Businesses in Andhra Pradesh go before the NCLT Amaravati Bench, and those in Telangana before the Hyderabad Bench. Commercial disputes above the specified value go before the Commercial Courts, generally after pre-institution mediation.
Good documentation prevents many disputes. Founders' agreements, vendor contracts and board records also decide how strong a position is when a dispute does arise.
What this covers
- Commercial suits
- Oppression and mismanagement
- Insolvency applications and defence
- Shareholder and partner disputes
- Contract drafting and review
- Company and LLP compliance issues
- Director liability
- Business exit and settlement
Principal laws
| Law | Relevance |
|---|---|
| Commercial Courts Act, 2015 | Commercial disputes of Rs. 3 lakh and above, with pre-institution mediation under Section 12A unless urgent relief is sought. |
| Companies Act, 2013 | Company law, including Sections 241 and 242 on oppression and mismanagement. |
| Insolvency and Bankruptcy Code, 2016 | Corporate insolvency, with a default threshold of Rs. 1 crore. |
| Limited Liability Partnership Act, 2008 and Partnership Act, 1932 | Firm and LLP disputes. |
Where it is heard
NCLT Amaravati Bench for Andhra Pradesh, NCLT Hyderabad Bench for Telangana, and Commercial Courts and the High Court in each State.
Usual steps
- Review the contracts and corporate records
- Identify the forum and any mediation or arbitration clause
- Send notice or demand
- Mediation, filing or defence
- Pleadings, hearing and order
- Enforcement, settlement or appeal
Documents that are often relevant
- Contracts, purchase orders and invoices
- Ledger and default records
- Constitutional documents and board minutes
- Notices and correspondence
Please keep these safe, but do not send confidential documents until we have confirmed that we will act for you.
Time limits and key points
| Item | Position |
|---|---|
| Commercial suit without urgent relief | Pre-institution mediation comes first (Section 12A) |
| Appeal to the NCLAT under the IBC | 30 days, extendable by up to 15 days (Section 61) |
| Most contract claims | Generally 3 years |
Common questions
Is mediation compulsory for commercial suits?
Where no urgent interim relief is sought, Section 12A requires pre-institution mediation. The Supreme Court in Patil Automation v. Rakheja Engineers (2022) treated this requirement as mandatory.
Can an unpaid vendor start insolvency proceedings?
An operational creditor may apply under Section 9 of the Code after a demand notice, if the default meets the threshold and there is no pre-existing dispute. It is not a substitute for ordinary recovery where the debt is genuinely disputed.
This is general information, not legal advice. The law may have changed, and the answer may differ on your facts.