Litigation in India: A Comprehensive Overview for Businesses and Corporates
Jurisdiction and Forums for Corporate Litigation
- Civil Courts: Handle property and contract disputes
- Commercial Courts: Fast-track business disputes (₹3 lakh+ or ₹1 crore+)
- High Courts (Original Jurisdiction): High-value commercial disputes in major cities
- Supreme Court: Appeals and constitutional matters
Specialized Tribunals:
- NCLT: Company law and insolvency cases
- DRT: Debt recovery by financial institutions
- SAT: Appeals under SEBI regulations
- CCI: Antitrust and competition matters
Common Types of Business and Commercial Disputes
- Contractual Disputes
- Shareholder Conflicts
- Regulatory Actions
- Debt Recovery
- Employment Disputes
- Intellectual Property Disputes
- Insolvency Proceedings
Stages of the Litigation Process in India
- Institution of Proceedings: Filing of plaint and written statements
- Interim Measures: Seeking injunctions or preservation orders
- Trial: Evidence submission, cross-examination
- Final Adjudication: Arguments and judgment
- Post-Judgment: Execution or appeal
Key Legal Frameworks
- CPC, 1908: Civil procedures
- Companies Act, 2013: Corporate disputes
- IBC, 2016: Insolvency matters
- Indian Contract Act, 1872: Contractual obligations
- Specific Relief Act, 1963: Equitable remedies
- Limitation Act, 1963: Time limits for actions
Strategic Considerations in Commercial Litigation
- Forum Selection
- Evidence Preservation
- Interim Relief Strategy
- Alternative Dispute Resolution (ADR)
- Enforcement Planning
Frequently Asked Questions (FAQs)
- 1. What distinguishes civil and commercial litigation?
- Civil = personal disputes; Commercial = business-related under Commercial Courts Act.
- 2. How are company disputes resolved?
- Via NCLT; appeals go to NCLAT and then the Supreme Court.
- 3. Why is documentary evidence important?
- It’s foundational to proving or defending a claim.
- 4. Are interim measures available?
- Yes, such as injunctions to preserve the subject matter.
- 5. How long does litigation take?
- Ideally within 12 months under Commercial Courts Act, but may extend.
- 6. Can Indian judgments be enforced abroad?
- Yes, in countries with reciprocal arrangements.
- 7. What are alternatives to litigation?
- Arbitration and mediation are common ADR options.
- 8. Can tribunal decisions be appealed?
- Yes, usually to designated appellate tribunals and then higher courts.
- 9. What are the time limits to file cases?
- Generally 3 years for breach of contract under the Limitation Act.