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2017 Supreme(Guj) 1872

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
M.R. SHAH, B.N. KARIA, JJ.
Jayprakash Associates - Appellant
Versus
State of Gujarat and Ors. - Respondent
Special Civil Application No. 8896 of 2017
Decided On : 02-05-2017

Advocates:
Advocate Appeared:
For the Appellant : Kashyap R. Joshi

Headnote:Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 - Sections 2(1)(c) & 15 – This petition is filed challenging order issued by principal district judge in a transfer of suit – court while confirming the said order held that suit before court is a commercial suit therefore prior notice to second party is not required before transferring suit.

JUDGMENT :

M.R. SHAH, J.

1. By way of this petition under Arts. 226/227 of the Constitution of India, the petitioner has prayed for appropriate writ, order and/or direction to quash and set aside the impugned order passed by the learned Principal District Judge, Rajpipla dated 6-8-2016, by which the learned Principal District Judge, Rajpipla has transferred the Special Civil Suit No. 2 of 2006 to the Commercial Court, Vadodara constituted under the provisions of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015. It is not in dispute that the suit is arising out of contract of construction executed between the original plaintiff and the defendants. It is also not in dispute that the suit value is above Rs. 1 Crore. On establishment of the Commercial Court, Vadodara and according to the learned Principal District Judge, Rajpipla, the dispute can be said to be a commercial dispute within the meaning of Sec. 2(1)(c) of the Commercial Courts Act and that the suit value is above Rs. 1 Crore, and therefore, the suit was required to be transferred to the Commercial Court, Vadodara, and therefore, in exercise of the powers under Sec. 15 of the Commercial Courts Act, the learned Principal District Judge, Rajpipla has passed an order on administrative side to transfer Special Civil Suit No. 2 of 2006 to the Commercial Court, Vadodara.

1.1. Feeling aggrieved and dissatisfied with the impugned order passed by the learned Principal District Judge, Rajpipla, the original plaintiff has preferred the present Special Civil Application.

2. Mr. Joshi, learned Advocate appearing on behalf of the petitioner has vehemently submitted that the impugned order passed by the learned Principal District Judge, Rajpipla transferring the Special Civil Suit No. 2 of 2006 to the Commercial Court, Vadodara is ex-facie illegal and in violation of the principles of natural justice.

2.1. Mr. Joshi, learned Advocate appearing on behalf of the petitioner has further submitted that before transferring the Special Civil Suit No. 2 of 2006 to the Commercial Court, Vadodara, the learned Principal District Judge, Rajpipla has not given any opportunity to the plaintiff.

2.2. Mr. Joshi, learned Advocate appearing on behalf of the petitioner has further submitted that even otherwise, as the contract is a Public Works Contract and for which a separate Tribunal is constituted under the Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992, and therefore, the dispute between the plaintiff and the defendants cannot be said to be a commercial dispute within the definition of Sec. 2(1)(c) of the Commercial Courts Act. It is submitted that as the dispute is arising out of the Public Works Contract executed between the plaintiff and the defendants, the suit is not required to be transferred to the Commercial Court, Vadodara.

3. Heard Mr. Joshi, learned Advocate appearing on behalf of the petitioner herein - original plaintiff.

3.1. What is challenged in the present Special Civil Application is the impugned order passed by the learned Principal District Judge, Rajpipla, passed on administrative side transferring Special Civil Suit No. 2 of 2006 to the Commercial Court, Vadodara. It is not in dispute that the dispute between the plaintiff and the defendants is arising out of the Public Works Contract for construction of Dam etc. It is also not in dispute that the suit claim is above Rs. 1 Crore. Under the circumstances, considering Sec. 15(2) of the Commercial Courts Act, all suits and applications, relating to a commercial dispute of a specified value pending in any Civil Court in any District or area in respect of which a Commercial Court has been instituted, shall be transferred to such Commercial Court. Thus, as per Sec. 15(2) of the Commercial Courts Act, such suit relating to a commercial dispute for specified value pending in any Civil Court shall stand transferred to such Commercial Court. For the aforesaid, the pla




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