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2021 Supreme(Cal) 140

IN THE HIGH COURT OF CALCUTTA
Debangsu Basak, J.
Swastik Project Pvt. Ltd. - Appellant
Versus
City Enclave Pvt. Ltd. & Ors. - Respondents
G.A. No. 2 of 2021; Civil Suit No. 160 of 2020
Decided On : 01-03-2021

Advocates Appeared:
Anindya Kumar Mitra, Advocate, Soumya Ray Chowdhury, Advocate, Sarvapriya Mukherjee, Advocate, Satadeep Bhattacharyya, Advocate, Surajit Biswas, Advocate, Arijeet Bera, Advocate, Jishnu Saha, Advocate, Aniruddha Mitra, Advocate, Swati Agarwal, Advocate, Ishan Saha, Advocate, Sujit Banerjee, Advocate, Tarique Quasimuddin, Advocate, Abbas Ibrahim Khan, Advocate

The central legal point established in the judgment is the interpretation of what constitutes a 'commercial dispute' under the Commercial Courts Act, 2015, and the application of relevant clauses to determine jurisdiction.

Headnote:

Commercial Dispute - Jurisdiction - Code of Civil Procedure, 1908, Order II Rule 2 - Commercial Courts Act, 2015, Section 12A

Fact of the Case:

The defendant applied for revocation of leave granted under Order II Rule 2 of the Code of Civil Procedure, 1908 and Section 12A of the Commercial Courts Act, 2015. The dispute involved in the suit was whether it constituted a 'commercial dispute' within the meaning of the Act of 2015.

Finding of the Court:

The court analyzed the nature of the dispute, the relevant clauses of the Act of 2015, and the interpretation of 'commercial dispute' as per previous judgments. It found that the plaintiff's claim arose from a development agreement for construction of a commercial building, and the immovable property concerned was being used exclusively in trade and commerce, satisfying the definition of a commercial dispute under the Act of 2015.

Issues: The main issue was whether the dispute fell within the definition of a 'commercial dispute' under the Commercial Courts Act, 2015.

Ratio Decidendi: The court relied on the interpretation of relevant clauses of the Act of 2015 and previous judgments to determine the nature of the dispute and whether it constituted a commercial dispute.

Final Decision: The court dismissed the defendant's application, finding that the dispute constituted a commercial dispute within the meaning of the Act of 2015.

JUDGMENT

Debangsu Basak, J. - The defendant No. 1 has applied for revocation of leave granted under Order II Rule 2 of the Code of Civil Procedure, 1908 and Section 12A of the Commercial Courts Act, 2015. The defendant No. 1 has also applied for the plaint to be taken of the file and returned to the plaintiff for filling before the appropriate court.

2. Learned Senior Advocate appearing for the defendant No. 1 has submitted that, the dispute involved in the suit cannot be a "commercial dispute" within the meaning of the Commercial Courts Act, 2015. He has submitted that, the plaintiff has stated that the building cannot be commercially utilized and exploited at paragraph 32 of the plaint. He has drawn the attention of the Court to various paragraphs of the plaint. He has submitted that, paragraph 36 of the plaint, where, the plaintiff has claimed that the disputes come within the meaning of the Act of 2015 is incorrect in the sense that, there is an incorrect quotation of the Section sought to be attracted. He has submitted that, the relevant clause would be Clause (vii) of Section 2 (1)(c), of the Act of 2015. According to him taking the averments made in paragraph 36 of the plaint to be true and correct, then also there is no agreement relating to an immovable property used exclusively in trade and commerce. He has relied upon (Ambalal Sarabhai Enterprises Limited v. K.S Infraspace LLP & Anr.,2019 SCConlineSC 1311) and submitted that, the provisions of the Act of 2015 have to be strictly construed.

3. Learned Senior Advocate for the defendant No. 1 has submitted that, the averments in the plaint are relevant to confer jurisdiction. On the basis of such averments, the disputes involved in the suit cannot be said to be commercial dispute within the meaning of the Act of 2015. He has submitted that, the expression "used" in Section 2 (1)(c)(vii) must mean "actually used" or "being used". In the facts of the present case, it cannot be said that the building concerned is actually used or being commercially used. According to him, the instant suit is for eviction of the defendants and cannot be treated to come within the ambit of a commercial dispute under the Act of 2015. Consequently, he has submitted that the plaint should be returned to the plaintiff for presentation before the appropriate forum.

4. Learned Senior advocate appearing for the plaintiff has drawn the attention of the Court to the various averments made in the plaint including paragraph 1 thereof. He has submitted that, the plaintiff is engaged in the development of real estate property. He has submitted that, the development agreement was entered into with the plaintiff. The plaintiff has not been able to continue with the development agreements since the defendant No. 1 had trespassed into the property and is refusing to vacate the same. He has submitted that, the plaintiff had obtained sanction of the building plan as a commercial building. However, such sanction had expired. According to him, there being a development agreement in respect of the immovable property concerned in the suit, the same comes within the Clause (vi) of Section 2 (1)(c) of the Act of 2015. He has relied upon the Explanation to Section 2(1)(c) of the Act of 2015. He has submitted that, merely because the plaintiff has prayed for possession of any immovable property the same does not make the suit a non-commercial one. In such circumstances he has submitted that, the application of the defendant No. 1 should be dismissed.

5. All disputes of commercial nature are not commercial disputes within the meaning of the Act of 2015. Disputes of commercial nature which are to be construed and treated as commercial disputes within the meaning of the Act of 2015 have been defined in Section 2 (1)(c) thereof. The statements of objects and reasons in the Act of 2015 has specified that the Act of 2015 is to provide speedy disposal of high value commercial disputes.

6. The Supreme Court has considered Sec

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