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2019 Supreme(Bom) 1016
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
S.J. Kathawalla, J.
Bharat Bhogilal Patel Hindu - Appellant
Vs.
Leitz Tooling Systems India Private Limited - Respondent
Review Petition (L) No. 15 of 2019 in Commercial Suit No. 316 of 2018 Along With Notice of Motion Commercial Division (L) No. 2118 of 2018
Decided On : 01-06-2019
Act Referred
CIVIL PROCEDURE CODE : O.8 R.1, O.6 R.3, O.6 R.15
COMMERCIAL COURT, COMMERCIAL DIVISION AND COMMERCIAL APPELLATE DIVISION OF HIGH COURTS ACT : S.16(1), S.2(i), S.7, S.4
CONSTITUTION OF INDIA : Art.14
CONSUMER PROTECTION ACT : S.17(2), S.17(2)(b)
COPYRIGHT ACT : S.62
DESIGNS ACT : S.22(4)
KERALA AGRICULTURISTS DEBT RELIEF ACT : S.4(1)
PATENTS ACT : S.104
TRADE MARKS ACT : S.134
UTTAR PADESH MUSLIM WAQFS ACT : S.5(2)
Headnote
The amendments introduced to the CPC by the Commercial Courts Act are only applicable to Commercial Disputes of a Specified Value and not Commercial Disputes not of a Specified Value such as the present suit.
Fact of the Case:
The Plaintiff filed a suit for recovery of money against the Defendant. The suit was valued at Rs.20,000/-. The Defendant filed its Written Statement after 120 days from the date of service of summons. The Plaintiff contended that the Defendant ought to have filed its Written Statement within 120 days as mandated by Order VIII Rule 1 of the Code of Civil Procedure, 1908 ("CPC") as amended by the Commercial Courts Act, 2015 ("Commercial Courts Act"). The Defendant contended that the amendments to the CPC introduced by the Commercial Courts Act are only applicable to Commercial Disputes of a Specified Value and not Commercial Disputes not of a Specified Value such as the present suit.
Finding of the Court:
The Court held that the amendments introduced to the CPC by the Commercial Courts Act are only applicable to Commercial Disputes of a Specified Value and not Commercial Disputes not of a Specified Value such as the present suit. The Court observed that Section 16 of the Commercial Courts Act, which introduces the amendments to the CPC, clearly states that the amendments apply to "any suit in respect of a commercial dispute of a Specified Value". The Court further observed that the present suit is valued at Rs.20,000/-, which is below the Specified Value prescribed under the Commercial Courts Act. Therefore, the Court held that the amendment to the CPC mandating that a Written Statement in a Commercial Suit has to be filed within 120 days, does not apply to the present suit.
Issues: Whether the amendments introduced to the CPC by the Commercial Courts Act are applicable to Commercial Disputes of a Specified Value only or also to Commercial Disputes not of a Specified Value.
Ratio Decidendi: The Court interpreted Section 16 of the Commercial Courts Act, which introduces the amendments to the CPC, and held that the amendments apply only to "any suit in respect of a commercial dispute of a Specified Value". The Court further observed that the present suit is valued at Rs.20,000/-, which is below the Specified Value prescribed under the Commercial Courts Act. Therefore, the Court held that the amendment to the CPC mandating that a Written Statement in a Commercial Suit has to be filed within 120 days, does not apply to the present suit.
Final Decision: The Court held that the amendments introduced to the CPC by the Commercial Courts Act are only applicable to Commercial Disputes of a Specified Value and not Commercial Disputes not of a Specified Value such as the present suit. Consequently, the amendment to the CPC mandating that a Written Statement in a Commercial Suit has to be filed within 120 days, will not apply to Commercial Disputes not of a Specified Value.
For the Appellant : Mr. Rashmin Khandekar alongwith Mr. Shashwat Rai instructed by Keystone Partners
For the Respondent: Mr. Nausher Kohli instructed by Mr. K.R. Parekh for the Plaintiff
JUDGMENT :
1. The present Review Petition has been filed by the Petitioner seeking a review of the Judgment dated 27th February, 2019 passed by this Court in Axis Bank Limited vs. Mira Gehani & Ors., 2019 SCC Online Bom. 358.
2. Subsequent to the Judgment being delivered, the Petitioner filed a Praecipe dated 7th March, 2019, which read as under :
"1. By an order dated 20th August, 2018, this Hon'ble Court framed the following question of law :
"Whether in view of the amendment to the Code of Civil Procedure, 1908 by a Commercial Court, Commercial Division and Commercial Appellate Division of High Court's Act, 2015 (4 of 2016), the Defendant can be allowed to file the Written Statement after 120 days from the date of service of Writ of Summons in a Commercial Suit".
2. Pursuant to the above mentioned Order, this Hon'ble Court was pleased to decide the above issue by an Order dated 27th February, 2019.
3. In this regard, the Defendant seeks to approach this Hon'ble Court for speaking to the minutes to the said Order dated 27th February, 2019 to the extent that contention of the Defendant with respect to the provisions of the CPC, 1908 as amended by the Commercial Courts Act not being applicable to a commercial dispute below a stipulated specified value is left open."
3. On the Praecipe, the following order came to be passed by this Court on 8th March, 2019 :
"XXX
2. Though the contention of the Defendant finds place in Clause 5.25 to 5.32 of the Written submissions, no arguments were advanced qua the same. The learned Advocate appearing for the Defendant states that he had made oral submissions towards the end. My notings speak otherwise. In view thereof, the question of speaking to the Minutes as sought does not arise. However, the Defendant may move an Application seeking Review."
4. The present Review Petition has therefore been filed pursuant to the liberty granted by this Court in the above order. According to the Petitioner, in the Judgment, this Court did not decide a limited contention of the Petitioner viz. that the amendments introduced to the Code of Civil Procedure, 1908 ("CPC") by the Commercial Courts Act, 2015 ("Commercial Courts Act") are only applicable to a Commercial Dispute of a Specified Value and not commercial disputes not of a Specified Value. Section 2 (i) of the Commercial Courts Act prescribes that the Specified Value in respect of a commercial dispute shall not be less than Rupees Three Lacs.
5. In the present Suit, the Plaintiff has determined the Specified Value of its suit at Rupees Twenty Thousand i.e. below the Specified Value as prescribed under the Commercial Courts Act.
6. In view of the above, the question of law being decided by this Order is whether the amendments introduced to the CPC by the Commercial Courts Act apply to Commercial Disputes not of a Specified Value but nonetheless heard by a Commercial Division in view of the proviso to Section 7 of the Commercial Courts Act ?
7. It is clarified that the present Order is restricted to only answering the question of law recorded in paragraph 6 above and disposal of Notice of Motion (L) No.2118 of 2018. Necessary orders will therefore have to be passed on the other applications seeking condonation of delay at the time of hearing of each of such application on its own merits.
8. 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 certain relevant provisions thereof :
8.1. 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.
8.2. 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.
8.3. The primary aim and ob
