IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
VAIBHAVI D. NANAVATI, J.
Indian Bank (Formerly Known As Allahabad Bank) – Appellant
Versus
Rameshchandra M Thakkar – Respondent
R/Special Civil Application No. 2337 of 2023
Decided on : 21-02-2023
Commercial Dispute - Jurisdiction Issue - Commercial Courts Act, 2015 - Section 2(1)(c)(vii) - [The court discussed the interpretation of Section 2(1)(c)(vii) of the Commercial Courts Act, 2015 and its applicability to the dispute. The court considered various judgments and their applicability to the present case, ultimately quashing and setting aside the impugned order and directing the trial court to decide the jurisdiction issue afresh.]
Fact of the Case:
The original plaintiffs filed a suit for possession of leased property and mesne profit against the defendant bank. The defendant filed an application under Order-7 Rule-10 of the Code of Civil Procedure, 1908, claiming that the dispute was a commercial dispute and the court lacked jurisdiction. The trial court rejected the application, leading to the petitioner's appeal.
Finding of the Court:
The court quashed the impugned order and directed the trial court to decide the jurisdiction issue afresh, considering the interpretation of Section 2(1)(c)(vii) of the Commercial Courts Act, 2015 and the parties' contentions.
Issues: The main issue was whether the dispute was a commercial dispute under Section 2(1)(c)(vii) of the Commercial Courts Act, 2015, and whether the trial court erred in rejecting the jurisdiction application.
Ratio Decidendi: The court analyzed the provisions of Section 2(1)(c)(vii) of the Commercial Courts Act, 2015 and considered various judgments to determine the applicability of the commercial dispute definition to the present case. It ultimately quashed the impugned order and directed the trial court to decide the jurisdiction issue afresh.
Final Decision: The petition was partly allowed, and the impugned order was quashed and set aside. The trial court was directed to decide the jurisdiction issue afresh, considering the interpretation of Section 2(1)(c)(vii) of the Commercial Courts Act, 2015 and the parties' contentions.
ORDER :
1. By way of the present petition, the petitioner herein is aggrieved by the impugned order passed below Exh.57 dated 31.01.2023, which is duly produced at Annexure-A, passed by the 4th Additional Senior Civil Judge, Ahmedabad in Special Civil Suit No.350 of 2021, whereby, the application below Exh.57 filed by the petitioner – original defendant under Order-7 Rule-10 r/w. Section 151 of the Code of Civil Procedure, 1908 for return of the plaint and saving of inherent powers of the Court, the said application came to be dismissed on the ground that the trial Court has jurisdiction to entertain the Suit as it not being commercial suit.
2. Being aggrieved by the said order, the petitioner herein has approached this Court, seeking following reliefs:
(B) Pending admission, hearing and final disposal of this petition, the Hon’ble Court may be pleased to stay the operation, implementation and execution of the impugned exh.57 dated 31/01/2023 at Annexure-A passed by the Learned 4th Additional Sr. Civil Judge, Ahmedabad (Rural) and also be pleased to stay the proceedings of Special Civil Suit No. 350 of 2021.
(C) Pending admission, hearing and final disposal of this petition, the Hon’ble Court may be pleased to call for the records of the Special Civil Suit No. 350 of 2021 pending before the Learned 4th Additional Sr. Civil Judge, Ahmedabad (Rural).
(D) The Hon’ble Court may be pleased to grant any other and further reliefs as may be deemed fit just and proper in the interest of justice.”
3. The brief facts germane for adjudication of the dispute in question read thus:
3.1. It is stated that the respondents herein – original plaintiffs filed Special Civil Suit No. 350 of 2021 before the Senior Civil Judge, Ahmedabad (Rural) for directing the defendant to hand over the clear, vacant and peaceful possession of the suit properties from the defendant, direct the defendant to pay mesne profit to the plaintiffs and other reliefs as prayed for in the said Suit. Copy of the same is duly produced at Annexure- A.
3.2. The subject matter of the Suit is that the original plaintiffs executed two registered memorandum of lease deeds vide registration nos. 4806 and 4808 before the Sub Registrar, Ahmedabad against the defendant bank – present petitioner bank. The said lease deeds are duly produced at Annexure-C.
3.3. The petitioner herein being the original defendant submitted an application below Exh. 57 under Order-7 Rule-10 for return of the plaint and saving of inherent powers of Court, on the ground that the dispute mentioned in the plaint is related to commercial dispute and that the said Court had no jurisdiction to entertain the same and the plaint is required to be returned to the original plaintiffs.
3.4. The reliance is placed on the fact that the dispute in question is a commercial dispute and the same is within the definition of Section 2(1)(c)(viii) of the Commercial Courts, Commercial Division and Commercial Appellant Division of High Courts Act, 2015 (for short ‘the Commercial Courts Act, 2015’). The said application below Exh.57 is duly produced at Annexure- D.
3.5. The trial Court rejected the said application below Exh.57 by order dated 31.01.2023, considering the following aspects:
Revisional applications - Scope of assumption of jurisdiction by Commercial Court - No question of bar to revisions against interlocutory orders passed by Commercial Courts Act arises in present case....
A dispute regarding a lease for commercial purposes qualifies as a commercial dispute under the Commercial Courts Act, necessitating the jurisdiction of the Commercial Court.
A dispute arising from an agreement to sell immovable property used for trade is a commercial dispute, mandating resolution in a Commercial Court, as clarified by statutory definitions.
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