Commercial litigation and arbitration in Chennai
Business disputes, commercial suits, arbitration, IBC matters and appeals before the courts and tribunals in Chennai.
Overview
We represent businesses in commercial disputes before the Commercial Courts and the Madras High Court in Chennai, before the NCLT, and in domestic and international arbitration, including the appeals and writ petitions that come out of these disputes.
Commercial disputes in India are governed by the Commercial Courts Act, 2015. It sets strict timelines for pleadings and, for most suits that do not need urgent interim relief, requires mediation before the suit is filed.
Arbitration is governed by the Arbitration and Conciliation Act, 1996. The Act sets time limits at each stage. In a domestic arbitration the tribunal must make its award within twelve months of the pleadings closing, a challenge to the award must be filed within three months of receiving it, and once that period ends the award is enforced like a decree.
Our Commercial Litigation & Arbitration services
Disputes we handle
Contract disputes
Breach of contract, unpaid invoices, warranty and indemnity claims, and suits for specific performance under the Specific Relief Act, 1963.
Shareholder, partnership and founder disputes
Oppression and mismanagement petitions before the NCLT, disputes between partners in firms and LLPs, and disputes between founders.
Construction claims
Construction claims between owners, contractors and subcontractors (see Real estate law for development agreement disputes).
Banking and recovery disputes
Recovery suits, proceedings before the Debts Recovery Tribunal and enforcement of security for lenders.
IP and commercial suits
Trademark, copyright and passing off suits, which are commercial disputes under the Commercial Courts Act. In Chennai, IP suits within the original jurisdiction of the Madras High Court are heard by its IP Division.
Insolvency proceedings
Applications to start insolvency against a company under the IBC, and defending them for the company.
Arbitration
Interim relief
Applications under Section 9 of the Arbitration and Conciliation Act, 1996 for injunctions, security and preservation of assets before or during an arbitration, and after the award is made until it is enforced.
Appointing the arbitrator
Petitions under Section 11 when the other side will not agree on an arbitrator or the agreed appointment process breaks down.
Conducting the arbitration
Ad hoc and institutional arbitrations, including under ICC, SIAC and UNCITRAL rules, from the statement of claim to the final hearing.
Challenging and enforcing awards
Petitions to set aside an award under Section 34 within three months of receiving it, enforcement of domestic awards under Section 36, and enforcement of foreign awards under Part II of the Act, where the court can refuse only on the grounds listed in Section 48.
Court process and appeals
Urgent interim relief
Interim injunctions, attachment before judgment and appointment of receivers when assets or rights need protection while the case is heard.
Summary suits
Suits under Order XXXVII of the Code of Civil Procedure, 1908 for debts based on written contracts, negotiable instruments and similar documents. The defendant enters appearance within ten days of service and applies for leave to defend within ten days of the summons for judgment, and the court can refuse leave only where the defence disclosed is not substantial or is frivolous or vexatious.
Execution of decrees
Enforcing decrees and awards through attachment and sale of property, garnishee orders and other execution proceedings.
Appeals and writ petitions
Appeals within sixty days of a commercial court's judgment or order to the Commercial Appellate Division or the Commercial Appellate Court, appeals from the NCLT to the NCLAT, and writ petitions under Article 226 of the Constitution against government bodies and authorities.
Mediation and settlement
Pre-institution mediation under Section 12A of the Commercial Courts Act, 2015, which the mediation authority must complete within three months of the application and can extend by two months with the parties' consent, court-referred mediation, and settlement agreements that can be enforced.
Laws we work with
- Commercial Courts Act, 2015
- Code of Civil Procedure, 1908
- Arbitration and Conciliation Act, 1996
- Specific Relief Act, 1963
- Indian Contract Act, 1872
- Companies Act, 2013
- Insolvency and Bankruptcy Code, 2016
- Mediation Act, 2023
Courts and tribunals
- Madras High Court, including its Commercial Division and IP Division
- Commercial Courts in Chennai
- National Company Law Tribunal and National Company Law Appellate Tribunal, Chennai
- Debts Recovery Tribunals
- Arbitral tribunals
Questions and answers
Frequently asked questions
8 questions. These answers are general information about Indian law, not legal advice on your situation.
Is mediation compulsory before filing a commercial suit?
Yes, in most cases. Section 12A of the Commercial Courts Act, 2015 says a suit that does not contemplate urgent interim relief cannot be filed unless the plaintiff has first exhausted pre-institution mediation. In Patil Automation Pvt Ltd v. Rakheja Engineers Pvt Ltd, (2022) 10 SCC 1, the Supreme Court held the provision mandatory and said a suit filed without complying can be rejected under Order VII Rule 11 of the Code of Civil Procedure, 1908. The court made that ruling effective from 20 August 2022.
How long does pre-institution mediation take?
Under Section 12A of the Commercial Courts Act, 2015, the mediation authority must complete the process within three months of the application, and the period can be extended by two months with the consent of both parties. Time spent in the mediation is left out when counting limitation under the Limitation Act, 1963.
What is the minimum value for a commercial dispute?
The specified value must be at least ₹3 lakh. The Supreme Court noted in Patil Automation that this threshold was lowered from ₹1 crore to ₹3 lakh, and Section 12 of the Commercial Courts Act, 2015 sets out how the value is worked out, such as the money claimed including interest or the market value of the property concerned.
How long does a defendant have to file a written statement in a commercial suit?
Thirty days from the date of service of summons, and the court can allow more time only up to a maximum of 120 days from service, for reasons recorded in writing. After 120 days the defendant loses the right to file the written statement, as the Supreme Court held in SCG Contracts (India) Pvt Ltd v. K.S. Chamankar Infrastructure Pvt Ltd, (2019) 12 SCC 210.
What is the time limit to challenge an arbitral award?
An application to set aside an award under Section 34 of the Arbitration and Conciliation Act, 1996 must be made within three months of receiving the award. If the applicant was prevented by sufficient cause, the court can entertain the application within a further thirty days, and not after that.
How long does an arbitral tribunal have to make its award?
In a domestic arbitration, Section 29A of the Arbitration and Conciliation Act, 1996 requires the award within twelve months of the pleadings being completed. The parties can extend this by a further six months by consent, and any extension beyond that needs the court's approval. In an international commercial arbitration the tribunal should dispose of the matter as expeditiously as possible and endeavour to conclude within twelve months.
How long do I have to appeal a commercial court's decision?
An appeal from the judgment or order of a Commercial Division of a High Court, or of a commercial court at district judge level, must be filed in the Commercial Appellate Division within sixty days of that decision, under Section 13 of the Commercial Courts Act, 2015. From a commercial court below district judge level, the sixty-day appeal goes to the Commercial Appellate Court.
Can a foreign arbitral award be enforced in India?
Yes. Under Section 48 of the Arbitration and Conciliation Act, 1996, a court can refuse enforcement of a foreign award only on the grounds listed in that section, such as incapacity, lack of proper notice of the arbitration, the award going beyond the scope of the submission, or the award being set aside in the country where it was made. The party resisting enforcement has to furnish proof of those grounds.