Commercial Courts Act MCQ Quiz in తెలుగు - Objective Question with Answer for Commercial Courts Act - ముఫ్త్ [PDF] డౌన్‌లోడ్ కరెన్

The correct answer is Only when the suit does not seek urgent interim relief

Key Points

• Section 12A(1)  of the Commercial Courts Act, 2015 makes it mandatory for a plaintiff to undergo pre-institution mediation before filing a suit if the suit does not involve any urgent interim relief.
• This provision is intended to encourage early resolution of disputes and reduce court burden by promoting out-of-court settlements.
• If urgent interim relief (like a stay or injunction) is required, the plaintiff can directly approach the court without mediation.
• The mediation must be completed within 3 months, extendable by 2 more months with consent of both parties.
• If a settlement is reached, it has the same effect as an arbitral award under Section 30(4) of the Arbitration and Conciliation Act, 1996.

The correct answer is When jurisdiction of civil court is expressly or impliedly barred under another law

Key Points

• Section 11 of the Commercial Courts Act, 2015 provides a clear limitation: Commercial Courts or Divisions cannot hear cases if the jurisdiction of civil courts is barred either expressly or impliedly by any other law in force.
• This means that if a law specifically excludes civil courts from hearing certain types of disputes (e.g., matters under tax or labour laws), then Commercial Courts also have no jurisdiction over those disputes.
• This section ensures that special or exclusive jurisdiction granted to other forums or tribunals is not overridden by the Commercial Courts Act. 

The correct answer is Section 10

Key Points

• Section 10 of the Commercial Courts Act, 2015  deals with the Jurisdiction in respect of arbitration matters.
• Section 10 applies when the subject-matter of an arbitration is a commercial dispute of a Specified Value under the Arbitration and Conciliation Act, 1996.
• If such arbitration is international, and the application/appeal is filed in a High Court, it shall be heard and disposed of by the Commercial Division of that High Court (if such a Division exists).
• If the arbitration is not international, but the application/appeal is filed on the original side of a High Court, it shall also be heard by the Commercial Division, where constituted.
• If the arbitration is not international, and the matter would typically lie before a district civil court, it shall be filed in and decided by the Commercial Court having territorial jurisdiction, provided such a court has been constituted.
• The provision ensures that arbitration-related disputes of commercial nature are dealt with by specialized Commercial Courts or Divisions, promoting uniformity, speed, and expertise in resolution.

The correct answer is The dispute must be a commercial dispute of a Specified Value arising within its territorial jurisdiction

Key Points

• Section 6 of the Commercial Courts Act, 2015 states that Commercial Courts have the jurisdiction to try all suits and applications related to commercial disputes of a Specified Value that arise within the area assigned to them.
• The section further explains that such disputes shall be considered to arise within the court’s jurisdiction if they are instituted as per Sections 16 to 20 of the Code of Civil Procedure, 1908, which cover rules on territorial jurisdiction. 
• This provision ensures that commercial cases are filed in the right court and unnecessary jurisdictional conflicts are avoided by aligning with the standard CPC territorial rules.

The correct answer is It can constitute Commercial Courts at the district level after consultation with the High Court

Key Points

• Section 3 of the Commercial Courts Act, 2015 deals with the Constitution of Commercial Courts.
• The State Government, in consultation with the concerned High Court, may establish Commercial Courts at the District level by notification, as deemed necessary.
• In areas where the High Courts have ordinary original civil jurisdiction, the State Government may constitute Commercial Courts at the District Judge level and also specify a pecuniary value (not less than ₹3 lakh and not more than the District Court's pecuniary limit).
• Under sub-section (1A), the State Government may, by notification, fix a pecuniary threshold (minimum ₹3 lakh or higher) for the entire State or part of it, after consulting the High Court.
• The territorial limits of a Commercial Court’s jurisdiction must be specified by the State Government via notification, and it may be altered, increased, or reduced over time.
• With the concurrence of the Chief Justice of the High Court, the State Government can appoint qualified judges (with experience in commercial disputes) to Commercial Courts either at the District Judge level or below.

The correct answer is No, except as part of an appeal from the final decree

Key Points

• Section 8 of the Commercial Court Act bars revision applications or petitions against interlocutory orders, including jurisdictional challenges.
• These can only be raised in appeals against the final decree, as governed by Section 13 of the Act. This provision ensures faster resolution by reducing interim challenges.
• Any objection to such interim orders can only be raised later in an appeal against the final decree, under Section 13 of the Act.
• This bar applies notwithstanding any other law, meaning it overrides provisions like Section 115 of CPC or any special law allowing revisions.
• The provision is designed to avoid delays and frequent interruptions in commercial litigation by preventing piecemeal challenges during the trial.
• It ensures parties wait for the final decision before appealing, helping courts handle commercial disputes swiftly and efficiently.

The correct answer is It is mandatory in cases not seeking urgent interim relief

Key Points

• According to Section 12A(1) of the Commercial Court Act, pre-institution mediation is mandatory if the suit does not contemplate any urgent interim relief.
• This aims to encourage out-of-court settlements and reduce the caseload of commercial courts.
• Time spent in mediation is excluded from limitation computation, but it does not replace the need to file a suit if mediation fails.

The correct answer is Land acquisition compensation disputes

Key Points

• Section 2(1)(c) of the Commercial Court Act provides an exhaustive list of matters that fall under the category of commercial disputes, such as issues involving mercantile documents, franchising agreements, and exploitation of oil, gas, and other natural resources.
• Land acquisition compensation is not listed, as it typically falls under administrative or constitutional law rather than commercial law. 

The correct answer is ₹3 lakh

Key Points

• Section 2(1)(i) of the Act defines "Specified Value" as the monetary value of the subject matter involved in a commercial dispute. This value is crucial because it determines whether a dispute can be heard by a Commercial Court.
• According to the section:
  • The minimum threshold for a dispute to qualify is ₹3 lakh.
  • The Central Government has the authority to notify a higher amount, depending on policy considerations or to streamline the types of disputes Commercial Courts handle.

The correct answer is Option 1.

Key Points

•  The concept of Pre-institution Mediation and Settlement (Chapter IIIA) was introduced into the Commercial Courts Act, 2015 by way of the Commercial Courts (Amendment) Act, 2018.
• This Amendment came into force on 3rd May 2018, inserting the provisions of Chapter IIIA which mandated pre-institution mediation in commercial disputes under certain circumstances.