IN THE HIGH COURT OF DELHI
Satish Chandra Sharma, Subramonium Prasad, JJ.
Satyanarain Khandelwal - Appellant
Versus
Prem Arora - Respondent
TR.P.(C.) 47 of 2021& C.M. No. 19833 of 2022, TR.P.(C.) 49 of 2021 & C.M. No. 19846 of 2022, TR.P.(C.) 52 of 2021 & C.M. No. 19842 of 2022, TR.P.(C.) 54 of 2021, TR.P.(C.) 55 of 2021 & C.M. No. 19840 of 2022 and TR.P.(C.) 58 of 2021& C.M. No. 19883 of 202
Decided On : 18-07-2022
Commercial Courts Act - Transfer of Civil Suits - Section 15(5)
Fact of the Case:
The petitioners filed for the transfer of Civil Suits pending before the Additional District Judge, Patiala House Courts, New Delhi, to the designated Commercial Court. The suits involved disputes over property ownership and agreements to sell.
Finding of the Court:
The court found that the Amending Act, 2018, which lowered the specified value for transfer to Commercial Courts, does not apply retrospectively to pending suits filed before its enactment.
Issues: The main issue was whether the Amending Act, 2018, would apply retrospectively to pending suits of a specified value of more than rupees three lakhs that were filed prior to 03.05.2018.
Ratio Decidendi: The court held that the Amending Act does not have retrospective application and, therefore, declined to transfer the civil suits to the designated Commercial Court.
Final Decision: The petitions for transfer of civil suits were dismissed, and the Amending Act was held not to apply retrospectively.
JUDGMENT
Subramonium Prasad, J. TR.P.(C.) 47/2021 has been filed under Section 15(5) of the Commercial Courts Act, 2015, for the transfer of Civil Suit bearing No.574/2017, titled as Prem Arora & Anr. v. Satyanarayan Khandelwal, which is pending before the Additional District Judge, Patiala House Courts, New Delhi, to the designated Commercial Court.
2. TR.P.(C.) 49/2021 has been filed under Section 15(5) of the Commercial Courts Act, 2015, for the transfer of Civil Suit bearing No.578/2017, titled as Prem Arora & Anr. v. Ishwar Singh, which is pending before the Additional District Judge, Patiala House Courts, New Delhi, to the designated Commercial Court.
3. TR.P.(C.) 52/2021 has been filed under Section 15(5) of the Commercial Courts Act, 2015, for the transfer of Civil Suit bearing No.572/2017, titled as Prem Arora & Anr. v. Prakash Chand Modi, which is pending before the Additional District Judge, Patiala House Courts, New Delhi, to the designated Commercial Court.
4. TR.P.(C.) 54/2021 has been filed under Section 15(5) of the Commercial Courts Act, 2015, for the transfer of Civil Suit bearing No.576/2017, titled as Prem Arora & Anr. v. Mahavir Bansal, which is pending before the Additional District Judge, Patiala House Courts, New Delhi, to the designated Commercial Court.
5. TR.P.(C.) 55/2021 has been filed under Section 15(5) of the Commercial Courts Act, 2015, for the transfer of Civil Suit bearing No.579/2017, titled as Prem Arora & Anr. v. Radhey Shyam, which is pending before the Additional District Judge, Patiala House Courts, New Delhi, to the designated Commercial Court.
6. TR.P.(C.) 58/2021 has been filed under Section 15(5) of the Commercial Courts Act, 2015, for the transfer of Civil Suit bearing No.573/2017, titled as Prem Arora & Anr. v. Manoj Kumar Bansal, which is pending before the Additional District Judge, Patiala House Courts, New Delhi, to the designated Commercial Court.
7. The facts leading to the instant petitions are as under:
a) It is stated that the Respondent No.1 in the instant petitions is the son of the Respondent No.2 herein, and the Petitioners herein are the Tenants in the property bearing No. RZ-21/284, Gitanjali Park, West Sagarpur, New Delhi, 110046 (hereinafter referred to as `the suit property'). It is stated that the mother of Respondent No.1 herein was the owner of the suit property and that there are total nine shops in the suit property. It is stated that the mother of Respondent No.1 executed a GPA dated 11.05.2009, Will dated 11.05.2009 and Gift Deed dated 06.06.2014 in favour of Respondent No.1, thereby making Respondent No.1 the owner of the suit property. It is stated that the Petitioners herein were inducted as Tenants in the suit property by Respondent No.2 and Rs.10,000/- had been taken from each of the Petitioners as security amount.
b) It is stated that Respondent No.1 approached the Petitioners for selling to them the shops located in the suit property and took an advance from each of the Petitioners. It is stated that an Agreement to Sell was executed by the Respondent No.1 on 06.01.2014, and the security amount which had been taken by Respondent No.1 from all the Petitioners herein was adjusted by giving receipts on the Agreement to Sell itself. The details of the cheques taken from the Petitioners, along with the total amount and the security amount that had been taken from the Petitioners, has been reproduced as under:
| S. No. | Name (Shop No.) | 06.01.2014 | 14.01.2014 | 30.01.2014 |
| 1. | Sh. Ishwar Singh (1) | Rs.2 lakhs by way of cheque bearing No.162240 dated 25.11.2013 | Rs.3 lakhs | Rs.7 Lakhs after adjusting the security amount of Rs.10,000/- |
| 2. | Sh. Prakash Chand Modi (2 & 3) | Rs.4 lakhs by way of cheque bearing No.034250 dated 17.11.2013 | Rs.6 lakhs | Rs.14 lakhs after adjusting the security amount of Rs.50,000/- |
| 3. | Sh. Manoj Kumar Bansal (4) | Rs.2 lakhs by way of cheque bearing No.381871 dated 25.11.2013 | Rs.3 lakhs | Rs.7 lakhs after adjusting the security amount of Rs.65,000/- |
| 4. | Sh. Mahaveer Ba | |||
The Amending Act, 2018, which lowered the specified value for transfer to Commercial Courts, does not have retrospective application to pending suits filed before its enactment.
Section 12A of the Commercial Courts Act, 2015 is mandatory and compliance thereof are required for a valid institution of a suit.
Proceedings instituted before the commencement of 2019 Act, shall continue before the consumer forums corresponding to those under the 1986 Act.
Jurisdiction of Commercial Courts – All applications or appeals arising out of arbitration under provisions of Arbitration and Conciliation Act, 1996, other than international commercial arbitration,....
The main legal point established in the judgment is that the Commercial Courts Act does not exclude the application of Section 24 of the CPC to commercial disputes of a specified value, and the power....
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