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2019 Supreme(Bom) 785
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
S.J. KATHAWALLA, J.
RELIANCE GENERAL INSURANCE COMPANY LTD - Appellant
Versus
COLONIAL LIFE INSURANCE COMPANY (TRINIDAD) LIMITED - Respondent
Notice of Motion Commercial Division No. 561 of 2018; Commercial Suit No. 29 of 2013
Decided on : 24-05-2019
Advocate Appeared:
Zubin Behramkamdin, Adv., Shyam Kapadia, Adv., Keanan Nagaporwala, Adv., Tuli & Co, Adv., Sharan Jagtiani, Adv., Brigitta Johan, Adv., Ashrita Gulati, Adv., Azb & Parnters, Adv., Suchita Uppal, Adv., Hariani & Co, Adv.
Headnote:
Commercial Courts Act, 2015 – Section 15 – Code of Civil Procedure, 1908 – Rule 1 of Order V – Arbitration and Conciliation Act, 1996 – Filing a written statement – Question of law being decided by this order is: whether the mandatory timeline of 120 days for filing a written statement in a Commercial Suit is applicable to suits which were filed prior to the enactment of the Commercial Courts Act, 2015 and have subsequently been transferred as Commercial Suits to be heard by a Commercial Division of this Court – Held, Close reading of the aforesaid decision reflects that whilst it is true that the Delhi High Court refused to take on record the written statement by exercising any jurisdiction under Section 15 (4) of the Commercial Courts Act, court do not agree that the Delhi High Court has in fact held that a Court cannot, in any given case, exercise such jurisdiction whilst adjudicating upon a transferred suit – Court is of the opinion that the Delhi High Court rendered its decision as aforesaid given the facts and circumstances of that particular case. – The said decision cannot, in my view, lay down the law to suggest that this Court cannot hold Case Management Hearings in respect of transferred suits or applications in order to prescribe new timelines or issue such further directions as may be necessary including prescribing a new time period within which a written statement can be filed. – Section 15 (4) and the proviso thereto applies squarely to suits which were filed prior to the enactment of the Commercial Courts Act but have been subsequently transferred as Commercial Suits to be heard by a Commercial Division of this Court. – Court therefore hold that the mandatory timeline of 120 days for filing a written statement in a Commercial Suit is not applicable to suits which were filed prior to the enactment of the Commercial Courts Act, 2015 and subsequently transferred as Commercial Suits to be heard by a Commercial Division of this Court. – Court further hold that a Commercial Division or Commercial Court, as the case may be, may hold Case Management Hearings in respect of such transferred suits under the newly introduced Order XV-A of the CPC to prescribe new timelines or issue further directions including prescribing a new time period within which a written statement shall be filed. – Jurisdiction to exercise such discretion is expressly found in Section 15 (4) of the Commercial Courts Act and the proviso thereto. – Order Accordingly
S.J. KATHAWALLA, J.
1. The question of law being decided by this order is: whether the mandatory timeline of 120 days for filing a written statement in a Commercial Suit is applicable to suits which were filed prior to the enactment of the Commercial Courts Act, 2015 ("Commercial Courts Act") and have subsequently been 'transferred' as Commercial Suits to be heard by a Commercial Division of this Court ?
2. For adjudication of the question of law as above, it would be necessary to briefly set-out the legislative background leading to the enactment of the Commercial Courts Act as also the establishment of Commercial Division/s in this Court :
2.1. The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015 was promulgated on 23rd October, 2015. Subsequently, the Commercial Courts Act was enacted on 31st December, 2015 and is deemed to have come into force from 23rd October, 2015.
2.2. The Commercial Courts Act came to be enacted pursuant to the recommendations made by the Law Commission of India in its 188th Report and 253rd Report.
2.3. The primary aim and object of the Commercial Courts Act, as can be discerned from its Statement of Objects and Reasons, was to provide speedy disposal of commercial disputes in order to reduce the pendency of cases and improve our country's image from the perspective of ease of doing business in India.
2.4. Under Section 4 of the Commercial Courts Act, Commercial Divisions were constituted in this Court for the purpose of exercising jurisdiction and powers conferred under the Commercial Courts Act. Section 4 of the Commercial Courts Act reads as under:
"4. Constitution of Commercial Division of High Court.
(1) In all High Courts, having ordinary original civil jurisdiction, the Chief Justice of the High Court may, by order, constitute Commercial Division having one or more Benches consisting of a single Judge for the purpose of exercising the jurisdiction and powers conferred on it under this Act.
(2) The Chief Justice of the High Court shall nominate such Judges of the High Court who have experience in dealing with commercial disputes to be Judges of the Commercial Division. "
2.5. Chapter V, Section 15 of the Commercial Courts Act inter alia provides for the transfer of suits and applications relating to commercial disputes of a specified value pending before this Court to the Commercial Division of this Court. Section 15 of the Commercial Courts Act reads as under :
"15. Transfer of pending cases.-
(1) All suits and applications, including applications under the Arbitration and Conciliation Act, 1996 (26 of 1996), relating to a commercial dispute of a Specified Value pending in a High Court where a Commercial Division has been constituted, shall be transferred to the Commercial Division.
(2) All suits and applications, including applications under the Arbitration and Conciliation Act, 1996 (26 of 1996), relating to a commercial dispute of a Specified Value pending in any civil court in any district or area in respect of which a Commercial Court has been constituted, shall be transferred to such Commercial Court:
Provided that no suit or application where the final judgment has been reserved by the Court prior to the constitution of the Commercial Division or the Commercial Court shall be transferred either under subsection (1) or sub-section (2).
(3) Where any suit or application, including an application under the Arbitration and Conciliation Act, 1996 (26 of 1996), relating to a commercial dispute of Specified Value shall stand transferred to the Commercial Division or Commercial Court under sub-section (1) or sub-section (2), the provisions of this Act shall apply to those procedures that were not complete at the time of transfer.
(4) The Commercial Division or Commercial Court, as the case may be, may hold case management hearings in respect of such transferred suit or application in order to prescribe new timelines or issue such further directio
