Commercial & Civil Disputes
Contract and recovery matters, arbitration, specific performance, injunctions and property disputes before the City Civil Court, the Commercial Courts at Bangalore and the High Court of Karnataka.
Where commercial disputes are heard in Bangalore
Civil disputes in Bangalore are ordinarily instituted before the Court of Small Causes, the City Civil and Sessions Court, or the High Court of Karnataka, depending on the nature of the claim and its value. Since the Commercial Courts Act, 2015, disputes falling within the statutory definition of a "commercial dispute" and above the specified value of three lakh rupees are tried by designated Commercial Courts, with appeals to the Commercial Appellate Division of the High Court.
The Act also imposed a stricter procedural regime on commercial suits — a mandatory statement of truth, case management hearings, tighter timelines for written statements, and disclosure obligations. Section 12A requires pre-institution mediation to be exhausted unless urgent interim relief is contemplated, a requirement the Supreme Court held to be mandatory in Patil Automation Private Limited v. Rakheja Engineers Private Limited (2022).
Contract Disputes & Recovery
Claims arising from the breach of a commercial agreement are governed by the Indian Contract Act, 1872 as to liability and by the Limitation Act, 1963 as to time. A suit for compensation for breach of contract must generally be brought within three years of the breach under Article 55 of the Limitation Act, though a written acknowledgement of liability signed before that period expires gives a fresh start under Section 18.
Where a claim is for a debt or liquidated demand arising on a written contract, Order XXXVII of the Code of Civil Procedure provides for a summary suit, in which the defendant must seek leave to defend. This is often the faster route in a straightforward recovery matter.
Breach of contract suits
Summary suits under Order XXXVII CPC
Recovery of dues and outstanding payments
Legal notices and demand notices
Pre-institution mediation under Section 12A
Execution of decrees
Arbitration & Alternative Dispute Resolution
Where the contract contains an arbitration clause, the dispute is referred to arbitration under the Arbitration and Conciliation Act, 1996. Section 8 obliges a judicial authority to refer the parties to arbitration where an action is brought in a matter covered by an arbitration agreement. Section 9 permits a party to seek interim measures from the court before or during the arbitration, and Section 11 governs the appointment of an arbitrator where the parties fail to agree.
An award may be challenged only on the narrow grounds in Section 34, within three months of receipt, extendable by a further thirty days on sufficient cause. The court hearing such an application does not sit in appeal over the merits of the award.
Domestic arbitration proceedings
Interim measures under Section 9
Appointment applications under Section 11
Challenges to awards under Section 34
Enforcement of awards under Section 36
Drafting of arbitration clauses
Property, Title & Injunction Matters
Property litigation in Bangalore turns on title, possession and the accuracy of revenue records. The Specific Relief Act, 1963 governs claims for specific performance of an agreement to sell — since the 2018 amendment, specific performance is the rule rather than a discretionary remedy — as well as declaratory and injunctive relief. Temporary injunctions are granted under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure on the established tests of a prima facie case, balance of convenience and irreparable injury.
Suits for specific performance
Declaration of title and possession
Temporary and permanent injunctions
Partition suits and family settlements
Landlord and tenant disputes
Title verification and due diligence
Agreements & Documentation
Drafting and review of commercial and personal documents, with attention to stamp duty under the Karnataka Stamp Act, 1957 and to registration requirements under the Registration Act, 1908. An instrument that is insufficiently stamped or unregistered where registration is compulsory may be inadmissible in evidence, which is frequently decisive when a dispute later reaches court.
Commercial and service agreements
Sale deeds and agreements to sell
Lease and rent agreements
Partnership deeds and LLP agreements
Wills, gift deeds and settlements
Powers of attorney and affidavits
Applicable Laws: Indian Contract Act 1872, Code of Civil Procedure 1908, Specific Relief Act 1963, Limitation Act 1963, Commercial Courts Act 2015, Arbitration and Conciliation Act 1996, Transfer of Property Act 1882, Registration Act 1908, Karnataka Stamp Act 1957, Karnataka Rent Act 1999.
Commercial & Civil Disputes — Frequently Asked
What is the pecuniary threshold for a Commercial Court in Karnataka?
Under the Commercial Courts Act, 2015 as amended in 2018, a commercial dispute is triable by a Commercial Court where the specified value of the subject matter is not less than three lakh rupees. Bangalore has dedicated Commercial Courts, and appeals lie to the Commercial Appellate Division of the High Court of Karnataka. Whether a dispute is "commercial" depends on it falling within the categories listed in Section 2(1)(c) of the Act.
Is mediation compulsory before filing a commercial suit?
Yes, in most cases. Section 12A of the Commercial Courts Act, 2015 requires a plaintiff to exhaust pre-institution mediation before instituting a suit, unless the suit contemplates urgent interim relief. In Patil Automation Private Limited v. Rakheja Engineers Private Limited (2022) the Supreme Court held this requirement to be mandatory, and a suit filed in breach of it is liable to be rejected under Order VII Rule 11.
How long do I have to file a suit for recovery of money?
Generally three years. Under Article 55 of the Limitation Act, 1963 a suit for compensation for breach of contract must be filed within three years of the date of the breach, and a suit on an account stated attracts the same period. Section 18 provides that a written acknowledgement of liability signed by the party before the period expires gives a fresh start to limitation from the date of that acknowledgement. Time limits are strict, so delay in taking advice can be fatal to an otherwise good claim.
Can an arbitration award be challenged in court?
Only on the limited grounds in Section 34 of the Arbitration and Conciliation Act, 1996 — incapacity of a party, an invalid arbitration agreement, want of proper notice, the award dealing with a dispute outside the scope of the reference, an irregular composition of the tribunal, non-arbitrability, or conflict with the public policy of India. The application must be made within three months of receiving the award, extendable by thirty days on sufficient cause. The court does not re-hear the merits.
What is a summary suit and when can it be used?
Order XXXVII of the Code of Civil Procedure provides a summary procedure for suits on bills of exchange, hundis and promissory notes, and for suits to recover a debt or liquidated demand arising on a written contract, an enactment, or a guarantee. The defendant cannot defend as of right; leave to defend must be sought within ten days of service. Where the defence appears to be a sham, leave may be refused and the plaintiff obtains a decree without a full trial, which makes it considerably faster than an ordinary suit.