Stepping Cautiously: Re-Emphasizing The Limits Of Appeals Under Article 226 & Article 227 Of The Indian Constitution Vis-À-Vis The Commercial Courts Act 2015
- IJLLR Journal
- Jun 26
- 2 min read
Aarav Goel, B.B.A.LL.B., O.P. Jindal Global University, Sonipat
Rakshith Bhallamudi, Legal Associate at TS Suresh + Associates, Bangalore
ABSTRACT
This essay critically examines the scope and limitations of appeals under the Commercial Courts Act, 2015, particularly in light of Articles 226 and 227 of the Indian Constitution. Introduced with the laudable objective of expediting the adjudication of commercial disputes in lieu of mitigating delays and enhancing the business environment, this legislation has simultaneously birthed certain difficulties, specifically concerning appeals from pronouncements of Commercial Courts that continue to hinder its efficacy. Two major challenges are highlighted – first, the ambiguity in the interpretation of Section 13 of the Commercial Courts Act and the proviso thereto and second, the widespread frivolous use of Article 226 and Article 227 of the Indian Constitution as a route for appealing decisions of Commercial Courts, despite the narrow scope of these Articles. The uncertainty regarding interpretation of the Section 13 has accorded room to a narrow interpretation, as a restrictive exception to the body of the Section, as well as a broader interpretation, as a mere clarification. The plausibility of both has led to divergent judicial interpretations without a settlement on the position of the law. The resultant failure to fully restrict appeals has allowed parties to undermine the object of the Commercial Courts Act through appeals, leading to prolonged disputes. Settling the position of the law, however, proves to be a remedy but not a cure. The narrow, and arguably correct, interpretation of the law means there is a restricted scope of grievance redressal in commercial disputes and subsequently leads to the frequent invocation of Articles 226 and 227 of the Indian Constitution. The wide powers of High Courts under these provisions have been diluted, and restrictive covenants been added, by numerous judgements of the Supreme Court. However, in the absence of a clear framework for their application in commercial disputes, litigants continue to routinely turn to the High Courts for remedy under these Articles. The need of the hour is clarity from both, the Legislature as well as the Judiciary, on the ambit of appeals against pronouncements of Commercial Courts.
Keywords: Section 13, commercial disputes, appeals, objective, interpretation
