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2024 Supreme(Cal) 1073

IN THE HIGH COURT AT CALCUTTA
Bibhas Ranjan De, J.
Kalipada Manna - Appellant
Vs.
Ashis Bhuniya & Ors. - Respondent
C.O. 137 of 2023
Decided On : 09-07-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr. Aniruddha Chatterjee, Adv., Mr. Subhas Jana, Adv., Mr. Iftekar Munsi, Adv.
For the Respondent: Mr. Jishnu Saha, Sr. Adv., Mr. Subhojit Saha, Adv., Mr. Agniswar Bhuinya, Adv., Mr. Debdutta Basu, Adv., Mr. Arun Kumar Das, Adv.

IMPORTANT POINT
The court affirmed that disputes arising from agreements related to property used for trade fall under the jurisdiction of Commercial Courts, emphasizing the need for factual evaluation in limitation issues.

Headnote:

Jurisdiction - Commercial Dispute - Commercial Courts Act, 2015 - Sections 2(1)(c), 12A - The court interpreted the provisions of the Commercial Courts Act, particularly regarding the definition of commercial disputes and the necessity of pre-institution mediation, concluding that the suit was maintainable in the Commercial Court.

Fact of the Case:

The plaintiffs filed a Title Suit for declaration and recovery of possession of a property, claiming leasehold rights. The defendant contested the suit's maintainability, arguing it was not a commercial dispute and was barred by limitation.

Finding of the Court:

The court found that the suit was maintainable in the Commercial Court as it arose from a commercial agreement regarding property used for trade, and the issue of limitation required factual determination at trial.

Issues: 1. Is the suit maintainable in the Commercial Court? 2. Is the suit barred by limitation? 3. Can the nature of the subject property be determined by the Commercial Court?

Ratio Decidendi: The court held that the Commercial Court had jurisdiction as the dispute arose from a commercial agreement, and the question of limitation and property nature were to be determined at trial.

Result: The revision application is dismissed, allowing the suit to proceed in the Commercial Court.

JUDGMENT :

Bibhas Ranjan De, J.

1. Challenge of this revision application is the order dated 22.12.2022 passed by the Ld. Judge, Commercial Court, Alipore in connection with I.A. 24 of 2022 corresponding to Title suit no. 20 of 2021 wherein the claim of defendant no. 24/ petitioner herein for rejection of plaint invoking the provision of Order VII Rule 11 of the Code of Civil Procedure (for short CPC) was refused. Being aggrieved by and dissatisfied with the said order the petitioner has preferred the present civil application under Section 227 of the Constitution of India.

Background Facts:-

2. The opposite party nos. 1 & 2 herein being the plaintiffs jointly filed the Title Suit being no. 20 of 2021 for declaration, recovery of possession of the suit property along with claim of money and damages together with permanent injunction in the Court of the Ld. Commercial Judge, Alipore against opposite party nos. 3 to 25 herein as well as defendant nos. 1 to 23 therein including the revisionist herein as well as the defendant no. 24 therein specifically on the ground that the plaintiffs by the virtue of 23 registered deeds of lease executed by defendants nos. 1 to 23 therein acquired the lease hold right and interest over the suit property. Those said deeds were executed and registered on 25.04.2008. During that relevant point of time the nature of the suit property was ‘Jal Jami’/waterbody. Subsequently, the plaintiffs therein/opposite party nos. 1 & 2 herein constructed the brick filed under the name and style of ‘Dream Bricks Industries’ along with appropriate structures and machineries for the functioning of the said brick field.

2.1. But, in the year of 2013 vide agreement dated 18.04.2013 the said brick filed business was transferred to the defendant no. 24 therein / revisionist herein where after some time dispute and difference cropped up between the plaintiffs and defendant no. 24 therein over the issue of alleged breach of the terms of the agreement mentioned above, especially non-compliance of the payment as per schedule. As a result, the impugned Title Suit was preferred with prayer for reliefs already mentioned hereinabove.

Argument Advanced:-

3. Ld. Counsel, Mr. Aniruddha Chatterjee, appearing on behalf of the petitioner has advanced his arguments on the ground :-

    • The Commercial Court adjudicating the Title Suit actually has no jurisdiction over the present dispute because the suit property is ‘Jal Jami’ and it was not used exclusively for trade or commerce within the meaning of Section 2(1) (c) of the Commercial Courts Act, 2015.

• From the averments of the plaint it is apparent that the initial lease was granted for a period of 9 years with effect from 25.04.2009 and with validity up to 24.04.2018. Therefore, that particular lease has already expired and in addition to that Mr. Chatterjee has contended that no documents has been produced on behalf of the plaintiffs to show whether the lease period was either extended or a new fresh deed was executed between the original owner of the schedule property and the plaintiff. The impugned Title Suit was filed only on 2021 i.e more than 4 years of expiry of the original leasehold agreement. In continuation of that argument it was further submitted that lease deed of 2013 was challenged in this suit which was filed in the year 2021 i.e. beyond the period of limitation of 3 years.

• The provision envisaged in Section 12A of the Commercial Courts Act, 2015 has not been complied with by filing the suit without making any endeavour for pre institution mediation as per rules prescribed therefor.

• Before parting with, Mr. Chatterjee has submitted that the plaintiffs/ opposite party nos. 1 & 2 filed the Title Suit only on the basis of their alleged leasehold interest in the suit property and it is squarely based on certain statutory rights under the Transfer of Property Act which at best can be mitigated before a Civil Court and not by the Commercial Court. As a sequel, the impugned order

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