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IN THE HIGH COURT OF DELHI
Rajiv Sahai Endlaw, Amit Bansal, JJ.
Black Diamond Trackparts Pvt. Ltd. - Appellant
Versus
Black Diamond Motors Pvt. Ltd. - Respondent
CM(M) 132 of 2021 & CM No. 5689 of 2021 (for stay) and CM(M) 225 of 2021 & CM No. 10177 of 2021 (for stay)
Decided On : 10-08-2021




A petition under Article 227 of the Constitution of India is maintainable against non-appealable orders of Commercial Courts despite restrictions in the Commercial Courts Act, preserving the High Court's constitutional jurisdiction.

Headnote:(A) Constitution of India - Article 227 - Commercial Courts Act, 2015 - Maintainability of petition under Article 227 against non-appealable orders of Commercial Courts - Petition herein relates to dismissal of applications under Order VII Rule 11 and Order VIII Rule 1 of CPC - Court determined that remedies under Article 227 are not barred by Section 8 of the Commercial Courts Act, aligning with precedents reaffirming constitutional jurisdiction over statutory provisions - The court also emphasized the discretion of the High Court to entertain such petitions, despite the existence of alternative remedies (Paras 11, 30, 31).

(B) Procedural Law - Code of Civil Procedure, 1908 - The petitioners argued that the dismissal order under Order VII Rule 10 was improperly categorized under Order VII Rule 11 - The court clarified the distinction between jurisdictional grounds for rejecting a plaint and the necessity to address applications for condonation of delay under Order VIII (Paras 15, 20).

(C) Challenge to orders of dismissal - Court emphasized that while the Commercial Courts Act limits certain revision capabilities, Article 227 remains an open constitutional pathway for crucial judicial review (Paras 26, 30).

Facts of the case:
Two petitions were filed involving dismissals of applications by defendants challenging jurisdiction and timing of response in a commercial suit. The cases raised critical questions on jurisdiction and the nature of appeals within a commercial context. (

Findings of Court:
The court determined the appropriateness of jurisdiction inquiries and reaffirmed previous decisions concerning the nature of petition and appeals in commercial matters.

Issues: (i) Whether a petition under Article 227 is maintainable against orders of Commercial Courts and (ii) Determining jurisdictional queries concerning the rejection of plaints (Paras 6, 10).

Ratio Decidendi: The court ruled that a petition under Article 227 exists alongside statutory provisions and should be invoked when remedies under the CPC are tightly regulated by the Commercial Courts Act - Implications of jurisdictional power retained by the High Court under Article 227 were articulated (Paras 30, 31).

Result: CM(M) No.132/2021 was held to be maintainable and CM(M) No.225/2021 was also remanded to the appropriate bench.

Table of Content
1. constitutional petitions clubbed for common legal questions. (Para 1 , 2 , 3)
2. maintainability of article 227 petitions. (Para 6 , 10 , 14)
3. order relevance and jurisdiction concerning order vii. (Para 15 , 20 , 30)
4. final disposal includes returning plaints. (Para 18 , 21)
5. clarification on procedure for petitions under article 227. (Para 32 , 34)

JUDGMENT

Rajiv Sahai Endlaw, J.

[VIA VIDEO CONFERENCING]

1. These two petitions, both under Article 227 of the Constitution of India, though unrelated to each other, on merits or qua parties, were clubbed together for the reason of entailing certain common questions of law.

2. CM(M) No.132/2021 was filed, impugning the order dated 25th September, 2021 of the District Judge (Commercial)-01, South District, Saket Courts, New Delhi in CS(COMM) No.184/2020, of dismissal of the application of the petitioners/defendants under Order VII Rule 11 of the Code of Civil Procedure, 1908 (CPC). The said suit was filed by the respondent/plaintiff for permanent injunction, to restrain the petitioners/defendants from passing off their goods as that of the respondent/plaintiff and for ancillary reliefs. The petitioners/defendants applied for rejection of the plaint in the said suit, on the ground of the Courts at Delhi not having territorial jurisdiction to entertain the suit and on the ground of the reliefs claimed in the suit being barred by res judicata. Vide the impugned order, the said application was dismissed.

3. CM (M) No.225/2021 was filed, impugning the order dated 29th January, 2021 of the District Judge (Commercial), South East, Saket, New Delhi in CS(COMM) No.323/2019, of dismissal of the application of the petitioner/defendant under Order VIII Rule 1 of the CPC for condonation of delay in filing the written statement. The said application was dismissed vide the impugned order, on the ground that the Commercial Courts, under the law have no power to extend the period of 120 days for filing the written statement.

4. Both the petitions, as per the roster of this Court, were listed before a Single Judge of this Court and notice of both the petitions was ordered to be issued. However vide order dated 27th May, 2021 in CM (M) No.132/2021 and vide order dated 21st May, 2021 in CM (M) No.225/2021, following the judgment dated 27th January, 2021 in FAO No.232/2020 titled Delhi Tourism and Transportation Development Corporation Vs. Swadeshi Civil Infrastructure Pvt. Ltd., holding that per Section 13 (1A) of the COMMERCIAL COURTS ACT , 2015, the appeals against a judgment/order of the Commercial Court at the level of District Judge exercising Original Civil jurisdiction, appeals lie to the Commercial Appellate Division, the Single Judge before which these petitions were pending, ordered these petitions to be placed before the Commercial Appellate Division of this Court. Accordingly, the petitions were listed before this bench.

5. Before proceeding further, we may notice that Delhi Tourism and Transportation Development Corporation supra was pronounced in an appeal preferred against the orders of the District Judge (Commercial) and which appeal, notwithstanding Section 13 (1A) supra of the COMMERCIAL COURTS ACT was erroneously listed before a Single Judge of this Court. All that the said judgment did was, to have the appeal placed before the Commercial Appellate Division.

6. CM (M) No.132/2021 came up first before this Bench, exercising powers as Commercial Appellate Division, on 28th May, 2021 when the counsels were asked to address on the following two questions:

    "(i) whether after coming into force of the COMMERCIAL COURTS ACT , 2015, a petition under Article 227 of the Constitution of India lies with respect to non-appealable orders of the Commercial Courts.

    (ii) if the answer to the above is in the affirmative, whether the said petition is to be considered by a Single Judge of this Court or, on a parity of the jurisdiction for hearing appeals being of a Commercial D

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