3F Industries Limited vs $ Transparent Technologies Solutions … on 18 May, 2026

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    Andhra Pradesh High Court – Amravati

    3F Industries Limited vs $ Transparent Technologies Solutions … on 18 May, 2026

                                          1
    
    
          IN THE HIGH COURT OF ANDHRA PRADESH: AT AMARAVATI
                                       *****
                Civil Revision Petition Nos.1847/2024, 1172/2022
                      and 1685, 1686, 1688 and 1689 of 2024
    Between
    
      3F INDUSTRIES LIMITED,, REP. BY ITS AUTHORISED SIGNATORY, MR.
      G. SRINIVASA RAO AND OTHERS
    
                                                                 ...PETITIONERS
    
    and
    
    
      TRANSPARENT TECHNOLOGIES SOLUTIONS PRIVATE LIMITED, Rep.
      by its Director, Sri Ajit Apte, Pushpa Heights, 1st Floor, Bibwewadi Comer,
      Pune-411 037, Maharashtra and others
    
                                                              ...RESPONDENTS
    
    Date of Reserve             : 12-02-2026
    Date of Judgment pronounced : 18-5-2026
    Date of Upload              : 21-5-2026
    
           HON'BLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY
                 HON'BLE SRI JUSTICE RAVI NATH TILHARI
                                  AND
                  HON'BLE SRI JUSTICE BATTU DEVANAND
    
     1    Whether Reporters of Local                    Yes/No
          newspapers may be allowed to see
          the Judgments?
    
     2    Whether the copies of judgment may            Yes/No
          be marked to Law Reports/Journals
    
     3    Whether Their Ladyship/Lordship               Yes/No
          wish to see the fair copy of the
          Judgment?
    
    
                     ___________________________________
                     CHEEKATI MANAVENDRANATH ROY, J.
                                              2
    
    
              * HON'BLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY
                      HON'BLE SRI JUSTICE RAVI NATH TILHARI
                                       AND
                      HON'BLE SRI JUSTICE BATTU DEVANAND
    
    
                    + Civil Revision Petition Nos.1847/2024, 1172/2022
                           and 1685, 1686, 1688 and 1689 of 2024
    
    % 18-5-2026
    
          # 3F INDUSTRIES LIMITED,, REP. BY ITS AUTHORISED SIGNATORY,
          MR. G. SRINIVASA RAO AND OTHERS
                                                         ...PETITIONERS
    vs.
    
          $ TRANSPARENT TECHNOLOGIES SOLUTIONS PRIVATE LIMITED,
          Rep. by its Director, Sri Ajit Apte, Pushpa Heights, 1st Floor, Bibwewadi
          Comer, Pune-411 037, Maharashtra and others
    
                                                                  ...RESPONDENTS
    
    ! Counsel for the Petitioners:   Sri Venkat Challa, Sri G.V.S. Kishore Kumar
                                     and Sri S.V.S.S. Siva Ram
    
    
     Counsel for Respondents:              Sri V. Yatendra Kumar and
                                           Sri Somu Krishna Murthy
    
    < Gist:
    
    
    
    > Head Note:
    
    
    
    
    ? Cases referred:
       1. CRP No.2183/2022, dt.12-9-2023
       2. CRP No.1749/2023, dt.28-8-2023
       3. CRP No.740/2024, dt.04-7-2024
       4. CRP No.1932/2025, dt.22-9-2025
       5. (2002) 2 SCC 542
                                          3
    
    
     APHC010335012024
                         IN THE HIGH COURT OF ANDHRA PRADESH
                                       AT AMARAVATI                     [3571]
                                (Special Original Jurisdiction)
    
                        MONDAY, THE EIGHTEENTH DAY OF MAY
                          TWO THOUSAND AND TWENTY SIX
    
                                    PRESENT
    
      THE HONOURABLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY
    
                 THE HONOURABLE SRI JUSTICE RAVI NATH TILHARI
    
                                       AND
    
                 THE HONOURABLE SRI JUSTICE BATTU DEVANAND
    
             CIVIL REVISION PETITION NOS: 1847 OF 2024, 1172 OF 2022
                      AND 1685, 1686, 1688 AND 1689 OF 2024
    
    CIVIL REVISION PETITION NO: 1847 OF 2024
    
    Between:
    
       1. 3F INDUSTRIES LIMITED,, REP. BY ITS AUTHORISED SIGNATORY,
          MR. G. SRINIVASA RAO, S/O RAMADASU, AGED ABOUT 64 YEARS,
          R/O PLOT NO. 43, MOTHE RAJKUMAR NAGAR, PATHEBAD, ELURU,
          ANDHRA PRADESH. HAVING REGISTRED OFFICE AT P.O. BOX NO
          15, TANUKU ROAD, TADEPALLIGUDEM, WEST GODAVARI DISTRICT,
          ANDHRA PRADESH-534 101.
    
                                                               ...PETITIONER
    
                                       AND
    
       1. TRANSPARENT TECHNOLOGIES SOLUTIONS PRIVATE LIMITED, Rep.
          by its Director, Sri Ajit Apte, Pushpa Heights, 1st Floor, Bibwewadi
          Comer, Pune-411 037, Maharashtra.
    
                                                             ...RESPONDENT
                                              4
    
    
          Petition under Article 227 of the Constitution of India,praying that in the
    circumstances stated in the grounds filed herein,the High Court may be pleased
    toprays this Hon'ble Court to allow the instant Revision Petition by setting aside
    the order dated 26.07.2024 in E.P.No. 20 of 2024 passed by the Hon'ble XI AddI
    District Judge, Tadepalligudem and pass
    
    IA NO: 1 OF 2024
    
          Petition under Section 151 CPC praying that in the circumstances stated in
    the affidavit filed in support of the petition, the High Court may be pleased prayed
    that this Hon'ble Court may suspend the operation of the order dated 26.07.2024
    ("Impugned Order") passed by the Hon‟ble XI AddI District                     Judge.
    Tadepalligudem in E.P.No. 20 of 2024 and set aside the consequential actions
    pursuant to the said impugned order and pass
    
    IA NO: 2 OF 2024
    
         Petition under Section 151 CPC praying that in the circumstances stated in
    the affidavit filed in support of the petition, the High Court may be pleased
    pleased to permit the Petitioner/ Respondent/DHR to withdraw the amount of Rs:
    15,75,000/- deposited by theRespondent/Petitioner/JDR on 11.09.2024 before
    the Hon'ble XI Addl.District Court at Tadepalligudem and pass
    
    Counsel for the Petitioner:
    
       1. VENKAT CHALLA
    
    Counsel for the Respondent:
    
       1. V YATENDRA KUMAR
    
    
    CIVIL REVISION PETITION NO: 1172 OF 2022
    
    Between:
    
       1. M/S. SURESH SURGICALS,, BEING REPRESENTED BY ITS
          PROPRIETOR, MR.MUPPARAJU SURESH, S/O.VENKATESWARLU,
          HINDU, AGED ABOUT 49 YEARS, WITH ITS OFFICE AT FLAT NO.202,
          1ST FLOOR, SRINIVASA CHAMBERS, OPP KGH OUT GATE,
          VISAKHAPATNAM- 53002.
                                  5
    
    
    2. M/S. SURESH CRYOGENIC GASES,, BEING REPRESENTED BY
       MR.MUPPARAJU SURESH, S/O.VENKATESWARLU, HINDU, AGED
       ABOUT 49 YEARS, WITH ITS OFFICE AT FLAT NO.202, 1 FLOOR,
       SRINIVASA CHAMBERS, OPP KGH OUT GATE, VISAKHAPATNAM-
       53002.
    
                                                   ...PETITIONER(S)
    
                                AND
    
    1. ELLENBARIE INDUSTRIAL GASES LTD EIGL, BEING REPRESENTED
       BY ITS AUTHORIZED SIGNATORY, SANTAMAYA MOHAPATRA,
       S/O.RAMESH CHANDRA MOHAPATRA, HINDU, AGED 47 YEARS,
       OFFICE SITUATED AT 3A, RIPON STREET, 2ND FLOOR, KOLKATA-
       700016 WITH ONE OF ITS BRANCHES/UNITS SITUATED AT PLOT
       NO.57A, JN PHARMA CITY, PARAWADA MANDAL, VISAKHAPATNAM-
       531 021, ANDHRA PRADESH. .. RESPONDENT/PLAINTIFF
    
    2. M/S CHAITRA MULTI SPECIALTY HOSPITAL, REPRESENTED BY ITS
       DIRECTOR, ASHOK NAGAR ROAD, OPP KPDT HIGH SCHOOL, ASHOK
       NAGAR, ELURU, WEST GODAVARI DISTRICT- 534002.
    
    3. M/S SEVEN HILLS HOSPITAL, REPRESENTED BY ITS DIRECTOR,
       SITUATED AT D.NO.114-4/A, WALTAIR MAIN ROAD, RAMNAGAR,
       ROCKDALE LAYOUT, VISAKHAPATNAM-53 0002.
    
    4. ALLURI SITARAMA RAJU ACADEMY OF MEDICAL SCIENCES,
       REPRESENTED BY ITS DIRECTOR, SITUATED AT NH-5,
       MALKAPURAM, ELURU, WEST GODAVARI DISTRICT-534005.
    
    5. M/S PINNACLE HOSPITAL, REPRESENTED BY ITS DIRECTOR,
       SITUATED AT D.NO.10- 1112, APIIC HEALTH CITY, MUDASARLOVA
       ROAD, CHINAGADHILI, ARILOVA, VISAKHAPATNAM- 530040.
    
    6. M/S SUNRISE MULTI SPECIALTY HOSPITAL, REPRESENTED BY ITS
       DIRECTOR, SITUATED AT D.NO.2-27-15, GOKUL STREET, NEAR SAFE
       HOSPITAL, SRI NAGAR, KAKINADA, EAST GODAVARI DISTRICT-
       53001.
    
                                                ...RESPONDENT(S):
                                             6
    
    
         Petition under Article 227 of the Constitution of India,praying that in the
    circumstances stated in the grounds filed herein,the High Court may be pleased
    tobegs to present this Memorandum of Civil Revision Petition aggrieved by the
    order in I.A.no. 82 of 2022 in O.S.No. 253 of 2021 dt. 30.03.2022 passed by the
    learned Addl. Sessions Judge, Visakhapatnam
    
    IA NO: 1 OF 2022
    
          Petition under Section 151 CPC praying that in the circumstances stated in
    the affidavit filed in support of the petition, the High Court may be pleased
    pleased to grant stay of all further proceedings in OS.No. 253 of 2021 on the file
    of the court of the Honourable Special Sessions'Judge for the trail of cases under
    SC's and ST's (POA)-Cum XIth Additgional District and Sessions Judge at
    Visakhapatnam, pending disposal of the main CRP and pass
    
    Counsel for the Petitioner(S):
    
       1. G V S KISHORE KUMAR
    
    Counsel for the Respondent(S):
    
       1. S.V.S.S.SIVA RAM
    
       2. THE ADVOCATE GENERAL
    
    CIVIL REVISION PETITION NO: 1685 OF 2024
    
    Between:
    
       1. ATIURI VENKATA SATYA VARA PRASAD,, S/O.A.V.S.R.ANJANEYULU,
          AGED ABOUT 54 YEARS, HINDU, R/O.11-62-112 AND 115, KODURU
          CASITA CANAL ROAD, VIJAYAWADA, KRISHNA DISTRICT-520001
    
                                                                     ...PETITIONER
    
                                          AND
    
       1. REDDIMI GANESH, S/o.Veerraju, Aged about 50 years, Hindu, Flat
          No.FF-2, Koduru Residency, Vishunuvardhana Rao Street, Labbipet,
          Vijayawada-520010, Krishna District. Presently residing at Abu Dhabi,
          United Arab Emirates.     Represented by his GPA Holder,          Sri
          Y.S.V.V.R.K.S.R. Naidu, S/o.Y.U.Bhaskara Rao Naidu, 39-2-17, FF-2,
                                             7
    
    
         Koduru Residency, Vishnuvardhana Rao Street,         Labbipet, Vijayawada-
         520010, Krishna District,
    
                                                                   ...RESPONDENT
    
         Petition under Article 227 of the Constitution of India,praying that in the
    circumstances stated in the grounds filed herein,the High Court may be pleased
    topleased to set aside the Impugned Order dated 01.07.2024 passed in I.A.
    No.719 of 2023 in O.S. No. 526 of 2021 on the file of the Court of the Hon'ble
    Principal Civil Judge (Junior Division), Vijayawada and pass
    
    IA NO: 1 OF 2024
    
         Petition under Section 151 CPC praying that in the circumstances stated in
    the affidavit filed in support of the petition, the High Court may be pleased
    pleased to stay all further proceedings in O.S. No. 526 of 2021 on the file of the
    Court of the Hon'ble Principal Civil Judge (Junior Division), Vijayawada, pending
    the present Civil Revision Petition and pass
    
    Counsel for the Petitioner:
    
       1. N SAI PHANINDRA KUMAR
    
    Counsel for the Respondent:
    
       1. SOMU KRISHNA MURTHY
    
    CIVIL REVISION PETITION NO: 1686 OF 2024
    
    Between:
    
       1. ATLURI VENKATA SATYA VARA PRASAD,, S/O.A.V.S.R.ANJANEYULU,
          AGED ABOUT 54 YEARS, HINDU, R/O.11-62-112 AND 115, KODURU
          CASITA, CANAL ROAD, VIJAYAWADA, KRISHNA DISTRICT-520001
    
                                                                     ...PETITIONER
    
                                          AND
    
       1. GALLA PRAVEEN, , S/o.Bhaskara Rao, Aged about 36 years, Hindu,
          R/o.9-113, Ashok Nagar, Bundar Road, Penamaluru Mandal, Krishna
          District. Represented by his GPA Holder, Sri Bhaskara Rao Galla,
                                             8
    
    
         S/o.Veera Raghavaulu, aged about 68 years, Hindu, 9-113, Mahatma
         Gandhi Road, Ashok Nagar, Auto Nagar, Vijayawada-520007, Krishna
         District,
    
                                                                   ...RESPONDENT
    
         Petition under Article 227 of the Constitution of India,praying that in the
    circumstances stated in the grounds filed herein,the High Court may be pleased
    topleased to set aside the Impugned Order dated 01.07.2024 passed in I.A.
    No.718 of 2023 in O.S. No. 525 of 2021 on the file of the Court of the Hon'ble
    Principal Junior Civil Judge, Vijayawada
    
    IA NO: 1 OF 2024
    
         Petition under Section 151 CPC praying that in the circumstances stated in
    the affidavit filed in support of the petition, the High Court may be pleased
    pleased to stay all further proceedings in O.S. No. 525 of 2021 on the file of the
    Court of the Hon‟ble Principal Civil Judge (Junior Division), Vijayawada, pending
    the present Civil Revision Petition and pass
    
    Counsel for the Petitioner:
    
       1. N SAI PHANINDRA KUMAR
    
    Counsel for the Respondent:
    
       1. SOMU KRISHNA MURTHY
    
    
    CIVIL REVISION PETITION NO: 1688 OF 2024
    
    Between:
    
       1. ATLURI VENKATA SATYA VARA PRASAD, S/O.A.V.S.R.ANJANEYULU,
          AGED ABOUT 54 YEARS, HINDU, R/O 11-62-112 AND 115, KODURU
          CASITA, CANAL ROAD, VIJAYAWADA, KRISHNA DISTRICT-520001
    
                                                                     ...PETITIONER
    
                                          AND
    
       1. MARRI SRIDHAR, S/o.Raghava Rao, Aged about 45 years, Hindu, House
          No.2/12, Beside Panchayat Office, Ramavarappadu, Vijayawada Rural
                                             9
    
    
         Mandal, Vijayawada, Presently residing at 306 B Punggol Place, 03-29,
         Singapore-822306. Represented by his GPA Holder, Sri Bhaskara Rao
         Galla, S/o.Veera Raghavaulu aged about 68 years, Hindu,        9-113,
         Mahatma Gandhi Road, Ashok Nagar, Auto Nagar, Vijayawada-520007,
         Krishna District
    
                                                                   ...RESPONDENT
    
          Petition under Article 227 of the Constitution of India,praying that in the
    circumstances stated in the grounds filed herein,the High Court may be pleased
    tomay be pleased to set aside the Impugned Order dated 01.07.2024 passed in
    I.A. No.716 of 2023 in O.S. No. 501 of 2021 on the file of the Court of the Honble
    Principal Civil Judge (Junior Division), Vijayawada and pass such
    
    IA NO: 1 OF 2024
    
         Petition under Section 151 CPC praying that in the circumstances stated in
    the affidavit filed in support of the petition, the High Court may be pleased may
    be pleased to stay all further proceedings in O S. No. 501 of 2021 on the file of
    the Court of the Hon‟ble Principal Civil Judge (Junior Division), Vijayawada,
    pending the present Civil Revision Petition and pass such
    
    Counsel for the Petitioner:
    
       1. N SAI PHANINDRA KUMAR
    
    Counsel for the Respondent:
    
       1. SOMU KRISHNA MURTHY
    
    CIVIL REVISION PETITION NO: 1689 OF 2024
    
    Between:
    
       1. ATIURI VENKATA SATYA VARA PRASAD,, S/O.A.V.S.R.ANJANEYULU,
          AGED ABOUT 54 YEARS, HINDU, R/O.11-62-112 AND 115, KODURU
          CASITA, CANAL ROAD, VIJAYAWADA, KRISHNA DISTRICT-520001
    
                                                                     ...PETITIONER
    
                                          AND
                                             10
    
    
       1. JUTURU CHANDRA MOHAN, S/O.LATE RAMA SUBBAIAH, AGED
          ABOUT 56 YEARS, HINDU, FLAT.NO.61, GREEN PARK ENCLAVE,
          KAPRA, HYDERABAD-500062.
    
       2. JUTURU BHARATHA LAKSHMI, W/O.JUTURU CHANDRA MOHAN,
          AGED ABOUT 53 YEARS, HINDU,     FLAT.NO.61, GREEN PARK
          ENCLAVE, KAPRA, HYDERABAD-500062.
    
                                                               ...RESPONDENT(S):
    
         Petition under Article 227 of the Constitution of India,praying that in the
    circumstances stated in the grounds filed herein,the High Court may be pleased
    topleased to set aside the Impugned Order dated 01.07.2024 passed in I.A.
    No.717 of 2023 in O.S. No. 500 of 2021 on the file of the Court of the Hon'ble
    Principal Civil Judge (Junior Division), Vijayawada and pass
    
    IA NO: 1 OF 2024
    
         Petition under Section 151 CPC praying that in the circumstances stated in
    the affidavit filed in support of the petition, the High Court may be pleased
    pleased to stay all further proceedings in O.S. No. 500 of 2021 on the file of the
    Court of the Hon‟ble Principal Civil Judge (Junior Division), Vijayawada, pending
    the present Civil Revision Petition and pass
    
    Counsel for the Petitioner:
    
       1. N SAI PHANINDRA KUMAR
    
    Counsel for the Respondent(S):
    
       1. SOMU KRISHNA MURTHY
    
    The Court made the following:
                                             11
    
    
    Common Order:

    (per Cheekati Manavendranath Roy, J.)
    Pursuant to the order dated 23-8-2024 of a Division Bench of this Court
    passed in C.R.P.No.1847 of 2024 referring the following questions to a Larger
    Bench, this Full Bench is constituted to answer the questions formulated by the
    Division Bench for reference:

    A. Whether the Amendment Act No.28 of 2018, in respect of Sections
    2(1)(i)
    & 3(1A) of the Commercial Courts Act, 2015, by itself amends
    the „specified value‟ as „not less than three lakhs rupees‟, for the
    jurisdiction of the Commercial Court or it only enables the Central
    Government & the State Government(s) to do so, by notification
    specifying any amount, which shall not be less than three lakhs,
    as „specified value‟, and it is only after such notification, the specified
    value shall stand amended ?

    B. Whether the „specified value‟ in Section 2(1)(i) in Commercial Courts
    Act, 2015
    , as substituted by Act 28 of 2018 to the effect “which shall not
    be less than Rupees three lakhs” in the place of “which shall not be less
    than Rupees One Crore” shall be operative and effective from

    i) the date of amendment i.e., w.e.f. 03.05.2018; or

    ii) on the date notified in the notification being issued by the Central
    Government under Section 2(1)(i) of the Act; or

    iii) on the date notified in the notification being issued by the Andhra
    Pradesh State Government in consultation with the High Court of
    Andhra Pradesh, as provided under Section 3(1A) of the
    Commercial Courts Act ?

    C. Which judgment, U.V. Satyanarayana or Bellam Balakrishna, lays
    down the law correctly ?

    SPONSORED

    2. Brief overview of the facts leading to the lis in C.R.P.No.1847 of 2024
    before the learned Division Bench may be delineated as follows:

    12

    (a) An execution petition seeking attachment of property under
    Order XXI, Rule 54 of CPC was filed in E.P.No.20 of 2024 on the file of the
    XI Additional District Judge, Tadepalligudem, to execute an arbitral award
    passed by the Arbitral Tribunal. The executing Court by an order dated
    26-7-2024 ordered to post the said matter on 23-8-2024 to issue notice and
    attachment under Order XXI, Rule 54 of CPC on payment of process. The said
    execution proceedings initiated before the executing Court which is the
    XI Additional District Judge‟s Court, Tadepalligudem, are questioned before
    a Division Bench of this Court in the aforesaid civil revision petition on the ground
    that the XI Additional District Judge, Tadepalligudem, which is a civil court and
    not a commercial court, has no jurisdiction to execute the award as it lacks
    inherent jurisdiction to entertain the said execution petition. It is contended
    before the Division Bench that only the Commercial Court at Visakhapatnam
    alone is competent to entertain the execution petition and not by the Civil Court in
    view Sections 10 and 15 read with Section 2(1)(i) of the Commercial Courts Act,
    2015 (hereinafter referred to as “the Act”). In support of the said contention, the
    petitioner has placed reliance on a judgment of another Division Bench of this
    Court rendered in the case of M/s. Obulapuram Mining Company Pvt. Ltd. v.

    R.K. Mining Private Limited1. In the case of Obulapuram Mining Company
    Pvt. Ltd. (1 supra), the Division Bench of this Court held that application for
    execution is also an application within the meaning of Sections 10 and 15 of the
    Act and after the Commercial Courts are constituted in the State of Andhra
    Pradesh, only the said Commercial Courts have jurisdiction over the commercial
    disputes of Specified Value even for execution and not the Civil Courts. It is
    further held that all the orders passed by the Civil Courts in a commercial dispute
    after 16-5-2019 were by a coram non-judice and were bad in law.

    (b) While addressing arguments in the said civil revision petition before the
    Division Bench of this Court, the learned counsel for the respondent therein
    1
    CRP No.2183/2022, dt.12-9-2023
    13

    relied on a judgment of another Division Bench of this Court rendered in the case
    of Bellam Balakrishna v. Greenmount Developers2 and contended that until
    the State Government issues a notification in consultation with the High Court,
    the pecuniary value of three lakh rupees as fixed in Section 2(1)(i) of the Act will
    not come into operation. Another judgment of other Division Bench of this Court
    rendered in the case of U.V. Satyanarayana v. M/s. Shriram City Union
    Finance Ltd.3 was also cited before the Division Bench in the above civil revision
    petition wherein it is held that the execution petition to execute an order passed
    by the Commercial Court is to be filed only in the Commercial Court and not in
    the Civil Court. Considering the said two judgments rendered by two coordinate
    Division Benches of this Court both in the cases of Bellam Balakrishna and
    U.V. Satyanarayana (2 and 3 supra), the Division Bench in the above civil
    revision petition was of the opinion that there is an apparent conflict between the
    two judgments inasmuch as in the case of Bellam Balakrishna (2 supra) the
    Court held that without notification, the Commercial Courts, Commercial Division
    and Commercial Appellate Division of High Courts (Amendment) Act, 2018

    (No. 28 of 2018) (hereinafter referred to as “the Amendment Act”) was held not to
    be operative so as to make the specified value not less than three lakh rupees
    whereas in the case of U.V. Satyanarayana (3 supra), the Specified Value has
    been taken as amended by Act 28 of 2018 itself to be not less than three lakh
    rupees. The Court after considering the Amendment Act 28 of 2018 amending
    the Specified Value in Section 2(1)(i) of the Act and inserting a new provision
    under Section 3(1A) of the Act relating to pecuniary value and the aforesaid two
    judgments rendered in the cases of Bellam Balakrishna and
    U.V. Satyanarayana (2 and 3 supra) formulated the above questions for
    reference to the Larger Bench on the ground that the Court found that there is
    an apparent conflict between the aforesaid two judgments of coordinate Division

    2
    CRP No.1749/2023, dt.28-8-2023
    3
    CRP No.740/2024, dt.04-7-2024
    14

    Benches of this Court in the cases of Bellam Balakrishna and
    U.V. Satyanarayana (2 and 3 supra).

    (c) After the Division Bench in the above C.R.P.No.1847 of 2024 has
    referred the matter after formulating the above questions to a Larger Bench as
    per the order passed on 23-8-2024, a similar issue came up for consideration
    before a learned single Judge of this Court in C.R.P.No.1172 of 2022.
    The learned counsel for the petitioner in the said C.R.P.No.1172 of 2022 has
    taken to the notice of the learned single Judge that the issue involved in the said
    case is also an issue involved in batch of other cases pending before the Division
    Bench and cited the judgment of the Division Bench dated 23-8-2024 in
    C.R.P.No.1847 of 2024 before the learned single Judge. The learned single
    Judge after considering the decision of the Division Bench formulating the
    aforesaid questions to refer the same to a Larger Bench, ordered to place the
    said matter also pending before the learned single Judge before the Hon‟ble
    Chief Justice to pass necessary orders to post the matter before the Division
    Bench. Accordingly, the said matter is also placed before the Division Bench.
    Thereafter, a batch of civil revision petitions in C.R.P.Nos.1685, 1686, 1688 and
    1689 of 2024 involving the same question and issue came up for consideration
    before another Division Bench of this Court. The learned counsel for both the
    parties in the said batch of civil revision petitions have taken to the notice of the
    said Division Bench that similar matters are directed to be placed before the
    Hon‟ble Chief Justice by a coordinate Bench of this Court for constitution of
    a Larger Bench in C.R.P.No.1847 of 2024 as per order dated 23-8-2024.
    Therefore, the said Division Bench also as per order dated 03-4-2025 directed
    the Registry to post the above batch of civil revision petitions along with
    C.R.P.No.1847 of 2024 before the appropriate Bench after obtaining necessary
    orders from the Hon‟ble the Chief Justice.

    (d) The above batch of civil revision petitions were initially heard by
    a learned single Judge of this Court. The learned single Judge found that the
    15

    judgment of the Division Bench in Bellam Balakrishna‟s case appears to be
    contrary to the provisions of Section 3 of the Commercial Courts Act, 2015 and
    directed the Registry to place the said batch of civil revision petitions before the
    Hon‟ble Chief Justice for placing those matters before the Division Bench to
    consider the issue. Thereafter, the said batch of civil revision petitions are
    placed before the Division Bench and the Division Bench after noticing that
    another Division Bench has referred the matter to a Larger Bench, ordered to
    place those matters also before the appropriate Bench. Thus, all these batch of
    civil revision petitions are referred to the Full Bench to answer the reference.

    (e) This is how the matter has come up before this Full Bench to consider
    the reference and to answer the questions formulated by the Division Bench.

    3. Heard Sri Venkat Challa, Sri G.V.S. Kishore Kumar and Sri S.V.S.S.
    Siva Ram, learned counsel for the petitioners and Sri V. Yatendra Kumar and
    Sri Somu Krishna Murthy, learned counsel for the respondents.

    4. Before deciding the controversy involved in the lis, it is expedient to
    consider the legislative history of the Act and the object of the enactment i.e., the
    Commercial Courts Act, 2015. The proposal to provide for speedy disposal and
    high value commercial disputes has been under consideration of the Central
    Government for quite a long time. As high value commercial disputes involve
    complex facts and question of law, it is felt that there is a need to provide for
    an independent mechanism for early resolution of the commercial disputes.
    The Government was of the view that the early resolution of commercial disputes
    shall create a positive image to the investor world about the independent and
    responsive Indian Legal System. Considering the said proposal of the Central
    Government, the Law Commission of India in its 188th Report had recommended
    for constitution of commercial division in each High Court. Accordingly, the
    Commercial Division of High Courts Bill, 2009 was introduced and passed by the
    16

    Rajya Sabha. However, during the discussion of the said Bill in the Rajya Sabha,
    some members raised certain issues. Therefore, the matter was again referred
    to the Law Commission of India for its examination. The Law Commission of
    India in its 253rd Report has recommended for establishment of the Commercial
    Courts, the Commercial Division and the Commercial Appellate Division in the
    High Courts for disposal of commercial disputes of a Specified Value. Based on
    the said recommendation of the Law Commission of India, a Bill viz., the
    Commercial Courts, Commercial Division and Commercial Appellate Division of
    High Courts Bill, 2015 was introduced in the Rajya Sabha. It was referred to the
    Standing Committee. As per the said Bill, all suits, appeals or applications
    related to commercial disputes of Specified Value i.e., one crore rupees or above
    are to be dealt with by the Commercial Courts or Commercial Division of the High
    Court. As the Parliament was not in session at that time and as urgent steps
    were needed to be taken, the Commercial Courts, Commercial Division and
    Commercial Appellate Division in High Courts Ordinance, 2015 was promulgated
    on 23-10-2015. Thereafter, the Bill has been passed by both the Houses of the
    Parliament and received the assent of the President of India on 31-12-2015.
    Thus, it came on to the Statute Book as the Commercial Courts, Commercial
    Division and Commercial Appellate Division of High Courts Act, 2015
    (4 of 2016).
    By Section 3 of the said Act, the nomenclature of the said Act was changed as
    The Commercial Courts Act, 2015“.

    5. Thus, from the object of the enactment, it is very much clear that for the
    purpose of speedy disposal of commercial disputes which involve complex facts
    and questions of law, as an independent mechanism for the early resolution of
    such commercial disputes is needed to create a positive image to the investor
    world about the independent and responsive Indian Legal System, the Act came
    to be enacted with the above laudable objective. It is to be noticed here that as
    independent mechanism for early resolution of such commercial disputes is
    17

    required, appropriate provisions are incorporated in the Act constituting special
    courts for resolution of the said commercial disputes of Specified Value. Initially,
    the Specified Value of commercial disputes is fixed at not less than one crore
    rupees in the year 2015 when the Act was introduced. Subsequently, by the
    Amendment Act 28 of 2018, the definition of “Specified Value” as defined under
    Section 2(1)(i) of the Act was amended with effect from 03-5-2018 fixing the
    Specified Value as not less than three lakh rupees or such higher value as may
    be notified by the Central Government. So, at present, the Specified Value as
    amended by the Statute is not less than three lakh rupees or such higher value
    as may be notified by the Central Government.

    6. Bearing in mind the statement of object and reasons of the enactment
    as detailed above and the purpose of introducing the Act, interpretation to any
    section in the Act is required to be given to achieve the object of the enactment.
    It is settled law that while interpreting any provision or section in the Act,
    no attempt should be made to dilute the legislative intent and a purposive
    interpretation to achieve the object of the enactment is to be given.

    7. We have meticulously gone through the judgment of the Division Bench
    which referred the matter to the Full Bench with the aforesaid questions
    formulated by it. At the outset, it is to be noticed that the Division Bench
    obviously did not notice and consider the difference and distinction between the
    “Specified Value” as defined under Section 2(1)(i) of the Act and the “pecuniary
    value” as contemplated under Section 3(1A) of the Act. From the tenor of the
    judgment and the questions that are formulated, it is very much clear and
    apparent that the Division Bench proceeded on the premise that both the
    Sections 2(1)(i) and 3(1A) of the Act deals with and speaks of the Specified
    Value, which in fact is not correct. Both the terms “Specified Value” as defined
    under Section 2(1)(i) in Chapter I of the Act and the “pecuniary value”

    18

    as contemplated in Section 3(1A) in Chapter II of the Act are two different and
    distinct terms which operate in two different fields. They are not one and the
    same. So, the whole problem arose in formulating the above questions for
    reference as the said difference and distinction between the two terms “Specified
    Value” and “pecuniary value” is not noticed and as they are taken as one and the
    same.

    8. Therefore, in order to answer the questions formulated by the Division
    Bench which are under reference, few relevant provisions in the scheme of the
    Commercial Courts Act, 2015 are required to be noticed. Chapter I of the Act
    deals with definitions of various terms and expressions used in various sections
    of the Act. Section 2(1)(i) is part of Chapter I of the Act. Section 2(1)(i) of the Act
    defines “Specified Value”, whereas Chapter II of the Act deals with constitution of
    Commercial Courts and Section 3(1A) of the Act was newly incorporated in the
    Chapter by the Amendment Act 28 of 2018 with effect from 03-5-2018 in Section
    3 of Chapter II of the Act. In fact, Section 2(1)(i) of the Act defining “Specified
    Value” was also amended by the same Amendment Act 28 of 2018 deleting the
    words “which shall not be less than one crore rupees” and substituting the same
    with the words “which shall not be less than three lakh rupees”. “Commercial
    dispute” is defined in Section 2(1)(c) of the Act and all disputes arising out of the
    transactions enumerated in Section 2(1)(c)(i) to (xxii) of the Act fall within the
    definition of “commercial dispute”. A dispute, in order to be qualified as
    a commercial dispute to be tried by a Commercial Court, it must satisfy the
    definition of “Specified Value” as defined in Section 2(1)(i) of the Act which reads
    thus:

    “2. Definitions.–(1) In this Act, unless the context otherwise requires,–

    (a) to (c)(i) to (xxii) …………………………………

    Explanation.–A commercial dispute shall not cease to be a commercial dispute merely
    because–

    (a) to (h) ………………………………………………

    19

    (i) “Specified Value”, in relation to a commercial dispute, shall mean the value of the
    subject-matter in respect of a suit as determined in accordance with section 12
    which shall not be less than three lakh rupees or such higher value, as may be
    notified by the Central Government.

    (2) ………………………………………………. ”

    9. Therefore, when a dispute falls within the definition of a “commercial
    dispute” as defined in Section 2(1)(c) of the Act, it must further pass the test of
    falling within the definition of “Specified Value” as defined in Section 2(1)(i) of the
    Act for the purpose of resolving the said dispute by the Commercial Court.
    As “Specified Value” in relation to commercial dispute means, the value of the
    subject-matter in respect of a suit as determined in accordance with Section 12
    of the Act, which shall not be less than three lakh rupees or such higher value,
    as may be notified by the Central Government, Section 2(1)(i) of the Act defining
    the “Specified Value” is to be read along with Section 12(1) of the Act in Chapter
    III of the Act which deals with the determination of Specified Value.
    Section 12 of the Act contains clauses (a) to (d). As per clause (a), if the suit is
    for recovery of money, then if the money sought to be recovered is not less than
    three lakh rupees and in other words, if it is above three lakh rupees and if the
    dispute is a “commercial dispute” as defined in Section 2(1)(c) of the Act, then
    it would be a commercial dispute which is to be tried only by a Commercial Court
    constituted under Section 3 of the Act. As per clause (b), if the suit relates to
    movable property or to a right therein, if the market value of the movable property
    is not less than three lakh rupees or if it is above three lakh rupees, then again
    it would be a commercial dispute which is to be tried only by a Commercial Court.
    As per clause (c), if the suit relates to immovable property or to a right therein,
    then if the market value of the immovable property is not less than three lakh
    rupees or if it is above three lakh rupees, then it would be a commercial dispute
    to be tried only by the Commercial Court. As per clause (d), if the relief sought in
    a suit relates to any other intangible right, then the market value of the said right
    20

    as estimated by the plaintiff shall be taken into account for determining the
    Specified Value. Therefore, the test to determine whether a particular dispute is
    a commercial dispute and whether it is to be tried by a Commercial Court is to
    first see whether the transaction relating to the dispute falls within the definition of
    Section 2(1)(c)(i) to (xxii) of the Act and if the dispute satisfies the definition of
    “commercial dispute” as defined in the said section, it has to be considered as
    a commercial dispute. Then, the Specified Value in relation to the said
    “commercial dispute” as defined under Section 2(1)(i) of the Act is to be
    considered and if the value of the subject-matter in respect of a suit as
    determined in accordance with Section 12 of the Act is found to be not less than
    three lakh rupees or in other words, if it is more than three lakh rupees, then the
    said commercial dispute has to be tried only by a Commercial Court constituted
    under Section 3 of the Act. Section 2(1)(i) of the Act envisages that if the value
    of the subject-matter is not less than three lakh rupees or such higher value as
    may be notified by the Central Government, then it is qualified to be considered
    as a commercial dispute. As noticed supra, earlier when the Act came into force
    in the year 2015, for the first time, the base level limit is fixed at not less than one
    crore rupees and it was amended by substituting the same with the wording
    “which shall not be less than three lakh rupees”. Therefore, Specified Value in
    relation to a commercial dispute is determined by the Act itself by clearly stating
    that if the value of the subject-matter is not less than three lakh rupees that the
    said Specified Value of the said commercial dispute is to be taken into
    consideration to decide whether it is to be tried by the Commercial Court or not.
    So, no separate notification is required to be issued fixing the Specified Value at
    not less than three lakh rupees. The Statute itself has fixed the value as not less
    than three lakh rupees. Therefore, no separate notification is required to be
    issued for the said purpose. However, a right has been conferred on the Central
    Government by the Parliament under the Statute by way of delegated legislation
    to fix such higher value i.e. more than the base limit prescribed in the Act as not
    21

    less than three lakh rupees by way of issuing notification. Therefore, if the
    Central Government intends to fix the higher value than the value fixed in the
    Statute, then a notification is required to be given fixing the said higher value.
    The disjunctive word “or” has been used after the wording “which shall not be
    less than three lakh rupees”, which clearly separates the first part of the section
    with the second part of the section which conferred power on the Central
    Government to fix such higher value by way of issuing notification. Therefore,
    we have absolutely no hesitation to hold that notification again for fixing the
    Specified Value at not less than three lakh rupees is not required as the Statute
    itself has prescribed the said base limit. We emphatically hold that it is only
    when the Central Government intends to fix such higher value, then a separate
    notification is required to be given in terms of the second part of Section 2(1)(i) of
    the Act.

    10. Legislative power is the exclusive function vested with the Parliament.
    To amend the Act or even a section in the Act is the exclusive function of the
    Parliament. So, when the Parliament in exercise of the said legislative power
    has amended Section 2(1)(i) of the Act reducing the Specified Value from not
    less than one Crore rupees to not less than three lakh rupees, it is really beyond
    our comprehension as to why again a separate notification by the Central
    Government is required to bring the amendment into force and to make it
    operative. It is only when the Central Government in exercise of the power
    delegated to it by the Parliament specifies higher value then only issuance of
    notification to that effect is required to bring such higher value into force.

    11. A power is conferred by the Statute itself under Section 2(1)(i) of the
    Act on the Central Government to issue notification to fix such higher value than
    not less than three lakh rupees to determine the Specified Value of a commercial
    dispute. If any such notification is issued by the Central Government in exercise
    22

    of its power conferred on it by the Statute, it amounts to law under Article
    13(3)(a)
    of the Constitution of India. Article 13(3)(a) of the Constitution of India
    reads thus:

    “13. Laws inconsistent with or in derogation of the fundamental rights.–

    (1) …………………………………………
    (2) …………………………………………….
    (3) In this article, unless the context otherwise requires,–

    (a) “law” includes any Ordinance, order, bye-law, rule, regulation,
    notification, custom or usage having in the territory of India the force of law;

    (b) ……………………………………………..”

    12. Since a notification is to be issued in terms of the power conferred on
    the Central Government by the Statute itself, it has to be termed as a statutory
    notification which amounts to a delegated legislation. The Parliament itself has
    delegated its legislative power to the Central Government to fix higher value by
    way of issuing notification. Delegated legislation is also a “law” under Article
    13(3)(a)
    of the Constitution of India. Issuance of a notification by the Central
    Government or a State Government under the statutory authority have force of
    law and they are legislative in character. The law is well settled that a notification
    issued under the statutory authority is of a form of delegated (subordinate)
    legislation and it has legislative character and force of law once validly published.
    As no such notification is issued by the Central Government, the Specified Value
    as determined by the Parliament as not less than three lakh rupees would
    continue to prevail and the same has to be taken into consideration.

    13. A Division Bench of the High Court for the State of Telangana at
    Hyderabad had an occasion to deal with the similar issue in the case of
    M/s. Janset Labs Pvt. Ltd. v. Agilent Technologies India Pvt. Ltd. 4. After
    considering the definition of the “Specified Value” under Section 2(1)(i) of the Act,

    4
    CRP No.1932/2025, dt.22-9-2025
    23

    the Division Bench of the Telangana High Court has also at para-12 of the
    judgment in no uncertain terms and in specific terms clearly held that the section
    does not contain any requirement of issuing a separate notification by the
    Government for giving effect to the amendment to reduce the Specified Value
    from one crore rupees to three lakh rupees and further held that in fact,
    Section 2(1)(i) of the Act only mentions notification by the Central Government
    for raising the base limit level from three lakh rupees to a higher value with
    regard to Specified Value of a commercial dispute. The Division Bench of the
    Telangana High Court also referred the judgment rendered by a learned single
    Judge of the said Court who has taken the same view in M/s. Srinivasa
    Construction v. D. Muralidhar Rao (CRP No.297/2025
    , dated 21-3-2025).
    We fully concur with the said view taken by the Division Bench of the Telangana
    High Court in view of our above discussion and the said decision is quoted with
    approval to answer question No.‟A‟ formulated by the Division Bench of this
    Court under reference.

    14. As regards the newly inserted provision of Section 3(1A) of the Act is
    concerned, it was earlier not there when the Act came into force for the first time
    in the year 2015. It was inserted by way of the Amendment Act 28 of 2018 with
    effect from 03-5-2018. It was incorporated in Chapter II of the Act. As noticed
    supra, Chapter II of the Act deals with constitution of the Commercial Courts.
    As per Section 3(1) of the Act, the State Government, in consultation with the
    concerned High Court may, by notification, constitute such number of
    Commercial Courts at District level for exercising the jurisdiction and powers
    conferred on those Courts under the Act. The first proviso to Section 3(1) of the
    Act mandates that the State Government, in consultation with the concerned
    High Court, by notification, constitute Commercial Courts at the District Judge
    level where the High Court is exercising ordinary original civil jurisdiction.
    The second proviso to Section 3(1) of the Act deals with specifying the pecuniary
    24

    jurisdiction where the High Court is exercising ordinary original civil jurisdiction,
    by the State Government by notification in respect of the District Courts fixing it at
    not less than three lakh rupees and not more than the pecuniary jurisdiction
    exercised by the District Courts. So, the first proviso envisages that with respect
    to the High Courts having ordinary original civil jurisdiction, the State Government
    may, after consultation with the concerned High Court, constitute Commercial
    Courts at the District Judge level by issuing notification to that effect. Similarly,
    the second proviso envisages that with respect to a territory over which the High
    Courts have ordinary original civil jurisdiction, the State Government may 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 by way of issuing notification to that effect. Therefore, both
    the first proviso and the second proviso apply only when the concerned High
    Court of a State exercises ordinary original civil jurisdiction. The High Court of
    Andhra Pradesh has no ordinary original civil jurisdiction. Therefore, both the
    first and the second provisos are not applicable insofar as they relate to
    Commercial Courts established in the State of Andhra Pradesh.

    15. The first proviso to Section 3(1) of the Act is also amended by Act 28 of
    2018 with effect from 03-5-2018. Earlier, the first proviso reads thus:

    “Provided that no Commercial Court shall be constituted in the territory over which
    the High Court has ordinary original civil jurisdiction.”

    Therefore, as per the original first proviso, when the concerned High Court
    exercises ordinary original civil jurisdiction, the Statute mandates that no
    Commercial Court shall be constituted in the said territory. The first proviso is
    completely amended by Act 28 of 2018 and now it reads thus:

    “Provided that with respect to the High Court having ordinary original civil
    jurisdiction, by notification, constitute Commercial Courts at the District Judge level.”

    Therefore, now the amended provision enables the State Government by
    way of issuing notification to constitute Commercial Courts at the District Judge
    25

    level even when the concerned High Court is exercising ordinary original civil
    jurisdiction in the said territory. As already noticed supra, as the High Court of
    Andhra Pradesh is not exercising any ordinary original civil jurisdiction in the
    State of Andhra Pradesh, the first proviso has absolutely no application insofar
    as the State of Andhra Pradesh is concerned. So, both the first proviso and the
    second proviso are not applicable to the State of Andhra Pradesh.

    16. This newly inserted Section 3(1A) of the Act was not there earlier when
    the Act came into force in the year 2015. It was introduced for the first time in the
    year 2018 with effect from 03-5-2018. In our considered view, this new insertion
    of Section 3(1A) of the Act is made consequent to the amendment of the
    definition of “Specified Value” under Section 2(1)(i) of the Act reducing the value
    of the subject matter of a commercial dispute to not less than three lakh rupees
    from not less than one crore rupees. As the base limit is now drastically reduced
    to three lakh rupees from one crore rupees, visualizing a situation that there may
    be heavy increase in the pendency of commercial disputes in the special courts
    and the special courts constituted at district level would be flooded with
    thousands of cases and will be over burdened, to enable the State Government
    in case of any necessity to constitute more special courts even below the level of
    a District Judge to try and dispose of the commercial suits of less value, the said
    Section 3(1A) of the Act was incorporated in the Act. It is significant to note that
    Section 3(1)(3) of the Act earlier prior to its amendment mandates that
    Commercial Courts are to be presided over by officers from amongst the cadre of
    Higher Judicial Service in the State. Therefore, as the Specified Value is not less
    than one crore rupees as per the unamended provision when the Act came into
    force, in Section 3(1)(3) of the Act, it was stated that the Commercial Courts are
    to be presided over by the officers of the cadre of Higher Judicial Service in the
    State i.e., the District Judges. Now, this Section 3(1)(3) of the Act is also
    amended by the same Amendment Act 28 of 2018 with effect from 03-5-2018.

    26

    The wording “Commercial Court, from amongst the cadre of Higher Judicial
    Service in the State” is deleted and it is substituted by the wording “Commercial
    Court either at the level of District Judge or a Court below the level of a District
    Judge”. Obviously to enable the State Government to constitute Commercial
    Courts even at the level below the Court of a District Judge, as the Specified
    Value is now reduced to three lakh rupees, the said amendment is made.

    17. The newly inserted provision of Section 3(1A) of the Act contains
    a non-obstante clause giving overriding effect over all provisions of the Act and it
    mandates that the State Government, after consultation with the concerned High
    Court, by notification, specify such pecuniary value 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 by way of issuing notification in consultation with the High
    Court. This amended provision Section 3(1A) of the Act is to be read along with
    Section 3(3) of the Act which says that 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. Here, it is to be noticed that it is stated in Section 3(1) of
    the Act that Commercial Courts are to be constituted at District level which
    means at the District Judge level. In Section 3(3) of the Act it was earlier stated
    to be presided over by from amongst the cadre of Higher Judicial Service in the
    State. Now, the amended provision Section 3(1A) read with Section 3(3) of the
    Act makes it clear that a power is conferred on the State Government to issue
    notification in consultation with the High Court specifying such pecuniary value
    which shall not be less than three lakh rupees or such higher value for whole or
    part of the State and to appoint a Judge for a Commercial Court either at the
    level of District Judge or a Court below the level of a District Judge. Obviously,
    the power to specify the pecuniary value by way of notification on the State
    27

    Government in consultation with the High Court is conferred on the State
    Government to confer jurisdiction on a Court below the level of a District Judge
    also. Probably to reduce the burden on the Courts at District Judge level in case
    of increase in pendency of commercial disputes then to enable the State
    Government to confer jurisdiction on the Courts below the level of District Judge
    the said power appears to have been conferred on the State Government.
    The said intention of the Parliament to confer jurisdiction of Commercial Courts
    on the courts below the level of District Judge is clear and apparent from the
    object of the Amendment Act 28 of 2018 in incorporating the newly introduced
    Section 3(1A) in Chapter II of the Act. It is clearly stated in the statement of
    objects and reasons of the Amendment Act 28 of 2015 as follows:

    “4. It is proposed to introduce the Commercial Courts, Commercial Division
    and Commercial Appellate Division of High Courts (Amendment) Bill, 2018 to
    replace the Commercial Courts, Commercial Division and Commercial Appellate
    Division of High Courts (Amendment) Ordinance, 2018, which inter alia, provides for
    the following namely:–

    (i) to reduce the specified value of commercial disputes from the existing one crore
    rupees to three lakh rupees, and to enable the parties to approach the lowest level
    of subordinate courts for speedy resolution of commercial disputes;

    (ii) to (v) …………………………………… .

    18. Therefore, a careful perusal of the amended provision under Section
    3(1A)
    of the Act along with amended Section 3(3) of the Act makes it very clear
    that for the purpose of fixing the pecuniary value at more than three lakh rupees
    for whole or any part of the State a notification is required to be given by the
    State Government in consultation with the High Court. This Section 3(1A) of the
    Act inserted in Chapter II of the Act dealing with “pecuniary value” of Commercial
    Courts has absolutely nothing to do with the “Specified Value” as defined in
    Section 2(1)(i) contained in Chapter I of the Act. Specified Value is altogether
    different from the pecuniary value. They are two separate and distinct
    28

    expressions and terms which wholly operate in two different fields. Specified
    Value deals with the value of the subject-matter in relation to a commercial
    dispute, whereas the pecuniary value relates to the pecuniary jurisdiction of the
    Court which tries the said commercial dispute. Though the term “pecuniary
    value” used in Section 3(1A) of the Act is not defined in the Act, Section 2(2) of
    the Act dealing with the definitions clearly mandates that the words and
    expressions used and not defined in the Act but defined in the Code of Civil
    Procedure
    , 1908 and the Indian Evidence Act, 1872 shall have the same
    meanings respectively assigned to them in that Code and the Act. For better
    appreciation, Section 2(2) of the Act is extracted hereunder and it reads thus:

    “2. Definitions.–(1) ……………………

    (2) The words and expressions used and not defined in this Act but
    defined in the Code of Civil Procedure, 1908 (5 of 1908) and the Indian
    Evidence Act, 1872
    (1 of 1872), shall have the same meanings respectively
    assigned to them in that Code and the Act.”

    19. Now, it is relevant to note that Section 6 of CPC deals with “pecuniary
    jurisdiction”. It reads thus:

    “6. Pecuniary jurisdiction.–Save in so far as is otherwise expressly
    provided, nothing herein contained shall operate to give any Court jurisdiction
    over suits the amount or value of the subject-matter of which exceeds the
    pecuniary limits (if any) of its ordinary jurisdiction.”

    A reading of Section 6 of CPC makes it clear that no Court would have
    jurisdiction over suits when the amount or value of the subject-matter exceeds
    the pecuniary limits of its ordinary jurisdiction. As Section 3(3) of the Act
    empowers the State Government to appoint a person dealing with commercial
    disputes to be a Judge of a Commercial Court with the concurrence of the Chief
    Justice of the High Court even to a Court below the level of a District Judge, it is
    obvious that the power to confer jurisdiction to try commercial dispute can also
    be conferred on a Court below the level of a District Judge i.e. on a Civil Judge
    29

    (Senior Division) or a Civil Judge (Junior Division) when a need or necessity
    arises to establish more courts at the level below the District Judge level.
    So, if the State Government feels the necessity then a notification is to be issued
    by the State Government in terms of Section 3(1A) of the Act specifying the
    pecuniary value. Till such time even without such notification, the present
    Commercial Courts can try the commercial suits of a Specified Value irrespective
    of its pecuniary value. A careful and conjoint reading of Section 3(1A) and 3(3)
    of the Act shows that the above is the intention of the Parliament in introducing
    Section 3(1A) of the Act by way of the Amendment Act 28 of 2018. Therefore,
    for the purpose of specifying the pecuniary value which shall not be less than
    three lakh rupees or such higher value for whole or any part of the State,
    we have absolutely no hesitation to hold that notification by a State Government
    is required to be given for the said purpose. No such notification in terms of
    Section 3(1A) of the Act has been issued by the State Government till now
    specifying the pecuniary value in consultation with the High Court. Probably as
    jurisdiction to try commercial dispute is not conferred till now on the Courts below
    the District Judge level, such notification is not issued by the State Government.

    20. The contention raised at the time of hearing the reference that as
    no notification in exercise of the powers conferred by the State Government
    under Section 3(1A) of the Act was given specifying the pecuniary value, the two
    Commercial Courts which are now constituted in the State of Andhra Pradesh
    have no pecuniary jurisdiction to entertain the commercial disputes and as such
    that two special courts are not competent to try and dispose of any such
    commercial disputes is absolutely devoid of any merit. Though the said
    contention is not elaborated, obviously the idea that is sought to be conveyed is
    that the pecuniary jurisdiction conferred on the District Judge under Section 16 of
    the A.P. Civil Courts Act to try a suit is above fifty lakh rupees with unlimited
    jurisdiction and as such in respect of disputes involving below fifty lakh rupees,
    30

    the District Judge is not competent to entertain the dispute in the absence of any
    notification issued by the State Government in exercise of the power conferred
    on it under Section 3(1A) of the Act specifying the pecuniary value of
    a Commercial Court below fifty lakh rupees and that he has no pecuniary
    jurisdiction to entertain the commercial dispute. The said argument is wholly
    misplaced and the contention is untenable.

    21. In this regard, it is to be noted that the Commercial Courts Act, 2015 is
    a special enactment and it is a Central Act. So, the Commercial Courts are
    constituted and established under the special enactment. So, they are special
    courts established for the purpose of dealing with a particular nature of disputes
    viz., the commercial disputes of a Specified Value. When a special court is
    constituted under a special enactment to decide a particular nature of dispute
    i.e., a commercial dispute of a Specified Value, irrespective of the pecuniary
    limits or jurisdiction conferred on an ordinary Civil Court under the Andhra
    Pradesh Civil Courts Act, 1972
    which is a State enactment, the special court
    would have jurisdiction to try the said particular nature of dispute. Therefore, the
    Commercial Court, which is a special court constituted under the special
    enactment, would have ample jurisdiction to try the dispute involving above the
    value of three lakh rupees and it is perfectly competent to try and dispose of the
    said cases. Though two Commercial Courts in the State of Andhra Pradesh
    were established under the Act, one in Vijayawada and another in
    Visakhapatnam conferring territorial jurisdiction in terms of Section 3(2) of the Act
    and the officers at the level of District Judges are presiding over the said Courts,
    it is well within their competence to try the said commercial disputes as per the
    territorial jurisdiction conferred on them irrespective of the pecuniary limits
    conferred on the District Judge under the A.P. Civil Courts Act. It is to be noticed
    that as per Section 2 of the A.P. Civil Courts Act dealing with definition clause,
    “Court” means a Civil Court established or deemed to be established under this
    31

    Act i.e., the A.P. Civil Courts Act. District Court is established under Section 10
    of the A.P. Civil Courts Act. Civil Judges (Senior Division) and Civil Judges
    (Junior Division) are also established under Section 12 of the A.P. Civil Courts
    Act. So, these are the ordinary Civil Courts established at three levels i.e.,
    District Judge level, Civil Judge (Senior Division) and Civil Judge (Junior
    Division) level in the State of Andhra Pradesh under the aforesaid A.P. Civil
    Courts Act
    which is the State Act. Pecuniary jurisdiction or limits is conferred on
    the said Courts under Section 16 of the Act. The District Judge is conferred with
    the jurisdiction to try all suits of civil nature, the amount or value of the subject
    matter which exceeds rupees fifty lakhs. Civil Judge (Senior Division) is
    conferred with the jurisdiction to try all suits of civil nature which exceeds rupees
    twenty lakhs but does not exceed rupees fifty lakhs and similarly, Civil Judge
    (Junior Division) can try suits of civil nature involving the amount or value of the
    subject matter which does not exceed rupees twenty lakhs. Thus, the said
    pecuniary jurisdiction or limits is conferred on ordinary Civil Courts constituted
    under the A.P. Civil Courts Act. Now, it is significant to note that the Commercial
    Courts, which are special courts, are not constituted under the A.P. Civil Courts
    Act
    to make the said pecuniary limits conferred on the ordinary Civil Courts
    constituted under the A.P. Civil Courts Act apply to the Commercial Courts which
    are special courts constituted under the Commercial Courts Act, 2015.
    Therefore, one should not get confused with the pecuniary limits or jurisdiction
    conferred on the ordinary Civil Courts in the A.P. Civil Courts Act to decide
    whether the Commercial Courts which are special courts constituted under the
    Commercial Courts Act got jurisdiction to try the disputes as per the pecuniary
    limits conferred on the Civil Courts. Jurisdiction conferred on Commercial Courts
    is a special jurisdiction under the special enactment.

    22. It is also well established law that when a special court is constituted
    under the special enactment to deal with the particular nature of disputes, the
    32

    jurisdiction of the ordinary Civil Courts is impliedly barred and excluded. In view
    of the said law also, the said contention is bereft of any legal foundation and
    cannot be countenanced. A three-Judge Bench of the Apex Court in the case of
    Chandrakant Tukaram Nikam v. Municipal Corporation of Ahmedabad 5 held
    while dealing with a dispute relating to termination of services of an employee
    that such a dispute is an industrial dispute and the appropriate forum to decide
    it is the forum constituted under the Industrial Disputes Act, 1947 and the
    jurisdiction of the Civil Court in such cases is impliedly barred. The Apex Court
    further held
    that the dispute is essentially an industrial dispute under the
    Industrial Disputes Act and the jurisdiction of the Civil Court to hear such a suit
    was barred.

    23. The analogy squarely applies to the present case also. Here also, the
    dispute is a commercial dispute of a Specified Value and special court is
    constituted under the Commercial Courts Act to resolve the said dispute.
    Therefore, the jurisdiction of an ordinary Civil Court is impliedly barred. So, the
    A.P. Civil Courts Act
    cannot be applied for the purpose of deciding the pecuniary
    jurisdiction of the special court.

    24. The present two Commercial Courts established in the State of Andhra
    Pradesh in Vijayawada and Visakhapatnam are being presided over by an officer
    of a District Judge cadre. Probably as Section 3(1)(3) of the Act as it stood prior
    to its amendment mandates that Commercial Courts are to be presided over by
    the officers amongst the cadre of Higher Judicial Service i.e. District Judges in
    the State as the Specified Value at that time was not less than one crore rupees,
    Commercial Courts are established with the officers of a District Judge cadre.
    But no steps are taken subsequent to the various amendments which are made
    in the Act and particularly in Section 3 of the Act as discussed above to give

    5
    (2002) 2 SCC 542
    33

    effect to the said amended provisions. So, the two Commercial Courts are still
    being presided over by the officers of District Judge cadre. As even the
    amended Section 3(3) of the Act mandates that they can be presided over by the
    officers either at the District Judge level or below the level of a District Judge, the
    Courts are being continued with the same cadre officers. But even then, on the
    ground that pecuniary limits in terms of Section 3(1A) of the Act are not specified
    by way of issuing a notification by the State Government, it cannot be said that
    the said officers of the two Courts are not competent to try and adjudicate the
    commercial disputes. As long as the Commercial Courts are being presided over
    only by one cadre officer i.e., the District Judge, the need for specifying or
    question of fixing the pecuniary limits does not arise. It is only when the
    Commercial Courts are presided over by more than one level officers or one
    cadre officers, then a need or necessity to specify the pecuniary limits of the said
    Courts would arise to determine as to which cadre officer has to try the said suits
    of particular pecuniary value. For example, if officers at the District Judge level
    and also at the level below the District Judge i.e., the Senior Civil Judge are
    appointed to preside over the Commercial Courts in view Section 3(3) of the Act,
    then to decide which dispute is to be tried by the District Judge level officer and
    which dispute is to be decided by the Senior Civil Judge officer, pecuniary limits
    are to be specified. As long as there is only one cadre officer presiding over the
    Commercial Courts, the question of deciding the pecuniary limits does not arise
    at all. When only one cadre officer i.e., the District Judge level officers are
    presiding over the Commercial Courts and if a notification is issued under
    Section 3(1A) of the Act specifying the pecuniary limits when there is no officer
    below the level of a District Judge to preside over the Commercial Courts and
    a pecuniary limit of fifty lakh rupees and above is fixed for the District Judge to try
    the commercial disputes, then what would be the fate of the cases pending in the
    said Courts below the value of fifty lakh rupees. The question would be who has
    to try the said cases below the value of fifty lakh rupees when the Commercial
    34

    Courts are not presided over by the officers below the level of a District Judge.
    This is the practical problem that may arise at present if a notification fixing the
    pecuniary limit under Section 3(1A) of the Act is issued. It is only if the State
    Government decides to establish Commercial Courts to be presided over by the
    officers below the level of a District Judge also then only issuance of notification
    under Section 3(1A) of the Act specifying the pecuniary limits or value assumes
    significance. Therefore, if the State Government in consultation with the High
    Court in future decides to appoint an officer below the level of District Judge also
    to preside over the Commercial Courts then it has to issue notification under
    Section 3(1A) of the act specifying the pecuniary limits. As the Specified Value is
    reduced from one crore rupees to three lakh rupees by way of amendment, it will
    no way affect the competency or jurisdiction of the District Judge to preside over
    the Commercial Court and again it is to be clarified that Specified Value has
    nothing to do with the pecuniary limits and it is only to determine whether
    a commercial dispute is qualified to be decided by a Commercial Court or not,
    the Specified Value is to be considered but not to decide the pecuniary limits or
    jurisdiction of the Commercial Courts. When more than one level officer are
    presiding over the Commercial Courts then only a notification fixing the pecuniary
    limits is required.

    Therefore, the contention raised to that effect holds no water and it is
    devoid of merit and the same is liable to be rejected.

    25. The same view which we have taken that “Specified Value” as defined
    in Section 2(1)(i) of the Act is different from “pecuniary value” as mentioned in
    Section 3(1A) of the Act has been also taken by the Division Bench of the
    Telangana High Court in the case of M/s. Janset Labs Pvt. Ltd. (4 supra).
    At para-13 of the judgment, it is held as follows:

    “13. Second, the expression „Specified Value‟ in section 2(1)(i) is distinct and
    different from „pecuniary value‟ in section 3(1A) of the 2015 Act. … … …”

    35

    At para-15 of the judgment, it is held by the Division Bench of the
    Telangana High Court that the second proviso to section 3(1) looks at the
    territorial limits of the concerned High Courts having ordinary original civil
    jurisdiction and gives the State Government the option, through Notification,
    to specify the pecuniary value of the Courts within such territory which shall not
    be less than three lakh rupees and not more than the pecuniary jurisdiction
    exercisable by the District Courts.

    Ultimately, at para-17 of the judgment, it is held that both the provisions i.e.
    Section 2(1)(i) of the Act relating to Specified Value and Section 3(1A) of the Act
    relating to pecuniary value are distinct and marked by different parameters
    altogether. Paras-18 and 19 of the judgment are relevant in the context to
    consider and it is held as follows:

    “18. The difference would further be evident from of the Amendment Act,
    2018. Section 2(1)(i) was substituted by section 4(II), while section 3(1A) was
    inserted by section 6(b) of the Amendment Act, 2018. A more substantive
    difference would be evident from the definition of „specified value‟ which
    focuses on the value of the subject matter of the suit in relation to the
    commercial dispute, that is whether the suit qualifies for a commercial suit in
    terms of a minimum value in monetary terms. Section 3(1A) on the other hand
    is concerned with the pecuniary limits of the Commercial Court within the
    territorial jurisdiction of the concerned High Court.

    19. In other words, while specified value forms the core of the
    commercial dispute for admission into the regime of The Commercial Courts
    Act, 2015
    , pecuniary value fixes the competence-parameters of the Court for
    receiving a commercial suit. While the former focuses on the value of the
    dispute, the latter sets the floor-limit capability of the receiving Court. The
    distinguishing features are being repeated in order to avoid confusion between
    „specified‟ and „pecuniary‟ values as envisaged in the 2015 Act.”

    26. Therefore, in view of the foregoing discussion and after analyzing the
    relevant provisions of the Statute, the three questions that are formulated are
    answered as follows:

    36

    A. Sections 2(1)(i) and 3(1A) of the Act are two distinct and separate
    provisions and they are not one and the same. Section 2(1)(i) of the Act defines
    “Specified Value” which focuses on the value of the subject-matter of the suit in
    relation to a commercial dispute to decide whether the said commercial dispute is
    to be adjudicated by the Commercial Court or not and Section 3(1A) of the Act,
    on the other hand, is concerned with pecuniary limits of the Commercial Courts
    when they are being presided over by officers of various cadres. Amending
    Section 2(1)(i) of the Act by way of deleting the words “not less than one crore
    rupees” and substituting the same with the words “not less than three lakh
    rupees” by way of the Amendment Act 28 of 2018 by itself amends the “Specified
    Value” as “not less than three lakh rupees” and no separate notification by the
    Central Government is required to be given to bring the amendment into force
    and to make it operative. The Statute itself has amended the “Specified Value”

    as “not less than three lakh rupees”. It is only when the Central Government
    intends to fix such higher value, then a separate notification in exercise of its
    power of delegated legislation is required to be given by the Central Government
    and it comes into force on the date of issuance of notification and publishing in
    the Gazette.

    B. This question again contains sub-questions (i) to (iii). Sub-questions (i)
    and (ii) are interrelated to each other. Therefore, the said two sub-questions are
    answered together. The Amendment Act 28 of 2018 relating to Section 2(1)(i) of
    the Act shall be operative and effective from the date of amendment itself with
    effect from 03-5-2018. No notification is required to be given by the Central
    Government to make the said amendment operative and effective and to bring
    the same into force. It is only when the Central Government issues notification
    fixing the higher value of the Specified Value, then the said higher value comes
    into force on the date notified in the notification. As no such notification is issued
    by the Central Government in exercise of the power conferred on it under Section
    2(1)(i)
    of the Act, the value fixed as not less than three lakh rupees by the Statute
    37

    under the Amendment Act 28 of 2018 will prevail and it has to be taken into
    consideration for deciding the Specified Value of the commercial dispute.
    As regards sub-question (iii) is concerned, the Amendment Act 28 of 2018
    amending Section 2(1)(i) of the Act has absolutely nothing to do with the
    notification to be issued by the State Government of Andhra Pradesh in exercise
    of its power conferred on it under Section 3(1A) of the Act to specify pecuniary
    value. It is made clear and reiterated that “Specified Value” under Section 2(1)(i)
    of the Act is altogether different from “pecuniary value” as contained in
    Section 3(1A) of the Act and they are two separate and distinct terms which
    operate in two different fields.

    C. The Division Bench of this Court in the case of Bellam Balakrishna
    (2 supra) held that until the State Government issues a notification in consultation
    with the High Court, the pecuniary value of three lakh rupees as fixed in
    Section 2(1)(i) of the Act will not come into operation is not correct and the law
    has not been correctly laid down to that effect. In fact, Section 2(1)(i) of the Act
    does not deal with the pecuniary value. It only defines the “Specified Value”.

    Therefore, the judgment of the Division Bench of this Court in the case of Bellam
    Balakrishna (2 supra) that till the notification is issued by the State Government
    in consultation with the High Court the pecuniary value as fixed in Section 2(1)(i)
    of the Act will not come into operation is not the correct proposition of law laid
    down in the said judgment. The controversy involved in this reference as per the
    questions that are formulated has not been dealt with in the case of
    U.V. Satyanarayana (3 supra). All that is decided in the case of
    U.V. Satyanarayana (3 supra) by the other Division Bench of this Court is
    whether the Court of Principal District Judge, East Godavari District, which is
    a Civil Court, has got jurisdiction to entertain an execution petition in respect of
    a commercial dispute arising out of arbitration matters. Therefore, considering
    Section 10(3) of the Act which mandates that where the subject-matter of
    an arbitration is a commercial dispute of a specified value and if such arbitration
    38

    is other than an international commercial arbitration that all applications arising
    out of such arbitration under the provisions of the Arbitration and Conciliation Act,
    1996
    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, the Court has held that the execution petition has to
    be filed before the Commercial Court at Visakhapatnam as the Commercial Court
    at Visakhapatnam has territorial jurisdiction over East Godavari District. But, the
    Bench which disposed of U.V. Satyanarayana‟s case (3 supra) has completely
    missed its attention to a material fact relating to value of the subject matter of the
    arbitration to decide whether the subject matter of the arbitration is a commercial
    dispute of a Specified Value or not. The execution petition was filed prior to
    03-5-2018 on which day the amendment to Section 2(1)(i) of the Act defining
    “Specified Value” came into force. Earlier, the Specified Value was above one
    crore rupees. So, only when the value of the subject matter of the said
    arbitration is above one crore rupees then only it is qualified to be tried as
    a commercial dispute in a Commercial Court. The value of the subject matter in
    the arbitration is only forty five lakhs. So, it is below one crore rupees.
    So, it does not satisfy the definition of “Specified Value” under Section 2(1)(i) of
    the Act as per the unamended provision. It is only when the value of the subject
    matter is more than one crore rupees and if it is a commercial dispute then only
    it comes within the jurisdiction of the Commercial Court to entertain an execution
    petition. Even Section 10 of the Act which was invoked by the Bench clearly
    envisages that when the subject matter of an arbitration is a commercial dispute
    of a Specified Value then the section applies. Section 19 of the Amendment Act
    28 of 2018 clearly mandates that the said amendments apply to the transactions
    took place only from the date of amendment i.e. 03-5-2018 and the said
    amendments will not apply to the past transactions prior to 03-5-2018. So, the
    amendment is prospective in nature. As the present transaction relating to the
    39

    said arbitration is pertaining prior to 03-5-2018 and as the value of the subject
    matter is forty five lakhs which is less than one crore rupees it is not qualified to
    be taken up by the Commercial Court. The Bench in U.V. Satyanarayana‟s case
    (3 supra) did not notice that the Specified Value of the subject matter of the
    arbitration is only forty five lakhs which is below the amount of one crore rupees
    and it does not satisfy the definition of “Specified Value” under Section 2(1)(i) of
    the Act prevailing at that time and it is not qualified to be taken up by the
    Commercial Courts. So, to that extent, the law has not been correctly decided in
    U.V. Satyanarayana‟s case (3 supra). Therefore, question No.C is answered
    accordingly.

    The reference is answered accordingly. Registry shall take steps to list the
    civil revision petitions before the respective benches to decide the same
    according to law.

    27. Before parting with the matter, we would like to make certain
    observations and also recommendation to the State Government and the High
    Court for effective implementation of the Commercial Courts Act as amended to
    achieve the object of the enactment. It is noticed that no effect is given to the
    amendments that are made to Sections 2(1)(i), 3(1A) and 3(3) of the Act, both by
    the High Court and the State Government. Except passing resolutions in terms
    of the said amendments and making correspondence by the High Court with the
    Government and issuing G.O.Rt.No.609, dated 05-6-2023 by the Government in
    response to the letter correspondence made by the High Court, till now the
    amendments are not implemented in its true spirit. It is brought to our notice that
    still the Specified Value as not less than one crore rupees as per the unamended
    provision of Section 2(1)(i) of the Act is being taken into consideration for the
    purpose of receiving the suits relating to commercial disputes by the Commercial
    Courts in Vijayawada and Visakhapatnam. The commercial disputes above
    three lakh rupees and up to one crore rupees are not being entertained by the
    40

    said two special courts. Earlier proceedings of High Court specifying the
    Specified Value as not less than one crore rupees is not withdrawn and fresh
    proceedings specifying the Specified Value as not less than three lakh rupees is
    not yet given. Consequently, the Commercial Courts are not receiving and
    entertaining the commercial disputes from above three lakh rupees till one crore
    rupees. It is a lapse on the part of the concerned. It is resulting into causing
    grave injustice to the litigant public as they could not obtain speedy justice in
    respect of the commercial disputes involving Specified Value up to one crore
    rupees. Therefore, steps are to be immediately taken by the concerned to issue
    fresh proceedings to the two existing Commercial Courts specifying the Specified
    Value in terms of the amended Section 2(1)(i) of the Act. The High Court also
    has to take steps to direct the presiding officers of the two Commercial Courts to
    receive the suits relating to commercial disputes involving value of above three
    lakh rupees with effect from 03-5-2018. After fresh proceedings are issued by
    the High Court to the two Commercial Courts which are in existence in the State
    of Andhra Pradesh at present mentioning the Specified Value as not less than
    three lakh rupees in terms of amended Section 2(1)(i) of the Act, the Commercial
    Courts shall receive all the commercial suits filed in the said Courts involving
    more than three lakh rupees and resolve the same. After issuing such
    proceedings, all commercial disputes which are of more than three lakh rupees
    value shall stand transferred to the Commercial Courts pending in the ordinary
    Civil Courts with effect from 03-5-2018 under Section 15(2) of the Commercial
    Courts Act.

    28. The State Government may also, in consultation with the High Court,
    shall thereafter in case of necessity in view of increase in the pendency of
    commercial disputes in the special courts take steps to appoint officers below the
    level of District Judge also to preside over the Commercial Courts, in which event
    they have to issue notification under Section 3(1A) of the Act specifying the
    41

    pecuniary value which shall not be less than three lakh rupees or such higher
    value for whole or part of the State it may consider necessary. Since the
    Parliament conferred the power on the State Governments to confer jurisdiction
    to deal with the cases of commercial disputes even on the courts below the level
    of District Judge as and when the need arises for establishment of more courts to
    reduce the burden on the existing Commercial Courts, which are established at
    District Judge level, in case there is increase in the commercial disputes in the
    said courts, it is desirable for the State Government to take a decision in
    consultation with the High Court of Andhra Pradesh to establish more
    Commercial Courts even below the level of a District Judge after considering the
    pendency of cases in the existing Commercial Courts Act subsequent to issuing
    fresh proceedings to the Commercial Courts specifying the Specified Value as
    not less than three lakh rupees.

    29. To verify as to what steps the High Court and the Government have
    taken to give effect to the amendments that are made in the Act to Sections
    2(1)(i)
    , 3(1A) and 3(3) of the Act, we have called for the record from the
    concerned Registry and we have gone through the same. The record reveals
    that after the amendments came into force on 03-5-2018, the Administrative
    Committee of the High Court in its meeting held on 25-3-2019 made certain
    recommendations to the Government by way of passing a resolution. The two
    important resolutions among them are the Committee resolved to confer
    pecuniary jurisdiction from three lakh rupees to fifty lakh rupees on Commercial
    Courts in the cadre of Senior Civil Judges to be established one court in each
    district and further resolved to request the Government to make the 13 existing
    Fast Track Courts one in each of the 13 districts in the State of Andhra Pradesh
    as permanent Commercial Courts in the cadre of Senior Civil Judge Courts with
    pecuniary jurisdiction from three lakh rupees to fifty lakh rupees. Thus, it is now
    evident that the said resolution is passed in view of Sections 3(1A) and 3(1)(3) of
    42

    the Act as amended. Thereafter, the Registry has also addressed various letters
    to the Government requesting to establish the said Commercial Courts in the
    cadre of Senior Civil Judge Courts below the level of District Judge with the
    above pecuniary jurisdiction. But, the Government has only issued a belated
    G.O.Rt. No.609 on 05-6-2023 after lapse of four years period from the date on
    which the aforesaid resolution was passed, ordering to convert the existing 13
    Fast Track Courts as Commercial Courts in the cadre of Senior Civil Judge.
    However, para-2 of the said G.O. reads that the pecuniary and geographical
    jurisdiction of the converted courts and their headquarters will be decided by way
    of issuing orders to that effect separately. Thus, everything is only on paper till
    now to implement the amended provisions of Sections 3(1A) and 3(1)(3) of the
    Act. Even though the aforesaid G.O.Rt.No.609 was issued about three years
    ago on 05-6-2023 to convert the existing 13 Fast Track Courts as Commercial
    Courts in the cadre of Senior Civil Judge, till now the said G.O. is not
    implemented and the Fast Track Courts in the cadre of Senior Civil Judge are not
    converted into Commercial Courts and they are not established and made
    functional. The High Court also did not further pursue the matter. It is not
    clarified as to why the 13 Fast Track Courts which are converted into Commercial
    Courts in the cadre of Senior Civil Judge are not made functional till now. Thus
    everything is only on paper and the amendments are not actually implemented in
    its true spirit and letter. Therefore, to achieve the object of the amendment, the
    High Court is directed to pursue the matter with the Government and the
    Government shall also immediately take steps to implement G.O.Rt.No.609,
    dated 05-6-2023 and make the said Commercial Courts in the cadre of Senior
    Civil Judge functional. The State Government of Andhra Pradesh should also
    give notification in terms of Section 3(1A) of the Act specifying the pecuniary
    value of the said Commercial Courts in the cadre of Senior Civil Judge as
    recommended by the High Court in its resolution dated 25-3-2019 conferring
    pecuniary jurisdiction on the said Courts from three lakh rupees to fifty lakh
    43

    rupees. The Government should give a notification under Section 3(1A) of the
    Act fixing the pecuniary limits of the Commercial Courts of the District Judge
    cadre also conferring pecuniary jurisdiction on the said Courts from above fifty
    lakh rupees with unlimited jurisdiction. As now the Commercial Courts in two
    different cadres i.e., at the District Judge level and at the level of Senior Civil
    Judge would come into existence, issuance of notification under Section 3(1A) of
    the Act conferring pecuniary jurisdiction on the said courts is imperative. The
    said notification issued in terms of Section 3(1A) of the Act would be independent
    of the A.P. Civil Courts Act and this notification conferring pecuniary jurisdiction
    on the Commercial Courts would be issued for the purpose of the Commercial
    Courts Act, 2015
    . Section 16 of the A.P. Civil Courts Act confers pecuniary
    jurisdiction on the ordinary Civil Courts established under the Act whereas
    notification to be issued under Section 3(1A) of the Commercial Courts Act
    confers pecuniary jurisdiction on the Commercial Courts established under the
    Commercial Courts Act.

    ___________________________________
    CHEEKATI MANAVENDRANATH ROY, J.

    ____________________
    BATTU DEVANAND, J.

    18th May, 2026.

    Note:-

    L.R. Copy to be marked.

    (B/o)
    Ak
    44

    HON’BLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY
    HON’BLE SRI JUSTICE RAVI NATH TILHARI
    AND
    HON’BLE SRI JUSTICE BATTU DEVANAND

    Civil Revision Petition Nos.1847/2024, 1172/2022
    and 1685, 1686, 1688 and 1689 of 2024
    (per CMR, J.)

    18th May, 2026.

    (Ak)



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