IN THE HIGH COURT AT CALCUTTA
HIRANMAY BHATTACHARYYA, J.
Bhagwati Prasad Jhunjhunwala (HUF) & Ors. – Appellants
Versus
UCO Bank & anr. – Respondents
C.O. 1263 of 2021
Decided on : 07-10-2021
Civil Procedure Code, 1908 – Order 20 Rule 12 – Commercial Courts Act, 2015 – Execution proceedings – Money Execution case – Held, There is, however, no quarrel to proposition of law settled by Hon’ble Supreme Court of India in Ambalal Sarabhai (supra) wherein it has been held that Commercial Courts’ Act, 2015 has been enacted for purpose of providing an early disposal of high value commercial disputes and also that object shall be fulfilled only if provisions of Act are interpreted in a narrow sense and not hampered by usual procedural delays – It is, however, held that words “used exclusively in trade or commerce” are to be interpreted purposefully – However, said judgment is not of much assistance to the petitioner in instant case – CO allowed.
JUDGMENT :
Hiranmay Bhattacharyya, J.
1. The instant Civil Order is at the instance of the decree holders challenging an order no. 20 dated April 13, 2021 passed by the learned Judge, Commercial Court at Alipore in Money Execution case no. 06 of 2019.
2. By the order impugned the execution case was transferred to the Court of the learned Civil Judge (Senior Division) First Court at Alipore.
3. The suit for recovery of possession and mesne profit was decreed by the learned Civil Judge (Senior Division) First Court at Alipore on March 31, 2012. The judgment debtor/ bank preferred a first appeal before this Hon’ble Court against such decree. The decree holder preferred a cross objection for modification of the decree to enable them to claim mesne profits by filing a proceeding before the Trial Court. A Division Bench of this Hon’ble Court modified the decree only to the extent that the decree holders would be entitled to file appropriate proceedings under Order 20 Rule 12 of the Code of Civil Procedure before the Trial Court. A Misc Case no. 8 of 2015 under Order 20 Rule 12 of the Code was initiated and the suit was decreed in final form so far as mesne profit is concerned which was assessed at Rs. 4,65,55,821[ Rupees Four crore sixty five lakhs fifty-five thousand eight hundred and twenty one only].
4. The decree for mesne profit was put into execution before the learned Civil Judge (Senior Division) First Court at Alipore giving rise to money execution case no. 2 of 2019.
5. The learned Civil Judge (Senior Division) First Court at Alipore, by an order dated October 30, 2019 directed the record of the execution proceedings to be sent to the Court of the learned judge under the Commercial Courts Act, 2015 (for short “the 2015 Act”) for further proceedings. The learned Judge, Commercial Court at Alipore by an order no. 4 dated February 6, 2020 held that the money execution case was maintainable before such Court.
6. The judgment debtor/bank filed a petition praying for return of the execution case along with the decree to the Court of the learned Civil Judge (Senior Division) First Court at Alipore on the ground that the suit is not in the nature of commercial dispute and also that a title execution case arising out of the self same title suit is pending before the learned Civil Judge (Senior Division) First Court at Alipore.
7. The learned Judge, Commercial Court at Alipore by the order impugned directed the execution case to be transferred to the Court of the learned Civil Judge (Senior Division) First Court at Alipore. Being aggrieved, the decree holders have preferred the instant Civil Order.
8. Mr. Bose, the learned advocate for the petitioner contended that a decree of recovery of possession was passed against the judgment debtor/bank who was using the immovable property exclusively for trade or commerce. He, further, contended that the decree for mesne profits is nothing but realisation of money out of immovable property. Since the decree of mesne profits, in the instant case, exceeds the threshold limit for entertaining a commercial dispute by a Commercial Court, Mr. Bose submitted that the instant money execution case is to be decided by the Commercial Court only. In support of his contention that the Civil Judge(Senior Division) was justified in transferring the execution case to the Commercial Court, Mr. Bose relied upon a judgment of a Division Bench passed on December 20, 2019 in FMA 1855 of 2019 (Cygnus Investment & Finance Pvt. Ltd. vs. M/s. Madhusala Drinks Pvt. Ltd. and others). Mr. Bose also relied upon a judgment of the Hon’ble Supreme Court of India in the case of Ambalal Sarabhai Enterprises Limited vs. K.S. Infraspace LLP and another reported at (2020) 15 SCC 585 and contended that the Commercial Courts Act, 2015 was enacted to ensure speedy resolution of the commercial disputes in a time bound manner. Thus, Mr. Bose concluded by submitting that the order impugned directing transfer of the execution case is required t
The main legal point established in the judgment is that lack of inherent jurisdiction can be raised in an execution proceeding, and the subject matter jurisdiction vested with the High Court under t....
The Commercial Courts Act, 2015 grants jurisdiction to Commercial Courts for executing arbitral awards related to commercial disputes, emphasizing expedited resolution.
The Executing Court cannot reassess a decree's validity on jurisdictional grounds after the decree has attained finality; jurisdictional issues can only be raised during original proceedings.
Execution petitions for awards must be filed in the jurisdiction where the property is located, as enforced under the Arbitration and Conciliation Act and Civil Procedure Code.
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