Point of Law: All execution petitions pending before all civil courts falling within ken of C.C. Act will have to be transferred to Commercial Courts.

JUDGMENT :

The original petition is filed assailing the order passed in E.P No.926/2020 by the Commercial Court, Ernakulam. The petitioner is the judgment debtor, and the respondent is the decree holder.

2. The relevant facts leading to the impugned order, in a narrow compass, are:

(i). A sole Arbitrator passed an award directing the petitioner to pay the respondent an amount of Rs.2,46,23,101/-with interest. The interest quotient of the award was modified by a Division Bench of the Delhi High Court in FAO (OS) COMM. 317/2019.

(ii). The respondent laid the award to execution by filing EP No.387/2020 before the Court of the District Judge, Ernakulam, on 23.6.2020.

(iii). By an administrative order dated 25.9.2020, the learned District Judge transferred the execution petition to the Commercial Court, Ernakulam, and the execution petition was renumbered as EP No.926/2020.

(iv). The petitioner questioned the jurisdiction of the Commercial Court to entertain the execution petition in view of Section 15(2) of the Commercial Courts Act, 2015 (in short, ‘C.C. Act’) and Sections 36 and 42 of the Arbitration and Conciliation Act, 1996 (in short, ‘A&C. Act’).

(v). The Commercial Court, by the impugned order, has held that it has the jurisdiction to entertain the execution petition.

(vi). The impugned order is illegal, irregular and improper. Hence, the original petition.

3. The respondent has filed a statement through its Counsel, refuting the contentions in the original petition and defending the impugned order.

4. Heard; Sri.P.B Krishnan, the learned Counsel appearing for the petitioner and Sri. K.T Bosco, the learned Counsel appearing for the respondent.

5. The question is whether the Commercial Court has the jurisdiction to entertain the execution petition.

6. The respondent has laid the award passed by the Sole Arbitrator to execution by filing EP No.387/2020 before the Court of the District Judge, Ernakulam, on 23.6.2020.

7. By G.O.(Ms). No.51/20202/Home dated 24.02.2020, fourteen Commercial Courts were established in the State of Kerala by designating one Court of the Subordinate Judge in each District as a Commercial Court. Subsequently, this Court by O.M No.A1-22133/2015/D1/D7(B)(1) dated 12.3.2020 directed the District Judges to take necessary steps to transfer the cases falling within the purview of the C.C. Act from the Civil Courts to the Commercial Courts. Later, by notification dated 18.03.2022, all the Courts of the Subordinate Judges in the State were notified as Commercial Courts.

8. The learned District Judge, Ernakulam, on the strength of the official memorandum issued by this Court and invoking the power under Section 15 of the C.C. Act, transferred the execution petition in question from its file to the Commercial Court, Ernakulam.

9. It is apposite to extract Sub-Sections (1) to (3) of Section 15 of the Commercial Courts Act, which reads as follows:

“15. Transfer of pending cases. — (1) All suits and applications, including applications under the Arbitration and Conciliation Act, 1996 (26 of 1996), relating to a commercial dispute of a Specified Value pending in a High Court where a Commercial Division has been constituted, shall be transferred to the Commercial Division.

(2) All suits and applications, including applications under the Arbitration and Conciliation Act, 1996 (26 of 1996), 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 constituted, shall be transferred to such Commercial Court:

Provided that no suit or application where the final judgment has been reserved by the Court prior to the constitution of the Commercial Division or the Commercial Court shall be transferred either under sub-section (1) or subsection (2).

(3) Where any suit or application, including an application under the Arbitration and Conciliation Act, 1996 (26 of 1996), relating to a commercial dispute of Specified Value shall stand transferred to the