JUDGMENT :

J.B. PARDIWALA, J.

1. This First Appeal under Section-13 of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 [For short “The Act, 2015”] is at the instance of the original plaintiff and is directed against the judgment and decree passed by the Commercial Court, Ahmedabad dated 04/07/2018 below Exh.22, in the Commercial Suit No.10 of 2018 instituted by the appellant herein.

2. The application Exh.22 came to be filed by the respondent – Bank under the provisions of Order VII Rule 11 of the Code of Civil Procedure, 1908 [for short “The CPC”] for rejection of the plaint on the ground that the suit is barred by the provisions of the Recovery and Debts and Bankruptcy Act, 1993 [for short “The Act, 1993”]. The application Exh.22 came to be allowed by the Commercial Court and the plaint has been ordered to be rejected.

3. Being dissatisfied with the order passed by the Commercial Court rejecting the plaint, the appellant – original plaintiff is here before the Court with the present appeal.

4. As this litigation has something to do with the issue whether the Commercial Court could have rejected the plaint on the ground that the suit is not maintainable, we must first look into the Civil Suit instituted by the appellant herein against the bank. The appellant herein instituted Commercial Suit No.10 of 2018 before the Commercial Court, City Civil Court at Ahmedabad praying for the following reliefs:-

29(A) be pleased to hold that the plaintiff stands discharged as a corporate guarantor as per the terms of the sanction letter dated 13.03.2015 and in view of the performance of the contract by the plaintiff.

(B) Be pleased to direct the defendant to perform its part of the contract as the plaintiff already performed its part of the contract and accordingly, the defendant must take or cause to take all necessary actions, deeds and signatures in this regard in the interest of justice.

(C) Be pleased to issue a mandatory injunction directing the defendant to take all necessary steps to remove its charge from the Registrar of Companies and issue necessary No-Due/No Claim Certificate to the plaintiff and appoint court commissioner, if found necessary for the purpose of removing the charge of the defendant bank from the record of the Registrar of Companies, Ahmedabad in the interest of justice.

(D) Be pleased to award damages of Rs.20,00,00,000/- along with interest of 12% per annum from the date of passing of the decree till final realization in favour of the plaintiff for breach of the terms of sanction letter dated 13.03.2015 committed by the defendant in the interest of justice.

(E) Be pleased to pass such other and further orders as deemed fit in the interest of justice.

5. The other averments made in the plaint are as under:-

5.1 The plaintiff is a company registered under the Indian Companies Act, 1956 having its registered office address at the address mentioned in the cause title herein-above. The respondent is a banking company under the Banking Regulation Act, 1949 having one of its branch offices at the address provided in the cause title of the present suit.

5.2 The plaintiff states that it is engaged in the business of the Cotton Ginning and Pressing and presently employs close to 50 employees.

5.3 The defendant is a nationalized bank and is engaged in the business of banking as per the provisions of the Banking Regulation Act, 1949.

5.4 The plaintiff is constrained to file the present suit against the defendant as the defendant inspite of agreeing to discharge the plaintiff as per the sanction letter dated 13/03/2015 invoked the corporate guarantee and is enforcing the same. The brief facts giving rise to cause of action arising to file the present suit is that the bank agreed to discharge the plaintiff from the corporate guarantee on the condition that the plaintiff give in se