S&S
S & S Co.
Advocates & Solicitors
Bar Council of India: Notice

Important Disclaimer & Notice

As per the rules of the Bar Council of India, advocates are not permitted to solicit work or advertise in any manner. By proceeding, you acknowledge that you are seeking information relating to S & S Co. of your own accord and that there has been no solicitation, advertisement or inducement by S & S Co. or any of its members.

The content of this website is provided solely for informational purposes and should not be construed as legal advice. S & S Co. shall not be liable for any consequence of any action taken by the user relying on material provided herein.

Any information shared through this website does not create an attorney-client relationship. Transmission of information herein is not intended to constitute, nor does receipt thereof constitute, an attorney-client relationship.

The contents of this website are the intellectual property of S & S Co. No part constitutes legal advice. Readers are requested to seek formal legal counsel before acting upon any information contained herein.
I Do Not Agree
About Practice Areas Locations Legal Updates Legal News Team Articles Blog Newsletter Search Contact Us
Commercial Litigation · 30 September 2026

Delhi HC Upholds Section 19 of the 2018 Commercial Courts Amendment, Rejects Article 14 Challenge to Its Cut-Off Date

Source: Originally reported by LiveLaw Biz, LiveLaw and delhihighcourt.nic.in. This article has been independently researched and rewritten in full by S&S Co. Advocates & Solicitors for informational purposes: it is not a reproduction of the original reports. Readers are encouraged to consult the original sources and the underlying judgement directly.

Indo Alusys Industries Limited sued Alpro Industries in 2016 to recover about Rs 35.50 lakh with interest. At the time, a commercial dispute only went to a Commercial Court if it was worth at least Rs 1 crore, so the suit was filed and tried as an ordinary civil suit. Two years later, the Commercial Courts (Amendment) Act, 2018 cut that threshold down to Rs 3 lakh, which meant a case like this one would, if filed afresh, have gone straight to a Commercial Court.

By the time the suit had dragged on to reach the evidence stage, Alpro Industries saw an opening. It applied to have the matter transferred to a Commercial Court, presumably hoping for the procedural advantages, or at least a materially different trajectory, that the specialised forum offers. The trial court refused. Section 19 of the 2018 Amendment Act confines the lower threshold to commercial disputes instituted on or after 3 May 2018, the date the amendment came into force, and this suit had been instituted in 2016.

Rather than simply accept that answer and move on, Alpro Industries challenged Section 19 itself before the Delhi High Court, arguing that drawing the line at 3 May 2018 was arbitrary and violated Article 14 of the Constitution. Two similarly placed litigants, one whose suit happened to be filed a week before the cut-off and one a week after, would be treated completely differently for no principled reason, the petitioner said, and a provision that produces that kind of accidental inequality cannot survive constitutional scrutiny.

The Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia was not persuaded. Prospective legislation necessarily draws a line somewhere, and the fact that people on either side of that line are treated differently is not, by itself, a mark of unconstitutionality. If it were, the Bench reasoned, almost every amendment to procedural or substantive law that applies only going forward would be exposed to an Article 14 challenge merely because it does not reach back to redo pending matters under the new regime. That cannot be the test.

A settled line of the same High Court's own precedent backed the Bench up on this. A 2022 ruling in Satyanarain Khandelwal v. Prem Arora had already held that Section 19 is not retrospective and that its language, tying the amended specified-value regime to disputes instituted on or after 3 May 2018, leaves no real room for a different reading. A retrospective application, that earlier ruling had warned, would disturb parties' accrued procedural rights built around the forum and process applicable when they filed suit. The 2026 Bench saw no reason to depart from that view, and found nothing irrational in Parliament choosing to let pending litigation continue in the forum where it started rather than uprooting thousands of part-heard suits into Commercial Courts overnight.

Dismissal of the petition followed, and the trial court's refusal to transfer the 2016 suit stood undisturbed. For litigants who filed before May 2018 and are still waiting for judgment, the message is that there is no late entry into the Commercial Courts regime merely because their dispute would, if filed today, meet the lower threshold. The forum is fixed by the date of institution, not by when a party midway through trial decides a different court might serve them better.

The ruling closes off what had become a recurring argument before Delhi's civil courts in long-pending suits straddling the 2018 amendment, where parties facing an unfavourable trial court, an adverse interim order, or simply a slow-moving docket periodically floated a transfer application hoping for a fresh start in the specialised Commercial Division. With the Act's prospective application now reaffirmed and its constitutionality upheld, that route is closed, and pre-2018 suits will run their course to judgment in the forum where they were filed, appealable in the ordinary way rather than through the Commercial Appellate Division.

Newsletter

Fortnightly Legal Updates,
By Practice Area

A short digest of significant rulings, regulatory changes and practical guides across our practice areas, sent every two weeks. For general information only, not legal advice.

A full-service law firm headquartered in Noida, Delhi and Kolkata, providing commercial litigation, arbitration, corporate advisory and regulatory counsel across Delhi NCR, Kolkata and pan-India.

Practice

Intellectual Property All Practice Areas

Locations

Noida All Locations

Firm

Team Legal Updates Legal News Blog Newsletter Contact