Clarifying procedural law under the Commercial Courts Act, 2015 (“Act”), the Supreme Court on Monday (November 10) held that an order allowing an application for rejection of a plaint amounts to a decree and is therefore appealable under Section 13(1A) of the Act. However, an order rejecting such an application is not appealable under the same provision and can instead be challenged through a revision or a petition under Article 227 of the Constitution, as the case may be.

A bench of Justices Vikram Nath and Sandeep Mehta set aside the Bombay High Court's ruling, which had held that the appellant–plaintiff's appeal under Section 13(1A) of the Commercial Courts Act, challenging the order allowing the respondent–defendant's application for rejection of the plaint, was not maintainable.

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