How to File a Recovery Suit Under the Commercial Courts Act in India

This practical article explains, step-by-step, how to bring a recovery suit arising out of a commercial transaction before a Commercial Court in India. It sets out the legal framework, pre-filing requirements, drafting and filing practicalities, fast-track procedures unique to commercial suits, and key case law you should know.

1) Quick legal map — which law applies and when

• The primary statute is The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 (the “Commercial Courts Act”), read with the amendments and the Commercial Courts Rules and CPC.

• Where a suit qualifies as a “commercial dispute”, the Code of Civil Procedure (CPC) applies as amended by the Commercial Courts Act (special procedures such as Case Management under Order XV-A, summary judgment, shorter timelines, etc.). The Supreme Court has emphasised that for commercial disputes the amended CPC regime prevails. Sci API+1

2) Does your claim qualify as a commercial dispute?

Before filing, confirm the dispute fits the statutory definition. The Act lists categories (contracts between merchants, bankers/financiers, mercantile documents, sale/lease of goods, intellectual property connected to commercial exploitation, construction contracts used commercially, etc.). Not every money-claim is a commercial dispute — courts scrutinise the nature of the transaction and the clause of Section 2(1)(c) relied upon. Recent judgments stress a narrow, purposive reading so that routine recovery suits are not automatically treated as commercial disputes.

3) Pecuniary limit — the “specified value”

• The Act requires a specified value for a suit to be a commercial dispute for the purposes of commercial courts. The pecuniary threshold has been reduced from ₹1 crore to ₹3,00,000 (three lakhs) by amendment/notification; in short, most money recovery claims of value ≥ ₹3 lakh will fall within commercial jurisdiction (check local state notifications for any variations).
• For a recovery suit, the specified value is the amount sought (principal + interest up to the date of filing) as per Section 12 — so include interest up to filing while valuing the suit.

4) Mandatory pre-institution requirement — Section 12A (mediation)

• Section 12A introduced a pre-institution mediation/conciliation scheme for commercial suits that do not seek urgent interim relief. Several High Courts (and later judicial pronouncements) have held pre-institution mediation is mandatory (subject to exceptions such as urgent interim relief). Practitioners should serve a notice and attempt pre-suit mediation via a recognized mediator/centre and keep proof of the attempt. If urgent relief is sought, you may file directly but should explain why mediation was impracticable. Important decisions (e.g., Bombay HC decisions and subsequent commentary) treat Section 12A as a material condition — follow the jurisdictional practice closely.

5) Pre-filing checklist (practical)

Before drafting the plaint, assemble:

1. Contract(s), invoices, bills of exchange, bank records, GST returns,  acknowledgment of debt, email trail, delivery receipts — anything proving cause of action and quantum.
2. Interest calculation up to filing date (show working). (Section 12 valuation rule).
3. Demand notice(s), correspondence, and proof of any pre-institution mediation attempt (if Section 12A applies).
4. Memo of parties, address of Defendants for service,
5. Vakalatnama / power of attorney.
6. Court fee stamp calculation as per Court fees Act as per recovery amount and proof (pay correct court fee as per state fee schedule).
7. List of documents and an affidavit verifying the plaint facts.

6) Drafting the plaint — what to include (essential particulars)

• Title and court: File before the notified Commercial Court/Commercial Division that has territorial jurisdiction (check notifications).
• Value clause: State the amount claimed (principal, interest till filing) and declare the specified value. This determines commercial court jurisdiction under Section 12. IBC Laws
• Cause of action: Date(s) and facts showing liability (contract clause breached, failed payment, dishonour of cheque, default under financing documents, etc.).
• Reliefs claimed: Money decree, interest (rate and calculation period), costs, interim relief (if needed), and any specific relief under the contract (delivery, specific performance only if commercial nature is pleaded).
• Documents index: annex the contract, invoices, ledger entries, demand notice, and any other primary documents.
• Statement of truth and affidavit: verification as required under CPC/Commercial Courts Rules.
  Use Order XXXVII (summary suits) or Order XIII-A (summary judgment) where facts are simple and contracts are clear — that can speed final disposal.
• Affidavit of electronic Documents : Electronic docuemnts like email trails, must be accompanied with mandatory affidavit as per BNS.

7) Filing & service: e-filing, court fee and territorial jurisdiction

• Many High Courts/district courts require e-filing via the state e-filing portal; physical filing rules vary — confirm with the local commercial court registry.
• Court fee must be paid as per state fee schedule (calculate on the claimed amount). Check fee implications for interim reliefs if claimed.
• Territorial jurisdiction: Section 16–20 CPC (as amended) govern where the suit can be filed; sometimes the Act gives flexibility (e.g., where the contract was to be performed). Read the territorial rules and check local precedents.

8) Interim reliefs — injunctions, attachment before decree, etc.

• If immediate protection is required (attachment, interim injunction, injunction against dealing with assets), file an application for interim relief along with the plaint and explain urgency — this is also the exception to Section 12A mediation (you may file directly if urgent relief is sought). Provide strong prima facie evidence and urgency

9) Case management & trial timelines (fast track features)

• The amended CPC (Order XV-A) provides for a Case Management Hearing (CMH) early in the suit to set timelines for pleadings, discovery, witness lists and trial schedule. The CMH must normally be held within a short period after pleadings; the Court can fix trial dates and direct day-to-day evidence to ensure speedy disposal.
• Written statement: ordinarily 30 days from service (extension only on application and in exceptional circumstances); failure to file may attract summary procedures.
• Summary judgment (Order XIII-A) is available where there is no bona fide defence — a tool frequently used in commercial recovery suits to obtain quick decrees.

10) Evidence, arguments and judgment

• Courts are empowered to order expeditious hearings itself or by appointing Local Commissioner (day-to-day evidence if required) and aim to complete trials within the statutory timelines contemplated by the Act/rules. Prepare to exchange witness lists, admit documents early and avoid dilatory tactics.

11) Execution of decree & appeals

• Once decree is passed, execute under CPC execution provisions. Commercial courts also have dedicated appeal provisions — appeals from certain interlocutory or final orders lie to the Commercial Appellate Division/High Court under Section 13 and related rules — check appeal timelines and stay practice in your High Court.

13) Practical sample timeline (typical, subject to court orders)

1. Pre-suit: demand notice + attempt pre-institution mediation (if not urgent).
2. File plaint + interim application within 3 years from date of cause of action..
3. Defendant files WS within 30 days), pleadings close; exchange of documents, witness lists.
4. For conducting evidence take court permission for appointment of local commissioner for day-to-day deposing of evidence where ordered.
5. Arguments within timeframe
6. Judgment, decree, execution (or appeal within prescribed period).

14) Practical tips

• Prepare a clean documentary bundle indexed and paginated — commercial courts emphasize document-led proof.
• Consider summary judgment where the contract and debt are clear and defence is likely frivolous.
• Preserve digital evidence (emails, transaction records) with metadata and affidavits of genuineness.
• Where urgent relief is not required, follow the mediation pathway strictly (appoint mediator from notified centres).

Closing note

Filing a recovery suit in a commercial court can be faster and more document-driven than traditional civil litigation, but it requires careful pre-filing compliance (valuation, mediation steps where applicable) and tight drafting to fit the statutory categories. Follow local Commercial Court Rules and recent High Court practice directions, and use the case-management and summary-judgment tools aggressively where facts permit.

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