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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Jasveer Lal Gour - Appellant
Versus
Delcap Financial Pvt. Ltd. - Respondent
CM(M) 487 of 2022
Decided On : 25-05-2022




The court clarified that the definition of a commercial dispute requires exclusive commercial use, limiting the scope of Article 227's supervisory jurisdiction to jurisdictional errors rather than mere mistakes.

Headnote:(A) Constitution of India - Article 227 - Commercial Courts Act, 2015 - The petitioner challenged a rejection order regarding the maintenance of a suit under civil court jurisdiction, asserting it should be treated as a commercial suit - Lease deed indicated non-exclusive commercial use - Court emphasized the limited scope of supervisory jurisdiction under Article 227, reiterating the need for significant dereliction to warrant intervention (Paras 1, 3, 10, 11, 15).

(B) Commercial Dispute Definition - Per the Commercial Courts Act, a commercial dispute must arise from properties used exclusively for trade or commerce (Para 6).

(C) Supervisory Jurisdiction - High Court's supervisory powers under Article 227 do not equate to appellate authority, limiting the review to jurisdictional errors (Paras 11, 12).

Facts of the case:
The petitioner sought to dismiss a suit for possession filed by the respondent over a leased property, claiming it should be tried as a commercial suit due to the lease structure.

Findings of Court:
The court upheld the ADJ's ruling that the lease was for residential and commercial purposes, not exclusively commercial.

Issues: The primary issues concerned the categorization of the lease as commercial and the jurisdictional authority of the civil court.

Ratio Decidendi: The court reaffirmed that the use of the property in the lease was not exclusive to commercial use and that Article 227 limits intervention to jurisdictional bounds.

Result: Petition dismissed.

Table of Content
1. petition filed challenging a lease dispute (Para 1 , 2 , 3)
2. application to dismiss the suit based on its nature (Para 4 , 10)
3. court's interpretation of jurisdiction limits under article 227 (Para 5 , 6 , 7 , 9 , 11 , 12)
4. clarification of the lease deed's terms and commercial use (Para 8 , 13)
5. final dismissal of the petition (Para 15 , 16)

JUDGMENT (Oral)

CM(M) 487/2022, CM 24914/2022 (exemption), CM 24915/2022 (exemption) and CM 25058/2022 (stay)

1. This petition, under Article 227 of the Constitution of India, assails an order dated 28th March, 2022, passed by the learned Additional District Judge ("the learned ADJ") in CS(DJ) 146/2021 (M/s Delcap Financial Services Pvt. Ltd. v. Jasveer Lal Gour).

2. The respondent, who was plaintiff in the aforesaid suit, alleged that in September, 2020, the petitioner had approached the respondent for taking the property forming subject matter of the suit ("the suit property") on lease, to run a "bed and breakfast" (commonly referred to as "B & B") establishment. This culminated in execution of a Lease Deed dated 25th September, 2020 between the respondent and the petitioner, whereby the respondent leased out the suit property to the petitioner for the period 1st November, 2020 to March, 2021 @ Rs.1,20,000/- and for the period March, 2021 to September, 2021, accompanied by a security deposit of Rs.3,00,000/-. The respondent alleged, in the plaint, that the petitioner had defaulted in paying the monthly rent as per the Lease Deed and had also defaulted in paying the entire amount of security deposit. This, alleged the plaint, resulted in the respondent addressing, on 8th January, 2020, a notice of termination to the petitioner, followed by attempts to physically take possession of the suit property, which, according to the respondent, were obstructed by the petitioner. Premised, inter alia, on these asseverations and assertions, the respondent filed CS(DJ) 146/2021 before the learned ADJ, seeking (i) a decree of possession of the suit property in favour of the respondent and against the petitioner, and (ii) a decree of permanent injunction, restraining the petitioner from interfering with the rights of the respondent in respect of the suit property, apart from arrears of rent, compensation, damages, interest and costs.

3. The petitioner filed an application, in CS(DJ) 146/2021, under Order VII Rule 11 of the Code of Civil Procedure, 1908 (CPC), alleging that the suit could not be maintained before the Civil Court, as it had to be tried as a commercial suit, in terms of the provisions of the Commercial Courts Act, 2015.

4. The impugned order rejects the said application. Being aggrieved, the petitioner-defendant has invoked the jurisdiction of this Court under Article 227 of the Constitution of India.

5. The impugned order reveals that the learned ADJ has rejected the petitioner's application under Order VII Rule 7 of the CPC on the ground that the suit property had not been leased out exclusively for commercial purpose.

6. "Commercial dispute" is defined, in Section 2(c)(vii) of the Commercial Courts Act, 2015, as including, inter alia, "a dispute arising out of agreement relating to immovable property, used exclusively in trade or commerce".

7. The legislature does not engage in tautology and superfluity1 . The words used by the legislature must; be regarded as having being employed deliberately have to be attributed their ordinary meaning. The use of the word "exclusively" as used in Section 2(c)(vii) cannot, therefore, be overlooked.

8. The Lease Deed, dated 25th September, 2020, executed between the petitioner and the respondent commences with the following recitals:

    "THIS LEASE DEED is executed on this 25th September, 2020 BETWEEN

    Delcap Financial Services Pvt. having its regd office at N-43, Lane no W-17, Sainik Farms New Delh-110062 hereinafter called "the LESSOR" (which expression shall wherever the context permits be deemed to include its su

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