SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Bom) 1674

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

Advocates Appeared:
For the Applicant :Mr. Zal Andhyarujina, Senior Advocate alongwith Mr. Aditya Mehta, Ms. Serena Jethmalani, Ms. Krushi N. Barfiwala, Mr. Shlok Bodas and Ms. Ishika Lodha instructed by Parinam Law Associates, Advocates
For the Respondent:Mr. Sanjay Jain alongwith Mr. Kunal Vaishnav, Mr. Suraj Iyer, Mr. Mani Thevar, Mr. Vijeet Trivedi and Ms. Gauri Joshi instructed by Ganesh & Co., Advocates

Suits misclassified as commercial must be treated under ordinary civil jurisdiction; designation does not create a distinct court.

Headnote:(A) Commercial Courts Act, 2015 - Section 2(1)(c) - Code of Civil Procedure, 1908 - Order VII Rule 10 - Suits filed as Commercial Summary Suits seeking recovery were held not to pertain to commercial disputes, thus should be renamed and renumbered as ordinary suits - Court emphasized that merely designating suits as commercial does not create a distinct jurisdiction - The relevant jurisdiction remains ordinary original civil jurisdiction. (Paras 29-56)

(B) Jurisdiction - The Court found that because the suits do not involve a commercial dispute as defined, they should not have been filed under the commercial division but should proceed in their ordinary civil jurisdiction. (Paras 30-44)

Facts of the case:
The Plaintiff filed two suits against the Defendants seeking substantial recoveries along with interest, but the Defendants challenged the jurisdiction of the Commercial Division.

Findings of Court:
The Court determined that the suits were filed under an incorrect nomenclature and ordered them to be renamed and renumbered as ordinary suits.

Issues: Whether the suits could be returned under CPC or merely renamed as ordinary suits.

Ratio Decidendi: The Court ruled that the Commercial Division designation does not create a separate jurisdiction and that suits filed without a commercial dispute must be treated under the ordinary jurisdiction.

Result: The two suits were renamed and renumbered as ordinary suits.

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

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top