The main legal point established in the judgment is the strict interpretation of the Commercial Courts Act, 2015 to determine the qualification of a dispute as a commercial suit.

JUDGMENT

Review Pet. 233/2022

1. A Review Application under Section 114 read with Order XLVII Rule 1 of the Code of Civil Procedure, 1908 has been filed for review of the Order dated 01st August, 2022 with a prayer that the present Civil Suit may be converted into a Commercial Suit.

2. It is submitted in the application that I.A. 11946/2022 for conversion of present Civil Suit into a Commercial Suit for the purpose of trial, was disposed of vide Order dated 01st August, 2022, wherein it was observed that 2022/DHC/004648 considering the submission of the plaintiff's counsel that the main concern was that the disposal of suit may be expedited, it was directed that both the parties shall cooperate and an endeavour should be may be made by the Local Commissioner as well, to conclude the evidence expeditiously.

3. It is submitted in the application that vide Circular dated 28th April, 2016 and in catena of judgments, it has been clearly stated that suit covered under the first proviso of Section 7 of the Commercial Courts Act, 2015 should be transferred to Commercial Court Division of this Court. Since the present suit pertains to commercial transaction, the Order dated 01st August, 2022 be reviewed and the present suit be re-numbered as a Commercial Suit and be transferred to the Commercial Courts Division.

4. Submissions heard.

5. The Statement of Objections and Reasons to the Commercial Court Act, 2015 is to provide for speedy disposal of high value Commercial disputes so as to create a positive image in the minds of the investor world about the independent and responsive Indian Legal System.

6. The Commercial Courts Act, 2015 defines a commercial dispute and provides a special procedure for this class of litigation to be followed strictly to ensure expeditious disposal. The procedures are to be strictly interpreted and only such matters which qualify as commercial suits must be dealt with under the Commercial Courts Act. In Ambalal Sarabhai Enterprises Ltd. vs. K.S. Infra Space LLP & Anr. (2020) 15 SCC 585 while referring to the Statement of Objects and Reasons, it was observed that 'by interpreting the terms strictly' does not mean or imply that other suits of civil nature would be non-suited without any remedy. The excluded class of litigation will in any event be entertained in the ordinary civil courts wherein the remedy already exists. Therefore, one needs to necessarily examine carefully whether the dispute can be entertained and falls within the definition of commercial dispute as provided under the Act. It was also observed that simply because the suit pertains to immovable property, would not ipso facto bring such matters within the definition of Section 2 of the Act. It has to necessarily satisfy the conditions as specified in the definition section to qualify as a commercial suit.

7. The term 'commercial dispute' is of wide import. It brings within its compass any dispute connected with a commercial world. However, each and every commercial dispute pending before the High Court or Civil Court prior to coming into the effect of the Act in 2015 will not be considered as a commercial dispute necessitating invocation of Section 15 of the Act unless such disputes come within the purview of definition of commercial disputes as provided in Section 2 of the Commercial Courts Act. For ascertaining whether the suit needs to be transferred to the Commercial Division or the Commercial Court, the three factors to be considered are:

(i) the suit or the application under the Arbitration & Conciliation Act, 1996 was pending on the date when the Commercial Division or the Commercial Court was constituted;

(ii) that the court seisin of the suit or the application is required to find out whether the dispute involved comes within the definition of commercial dispute; and

(iii) whether the value of such suit is of the specified valuation.

8. If these three tests are satisfied, then a suit may be transferred from a regular civil court to Commercial D