Code of Civil Procedure

The Code of Civil Procedure, 1908 (CPC) is the principal statute governing the procedure in courts of civil jurisdiction in India. It regulates how civil suits are instituted, how parties are joined, how evidence is received, how decrees are passed, and how they are executed. The CPC consists of two parts: (1) a body of sections (1-158) dealing with general principles of civil jurisdiction, procedure, and appeals; and (2) Orders (I-LI) and Rules, which deal with specific procedural steps in detail. The Orders are the practitioner's daily reference — Order I (parties), Order VII (plaint), Order VIII (written statement), Order XXXIX (injunctions), Order XL (receiver), Order XLI (appeals).

The CPC applies to all civil courts throughout India. The fundamental jurisdiction provision is Section 9: courts shall have jurisdiction to try all suits of a civil nature excepting suits of which cognizance is either expressly or impliedly barred. This creates a presumption in favour of civil court jurisdiction — a bar must be express or necessarily implied by a statute's scheme. Courts have consistently interpreted Section 9 broadly to preserve civil court jurisdiction unless a clear legislative bar exists.

The CPC's Order XXXIX (Temporary Injunctions) is among the most frequently invoked provisions in commercial litigation. It authorises courts to grant temporary injunctions in three situations: (1) where the property in dispute may be wasted or damaged; (2) where the respondent threatens to remove property from court jurisdiction; or (3) where the respondent threatens to dispose of the property in a manner likely to harm the petitioner. Courts apply the three-pronged test (prima facie case, balance of convenience, irreparable injury) for injunction grant.

The CPC governs five stages of a civil suit: (1) institution — filing the plaint with the court of competent jurisdiction; (2) pleadings — plaint (Order VII) and written statement (Order VIII, 90-day limit for first written statement); (3) issues — the court frames issues of law and fact; (4) trial — examination of witnesses and receipt of documents; and (5) judgment and decree. The execution of decree (Order XXI) can be more complex than the trial itself in property and money disputes.

Amendment of the CPC has been significant. The Commercial Courts Act, 2015 introduced the concept of 'commercial disputes' and created a fast-track procedure for specified high-value commercial suits. Mandatory pre-institution mediation (Section 12A of the Commercial Courts Act) now applies to commercial suits — parties must attempt mediation before filing the suit. This has added a new preliminary stage to commercial civil litigation that practitioners must navigate before approaching court.