The Return Of The Commercial Court

The publication of Act No. IV of 2026 on 17 March 2026 confirms the return of the Commercial Court in Malta, marking a significant development in the country's judicial landscape for commercial disputes.

The history of the Commercial Court, its abolition, and the legislative journey leading to its return, was previously reported here.

The legislative process is now complete. Although the Act has been published, it is not yet in force. Nonetheless, it establishes that the Court will be presided over by one judge, and lays down the framework for the future competence of the Commercial Court. The Commercial Court has broad jurisdiction over:

• Commercial matters arising under the Commercial Code and the Companies Act;
• Competition law matters;
• Consumer claims, including representative actions;
• Maritime and merchant shipping claims, including oil pollution claims;
• Claims arising under the Civil Aviation Act, Aircraft Registration Act, and Air Navigation Act;
• Intellectual property claims, including copyright, trademarks, patents, and designs;
• Claims concerning credit instruments, including bills of exchange and promissory notes;
• Insolvency and preventive restructuring proceedings;
• Judicial sales of vessels and aircraft; and
• Functions relating to the recognition and enforcement of foreign arbitral awards as may be provided in the Arbitration Act, regulations or any other law.

The jurisdiction of the Commercial Court is broad enough to capture all causes related to the above matters and the laws specified.

Notably, while the Act expressly confers jurisdiction on the Commercial Court for actions in rem and in personam concerning ships and vessels, it does not expressly extend the same treatment to aircraft or aircraft engines. Accordingly, where claims fall outside the scope of the Civil Aviation Act, Aircraft Registration Act, or Air Navigation Act (such as for ownership or possession) they may fall outside the jurisdiction of the Commercial Court. Whether such claims will nonetheless be interpreted as falling within the Court's competence remains to be seen.

This omission is particularly noteworthy given that judicial sales, including court-approved private sales, of both vessels and aircraft are expressly assigned to the Commercial Court. Further regulations may be issued by the Minister to clarify and possibly expand the Court's competence.

There is also some ambiguity with the formulation of the competence of the Court with respect to foreign arbitral awards. By providing that such functions generally 'relate' to recognition and enforcement, and are to be exercised as 'may be provided from time to time' in the Arbitration Act, subsidiary legislation, or any other law, the Act appears to defer rather than definitively confer jurisdiction. This raises the question whether the Commercial Court's jurisdiction in this area is limited to a simple takeover of the functions currently enjoyed by the civil courts, or whether there will be an expansion, contingent upon further legislative or regulatory intervention.

Once the Act comes into force, all claims currently pending before the Civil Court (Commercial Section) will be reassigned to the Commercial Court. Additionally, proceedings pending before other civil courts that fall within the competence of the Commercial Court will be transferred, unless they have already been adjourned for final submissions or judgment.

Given the breadth of the Court's jurisdiction, and certain areas where its scope may still require clarification, it will be essential for lawyers to assess carefully whether new claims fall within the competence of the Commercial Court or should be filed before other civil courts. Errors in forum selection may result in procedural delays or unnecessary transfers, undermining the efficiencies the reform seeks to achieve.

The re-establishment of the Commercial Court represents a welcome and long-anticipated development in Malta's legal framework. By consolidating jurisdiction over complex commercial matters within a specialised forum, the reform has the potential to enhance judicial expertise and promote greater consistency in decision-making. In turn, this should contribute to more efficient resolution of disputes. This is essential for Malta as a jurisdiction that continues to position itself as an attractive hub for international commerce and financial services. Ultimately, the success of the Commercial Court will be measured by its ability to deliver both technical excellence and procedural efficiency, reinforcing Malta's credibility as a business-friendly jurisdiction in all respects.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.