THE PUNJAB COMMECIAL COURTS ORDINANCE, 2021

APPLICABILITY

The Ordinance is applicable to the whole of Punjab province

It shall come into force at once i.e., 13-04-2021

It is appliable for all commercial disputes, claim, or counterclaim arising out of contractual dispute related to or connected with any transaction of trade, business or commercial excluding sale or purchase of immovable property.

Applicable where the value of the claim or counter claim is Five hundred thousand (500,000/-) Rupees or more OR such value as the Government may notify.

WHO CAN APPLY TO COMMERCIAL COURT?

1.    Between the domestic companies or

2.    Between a domestic company and a foreign company or a firm or

3.    Between the firms or

4.    Between a firm and a domestic or foreign company or

5.    Between a domestic company, foreign company or a firm and a private person.

NOTE:

not applicable for cases between two individual persons

not applicable for criminal cases

All current pending cases of commercial nature are now transferred to commercial courts.

HOW TO APPLY TO COURT

1.    Every suit under this ordinance shall be instituted by presentation by a complainant doyly verified in accordance with the provision of the code.

2.    The complaint shall be accompanied

a.    documents, evidence for each defendant along with two additional copies;

b.    list of legal heirs of plaintiff

c.     complete list of witnesses and their affidavit

d.    list of documents to be produced or relied upon by plaintiff

e.    case management questioner as provided in form 14 of the code.

3.    No complaint will be entertained if it does not fulfill the requirements of this Ordinance.

LEAVE TO DEFEND

1.    The defendant shall not be entitled to defend the case unless he obtains the leave from the court to defend.

2.    The defend may apply for leave to defend the case within thirty days from the date of first service of notice.

3.    The court may extend the date of filing for leave to defend if the notice was only published in the newspaper.

4.    The default in apply for leave may result in court passing the order on the basis of documents submitted by the complainant.

5.    If appeal is accepted the court will complete the proceedings of the case within fifteen days.

6.    Where an application for leave to defend is rejected or where defendants fail to fulfils the imposed conditions, the court shall forthwith proceed to pass judgement and decree in favour of plaintiff.

DISPOSAL OF CASES

1.    The court shall decide the case within one hundred and eighty (180) days from the date of filing of such suit AND

2.    Where an application for leave to defend is rejected or where defendants fail to fulfils the imposed conditions, the court shall forthwith proceed to pass judgement and decree in favour of plaintiff.

3.    The court shall not grant the unnecessary adjournment and in no case more than two judgement shall be granted for a specific purpose.

4.    The courts, under exceptional circumstances, may adjourn the case for not more than seven days subject to payment of such costs as may be determined by the court.

5.    If the defendant fails to appear the court shall proceed with the suit on the basis of material before it.

6.    The court shall follow the summary proceedings and can summon record maintained by public authorities.

7.    The court may determine the costs of the suit and by whom it is payable

8.    If the claims or objections are found mala fide or filed merely to delay the sale or the property, the court shall impose such penalty as it deems fit.

APPEALS

1.    Any person aggrieved of the order can file an appeal before the Tribunal establish under the Ordinance within thirty (30) days of the order

2.    The tribunal shall dispose off the appeal within 120 days.

3.    The case in the tribunal will be decided by the majority, however, if the tribunal consists of Chairman and a member and there is difference of opinion, the decision shall be expressed in terms of the opinion of the Chairman.

4.    Any order of the Tribunal shall be appealable within thirty days before the Supreme Court of Pakistan.