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Glossary: Legal Words in Plain English

The words you will meet in a commercial case, explained in plain English.

In short. Legal words used on this site, explained in one or two plain sentences each. Where a word has a full page, follow the link from the relevant service or guide.

Commercial dispute
A business dispute of the kinds listed in Section 2(1)(c) of the Commercial Courts Act, 2015, such as trade, supply, construction, partnership, franchise, IP and commercial lease disputes.
Specified value
The value of the claim that decides whether a commercial court hears the case. It must be Rs 3 lakh or more. Section 12 of the Act says how to work it out (amount claimed with interest, value of the property, and so on).
Commercial Court
A court at district level designated to hear commercial disputes. In Delhi, the District Judge (Commercial) hears suits up to the district courts' pecuniary limit.
Commercial Division
The bench of a High Court with original civil jurisdiction (such as the Delhi High Court) that hears commercial suits above the district courts' limit.
Commercial Appellate Division
The bench of the High Court that hears appeals from commercial courts and from the Commercial Division under Section 13.
Pre-institution mediation (PIM)
Mediation through the Legal Services Authority that must be tried before filing most commercial suits, under Section 12A.
Non-starter report
A report by the mediator that the other side did not take part in pre-institution mediation. It lets you file the suit.
Plaint
The written claim that starts a suit. In a commercial suit it must come with all documents relied on and a statement of truth.
Statement of truth
A verification on affidavit, in the form prescribed for commercial suits, that the facts stated in a pleading are true. A false statement can lead to proceedings for contempt or perjury.
Written statement
The defendant's reply to the plaint. In commercial suits it must be filed within 120 days of service of summons at the latest.
Replication
The plaintiff's reply to new facts raised in the written statement.
Counter-claim
A claim the defendant makes against the plaintiff in the same suit.
Disclosure
The duty to file and share all documents in your power that relate to the case, including ones that hurt you (Order XI as amended for commercial suits).
Admission and denial
The step where each side says, document by document, which of the other side's documents it admits and which it denies, with reasons.
Case management hearing
A hearing under Order XVA where the court frames issues and fixes a timetable for evidence and arguments.
Summary judgment
Judgment without a full trial under Order XIIIA, where the court finds the plaintiff or the defendant has no real prospect of success.
Summary suit
A faster suit under Order XXXVII for a debt or liquidated amount based on written documents. The defendant needs leave of the court to defend.
Leave to defend
Permission the defendant must get in a summary suit before defending. It must be sought within 10 days of service of the summons for judgment.
Interim injunction
A temporary court order to do or not do something while the suit is pending, under Order XXXIX.
Ex parte
A hearing or order in the absence of one side.
Attachment before judgment
An order under Order XXXVIII Rule 5 requiring the defendant to give security or attaching his property, where he is trying to defeat the decree.
Receiver
A person appointed by the court under Order XL to take charge of disputed property or goods while the case is pending.
Decree
The formal order that records the court's final decision in the suit.
Decree holder
The person in whose favour a decree is passed.
Judgment debtor
The person against whom a decree is passed and who must pay or comply.
Execution
Enforcing a decree through the court under Order XXI, by attachment and sale of property, attachment of bank accounts and debts, or arrest in limited cases.
Garnishee
A third party, such as a bank or a customer of the judgment debtor, who holds money due to the judgment debtor and can be ordered to pay it to the decree holder instead.
Liquidated damages
A sum fixed in the contract as compensation for breach. Under Section 74 of the Contract Act the court awards reasonable compensation up to that sum.
Limitation
The time limit for filing a case under the Limitation Act, 1963. Most money claims must be filed within three years.
Acknowledgment of debt
A written admission of liability signed by the debtor before limitation expires. Under Section 18 of the Limitation Act it starts a fresh period.
Court fee
The fee paid to the court on filing, fixed by state court fee law and usually calculated on the amount claimed.
Pecuniary jurisdiction
The money limit up to which a court can hear a case.
Territorial jurisdiction
The area over which a court can hear a case, usually where the defendant works or where the cause of action arose.
Cause of action
The set of facts that gives the right to sue, such as the contract, the delivery and the non-payment.
Special leave petition (SLP)
A petition to the Supreme Court under Article 136 of the Constitution asking for permission to appeal against a High Court judgment.
Passing off
A claim that the defendant is presenting his goods or services as yours, available even where your mark is not registered.
Trade secret
Confidential business information, such as client lists, pricing or processes, protected by contract and by the courts' equity jurisdiction.
Section 65B / Section 63 certificate
The certificate needed to prove electronic records such as emails and ledgers. Since 1 July 2024 it is issued under Section 63 of the Bharatiya Sakshya Adhiniyam, 2023, which replaced Section 65B of the Evidence Act.

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