Employment-linked incentive claims are not commercial disputes where jurisdiction depends on the Commercial Courts Act definition.

An employment-based claim for a long-term incentive plan did not amount to a commercial dispute under the Commercial Courts Act, 2015 because the claim remained inseparable from the employment contract. The Court held that a pure employment agreement does not become a contract for the provision of services merely because it gives rise to monetary claims, so Section 2(1)(c)(xviii) was not attracted. It further noted that Commercial Court jurisdiction must arise from the statutory definition itself and cannot be created by consent or by earlier mistaken invocation of that forum. The Commercial Court therefore lacked jurisdiction, and the parties were left to pursue remedies before the competent civil court.

---

---

Issues: Whether a dispute arising from an employment agreement and a long-term incentive plan constitutes a commercial dispute within Section 2(1)(c)(xviii) of the Commercial Courts Act, 2015 so as to confer jurisdiction on the Commercial Court.

Analysis: The dispute stemmed from an employment relationship and the incentive claim was inseparable from the employment agreement. A pure employment contract does not become a commercial dispute merely because monetary claims arise from it. Section 2(1)(c)(xviii) covers agreements for sale of goods or provision of services, but the arrangement in question remained an employment contract and not a commercial services contract. The Court also noted that jurisdiction under the Commercial Courts Act must arise from the statutory definition itself and cannot be created by a party's earlier invocation of the forum or by consent.

Conclusion: The dispute was not a commercial dispute under Section 2(1)(c)(xviii) of the Commercial Courts Act, 2015, and the Commercial Court lacked jurisdiction.

Final Conclusion: The writ petition succeeded, the proceedings before the Commercial Court were held to be without jurisdiction, and the parties were left free to pursue their remedies before the competent civil court.

Ratio Decidendi: An employment-based monetary claim does not fall within the definition of a commercial dispute under the Commercial Courts Act, 2015, and jurisdiction cannot be conferred on a Commercial Court by consent or prior erroneous invocation of that forum.

---