A lease dispute regarding immovable property used for commercial purposes qualifies as a 'commercial dispute' under the Commercial Courts Act, 2015, allowing for a maintainable suit.

JUDGMENT (Oral)

1. The impugned order, dated 23rd April, 2022, passed by the learned District Judge (Commercial Courts), ("the learned Commercial Court") in CS (Comm) 434/2021 (Sudesh Bhatia v. Raj Karan) rejects an application, by the petitioner, as the defendant in the said suit, preferred under Order VII Rule 11 of the Code of Civil Procedure, 1908 (CPC).

2. CS (Comm) 434/2021 was filed by the respondent against the petitioner as a commercial suit, under the provisions of the Commercial Courts Act, 2015. The petitioner, as the defendant in the suit, filed an application under Order VII Rule 11 of the CPC, praying that the suit be dismissed as the dispute was not a "commercial dispute" within the meaning of the Commercial Courts Act, 2015 and, consequently, the learned Commercial Court was coram non judice.

3. The said application has been rejected by the learned Commercial Court vide the impugned order dated 23rd April, 2022, on the ground that the property forming subject matter of the suit was specifically let out for commercial purposes and that, therefore, the dispute emanating from the Lease Deed executed in respect of the property was a "commercial dispute", within the meaning of Section 2(1)(c)(vii) of the Commercial Courts Act, 2015.

4. Section 2(1)(c)(vii) of the Commercial Courts Act, 2015 defines "commercial dispute", as meaning a dispute "arising out of an agreement relating to immovable property used exclusively in trade or commerce". There are, therefore, three ingredients in this definition, which require cumulative satisfaction, in order for the dispute to be regarded as a "commercial dispute", viz. (i) immovable property used exclusively for trade or commerce, (ii) an agreement relating to the said immovable property and (iii) that the dispute in the suit must arise out of the said agreement.

5. To determine whether the dispute, forming subject matter of CS (Comm) 434/2021 was, or was not, a "commercial dispute", therefore, one has to examine the averments in the plaint vis-a-vis the afore-extracted definition of "commercial dispute" in the Commercial Courts Act.

6. The prayer clause in CS (Comm) 434/2021 reads thus:

"In view of the above and in the interest of justice, it is therefore, prayed that this Hon'ble Court be pleased to:

a. Pass a decree of possession in favour of the Plaintiff and against the Defendant, its agents, attorneys, assigns, successors, associates, employees or anybody else claiming through the said Defendant and direct the Defendant to hand over the vacant, peaceful and physical possession of the suit property bearing No. B-91, Mayapuri Industrial Area, Phase-I, New Delhi-110007;

b. Pass a decree of permanent injunction in favour of the Plaintiff and against the Defendant, its agents, attorneys, assigns, successors, associates, employees or anybody else claiming through the said Defendant restraining the Defendant from creating any third party rights, title and/or interest, encumbrances, including but not limited to lien in form of mortgage, in respect of the suit property bearing No. B-91, Mayapuri Industrial Area, Phase-I, New Delhi-110007;

c. Pass a decree of recovery of arrears of monthly rent in favour of the plaintiff and against the Defendant, its agents, attorneys, assigns, successors, associates, employees or anybody else claiming through the said Defendant restraining the Defendant in sum of Rs.4,13,000/- along with interest at the rate of 24% per annum w.e.f. 23.08.2021 on the said amount till the date of its realization;

d. Pass a decree of recovery of mesne profits in favour of the Plaintiff and against the Defendant, its agents, attorneys, assigns, successors,