The main legal point established in the judgment is the application of Section 15 of the Commercial Courts Act, 2015 for transferring suits involving commercial disputes to the Commercial Division, based on the defined criteria and the nature of the disputes.

JUDGMENT

Debangsu Basak, J. - The plaintiffs have applied under Section 15 of the Commercial Courts Act, 2015 for transferring the instant suit to the Commercial Division of this Hon'ble Court.

2. Learned Advocate appearing for the plaintiffs has submitted that, the two criteria laid down under Section 15 of the Act of 2015 for the transfer of the suit to the Commercial Division stands satisfied in the facts of the present case. He has submitted that, the disputes and issues involved in the present suit are commercial disputes within the meaning of Section 2(1)(c)(i) and (vii) of the Act of 2015. The plaintiffs have valued the suit in excess of the prescribed value for the Commercial Division. He has submitted that, the plaintiff has claimed a decree for declaration and perpetual injunction as also a decree for loss and damages suffered by the plaintiffs at the hands of the defendants. He has submitted that, the defendant Nos. 1 to 6 wrongfully and fraudulently induced the plaintiffs to enter into agreements by which, an immovable property of the plaintiff No. 1 was mortgaged by the defendant Nos. 1 and 2 for the purpose of obtaining credit facilities for the defendant No. 3 from the defendant No. 7. He has submitted that, the parties had entered into commercial transactions. The claim in the suit has arisen out of commercial transactions between the parties. The defendant Nos. 1 to 6 had acted fraudulently and induced the plaintiffs to part with an immovable property. Therefore, according to him, the issues that have arisen in the instant suit are commercial disputes within the meaning of the Act of 2015.

3. Learned Advocate appearing for the defendant Nos. 4 and 5 has submitted that, the disputes involved in the instant suit falls within the meaning of a commercial dispute under the provisions of the Act of 2015. He has submitted that, since the Court has not invited the parties to file any affidavit, the allegations made in the application as against his clients be deemed not to be admitted.

4. Learned Advocate appearing for the defendant No. 7 has submitted that, the disputes and issues involved in the instant suit are not commercial disputes within the meaning of the Act of 2017. He has relied upon (Ambalal Sarabhai Enterprises Ltd. v. K.S. Infraspace LLP & Anr.,2019 SCCOnlineSC 1311) and submitted that, merely because an immovable property is involved, the same does not partake the character of a commercial dispute. He has drawn the attention of the Court to the prayers made in the plaint. He has submitted that, essentially, the suit is for declaration, permanent injunction and damages. According to him, the plaintiff has based the suit on the basis of an agreement between the plaintiffs and the defendant Nos. 1 and 2. The loan that had been obtained from the bank was in the name of the defendant No. 6. The immovable property belonging to the plaintiff No. 1 had been mortgaged with the defendant No. 7. The immovable property concerned is an agricultural land. The bank has proceeded under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 in respect of the secured assets including the immovable property concerned. Parties had filed writ petitions trying to prevent the bank from realizing its claim. He has submitted that, the suit was filed sometime in 2014. The defendant No. 7 has filed its written statement. According to him the suit should not be transferred to the Commercial Division.

5. The Law Commission of India, in its 253rd report, had recommended for the establishment of the Commercial Courts, the Commercial Division and the Commercial Appellate Divisions in the High Courts for disposal of commercial disputes of Specified Value. The Act of 2015 has come into effect on and from October 23, 2015 by virtue of the deeming clause as has been provided in Section 1 (3) of the Act of 2015. The Act of 2015 has been divided into seven chapters. Chapte