IN THE HIGH COURT oF JUDICATURE AT BOMBAY
Abhay Ahuja, J.
Prime Developers and another - Applicants
In the matter between :
Mayank Jaswantlal Shah - Plaintiff
Versus
Prime Developers and others - Defendants
Interim Application No. 1987 of 2025 In Commercial Summary Suit No. 57 of 2021, Interim Application No. 1988 of 2025 In Commercial Summary Suit No. 58 of 2021
Decided On : 06-11-2025
| Table of Content |
|---|
| 1. plaintiff seeks recovery amounts in commercial suits. (Para 1 , 2) |
| 2. court considers procedural history of interim applications. (Para 3 , 4 , 8 , 9) |
| 3. defense argues suits are non-commercial and should be returned. (Para 5 , 6 , 10) |
| 4. defense claims jurisdiction issues regarding suit nomenclature. (Para 12 , 14 , 15 , 16 , 20) |
| 5. court interprets jurisdiction under the commercial courts act. (Para 18 , 22 , 28 , 30 , 34) |
| 6. court concludes on renaming suits rather than returning them. (Para 19 , 21 , 26 , 52 , 53) |
ORDER :
Abhay Ahuja, J.
1. The suits in respect whereof these applications have been filed have been filed as Commercial Summary Suits by the Plaintiff against the Defendants seeking recovery of Rs.17,34,26,187/- (Rupees Seventeen Crores Thirty-Four Lakhs Twenty-Six Thousand One Hundred and Thirty-Seven only) alongwith interest at the rate of 15% p.a. from the Applicants and Mr. Praful Satra (Original Defendant No.2) in one suit and recovery of Rs.15,57,32,851/- (Rupees Fifteen Crores Fifty Seven Lakhs Thirty Two Thousand Eight Hundred and Fifty One only) along with interest at the rate of 18% p.a. from the Applicant/Defendant therein in another suit.
2. Appearance was entered into on behalf of the Defendants and thereafter, Summons for Judgment had been taken out in both the suits.
3. After the pleadings in the Summons for Judgment were completed, on 21st February 2023, the aforementioned two Interim Applications have been taken out seeking return of the plaints under Order VII Rule 10 of the Code of Civil Procedure, 1908 (the “CPC”) on the ground that the suits are not commercial suits under the COMMERCIAL COURTS ACT , 2015 (the “Act”) and the plaints are to be returned to the Plaintiff to be presented to the appropriate court in which the suits should have been instituted.
4. The Interim Applications had been heard on 5th May 2025 and 16th June 2025. On 23rd June 2025, the matter was adjourned to 16th July 2025 for the learned Senior Counsel for the Applicant to rejoind. On 16th July 2025, the learned Counsel for the Respondent sought to sur-rejoind, which was heard on 28th July 2025. On 11th August 2025, the arguments in the matter were concluded and the Interim Applications were reserved for orders.
5. Mr. Andhyarujina, learned Senior Counsel, appearing for the Applicants has submitted that the two suits do not pertain to commercial disputes but are filed before the commercial division for early disposal which would just clog the system and block the path for genuine commercial disputes and hence, it is crucial for the commercial Court to exclude those cases that are not commercial in nature. In support, Mr. Andhyarujina has placed reliance on the decision of the Hon’ble Supreme Court in the case of Ambalal Sarabhai Enterprises Ltd. v. K.S. Infraspace LLP, (2020) 15 SCC 585
6. Mr. Andhyarujina has also drawn this Court’s attention to the decision of this Court in the case of Chanda Kochhar v. ICICI Bank Ltd., Order dated 12th April 2022 passed in Interim Application (L) No.10192 of 2022 in Commercial Suit No.43 of 2022 submitting that if the Court comes to the conclusion that the dispute is not a commercial dispute, the suit is required to be tried by the competent Court in accordance with provision contained in the CPC and only if the suit concerns a commercial dispute, a special procedure as envisaged by the CPC as amended by the Act is required to be peremptorily followed. It is submitted that the two suits do not meet the necessary conditions for the subject matter of the suits to fall under the ambit of a “commercial dispute”. Mr. Andhyarujina has also relied upon the following decisions in support of the contention that the plaints in the two suits be returned under Order VII Rule 10 of the CPC:
(i) Chorus Call INC v. Gurmeetpal Singh Bindra, 2023 SCC OnLine Bom 2352
(ii) Bharat Hudanna Shetty v. Ahuja Properties & Developers and Ors., 2021 SCC OnLine Bom 13984
(iii) Varanium Cloud. Ltd, in the mat
Suits misclassified as commercial must be treated under ordinary civil jurisdiction; designation does not create a distinct court.
A dispute must arise from ordinary transactions of merchants, bankers, financiers, and traders to qualify as a commercial dispute under the Commercial Courts Act, 2015.
Return of Plaint – Summary Suit – Only disputes which are in nature of ordinary transactions of merchants, financiers and traders will fall within purview of commercial disputes.
The judgment clarifies the jurisdictional boundaries between Commercial Courts and Commercial Divisions under the Commercial Courts Act, particularly for intellectual property disputes.
The Commercial Division has exclusive jurisdiction over intellectual property disputes under the Commercial Courts Act, irrespective of specified value, and the provisions of the Code of Civil Proced....
The court clarified that distinct causes of action in two separate suits prevent dismissal under Order II Rule 2, and determined that the present dispute did not qualify as a commercial dispute under....
There is no provision for transfer of suit from Commercial Division to Non-Commercial Division.
The mandatory requirement of pre-institution mediation under Section 12-A of the Commercial Courts Act, 2015 must be complied with for a suit to be maintainable.
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