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2019 Supreme(Cal) 333

IN THE HIGH COURT OF JUDICATURE AT CALCUTTA
MOUSHUMI BHATTACHARYA, J.
Dilip Choudhury - Petitioner
Versus
Pratishruti Projects Limited & Others - Respondent
G.A. Nos. 804, 806 of 2019, 734, 735 of 2018, RVWO.Nos.11, 12 of 2019, CS. No. 23 of 2015
Decided On : 17-09-2019

Advocate Appeared:
For the Petitioner:S.P. Sarkar, Sr. Advocate, A.K. Awasthi, Adil Rashid, Advocates.
For the Respondents:Shuvasish Sengupta, Sarosij Dasgupta, Subhra Das, Advocates.

The main legal point established in the judgment is the importance of complying with the procedural requirements under the Commercial Courts Act and the preservation of the defendant's right to present a defense in commercial suits under the Act.

Headnote:

Commercial Dispute - Commercial Courts Act - [The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015] - [Section 2(c)(xi), Section 15(4)] - The court discussed the application of The Commercial Courts Act, 2015 and its consequential amendments to the Civil Procedure Code in the context of a commercial dispute. The court considered the plaintiff's argument for review based on the error of law and the subsequent events that influenced the application of legal provisions. The court emphasized the importance of complying with the procedural requirements under the Act and the preservation of the defendant's right to present a defense in commercial suits.

Fact of the Case:

The plaintiff filed a Civil Suit in 2015 for recovery of money. The defendant nos. 3 and 4 applied for extension of time to file their written statements, which was allowed by the court. The plaintiff appealed, claiming the suit was a regular suit, not a commercial dispute. The Appeal Court dismissed the appeals, stating the dispute was a commercial dispute under the Commercial Courts Act. The plaintiff filed for review, arguing that the Act's provisions should have been considered.

Finding of the Court:

The court found that the plaintiff failed to take the required steps for transferring the suit to a commercial division as per the Commercial Courts Act. The court emphasized that the error alleged by the plaintiff was not apparent on the face of the record at the time of the original orders. The court also highlighted the preservation of the defendant's right to present a defense in commercial suits under the Act.

Issues: The main issue was whether the court's original orders, based on the suit being a regular suit, should be reviewed in light of the subsequent designation of the dispute as a commercial dispute. Another issue was the plaintiff's failure to comply with the procedural requirements for transferring the suit under the Commercial Courts Act.

Ratio Decidendi: The court held that the alleged error was not apparent at the time of the original orders and emphasized the importance of complying with the procedural requirements under the Commercial Courts Act. The court also highlighted the preservation of the defendant's right to present a defense in commercial suits under the Act.

Final Decision: The applications for review of the orders dated 1st February, 2019 were dismissed without any order as to costs.

JUDGMENT :

MOUSHUMI BHATTACHARYA, J.

1. The plaintiff has filed these applications for review of two orders both dated 1st February, 2019 on the ground that the dispute is a commercial dispute within the meaning of The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 (the Commercial Courts Act). The case of the plaintiff is that the matters were decided on the basis that the suit was a regular suit.

2. The orders dated 1st February, 2019 had allowed the applications filed by the defendant nos.3 and 4 for extension of time to file their respective written statements upon payment of costs. The appeals filed by the plaintiff from the said orders, were dismissed as not maintainable since the Appeal Court was of the view that the dispute forming the basis of the suit is a commercial dispute within the meaning of the Commercial Courts Act, 2015.

3. To understand the issue as stated above, the facts leading to the two review applications are briefly stated.-

(i) The plaintiff (the petitioner herein) filed a Civil Suit in 2015 for recovery of money claiming a decree against the defendant nos. 1 to 8 in the suit together with an enquiry for damages. The defendant nos. 3 and 4 filed an application in 2016 for dismissal of the suit and by an order dated 7th June, 2016 the suit was directed not to be transferred to the undefended list. The plaintiff applied for judgment on admission and by an order dated 26th July, 2016 the suit was decreed in favour of the plaintiff and against the defendants. An appeal preferred from the decree by the defendant nos. 3 and 4 was allowed on 22nd August, 2017 and the suit was directed to be placed before an appropriate Bench for disposal.

(ii) Two applications for extension of time to file the written statement were made by the defendant nos. 3 and 4 in January 2018. In the said applications, the defendants prayed for filing of written statements to contest the suit on merits.

(iii) The plaintiff opposed the said applications relying on the addition of two further provisos to The Calcutta Amendment to Order VIII Rule 1 of the Code of Civil Procedure, 1908 (C.P.C) for extending the time beyond ninety days and the further extension of 120 days subject to conditions specified which a defendant has to prove to the satisfaction of the court.

(iv) Arguments were made by counsel for the plaintiff and defendants on the basis that the suit was a Regular Suit.

(v) By the orders dated 1st February, 2019 (under review in these applications) this court allowed the applications filed by the defendant nos. 3 and 4 for filing their respective written statements upon payment of costs. In coming to the decision, the court construed the two added provisos to the Calcutta Amendment to Order VIII Rule 1 of the CPC.

(vi) The appeals filed by the plaintiff from the orders dated 1st February, 2019, were dismissed with the following observation:-

"The Court : The appeal arises out of an order extending the time to file the written statement in a suit where the dispute is a commercial dispute within the meaning of the Commercial Courts Act, 2015.

Since the present appeal does not lie under such Act, APO No. 37 of 2019 along with G.A. No. 457 of 2019 are dismissed as not maintainable.

There will be no order as to costs."

(vii) The applications for review of the orders dated 1st February, 2019 were filed by the plaintiff on 11th March, 2019 on the ground that the decision of the Appeal Court held that the suit is a commercial suit and the Special Amendment to Order VIII Rule 1 of the CPC pertaining to filing of written statements should have hence been taken into account by this court.

4. Mr. S.P. Sarkar, learned senior counsel appearing for the applicants / plaintiff relies on the dispute between the parities which, according to counsel, is a joint venture agreement under the definition of "a commercial dispute" as defined under Section 2 (c) (xi) of The Commercial Courts Act, by reason of taking ov

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