Commercial Courts Act MCQ Quiz - Objective Question with Answer for Commercial Courts Act - Download Free PDF

Last updated on Mar 12, 2025

Latest Commercial Courts Act MCQ Objective Questions

Commercial Courts Act Question 1:

Which of the following sections of the Commercial Court Act defines 'document'?

  1. Section 2(1)(e)
  2. Section 2(1)(f)
  3. Section 2(1)(g)
  4. Section 2(1)(h)

Answer (Detailed Solution Below)

Option 2 : Section 2(1)(f)

Commercial Courts Act Question 1 Detailed Solution

The correct answer is Section 2(1)(f)

Key Points

  • Section 2(1)(f) of the Commercial Court Act defines 'document'.
  • It says, “document” means any matter expressed or described upon any substance by means of letters, figures or marks, or electronic means, or by more than one of those means, intended to be used, or which may be used, for the purpose of recording that matter.

Commercial Courts Act Question 2:

As per Section 18 of the Commercial Courts Act, the High Court has the power to issue practice directions to supplement which of the following?

  1. The Constitution of India
  2. Chapter III of the Commercial Courts Act
  3. Chapter II of the Commercial Courts Act and the Code of Civil Procedure, 1908
  4. The Arbitration and Conciliation Act, 1996

Answer (Detailed Solution Below)

Option 3 : Chapter II of the Commercial Courts Act and the Code of Civil Procedure, 1908

Commercial Courts Act Question 2 Detailed Solution

The correct answer is Chapter II of the Commercial Courts Act and the Code of Civil Procedure, 1908

Key Points

  • Section 18 empowers the High Court to issue practice directions by notification to supplement the provisions of Chapter II of the Commercial Courts Act or the Code of Civil Procedure, 1908, insofar as such provisions apply to the hearing of commercial disputes of a Specified Value.
  • This allows the High Court to ensure smoother procedural implementation and uniformity in dealing with commercial matters.

Commercial Courts Act Question 3:

Under Section 20 of the Commercial Courts Act, who is responsible for establishing training facilities for Judges of Commercial Courts and related divisions?

  1. The Central Government
  2. The Supreme Court
  3. The State Government in consultation with the High Court
  4. The Bar Council of India

Answer (Detailed Solution Below)

Option 3 : The State Government in consultation with the High Court

Commercial Courts Act Question 3 Detailed Solution

The correct answer is The State Government in consultation with the High Court

Key Points

  • Section 20 of the Commercial Courts Act provides that the State Government, in consultation with the High Court, may establish the necessary facilities for the training and continuous education of Judges who may be appointed to the Commercial Courts, Commercial Appellate Courts, Commercial Division, or Commercial Appellate Division in a High Court.
  • This ensures that judges handling commercial disputes are well-versed with commercial laws and procedures.

Commercial Courts Act Question 4:

Under Section 22 of the Commercial Contract Act, what power does the Central Government have if any difficulty arises in giving effect to the provisions of the Act?

  1. The Central Government may amend the Act through a special majority in Parliament.
  2. The Central Government may make provisions, by order, not inconsistent with the Act, to remove the difficulty.
  3. The Central Government may delegate its power to any State Government.
  4. The Central Government may suspend the operation of the Act temporarily.

Answer (Detailed Solution Below)

Option 2 : The Central Government may make provisions, by order, not inconsistent with the Act, to remove the difficulty.

Commercial Courts Act Question 4 Detailed Solution

The correct answer is The Central Government may make provisions, by order, not inconsistent with the Act, to remove the difficulty

Key Points

  • Section 22 of the Commercial Contract Act empowers the Central Government to issue orders for removing any difficulties that may arise in implementing the provisions of the Act.
  • These orders must be consistent with the Act and must be published in the Official Gazette. However, this power is time-bound and can only be exercised within two years from the commencement of the Act.
  • Furthermore, every such order must be laid before both Houses of Parliament as soon as possible after it is made.

Commercial Courts Act Question 5:

When did the Commercial Courts Act, 2015 come into force?

  1. 1st January 2015
  2. 15th August 2015
  3. 23rd October 2015
  4. 31st December 2015

Answer (Detailed Solution Below)

Option 3 : 23rd October 2015

Commercial Courts Act Question 5 Detailed Solution

The correct answer is 23rd October 2015

Key Points

  • The Commercial Courts Act extends to the whole of India, not just selected regions.
  • The Act is deemed to have come into force on October 23, 2015.
  • "Deemed to have come into force" means it applies retrospectively from the specified date.

Top Commercial Courts Act MCQ Objective Questions

Commercial Courts Act Question 6:

In which case the Hon’ble SC held that proviso added to the Code of Civil Procedure by Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015, is mandatory and no written statement can be taken on record in commercial suits, if it is not filed within 120 days from the date of service of summons of the Suit?

  1. Dolby International A.B. V. Das Telecom Pvt. Ltd (2018)
  2. Arjun Pandit Rao Khotkar v. Kailash Khushanrao (2020) SC
  3. M/S SCG Contracts India Pvt. Ltd. vs. Ks Chamankar Infrastructure Pvt. Ltd. (2019)SC 
  4. None of the above

Answer (Detailed Solution Below)

Option 3 : M/S SCG Contracts India Pvt. Ltd. vs. Ks Chamankar Infrastructure Pvt. Ltd. (2019)SC 

Commercial Courts Act Question 6 Detailed Solution

The correct answer is option 3  
Key Points The bench comprising Justice Rohinton Fali Nariman and Justice Vineet Saran was considering Special Leave Petitions (SCG Contracts India Pvt. Ltd vs. K.S. Chamankar Infrastructure Pvt. Ltd) against Delhi High Court orders allowing a written statement filed by the defendants even though 120 days had elapsed from the date of service of summons of this Suit.

Commercial Courts Act Question 7:

According to Section 14 of the Commercial Courts Act, 2015, within what time frame should the Commercial Appellate Court ideally dispose of appeals? 

  1. Within 6 months 
  2. Within 3 months 
  3. Within 5 months  
  4. Within 1 year

Answer (Detailed Solution Below)

Option 1 : Within 6 months 

Commercial Courts Act Question 7 Detailed Solution

The correct answer is option 1.

Key Points

Explanation:

Section 14 states that the Commercial Appellate Court should aim to dispose of appeals within six months of filing. 

Commercial Courts Act Question 8:

How is the Specified Value determined for disputes involving movable property under the Commercial Courts Act, 2015? 

  1. Assessed value at the time of dispute resolution
  2. Market value as on the date of filing the suit 
  3. Arbitrary value assigned by the court
  4. Based on the original purchase price 

Answer (Detailed Solution Below)

Option 2 : Market value as on the date of filing the suit 

Commercial Courts Act Question 8 Detailed Solution

The correct answer is option 2.

Key Points

Explanation:

Section 12(b) clearly states that for disputes related to movable property, the market value of the property on the filing date is considered for determining the Specified Value.

Commercial Courts Act Question 9:

What is the maximum duration for pre-institution mediation as per Section 12A of the Commercial Courts Act, 2015? 

  1. Three months, extendable by two more months 
  2. Two months 
  3. One month 
  4. Six months

Answer (Detailed Solution Below)

Option 1 : Three months, extendable by two more months 

Commercial Courts Act Question 9 Detailed Solution

The correct answer is option 1.

Key Points 

Explanation:

Section 12A(3) sets a three-month period for mediation, which can be extended by another two months with the parties' consent.

Commercial Courts Act Question 10:

What is the minimum specified value for a dispute to be considered under the Commercial Courts Act, 2015? 

  1. One lakh rupees 
  2. Four lakh rupees 
  3. Two lakh rupees 
  4. Three lakh rupees

Answer (Detailed Solution Below)

Option 4 : Three lakh rupees

Commercial Courts Act Question 10 Detailed Solution

Explanation: According to Section 2(i) of the Act, the specified value in relation to a commercial dispute shall not be less than three lakh rupees.

Commercial Courts Act Question 11:

In the context of the Commercial Courts Act, 2015, how is the Specified Value of intangible rights determined? 

  1. Determined by an independent assessor 
  2. Equal to the value of tangible assets involved
  3. Based on the plaintiff's estimated market value 
  4. A fixed statutory value 

Answer (Detailed Solution Below)

Option 3 : Based on the plaintiff's estimated market value 

Commercial Courts Act Question 11 Detailed Solution

Explanation: Section 12(d) states that for suits involving intangible rights, the Specified Value is determined based on the market value estimated by the plaintiff.

Commercial Courts Act Question 12:

The Commercial Courts Act, 2015 came into force on-

  1. 23.11.2015 
  2. 23.12.2015 
  3. 23.10.2015 
  4. 31.12.2015

Answer (Detailed Solution Below)

Option 3 : 23.10.2015 

Commercial Courts Act Question 12 Detailed Solution

Explanation: The Commercial Courts Act, 2015 came into force on 23.10.2015 as the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015 came into force on 23.10.2015.

Commercial Courts Act Question 13:

 In a case which does not contemplate an urgent interim relief under the Commercial Courts Act, the pre-institution Mediation and Settlement is:

  1. Discretionary
  2. Mandatory
  3. Prohibitory
  4. Directory

Answer (Detailed Solution Below)

Option 2 : Mandatory

Commercial Courts Act Question 13 Detailed Solution

Explanation: Section 12A: Pre-Institution Mediation and Settlement. 12A. (1) A suit, which does not contemplate any urgent interim relief under this Act, shall not be instituted unless the plaintiff exhausts the remedy of pre-institution mediation in accordance with such manner and procedure as may be prescribed by rules made by the Central Government. The word used is “shall”. 

Commercial Courts Act Question 14:

Any person aggrieved by the judgment or order of a Commercial Court below the level of a District Judge may appeal to the Commercial Appellate Court within a period of:

  1. Fifteen days
  2. Thirty days
  3. Forty-five days 
  4. Sixty day

Answer (Detailed Solution Below)

Option 4 : Sixty day

Commercial Courts Act Question 14 Detailed Solution

The correct answer is option 4.

Key Points 

Explanation:

Section 13 of the Commercial Courts Act, 2015 is a provision that lays down the right to appeal against orders passed in matters governed by the Act1. It states that any person aggrieved by the decision of the Commercial Court or Commercial Division of a High Court may appeal to the Commercial Appellate Division of that High Court within a period of sixty days.

Commercial Courts Act Question 15:

Which of the following sections of the Commercial Court Act defines 'document'?

  1. Section 2(1)(e)
  2. Section 2(1)(f)
  3. Section 2(1)(g)
  4. Section 2(1)(h)

Answer (Detailed Solution Below)

Option 2 : Section 2(1)(f)

Commercial Courts Act Question 15 Detailed Solution

The correct answer is Section 2(1)(f)

Key Points

  • Section 2(1)(f) of the Commercial Court Act defines 'document'.
  • It says, “document” means any matter expressed or described upon any substance by means of letters, figures or marks, or electronic means, or by more than one of those means, intended to be used, or which may be used, for the purpose of recording that matter.
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