IN THE HIGH COURT OF BOMBAY AT GOA
M.S. SONAK, J.
Smt Cruzinha Fernandes, w/o Shri Caetano Jose Fernandes – Appellant
Versus
Dr. Rui Furtado, son of Jose Francisco Furtado – Respondent
Writ Petition No.772 of 2019
Decided on : 09-06-2023
Commercial Courts Act, 2015 – Section 2(1)(c)(vi), 2(1)(c)(vii) – Purpose of establishment of Commercial Courts – Held, Trial Court did not have benefit of decision of Hon'ble Supreme Court in case of Ambalal Sarabhai Enterprises Limited (supra) – Therefore, learned Trial Court's view is no longer consistent with law laid down by Hon'ble Supreme Court in case of Ambalal Sarabhai Enterprises Limited (supra) – Consequently, impugned order will have to be set aside, and Suit will have to proceed before Civil Court and not before Commercial Court – Ordered Accordingly.
JUDGMENT :
1. Heard Mr J. Abreu Lobo for the Petitioner and Mr R. G. Ramani, learned Senior Advocate who appears along with Ms K. Betquecar for the Respondents No.2 to 18, 19, 21 and 22 to 31.
2. Mr Lobo states that service is complete in this matter. On 16.03.2023, an order was made placing this matter for final disposal at the admission stage.
3. Accordingly, Rule. The Rule is made returnable immediately.
4. The challenge in this petition is to the order dated 17.06.2019 by which the Trial Court allowed an application filed by defendants no.2 to 18 in the Suit and transferred the Suit to the Commercial Court at Margao. The Trial Court held that the dispute between the parties was a “commercial dispute” as defined under Section 2(1)(c)(vi) and Section 2(1)(c)(vii) of the Commercial Courts Act, 2015 (said Act).
5. From the perusal of the plaint in the Suit, it is evident that the Suit is for specific performance of the agreement dated 01.02.2000 relating to immovable property. In Ambalal Sarabhai Enterprises Limited v/s. K. S. Infraspace LLP and Anr. - (2020) 15 SCC 585, the Hon'ble Supreme Court held that for a dispute to be a commercial dispute, the agreement between the parties must refer to immovable property used/ used exclusively in trade or commerce. The word “used” occurring in Section 2(1)(c)(vii) denotes “actually used” and it cannot be either “ ready for use” or “ likely to be used” or “ to be used”. Merely because the property is likely to be used in relation to trade and commerce, the same cannot be a ground to attract the jurisdiction of Commercial Court. Such a wide interpretation would defeat the object of the Commercial Courts Act about the speedy disposal of commercial disputes.
6. In the above regard, useful reference can be made to the observations in paragraphs 13 and 14 of the opinion expressed by A. S. Bopanna, J. and paragraphs 36, 37, 39 and 42 of the concurring opinion expressed by R. Banumathi, J.
7. Paragraphs 13 and 14 of the opinion expressed by A. S. Bopanna, J. read as follows:
14. In that view it is also necessary to carefully examine and entertain only disputes which actually answers the definition “commercial disputes” as provided under the Ac
Ambalal Sarabhai Enterprises Limited v/s. K. S. Infraspace LLP and Anr. - (2020) 15 SCC 585
The central legal point established in the judgment is the strict construction of the provisions of the Commercial Courts Act, the requirement to consider the nature of the proposed amendment before ....
A dispute arising from an agreement to sell immovable property used for trade is a commercial dispute, mandating resolution in a Commercial Court, as clarified by statutory definitions.
A suit for specific performance of an MOU regarding redevelopment of residential property does not constitute a commercial dispute under the Commercial Courts Act if the property is not used exclusiv....
The central legal point established is that the definition of 'commercial dispute' under the Commercial Courts Act, 2015 must be interpreted in line with the nature of the property and the purpose of....
A dispute regarding a lease for commercial purposes qualifies as a commercial dispute under the Commercial Courts Act, necessitating the jurisdiction of the Commercial Court.
The interpretation of the term 'used' in the context of commercial disputes under the Commercial Courts Act, 2015 is crucial in determining the jurisdiction of the Commercial Court.
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