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 jurisdiction and procedural compliance.

ORDER :

(Ninala Jayasurya, J.) :

As the issues involved in the present cases are inter are disposed of by a Common Order.

2. For the sake of convenience, the parties are referred to as they are arrayed in Transfer C.M.P.No.83 of 2022.

3. Heard Mr.O.Manohar Reddy, learned Senior Counsel appearing on behalf of the petitioner. Also heard Mr.V.S.R.Anjaneyulu, learned Senior Counsel representing the respondents.

4. Perused the material on record as also the written submissions on behalf of both sides.

Brief Facts:

5. The petitioner / M/s.Fedora Sea Foods Private Limited filed O.S.No.59 of 2021 before the Court of VIII Additional District Judge, Nellore seeking recovery of a sum of Rs.9,55,74,429/-, from the respondents, which is due towards the purchase of Aqua feed on credit basis and interest thereon. Along with the suit, the petitioner filed I.A.No.88 of 2021 seeking attachment before Judgment and an ex parte order of conditional attachment was passed on 20.09.2021. On receipt of notices, the respondents filed an application I.A.No.131 of 2021 before the Trial Court for rejection of the plaint under Section 151 of Code of Civil Procedure (for short ‘C.P.C.’) r/w Order VII Rule 11 (d) of C.P.C., stating that the alleged transactions mentioned in the plaint comes under the definition of commercial dispute, that the plaintiff has to file the suit before the Commercial Court established at Vijayawada and Nellore District also comes under the jurisdiction of Commercial Court at Vijayawada. Thereafter, the petitioner on 08.03.2022 filed the present Transfer Petition under Section 24 (5) r/w Section 151 of C.P.C., seeking transfer of the suit i.e., O.S.No.59 of 2021 on the file of the Court of the VIII Additional District Judge, Nellore to the Special Court for Trial of Commercial Disputes, Ibrahimpatnam, Vijayawada. Pending adjudication of the Transfer Petition, stay of all further proceedings in the said suit was sought for and a learned Judge, granted interim orders on 15.03.2022. The respondents filed a petition to vacate the interim orders on 28.03.2022.

6. In the meanwhile, the respondents on 07.03.2022 filed C.R.P.No.515 of 2022 before this Court under Article 227 of the Constitution of India inter alia contending that the Civil Court has no jurisdiction and has to dispose of the I.A.No.131 of 2021 for rejection of the plaint before proceeding with the main suit. Against the order of attachment before Judgment dated 20.09.2021, the respondents filed C.M.A.No.209 of 2023 with a petition to condone the delay in preferring the same, but a Hon’ble Division Bench of this Court vide Orders dated 17.08.2023 dismissed the petition. Thereafter, the respondents on 22.09.2023 filed the above C.R.P.No.2570 of 2023 to reject the plaint by exercising the powers under Article 227 of the Constitution of India. Subsequently, the respondents withdrew C.R.P.No.515 of 2022 on 16.10.2023, in view of filing of C.R.P.No.2570 of 2023.

7. Mr.O.Manohar Reddy, learned Senior Counsel appearing on behalf of the petitioner, made elaborate submissions. While stating that the suit O.S.No.59 of 2021 instituted by the petitioner is commercial in nature, he submits that the Commercial Court at Vijayawada started functioning from 04.03.2020 and the Presiding Officer took charge on 09.07.2020. However, since the said Court started functioning during the Covid period, the same was not within the petitioner’s knowledge,