IN THE HIGH COURT OF DELHI AT NEW DELHI
Tushar Rao Gedela, J.
M/s. Antriksh Developers & Promoters & Ors. – Appellants
Versus
Shri Anil Kumar Goel – Respondent
CM(M) 1071 of 2022
Decided On : 02-02-2023
Jurisdiction - Commercial Courts Act - The court concluded that it did not have jurisdiction over the subject matter of the suit and ordered the suit to be transferred to the Court of Competent Jurisdiction. The application under Order I Rule 10 CPC, 1908 was also dismissed, but the court held that it should not have been decided due to lack of jurisdiction.
Fact of the Case:
The petitioners challenged the order of the Commercial Trial Court, which concluded that the subject matter of the suit did not fall within the ambit of the Commercial Courts Act. The court also dismissed the application under Order I Rule 10 of CPC, 1908 filed by the petitioners.
Finding of the Court:
The court held that once it concluded that it did not have jurisdiction over the subject matter of the suit, it should have transferred the suit to the Court of Competent Jurisdiction and should not have proceeded to decide the application under Order I Rule 10 CPC, 1908.
Issues: Jurisdiction, Application under Order I Rule 10 CPC, 1908
Ratio Decidendi: Once the court concluded that it did not have jurisdiction over the subject matter of the suit, it should have transferred the suit to the Court of Competent Jurisdiction and should not have proceeded to decide the application under Order I Rule 10 CPC, 1908.
Final Decision: The petition was disposed of with no order as to costs, and the transferee Court was directed to rehear the application under Order I Rule 10 CPC, 1908 in accordance with the law.
JUDGMENT
Tushar Rao Gedela, J. (Oral)
[The proceeding has been conducted through Hybrid mode]
1. The petitioners challenge the order dated 31.05.2022 passed by learned Commercial Trial Court (Commercial Court) in CS (COMM)28/2019 titled as "Anil Kumar Goel Vs. M/S. Antriksh Developers & Promoters Pvt. Ltd. And Ors." whereby the learned Trial Court while concluding that the subject matter of the lis does not fall within the ambit of Section 2(1) (c) of Commercial Courts Act, 2015, however, simultaneously also dismissed the application under Order I Rule 10 of Code of Civil Procedure, 1908, filed by the petitioners.
2. Mr. Rahul Kadyan, learned counsel appearing for the petitioners submits that once the learned Trial Court concluded that it did not have the jurisdiction to decide the dispute or have jurisdiction over the subject matter of the suit and resultantly, concluding that it is Coram non judice, the simultaneous adjudication of the application under Order I Rule 10 CPC, 1908 one way or the other, was beyond its jurisdiction.
3. Learned counsel submits that the decision to transfer the matter for being placed before the Court of competent civil jurisdiction, ought to have been extended also to the application under Order I Rule 10 CPC, 1908.
4. Learned counsel submits that the conclusion of the learned Trial court, that it did not have jurisdiction and yet proceeding with the decision in respect of application under Order I Rule 10 CPC would be mutually destructive. In that, the Court having no jurisdiction to decide the suit, obviously could not have jurisdiction to decide even the application under Order I Rule 10 CPC, 1908.
5. In continuation of the above submissions, learned counsel submits that the impugned order in respect of the dismissal of the application Order 1 Rule 10 CPC, 1908 may be struck off and expunged from the impugned order.
6. Mr. Rakesh, learned counsel appears on behalf of respondent No.1 and submits that the respondent would not have any objection in case the application under Order I rule 10 CPC, 1908 is decided by the ordinary Civil Court protecting their rights and interests and without prejudice to their contentions to be urged before the ordinary Civil Court qua the said application.
7. This Court has considered the submissions made by Mr. Kadyan, learned counsel for the petitioners as well as those of Mr. Rakesh, learned counsel appearing for the respondent No.1 and has perused the impugned order.
8. In the considered opinion of this Court, once the learned Trial Court came to the conclusion that the subject matter of the suit itself was not falling within the ambit of Section 2(1) (c) of the Commercial Courts Act, 2015, it would automatically become Court without jurisdiction to deal with any matter relating or arising out of such suit.
9. In view of the above, once the Trial Court itself concluded that it did not have the jurisdiction, the only recourse left for it was to transfer the suit to the Competent Authority to mark the suit to the Court of Competent Jurisdiction for further adjudication.
10. In view of the above, the impugned order in respect of the decision taken on the application under Order 1 Rule 10 CPC, 1908 filed by the petitioner is concerned, shall be eschewed and expunged from the impugned order leaving the remaining part of the order untouched.
11. In view of the above directions, the present petition is disposed of with no order as to costs.
12. That the transferee Court shall rehear the application under Order I Rule 10 CPC, 1908 in accordance with law and provide an adequate opportunity to the respondent herein to file their replies, objections and other pleadings to oppose the same.
The court's jurisdiction and the requirement to transfer the suit to the Court of Competent Jurisdiction when it concludes that it does not have jurisdiction over the subject matter of the suit.
The court without jurisdiction cannot decide on an application under Order I Rule 10 CPC, 1908.
The court without jurisdiction cannot decide on an application under Order I Rule 10 CPC, 1908.
The court without jurisdiction over the subject matter of the suit cannot decide on any matter relating to the suit and must transfer the suit to the Court of Competent Jurisdiction.
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....
The importance of complying with judicial directions and the requirement for the Trial Court to first pass orders on the application under Order I Rule 10 of the CPC, 1908 before considering other ap....
Jurisdiction over commercial transactions and the application of procedural rules for returning plaints to the appropriate Court.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.