   Division   or   Commercial   Court,   as   the   case   may
be,   having   territorial   jurisdiction   over   such   suit,   and   such
order of transfer shall be final and binding.
21   Act   to   have   overriding   effect   —Save   as   otherwise
provided,   the   provisions   of   this   Act   shall   have   effect,
notwithstanding  anything inconsistent therewith contained in
any other law for the time being in force or in any instrument
having   effect   by   virtue   of   any   law   for   the   time   being   in   force
other than this Act.”
8. It   is   the   case   on   behalf   of   the   appellants,   relying   upon
Section   2(1)(e)   of   the   Act,   1996   that   in   case   of   arbitration
other   than   the   international   commercial   arbitration,   the
principal   Civil   Court   of   original   jurisdiction   in   a   district
only   have   the  jurisdiction   to   decide  the   questions  forming
the subject­matter of the arbitration, but does not include
any   Civil   Court   of   a   grade   inferior   to   such   principal   Civil
Court,   or   any   Court  of   Small   Causes.    Therefore,   it   is   the
case   on   behalf   of   the   appellants   that   therefore   conferring
the   jurisdiction   upon   the   Court   of   learned   Civil   Judge
(Senior Division) as Commercial Court to hear applications
under   Section   9,   14   and   34   of   the   Act,   1996   shall   be
directly in conflict with Section 2(1)(e) of the Act, 1996 and
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therefore   the   notification   of   the   State   Government
conferring   such   powers   upon   the   Court   of   learned   Civil
Judge (Senior Division) which is subordinate to the rank of
Principal Civil Judge  in a district shall be bad in law.
9. While considering the aforesaid issue/question, first of all,
one   has   to   consider   the   object   and   purpose   of
establishment   of   the   Commercial   Courts   and   the
enactment of the Commercial Courts Act, 2015.
9.1 In   the   year   2003,   the   Law   Commission   of   India   suo   moto
took   up   the   issue   of   constitution   of   Commercial   Divisions
in the High Courts with a view to facilitate fast disposal of
high   value   commercial   disputes.     In   its   188 th
  Report,   the
Law   Commission,   after   carrying   out   in­depth   study   of
Commercial   Courts   in   United   Kingdom,   USA,   Singapore
etc.   recommended   setting   up   of   Commercial   Division   in
each   of   the   High   Courts   to   expedite   commercial   cases   of
high pecuniary value.
9.2 On   the   basis   of   the   above   recommendations   of   the   Law
Commission,   a   Bill   was   introduced   in   Lok   Sabha   on
16.12.2009   and   passed   on   18.12.2009   for   setting   up
commercial   divisions   in   the   High   Courts.   The   Bill   was
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referred   to   a   Select   Committee   which   suggested   certain
amendments   to   the   said   Bill.     The   Bill   was   redrafted   and
placed   before   the   Rajya   Sabha   for   its   consideration.
However,   the   same   came   to   be   withdrawn   by   the
Government   and   thereafter   the   matter   was   again   referred
to   the   Law   Commission   for   its   report.     The   Law
Commission   in   its   253 rd
  Report   submitted   in   January,
2015 suggested a new approach for expediting commercial
disputes   and   therefore   proposed   a   new   Bill.     The   Law
Commission   made   the   following   recommendations   qua
arbitration matters involving the commercial disputes:
“3.24.4 Second,   in   the   case   of   domestic   arbitrations
concerning   a   commercial   dispute   of   more   than   Rupees   One
Crore, applications or appeals may lie either to the High Court
or a Civil Court (not being a High Court) depending upon the
pecuniary   jurisdiction.     It   is   recommended   that   all
applications or appeals arising out of such arbitrations under
the  A&  C   Act,   that   have   been  filed  on   the   original  side  of   the
High   Court   shall   be   heard   by   the   Commercial   Division   of   the
High Court where such Commercial Division is constituted in
the   High   Court.     However,   in   the   absence   of   a   Commercial
Division   being   constituted,   the   regular   Bench   of   the   High
Court   will   hear   such   applications   or   appeals   arising   out   of
domestic   arbitration.     If   the   application   or   appeal   in   such
domestic arbitration is not within the jurisdiction of the High
Court and would ordinarily lie before a Civil Court (not being a
High   Court)   and   there   is   a   Commercial   Court   exercising
territorial jurisdiction in respect of such arbitration, then such
application   or   appeal   shall   be   filed   in   and   heard   by   such
Commercial Court.”     
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Accordingly,   Commercial   Courts,   Commercial   Division
and Commercial Appellate Division of High Courts Bill, 2015
was introduced in Rajya Sabha on April 29, 2015 which was
referred   to   Departmental   Related   Parliamentary   Standing
Committee   on   Personnel,   Public   Grievances,   Law   and
Justice.   While   the   matter   was   pending   before   the
Parliamentary   Committee,   an   Ordinance   was   promulgated
by   His   Excellency   the   President   of   India   on   23.10.2015,
namely,   Commercial   Courts,   Commercial   Division   and
Commercial   Appellate   Division   of   High   Courts   Ordinance,
2015.
That   thereafter,   the   Commercial   Courts,   Commercial
Division   and   Commercial   Appellate   Division   of   High   Courts
Act,   2015   was   passed   by   the   Parliament,   which   has   been
subsequently   re­named   as   Commercial   Courts   Act,   2015.
The statements of Objects and Reasons of the said Act,  inter
alia , provides as under:
“The   proposal   to   provide   for   speedy   disposal   of   high   value
commercial   disputes   has   been   under   consideration   of   the
Government  for   quite  some time.   The high value commercial
disputes involve complex facts and question of law.  Therefore,
there   is   a   need   to  provide   for   an   independent   mechanism   for
their early resolution. Early resolution of commercial disputes
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shall   create   a   positive   image   to   the   investor   world   about   the
independent and responsive Indian legal system.”
That   thereafter   the   Commercial   Courts   Act,   2015   has
been amended in the year 2018 which has come into force
with effect from 03.05.2018, by which Sections 3(1A) & 3A
have   been   inserted   enabling   the   State   Governments   to
designate   such   number   of   commercial   Appellate   Courts   at
District   level   to   exercise   appellate   jurisdiction   over   the
commercial  courts below  the  District  Judge level.   Thus,  a
commercial Court can be set up under Section 3 of the Act,
2015   and   a   commercial   appellate   Court   can   be   set   up
under Section 3A of the Act, 2015.
10. Thus, the Objects and Reasons of Commercial Courts Act,
2015   is   to   provide   for   speedy   disposal   of   the   commercial
disputes   which   includes   the   arbitration   proceedings.     To
achieve the said Objects, the legislature in its wisdom has
specifically   conferred   the   jurisdiction   in   respect   of
arbitration matters as per Section 10 of the Act, 2015.   At
this  stage,  it is required  to  be  noted  that  the  Act, 2015  is
the Act later in time and therefore when the Act, 2015 has
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been enacted, more particularly Sections 3 & 10, there was
already  a provision contained in Section 2(1)(e) of the Act,
1996.   As   per   settled   position   of   law,   it   is   to   be   presumed
that   while   enacting   the   subsequent   law,   the   legislature   is
conscious   of   the   provisions   of   the   Act   prior   in   time   and
therefore   the   later  Act  shall   prevail.    It   is   also   required   to
be noted that even as per  Section  15 of the  Act, 2015, all
suits   and   applications   including   applications   under   the
Act,   1996,   relating   to   a   commercial   dispute   of   specified
value   shall   have   to   be   transferred   to   the   Commercial
Court.  Even as per Section 21 of the Act, 2015, Act, 2015
shall   have   overriding   effect.     It   provides   that   save   as
otherwise   provided,   the   provisions   of   this   Act   shall   have
effect,   notwithstanding   anything   inconsistent   therewith
contained in any other law for the time being in force.
11. Therefore,   considering   the   afore­stated   provisions   of   the
Act, 2015 and the Objects and Reasons for which the Act,
2015   has   been   enacted   and   the   Commercial   Courts,
Commercial Division and Commercial Appellate Division in
the High Courts are established for speedy disposal of the
commercial   disputes   including   the   arbitration   disputes,
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Sections   3   &   10   of   the   Act,   2015   shall   prevail   and   all
applications or appeals arising out of arbitration under the
provisions   of   Act,   1996,   other   than   international
commercial   arbitration,   shall   be   filed   in   and   heard   and
disposed   of   by   the   Commercial   Courts,   exercising   the
territorial   jurisdiction   over   such   arbitration   where   such
commercial   courts   have   been   constituted.     If   the
submission   on   behalf   of   the   appellants   that   all
applications/appeals   arising   out   of   arbitration   under   the
provisions   of   Act,   1996,   other   than   the   international
commercial   arbitration,   shall   lie   before   the   principal   civil
Court   of   a   district,   in   that   case,   not   only   the   Objects   and
Reasons   of   enactment   of   Act,   2015   and   establishment   of
commercial courts shall be frustrated, even Sections 3, 10
& 15 shall become otiose and nugatory.  If the submission
on   behalf   of   the   appellants   is   accepted,   in   that   case,
though   with   respect   to   other   commercial   disputes,   the
applications   or   appeals   shall   lie   before   the   commercial
courts established and constituted under Section 3 of Act,
2015,   with   respect   to   arbitration   proceedings,   the
applications   or   appeals   shall   lie   before   the   principal   civil
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Court of a district.   There cannot be two   fora   with respect
to different commercial disputes.  
Under   the   circumstances,   notification   issued   by   the
State of Odisha issued in consultation with the High Court
of   Orissa   to   confer   jurisdiction   upon   the   court   of   learned
Civil   Judge   (Senior   Division)   designated   as   Commercial
Court   to   decide   the   applications   or   appeals   arising   out   of
arbitration   under   the   provisions   of   Act,   1996   cannot   be
said   to   be   illegal   and   bad   in   law.     On   the   contrary,   the
same   can   be   said   to   be   absolutely   in   consonance   with
Sections   3   &   10   of   Act,   2015.   We   are   in   complete
agreement   with   the  view   taken  by   the   High   Court  holding
so.
12. In   view   of   the   above   and   for   the   reasons   stated   above,   all
these   appeals   fail   and   the   same   deserve   to   be   dismissed
and are accordingly dismissed.   However, in the facts and
circumstances   of   the   case,   there   shall   be   no   order   as   to
costs. 
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13. Before parting with the case, we appreciate the assistance
rendered   by   Shri   Gaurav   Aggarwal,   learned   counsel   as
Amicus Curiae in the matter.  
………………………………….J.
 [M.R. SHAH]
NEW DELHI; ………………………………….J.
OCTOBER 19, 2022                   [KRISHNA MURARI]
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