HC reserves orders on transfer of commercial cases under court circular

The Telangana High Court reserved orders in a writ petition challenging a circular directing the transfer of commercial disputes valued above Rs. 3 lakhs to Commercial Courts, questioning the statutory basis for such transfers. A division bench comprising Justice Moushumi Bhattacharya and Justice T. Renuka Yara was hearing a writ petition filed by Srinath Rathi, proprietor of M/s. Home 360. 

The petitioner challenged a Circular dated December 4, 2025, issued by the Office of the Chief Judge, City Civil Court, Hyderabad. The petitioner contended that the circular directed the transfer of pending commercial disputes valued above Rs. 3 lakhs to the Principal Special Court in the cadre of District Judge for trial and disposal of commercial disputes, without disclosing the statutory basis or jurisdictional framework for such transfers. 

Counsel for the petitioner Divya Mundra argued that the exercise contemplated under Section 3(1A) of the Commercial Courts Act requiring the State Government to specify pecuniary jurisdiction in consultation with the High Court, was not disclosed. 

The petitioner cited his own suit and submitted that the suit was transferred under the circular when it was at the stage of consideration after completion of arguments. However, it was neither renumbered nor effectively taken up by the transferee court, resulting in delay in its adjudication. The petitioner further contended that the concepts of “specified value” under Section 2(1)(i) and “pecuniary jurisdiction” under Section 3(1A) of the Commercial Courts Act were distinct. Counsel for the petitioner argued that merely because the specified value was reduced to Rs. 3 lakhs, it did not automatically authorise the transfer of pending cases through an administrative circular without following the statutory framework. 

The petitioner sought a declaration that the circular was arbitrary and contrary to the Commercial Courts Act and the Code of Civil Procedure, besides seeking directions to the State to undertake and disclose the exercise under Section 3(1A) in consultation with the High Court.