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CS Professional · Arbitration, Mediation and Conciliation · Commercial Transactions

Kaveri Textiles Ltd, Surat, sells bulk cotton yarn to Mehta Garments, Ludhiana, under a written supply agreement. Mehta Garments stops paying, and Kaveri wants to know whether the dispute is a 'commercial dispute' under the Commercial Courts Act, 2015. Which limb of the definition most directly covers it?

The dispute falls under agreements for sale of goods or provision of services. A written contract to supply cotton yarn is a sale of goods, which the Commercial Courts Act, 2015 expressly lists as a commercial dispute. The maritime, aircraft and oil-and-gas limbs do not fit.

  1. AAgreements for sale of goods or provision of servicesCorrect
  2. BIssues relating to admiralty and maritime law
  3. CTransactions relating to aircraft and helicopters
  4. DExploitation of oil and gas reserves

Explanation

Section 2(1)(c)(xviii) lists agreements for sale of goods or provision of services as commercial disputes. A yarn supply agreement is a sale of goods. The other limbs concern maritime, aircraft or natural-resource matters, which have no connection to these facts.

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