The publication of Act No. IV of 2026, entitled the Various Laws relating to the Establishment and Jurisdiction of the Commercial Court (Amendment) Act, 2026, marks a significant milestone in the evolution of Malta's judicial system. The Act re-establishes the Commercial Court as a superior court, reinstating a specialised judicial forum dedicated to the adjudication of commercial disputes after several years during which such matters were determined by the Civil Court (Commercial Section).
Notably, the Commercial Court had been abolished under Act XXIV of 1995, following concerns that determining its jurisdiction had become overly complex and unnecessarily time consuming.
A Broad and Specialised Jurisdiction
One of the defining features of the reintroduced Commercial Court is the breadth of its jurisdiction. Through the insertion of Article 32A into the Code of Organisation and Civil Procedure, the Court is vested with exclusive competence over an extensive range of commercial matters.
These include disputes arising under the Commercial Code and the Companies Act, banking and financial services litigation, competition law, consumer protection claims, insolvency and preventive restructuring proceedings, intellectual property disputes involving copyright, trademarks, patents and industrial designs, as well as claims concerning bills of exchange and promissory notes.
The Court is also entrusted with jurisdiction over maritime matters, including actions in rem and in personam relating to ships and vessels, merchant shipping disputes, oil pollution claims, and judicial sales of vessels. The Commercial Court will also hear claims arising under the Civil Aviation Act, the Aircraft Registration Act and the Air Navigation Act, while also exercising jurisdiction over judicial sales of aircraft.
In addition, the Act contemplates the Commercial Court exercising functions relating to the recognition and enforcement of foreign arbitral awards, insofar as these are conferred upon it by the Arbitration Act, subsidiary legislation or any other applicable law.
While the Act establishes an extensive jurisdiction, certain aspects of its scope remain open to interpretation. A notable example concerns aviation related disputes. This is due to the fact that while disputes arising under the Civil Aviation Act, the Aircraft Registration Act and the Air Navigation Act fall within its remit, it remains uncertain whether claims relating to aircraft ownership or possession outside these statutory regimes will also fall within the Court's jurisdiction.
A further ambiguity concerns the recognition and enforcement of foreign arbitral awards. The Act appears to defer the Court's jurisdiction to the Arbitration Act and other applicable legislation, leaving open the question of whether the Commercial Court simply assumes the functions previously exercised by the Civil Court or whether its competence may be expanded through future legislative measures.
Transitory Provisions
Upon the Act coming into force, all pending cases before the Civil Court (Commercial Section), will automatically be assigned to the Commercial Court. Furthermore, proceedings pending before other civil courts that fall within the newly established jurisdiction of the Commercial Court will likewise be transferred, provided they have not already been adjourned for final submissions or judgment.
To ensure legal certainty during the transition, the Act expressly provides that any judgment or decree delivered after its entry into force in proceedings that would otherwise fall within the jurisdiction of the Commercial Court shall not be rendered null or otherwise legally defective solely because it was determined by another court. For all legal purposes, the court that delivered the decision is deemed to have retained the requisite jurisdiction to hear and determine the matter, thereby safeguarding the validity and enforceability of such judgments.
Practical Considerations for Practitioners
The Commercial Court's broad jurisdiction, together with certain areas of uncertainty, makes it important to identify the correct forum before commencing proceedings. Practitioners should carefully consider whether a claim falls within the Court's jurisdiction, as any uncertainty may result in the case being transferred to another court, leading to unnecessary delays and additional costs.
Conclusion
The re-establishment of the Commercial Court is an important milestone in the ongoing development of Malta's judicial landscape. By bringing a broad range of commercial disputes within a specialised forum, the reform is intended to strengthen judicial expertise and encourage greater consistency in commercial case law.
About the Author
This article has been authored by Trainee Advisor - Legal, Maria Darrelle Bartolo as the primary author and
Manager - Legal & Maritime,
Dr Edward Meli as the secondary author.
