In short. If your company is owed money, or is being sued, on a business contract worth more than Rs 2 crore and the defendant or the transaction is connected to Delhi, the case is a commercial suit in the Commercial Division of the Delhi High Court. Unless you need urgent interim relief, you must first try pre-institution mediation under Section 12A. The defendant gets a hard limit of 120 days for the written statement. Most suits take two to four years to judgment. Start by collecting the contract, invoices, ledger and correspondence.
Is this your situation?
- A buyer, distributor or contractor owes your company more than Rs 2 crore and has stopped responding.
- A supplier has breached a supply, franchise, licensing or joint venture agreement and the loss is large.
- You have been served with summons in a commercial suit filed in the Delhi High Court.
- You need an urgent order to stop a party from selling goods, siphoning money or using your confidential data.
- A dispute over a shareholders' agreement, construction contract or commercial lease has reached a dead end.
- You are not sure whether your dispute goes to the High Court, a district commercial court or arbitration.
- A legal notice has gone unanswered and limitation is running.
What counts as a commercial suit in the Delhi High Court
A commercial suit is a civil suit arising from a commercial dispute as defined in Section 2(1)(c) of the Commercial Courts Act 2015, where the value is at least the specified value of Rs 3 lakh. The definition is wide. It covers ordinary transactions of merchants, bankers and traders, export and import, carriage of goods, construction and infrastructure contracts, partnership and shareholders' agreements, joint ventures, franchising, distribution and licensing, technology and software agreements, insurance, sale of goods and services, intellectual property and agreements relating to immovable property used exclusively in trade or commerce.
In Delhi, the forum depends on value. The Delhi High Court has original civil jurisdiction over suits valued above Rs 2 crore under the Delhi High Court Act 1966 as amended in 2015. A commercial suit above that figure goes to the Commercial Division of the High Court; one below it goes to a district commercial court in the relevant district. In 2026 the High Court's Full Court recommended raising the district courts' limit to Rs 10 crore. That change needs an amendment by Parliament, so check the current limit before you value and file.
Property disputes need care. The Supreme Court held in Ambalal Sarabhai Enterprises v. K.S. Infraspace (2019) that a dispute over immovable property is commercial only if the property is actually used, or is being used, exclusively in trade or commerce at the time. A dispute over a builder-buyer flat, or a family property let out once, is usually an ordinary civil suit covered on our page on property suits in the Delhi High Court.
The rules that make a commercial suit different from an ordinary suit
Section 12A, Commercial Courts Act
A suit that does not seek urgent interim relief cannot be filed without first exhausting pre-institution mediation. The Supreme Court in Patil Automation v. Rakheja Engineers (2022) held this mandatory, and suits filed without it from 20 August 2022 are liable to be rejected. In Yamini Manohar v. T.K.D. Keerthi (2023) it added that the court will look at whether the claim for urgent relief is genuine or only a device to skip mediation.
Order VIII CPC as amended for commercial suits
The defendant must file the written statement within 30 days, extendable up to 120 days from service of summons, and not beyond. The Supreme Court confirmed this in SCG Contracts India v. K.S. Chamankar Infrastructure (2019). Denials must be specific; a general denial is treated as an admission.
Order XI CPC as amended
All documents in a party's power, possession, control or custody must be filed with the plaint or written statement, with a statement on oath. Documents not disclosed cannot be relied on later without leave and good cause. Each side must admit or deny the other's documents within a fixed time, and must give reasons for a denial.
Order XIII-A, Order XV-A and Section 35 CPC
Order XIII-A allows summary judgment where a claim or defence has no real prospect of success. Order XV-A provides a case management hearing where the court fixes dates for each stage. Section 35, as substituted for commercial disputes, makes costs follow the event, so the losing party usually pays the winning party's costs.
Section 13, Commercial Courts Act
An appeal from a judgment or appealable order of the Commercial Division goes to the Commercial Appellate Division within 60 days. Section 8 bars revision against interlocutory orders, so most interim rulings cannot be challenged in the middle of the suit.
Which court hears it and why: High Court, district commercial court or arbitration
Three questions decide the forum. First, value: above Rs 2 crore (check the current limit) goes to the Delhi High Court's Commercial Division; below it, to a district commercial court at Tis Hazari, Saket, Patiala House, Karkardooma, Rohini, Dwarka or Rouse Avenue, depending on territory. Value is the amount claimed with interest up to filing, or the market value of the property or right involved; it cannot be inflated simply to reach the High Court.
Second, territory. Under Section 20 of the CPC, the suit can be filed where the defendant resides or carries on business, or where the cause of action wholly or partly arose, such as where the contract was signed, goods were delivered or payment was due. If the contract has an exclusive jurisdiction clause naming one of the courts that would otherwise have jurisdiction, the parties are held to it, as the Supreme Court explained in Swastik Gases v. Indian Oil Corporation (2013). A clause choosing Mumbai courts will usually keep the suit out of Delhi even if the goods were delivered in Okhla.
Third, arbitration. If the contract has an arbitration clause, the defendant can apply under Section 8 of the Arbitration and Conciliation Act 1996 before filing the first statement on the substance of the dispute, and the court must refer the parties to arbitration if a valid agreement exists. Check the contract before filing a suit; our page on arbitration petitions under Sections 9, 11 and 34 covers that route.
Within the High Court, commercial suits are listed before single judges of the Commercial Division, with Joint Registrars handling service, pleadings, admission and denial of documents, and many procedural steps under the Delhi High Court (Original Side) Rules 2018. Our guide on which commercial cases go to the Commercial Division goes into more detail.
Step by step: how a commercial suit moves in the Delhi High Court
Check limitation and send a legal notice
Most money claims must be filed within three years under the Limitation Act 1963, counted from the date payment fell due or the last acknowledgment in writing. A clear legal notice records the claim and often produces an acknowledgment or a settlement offer. It also fixes the facts before the other side starts building a story.
Pre-institution mediation under Section 12A
Unless urgent interim relief is genuinely needed, apply to the Delhi State Legal Services Authority or the relevant District Legal Services Authority for pre-institution mediation under the Pre-Institution Mediation and Settlement Rules 2018. The process is to be completed within three months, extendable by two months with consent. The time spent is excluded from limitation. If the other side does not turn up, a non-starter report is issued and you may file.
Draft the plaint with all documents
The plaint must be verified by a statement of truth and filed with every document in your power, a statement of documents, and a certificate for electronic records under Section 63 of the Bharatiya Sakshya Adhiniyam 2023 (old Section 65B of the Evidence Act). Calculate the court fee on the value of the claim and file through e-filing. An application for urgent relief, if any, is filed along with it.
Admission of the suit and summons
The single judge examines the plaint at the first hearing, issues summons and decides any interim application, sometimes ex parte for a short period if delay would defeat the purpose. The defendant is served by the registry and through e-mail and other modes allowed by the rules.
Written statement, replication and documents
The defendant files the written statement and documents within 30 days, extendable to 120 days at most. The plaintiff files a replication. Before the Joint Registrar, both sides admit or deny each other's documents with reasons. Unreasonable denial can attract costs.
Framing of issues and case management hearing
The court frames issues and holds a case management hearing to fix a timetable for evidence and arguments. Summary judgment under Order XIII-A can be sought at this stage if the defence is plainly hollow. Matters may also be sent to the High Court's mediation centre.
Evidence, often before a local commissioner
Evidence is filed by affidavit. Cross-examination is often recorded before a local commissioner appointed by the court, on fixed dates, which keeps the trial moving. Witnesses abroad can be examined by video conference.
Final arguments, judgment and decree
Written submissions are filed and oral arguments heard. Judgment is to be pronounced within 90 days of the conclusion of arguments under the amended Order XX. The decree can then be executed in the High Court.
Time and cost at each stage
| Stage | Typical time | Court fee and costs (general) |
|---|---|---|
| Legal notice and reply | 15 to 30 days | No court fee |
| Pre-institution mediation (Section 12A) | Up to three months, extendable by two | Mediation fee under the 2018 Rules is modest; check the current rate with DSLSA |
| Filing the plaint | Two to four weeks of drafting | Ad valorem court fee on the amount claimed under the Court Fees Act as applied in Delhi; check the current rate and any cap |
| First hearing and summons | One to four weeks after filing | Process fee |
| Written statement and replication | 30 to 120 days for the written statement, then about 30 days | Small fees on applications |
| Admission and denial, issues, case management | Three to nine months | Costs may be imposed for unreasonable denial |
| Evidence before a local commissioner | Six to eighteen months | Commissioner's fee shared or paid as the court directs |
| Final arguments and judgment | Two to four years from filing, often longer for heavy disputes | Actual costs may be awarded to the winning party under Section 35 CPC |
Documents a commercial suit is built on
The transaction
- Signed contract, purchase orders, work orders and all amendments
- Tax invoices, delivery challans, e-way bills and goods receipt notes
- Ledger account of the defendant, certified by your accountant
- Bank statements showing payments received and dishonoured cheques, if any
- GST returns reflecting the invoices
- Any written acknowledgment of debt, balance confirmation or settlement offer
Correspondence and authority
- Emails and messages discussing quality, delay or payment
- Legal notice, postal receipts and the reply
- Board resolution or authority letter for the person signing the plaint
- Certificate of incorporation and GST registration
- Section 12A non-starter or failure report from the mediation authority
- Certificate for electronic records under Section 63 BSA
Urgent interim relief: injunctions, attachment and deposits
Many commercial suits are filed for the interim order as much as for the decree. The Commercial Division can grant a temporary injunction under Order 39 CPC, for example restraining a distributor from selling your stock or a former partner from using a shared customer database. It can order attachment before judgment under Order 38 if the defendant is about to dispose of assets to defeat a decree, appoint a receiver under Order 40, or direct the defendant to deposit an admitted amount.
The test is the familiar one: a prima facie case, balance of convenience and irreparable harm. Attachment before judgment is harder; the plaintiff must show specific facts that the defendant is removing or disposing of property with intent to obstruct execution. A bare fear that the defendant may not pay is not enough. Courts are also reluctant to restrain the encashment of an unconditional bank guarantee except in cases of egregious fraud or irretrievable injustice.
When Advocate B.K. Singh is asked for an urgent order in a commercial suit, he first asks what has changed in the last few weeks. A court that sees a plaintiff sit on a breach for eight months, then rush in claiming urgency, is likely to send the case to Section 12A mediation instead. Fresh, documented urgency is what persuades.
The 120-day rule and why defendants lose cases on procedure
The deadline for the written statement in a commercial suit is absolute. Once 120 days from service pass, the defendant loses the right to file it, and the court will not take it on record however good the defence. The suit then proceeds on the plaint, and the defendant is left to cross-examine the plaintiff's witnesses and argue on the plaintiff's own evidence.
Service is counted from the date the summons with the plaint and documents was served, and the Delhi High Court has accepted e-mail service in appropriate cases. A defendant who ignores an e-mailed summons because it 'was not proper service' is taking a large risk. If summons has reached you, count the days and instruct counsel the same week.
The same strictness applies to documents. A defendant who holds back a key letter, hoping to produce it in cross-examination, may find it shut out under Order XI. File everything you rely on with the written statement, along with a statement on oath about the documents in your power.
For the plaintiff: building a suit that survives the first hearing
A good commercial plaint reads like a ledger with reasons. It sets out the contract, each invoice or milestone, what was paid, what is outstanding, how interest is calculated and why, with the documents arranged in the same order. Judges of the Commercial Division see many suits that claim a round figure with little support; a plaint where the numbers reconcile stands out.
Interest needs thought. If the contract fixes a rate, claim it; if not, Section 34 of the CPC and commercial practice guide the rate, and the court has discretion. For supplies to a micro or small enterprise registered under the MSMED Act 2006, the buyer may owe compound interest at three times the bank rate, and a separate route through the Micro and Small Enterprise Facilitation Council may be faster than a suit.
If the claim rests on a written contract, an invoice that the buyer accepted, or a dishonoured cheque, a summary suit under Order 37 may be the better vehicle, because the defendant must first obtain leave to defend. Our page on commercial summary suits above Rs 2 crore explains when that is available.
For the defendant: what to do when summons arrives
Read the plaint against your own records within the first week. Check three things before anything else: whether the suit was filed after Section 12A mediation or genuinely needed urgent relief, whether the contract has an arbitration clause, and whether the Delhi High Court has territorial and pecuniary jurisdiction. Each of these can end or move the suit, and each must be raised at the right time. A Section 8 arbitration application, for example, must be filed before the first statement on the substance of the dispute.
Next, build the defence on documents: quality complaints sent at the time, rejected goods records, emails showing the plaintiff's own delay, counter-claims for losses. A counter-claim can be filed with the written statement and is decided along with the suit. Defendants who only deny, without documents, often find themselves facing a summary judgment application.
Settlement remains open at every stage. The Delhi High Court refers a large number of commercial suits to its mediation centre, and a settlement recorded there results in a decree that can be executed like any other.
Foreign companies, NRI promoters and parties outside Delhi
A foreign company can sue an Indian party in the Commercial Division, and an Indian company can sue a foreign party where the cause of action arose in Delhi. The plaint for a foreign plaintiff is usually signed by a constituted attorney in India, under a power of attorney executed abroad, notarised and apostilled, since India is a party to the Hague Apostille Convention. The board resolution authorising the suit should be on record from the start; objections to authority are a favourite early defence.
A defendant facing a plaintiff who lives outside India and owns no sufficient immovable property here can ask the court for security for costs under Order 25 CPC. Foreign plaintiffs should expect this and budget for a deposit or bank guarantee. On the other side, serving a defendant abroad takes time through diplomatic channels or the Hague Service Convention, although the court may allow e-mail service where the defendant's address is known and it has been used in the parties' own dealings.
Witnesses abroad can give evidence by video conference before the local commissioner, which saves travel and cost. If you already hold a money judgment from a court in a reciprocating territory such as the United Kingdom, Singapore or the UAE, it may be executed in India under Section 44A CPC without a fresh suit; a judgment from a non-reciprocating country has to be sued upon. Check the current list of reciprocating territories before choosing the route.
Common mistakes in Delhi High Court commercial suits
- Skipping Section 12A without real urgency. The suit can be rejected, and limitation may meanwhile run out on part of the claim.
- Filing documents in instalments. Under Order XI, documents left out of the plaint may never be admitted.
- Valuing the suit to fit the forum. An inflated or deflated valuation invites an objection and wastes months.
- Missing the 120-day limit. There is no extension beyond it, whatever the reason.
- Ignoring the jurisdiction clause. An exclusive clause naming another city usually decides the forum.
- Not certifying electronic evidence. Emails and WhatsApp chats need a proper certificate under Section 63 BSA to be relied upon.
- Treating the decree as the end. Without early attention to assets, a decree against a company with nothing left is only paper.
A made-up example: an exporter and an unpaid buyer
Here's a made-up example. A garment exporter in Okhla Phase II supplied fabric worth Rs 3.6 crore to a Delhi-based retail chain over eight months under a written supply agreement. The chain paid the first Rs 1.2 crore, then raised vague quality complaints only after the exporter chased the balance. The agreement had no arbitration clause and named Delhi courts.
The exporter sent a legal notice and applied for pre-institution mediation before the Delhi State Legal Services Authority. The chain attended twice, offered 40 per cent and then stopped coming. With the failure report in hand, the exporter filed a commercial suit in the Delhi High Court for Rs 2.4 crore plus contractual interest, attaching every invoice, delivery challan, the chain's own goods receipt notes and a balance confirmation signed by its accounts head the previous March.
The chain filed its written statement on day 112, alleging defective goods. At the admission and denial stage it could not deny its own goods receipt notes or the balance confirmation. The exporter applied for summary judgment under Order XIII-A, arguing the quality defence had no real prospect because no complaint was made within the agreement's 15-day inspection window. Whether the court allows it or sends the matter to trial, the documents filed on day one decide how strong the exporter's position is.
After the judgment: appeal and execution
A party aggrieved by the judgment of the Commercial Division can appeal under Section 13(1A) of the Commercial Courts Act to the Commercial Appellate Division, a bench of two judges, within 60 days. Appeals also lie against certain interim orders listed in Order 43 CPC, such as orders granting or refusing an injunction. Our page on commercial appeals in the Delhi High Court covers the appeal in detail.
A money decree is executed in the High Court under Order 21 CPC: attachment of bank accounts and receivables, attachment and sale of property, and examination of the judgment debtor's directors about assets. Our page on execution of decrees and awards explains how to make a decree pay. The practical lesson is to think about execution at the filing stage, while assets are still there to be protected.
When a commercial suit is not the right move
Not every unpaid bill should become a High Court suit. If the debtor is a company that is plainly insolvent, an application under the Insolvency and Bankruptcy Code 2016 before the NCLT may make more sense, subject to the minimum default threshold. If you hold a dishonoured cheque, a complaint under Section 138 of the Negotiable Instruments Act 1881 runs alongside any civil claim. If the contract has an arbitration clause, a suit will usually be referred to arbitration anyway.
Equally, where the sum is just above Rs 2 crore and the evidence is thin, the cost and time of a High Court suit may not be justified against the likely recovery. Advocate B.K. Singh usually works through the expected recovery, the debtor's assets and the time to decree with a client before recommending a suit, because the honest answer is sometimes that a negotiated settlement is worth more. For a deeper treatment of commercial court procedure across Delhi, the network site commercialcourtlawyer.com has detailed material.
Next steps
This week, put together the contract, invoices, ledger, correspondence and any acknowledgment of debt, and work out the date the oldest payment fell due so that limitation can be checked. If you have been served, note the date of service and count 120 days. Our guide on the Delhi High Court's pecuniary jurisdiction will help you check whether your claim belongs in the High Court at all. Fees are discussed at the first meeting and agreed in writing, stage by stage.
For advice on your contract and papers, or for updates on commercial litigation in the Delhi High Court, contact Advocate B.K. Singh.
Frequently asked questions
What is the minimum amount for a commercial suit in Delhi High Court?
The Commercial Courts Act applies to disputes of Rs 3 lakh and above, but the Delhi High Court hears only suits valued above Rs 2 crore. Smaller commercial suits go to district commercial courts. A 2026 recommendation to raise that limit needs Parliament's approval, so check the current figure before filing.
Is pre-institution mediation compulsory before filing a commercial suit?
Yes, unless the suit genuinely seeks urgent interim relief. The Supreme Court held Section 12A mandatory in Patil Automation (2022). A suit filed without it, and without real urgency, can be rejected.
Can a defendant file a written statement after 120 days in a commercial suit?
No. The 120-day limit from service of summons cannot be extended, as the Supreme Court confirmed in SCG Contracts (2019). The defendant can still cross-examine and argue, but without its own pleaded defence.
How long does a commercial suit take in the Delhi High Court?
Two to four years to judgment is common, and complex disputes take longer. The timeline depends on the number of witnesses, interim applications and the court's roster. Summary judgment or settlement can end a suit much sooner.
What court fee is payable on a commercial suit in Delhi High Court?
Court fee is ad valorem, calculated on the amount claimed under the Court Fees Act as it applies in Delhi. The rate and any upper limit change from time to time, so check the current schedule before filing.
Can I file a commercial suit in Delhi if the buyer is in Mumbai?
Possibly, if part of the cause of action arose in Delhi, such as delivery or payment here, and the contract does not give exclusive jurisdiction to another city's courts. If the contract names Mumbai courts exclusively, the suit usually has to be filed there.
Is a commercial suit better than arbitration?
It depends on the contract. If there is a valid arbitration clause, the court will usually refer the dispute to arbitration on the defendant's application. Without one, a commercial suit is the main route, with appeal rights that are wider than the limited challenge to an arbitral award.
Can WhatsApp messages be used as evidence in a commercial suit?
Yes, if they are disclosed with the plaint or written statement and supported by a certificate under Section 63 of the Bharatiya Sakshya Adhiniyam. Screenshots alone, without the certificate and the device details, are open to challenge.