IMPORTANT POINT
The central legal point established in the judgment is that the nature of the transaction, as evidenced by the terms of the agreements, determines whether a dispute falls under the definition of a commercial dispute as per the Commercial Courts Act, 2015.

JUDGMENT

Vibhu Bakhru, J. (Oral)

1. The appellant (plaintiff in the suit) has filed the present appeal impugning an order dated 20.02.2024 (hereafter the impugned order) passed by the learned Commercial Court allowing the respondent's (defendant's) application under Order VII Rule 10 of the Code of Civil Procedure, 1908 (hereafter the CPC). The Court directed return of the plaint in view of its finding that the dispute between the parties is not a "commercial dispute" under the Commercial Courts Act, 2015 (hereafter `CC Act').

2. The appellant had instituted the said suit - CS (COMM) No.482/2022 captioned Asif Ali Khan v. Manoj Kumar - for recovery of sum of Rs.55,00,000/-. The appellant claims that the respondent had entered into a Collaboration Agreement dated 22.06.2016 (hereafter Collaboration Agreement) with the owners of the property bearing no.260 & 260A, Khasra No.210 min., Village Hauz Rani, Tehsil Hauz Khas, Malviya Nagar, New Delhi -110017, admeasuring 573 sq. yds (hereafter the subject property). In terms of the Collaboration Agreement, the subject property was required to be demolished and a new building was required to be raised by the respondent. Further, in terms of the Collaboration Agreement, the respondent was entitled to accept bookings for sale of separate portions of the subject property.

3. The appellant claims that on the basis of the representations made by the respondent, he agreed to purchase the first floor, corner side Flat No.8, Property No.260 & 260A, measuring 135 sq. yds., Khasra No.210 min., Village Hauz Rani, Tehsil Hauz Khas, Malviya Nagar, New Delhi-110017 out of the total area of 573 sq. yds (hereafter the said flat). The said flat comprised of three bed rooms, one drawing/dining room, three bathrooms, kitchen, staircase, lift with one car parking. The total sale consideration of the said flat was agreed at Rs.1,27,00,000/-. The appellant claims that the parties had entered into an `Advance Receipt-cum-Agreement to Sell and Purchase' dated 25.08.2016 (hereafter Agreement to Sell) recording the terms of their agreement.

4. The appellant claims that in terms of the Agreement to Sell, he made a total payment of Rs.35,00,000/- to the respondent. The appellant seeks recovery of the said amount along with interest quantified at Rs.20,00,000/- for the period 31.08.2016 to 31.07.2022 (the date of filing of the suit). The appellant had categorized the dispute between the parties as a commercial dispute. However, the learned Commercial Court found that the dispute involved in the suit was not a commercial dispute.

5. By the impugned order, the learned Commercial Court held that the disputes involved in the said suit could not be categorized as a commercial dispute within the meaning of Section 2(1)(c) of the CC Act. The learned Commercial Court also referred to Section 2(1)(c)(vii) of the CC Act, which provides that the disputes pertaining to agreements relating to immovable property used exclusively in trade or commerce would be categorized as commercial disputes. But, in the present case, the transaction between the parties was a simple transaction of sale and purchase of a residential flat. Thus, the same was not a commercial transaction under Section 2(1)(c)(vii) of the CC Act.

6. The learned counsel appearing for the appellant submits that the learned Commercial Court's conclusion in this regard is erroneous. He submits that the said flat would be a commercial property and therefore, the disputes regarding the sale and purchase of the said flat are commercial disputes within the meaning of Section 2 (1)(c) of the CC Act. He relies on the terms and conditions of the Collaboration Agreement, which indicate that the respondent had agreed to develop a five storeyed building comprising of ground floor, first floor, second floor, third floor and fourth floor. The Collaboration Agreement also specifies that the ground floor and first floor shall be treated as a commercial property. He submits that thus the A