IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
CHEEKATI MANAVENDRANATH ROY, V. GOPALA KRISHNA RAO, JJ.
Andhra Pradesh Industrial Infrastructure Corporation (APIIC) – Petitioner
Versus
M/s. Meghavaram Power Pvt. Ltd. – Respondent
Tr. C.M.P. No. 321 of 2022
Decided On : 19-04-2023
Code of Civil Procedure, 1908 - Section 24, 20, Order VII Rule 10 - Commercial Courts, Act, 2015 - Section 15(2) and (5) - Transfer of Commercial Suit - Territorial jurisdiction of Court - Application seeking transfer of Commercial Suit on ground that Special Court for trial and disposal of Commercial Disputes has no territorial jurisdiction to entertain said suit – Held, In respect of suits that are filed subsequent to date on which Act of 2015 came into force, when a plea relating to lack of territorial jurisdiction is taken, same has to be dealt with only under Order VII, Rule 10 of CPC - Therefore, a petition under Section 24 of CPC seeking transfer of said suit from one Commercial Court to another Commercial Court on ground that Court in which said suit is instituted lacks territorial jurisdiction is clearly misconceived and unsustainable - Transfer of suit that was instituted after Act came into force from Ordinary Civil Jurisdiction of High Court to Commercial Division of High Court, same analogy applies even to transfer of suits from one Commercial Court to another Commercial Court - Petition is dismissed.
ORDER :
1. This application under Section 24 of CPC is filed by the petitioners seeking transfer of Commercial Suit No. 15 of 2020 on the file of the Special Court for trial and disposal of Commercial Disputes, Ibrahimpatnam, Vijayawada, to the Court of Special Judge for trial and disposal of Commercial Disputes, Visakhapatnam, on the ground that the Special Court for trial and disposal of Commercial Disputes, Vijayawada, has no territorial jurisdiction to entertain the said suit.
2. Heard learned counsel for the petitioners and learned counsel for the respondent.
3. The petitioners are the defendants in Commercial Suit No. 15 of 2020 on the file of the Special Court for trial and disposal of Commercial Disputes, Vijayawada. The respondent herein is the plaintiff in the said Suit. He has filed the said suit for recovery of a sum of Rs.1,47,32,525/- from the defendants in the said suit. The petitioners, who are the defendants, have taken a plea in the said suit that the Commercial Court in Vijayawada has no territorial jurisdiction to entertain the said suit. According to the defendants, the property relating to the said transaction is situate in Santhabommali, Srikakulam District, and the document in question, which is relating to the said property is the basis for the suit claim and it was executed between both the parties in Santhabommali and as such only the Commercial Court in Visakhapatnam got territorial jurisdiction to entertain the suit. The plaintiff in the said suit has taken a plea that as the Head Office of the 1st defendant – APIIC is situate in Vijayawada, under Section 20 of CPC, the suit can be instituted where the office of the said APIIC is situate and as such the suit is instituted in the Commercial Court of Vijayawada.
4. The said issue relating to territorial jurisdiction of the Court has to be decided by the trial Court in the final adjudication of the said suit. It is brought to the notice of this Court at the time of hearing the petition and as per the plea taken by the respondents herein in the counter that the entire trial of the suit has been concluded and the matter posted for hearing arguments. Therefore, the suit is now at the fag end of the hearing which is ripe for disposal. Since a plea relating to lack of territorial jurisdiction of the Commercial Court, Vijayawada, was already taken, the same has to be decided by the trial Court and a finding has to be given to that effect. In this context, it is relevant to note that Order VII Rule 10 of CPC also envisages that at any stage of the suit, the Court can return the plaint to present the same in the proper Court. Therefore, as noticed supra, since a plea has been taken in the trial Court relating to the said territorial jurisdiction, the same has to be decided by the trial Court itself. If the trial Court finds that it has got territorial jurisdiction, it has to further proceed with the suit according to law and if it finds that it has no territorial jurisdiction, then the trial Court has to follow the procedure contemplated under Order VII Rule 10 of CPC. But on that ground, the petitioners now cannot seek transfer of the said suit from the Commercial Court of Vijayawada to Commercial Court of Visakhapatnam. It is a disputed question of fact which has to be decided by the trial Court after considering the evidence before it and also Section 20 of CPC which is invoked by the plaintiff.
5. Learned counsel for the petitioners vehemently contended that Section 15(2) and 15(5) of the Commercial Courts, Act, 2015, (for short “the Act”) applies to the present facts of the case and the suit has to be necessarily transferred to Commercial Court of Visakhapatnam. Section 15 is part of Chapter V of the Act. It deals with transfer of pending suits. A reading of the said provision makes it clear that only the suits which are pending in other Courts on the date when the said Commercial Courts Act, 2015, came into force, are to be transferred to the Commercial Cour
Laxmi Polyfab Pvt. Ltd. vs. Eden Realty Ventures Pvt. Ltd. AIR 2021 Cal. 190
The court affirmed that Section 24(5) of the CPC allows for transferring cases from civil to commercial courts, even amidst jurisdictional uncertainties, emphasizing the importance of existing proced....
The court affirmed that Section 24(5) of the C.P.C. permits transferring a suit lacking jurisdiction to a Commercial Court, while addressing the provisions of the Commercial Courts Act concerning jur....
The main legal point established in the judgment is that the Commercial Courts Act does not exclude the application of Section 24 of the CPC to commercial disputes of a specified value, and the power....
The judgment emphasizes the importance of exhausting the statutory remedy provided under the Commercial Courts Act, 2015 before approaching the High Court under Article 227 of the Constitution of Ind....
Jurisdiction to transfer a suit under Section 24 of CPC is concurrent for High Court and District Court; commercial suits must be filed in designated courts.
The central legal point established in the judgment is the delineation of the jurisdiction of the Principal District Judge or the Chief Judge, City Civil Court in transferring cases, particularly in ....
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