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2026 Supreme(Cal) 115

IN THE HIGH COURT AT CALCUTTA
HIRANMAY BHATTACHARYYA, J.
Flowers Valley Floriculture Pvt. Ltd. – Appellant
Versus
Airplaza Retail Holdings Pvt. Ltd. – Respondent 
C.O. No. 1321 of 2025
Decided On : 20-05-2026

Advocates Appeared:
For the Appellant : Rajarshi Dutta
For the Respondents: Amit Kumar Nag, Subhajit Ghosh

Courts adjudicating commercial disputes under Order XIIIA must provide detailed reasoning when denying summary judgment or failing to issue conditional orders, ensuring that the need for a full trial is based on substantive justification rather than mechanical refusal when documentary evidence is available for threshold determination.

Headnote:(A) Code of Civil Procedure, 1908 - Order XIIIA - Constitution of India - Article 227 - Transfer of Property Act, 1882 - Section 114 - Summary judgment in commercial disputes - Scope and ambit - Power of court under Order XIIIA to decide claim without oral evidence - Duty of court to assign reasons for rejecting applications or failing to pass conditional orders - (Paras 19, 22, 23, 54)

(B) Interpretation of statutes - Literal rule of interpretation to be applied unless provision is ambiguous - Every procedure permitted unless expressly prohibited - (Paras 65, 66)

Facts of the case:
A lawsuit for recovery of possession of immovable property and rent arrears was initiated following the alleged non-payment by the lessee after the onset of a pandemic. The petitioner filed an application for summary judgment, which was rejected by the lower court without assigning specific reasons for why the dispute necessitated oral evidence or why conditional orders were deemed inappropriate. The petitioner challenged this order under constitutional jurisdiction.

Findings of Court:
The court ruled that the lower court failed to exercise jurisdiction properly by not providing reasoned findings on why the matter could not be resolved summarily. The court highlighted that under Order XIIIA, the adjudicating authority must determine if the defence has a reasonable prospect of success or if compelling reasons exist for trial, and must exercise discretion regarding potential conditional orders. The matter was remanded for fresh consideration.

Issues: The central issues were the validity of termination notices issued during pandemic-related business restrictions and the procedural propriety of refusing summary judgment applications without an adequate reasoned determination of the necessity for a full trial.

Ratio Decidendi: Commercial courts are duty-bound to provide reasoned orders when rejecting summary judgment applications, especially regarding the need to record oral evidence or the justification for declining conditional orders, to fulfill the legislative object of the speedy disposal of commercial disputes.

Result: Order impugned set aside; application for summary judgment restored for fresh, reasoned adjudication.

Table of Content
1. factual history regarding lease, rent default, and summary judgment application. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12)
2. parties' contentions regarding contract breach, force majeure, and summary procedure. (Para 13 , 14 , 15 , 16 , 17)
3. legal requirements and scope of order xiiia for commercial disputes. (Para 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36)
4. application of summary judgment rules and judicial duty to provide reasoning. (Para 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54 , 55 , 56 , 57 , 58 , 59 , 60 , 61 , 62 , 63)
5. requirement of reasoned orders in summary judgment proceedings. (Para 64 , 65 , 66 , 67)
6. setting aside impugned order for fresh assessment by commercial court. (Para 68 , 69 , 70)

JUDGMENT :

HIRANMAY BHATTACHARYYA, J.

1. This application under Article 227 of the Constitution of India is at the instance of the plaintiff and is directed against an order being no. 38 dated February 17, 2025 passed by the learned Judge, Commercial Court at Rajarhat in T.S. (Com) No. 27 of 2024.

2. By the order impugned, the application under Order XIIIA of the Code of Civil Procedure filed by the petitioner herein stood rejected on contest.

3. The facts giving rise to this application under Article 227 of the Constitution of India, in a nut shell, are as follows.

4. By a registered deed of lease dated July 31, 2019, the petitioner as lessor had leased out an immovable property comprising of a commercial space together with covered car parking spaces in two contiguous buildings at Kazi Nazrul Islam Avenue (for short “the suit property”) to the opposite party herein, for a period of 9 years commencing from July 1, 2019. The opposite party paid the monthly lease rent as per the agreed terms of the lease deed till March 2020. However, from April 2020 the opposite party did not make payment of the monthly lease rent as per the terms of the lease deed.

5. By a letter dated April 7, 2020, the opposite party expressed its willingness to pay rent at the rate of 2% of actual revenue from March 22, 2020 in view of the onset of Covid-19 Pandemic. Petitioner immediately replied to the letter dated April 7, 2020 by an e-mail dated April 9, 2020 stating that Covid-19 pandemic do not fall within the purview of Force Majeure Clause and, therefore, the Covid-19 Pandemic did not exonerate and/or prevent the opposite party in any manner whatsoever from discharging its obligations with regard to payment of lease rent in terms of the lease deed. Though there was exchange of correspondences between the parties, but the petitioner did not agree to accept the payment terms as proposed by the opposite party.

6. The opposite party, without consent of the petitioner, deposited certain amounts in the bank account of the petitioner but the petitioner returned such amounts to the opposite party and also raised objections against such deposits being made by the opposite party.

7. Petitioner through its learned advocate issued a notice dated September 16, 2020 informing the opposite party about the “material breach” of the terms and conditions of the lease deed and called upon the opposite party to rectify such default within one month from the date of receipt of the said notice and on failure to rectify the default within the time limit stipulated therein, the lease deed shall stand terminated on the expiry of two months thereafter. The opposite party replied to the notice dated September 16, 2020 by a letter dated September 29, 2020.

8. On the grounds as stated hereinbefore, the petitioner filed the instant suit for recovery of possession, decree for arrears of lease rent, mesne profits and for perpetual injunction.

9. In the said suit, the petitioner took out an application under Order XIIIA of the Code of Civil Procedure for passing a summary judgment and decree for recovery of vacant and peaceful possession of the demised premise

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