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2024 Supreme(Ker) 17

IN THE HIGH COURT OF KERALA AT ERNAKULAM
A. BADHARUDEEN, J.
State Of Kerala – Appellant
Versus
Dr.Praveen Kumar T.K., Son of T.K. Vijayan – Respondent
MSA No. 29 of 2023
Decided on : 11-01-2024

Advocates:
Advocate Appeared:
For the Appellant : SRI.DENNY K DEVASSY, GOVERNMENT PLEADER
For the Respondent: A.KOMU, T.B.SIVAPRASAD

The main legal point established in the judgment is that the Commercial Courts Act does not provide for a second appeal, and the non-obstante clause limits the right of appeals from the Commercial Appellate Court.

Headnote:

Second Appeal - Maintainability of Second Appeal under Commercial Courts Act - Section 13(1A) of the Commercial Courts Act, Section 100 and Order XLII Rule 1 of the Code of Civil Procedure - 13, 100, Order XLII, Order XLIII, 16, 21 - The court discussed the provisions of the Commercial Courts Act, the amendments to the Code of Civil Procedure, and the non-obstante clause, and held that the second appeal challenging the decree and judgment of the Commercial Appellate Court is not maintainable.

Fact of the Case:

The State of Kerala filed a Second Appeal challenging the decree and judgment in Commercial Appeal No.1/2023 on the files of the District Court, Kozhikode, under Section 13(1A) of the Commercial Courts Act read with Section 100 and Order XLII Rule 1 of the Code of Civil Procedure.

Finding of the Court:

The court found that the Commercial Courts Act does not provide for a second appeal, and the non-obstante clause in Section 13 limits the right of appeals, thereby holding the second appeal as not maintainable.

Issues: The main issue was the maintainability of the Second Appeal under the Commercial Courts Act.

Ratio Decidendi: The court's decision was based on the provisions of the Commercial Courts Act, the amendments to the Code of Civil Procedure, and the non-obstante clause, which limited the right of appeals from the Commercial Appellate Court.

Final Decision: The court dismissed the miscellaneous second appeal as not maintainable, but held that the legal remedy, if any, available to the appellants can be worked out despite the dismissal of the second appeal.

JUDGMENT :

This Miscellaneous Second Appeal has been filed under Section 13(1A) of the Commercial Courts Act read with Section 100 and Order XLII Rule 1 of the Code of Civil Procedure, 1908, at the instance of the State of Kerala, represented by the Chief Secretary, challenging the decree and judgment in Commercial Appeal No.1/2023 on the files of the District Court, Kozhikode dated 30.07.2022 arose out of the decree and judgment in Commercial Suit No.109/2020 on the files of the Commercial Court, Kozhikode.

2. Heard the learned Special Government Pleader appearing for the State as well as Adv.A.Komu appearing for the respondent.

3. I shall refer the parties in this miscellaneous second appeal as 'plaintiff' and 'defendants' for convenience.

4. In this matter, the learned counsel for the plaintiff raised a question as to the maintainability of the second appeal. It is submitted by the learned counsel for the plaintiff that the Commercial Courts Act, 2015, as amended with effect from 03.07.2018, is intended to deal with commercial disputes in segregation from other disputes. Thus appeals from the decree and judgment of a commercial court shall be in accordance with the provisions of the Commercial Disputes Act. According to him, as per Section 13 of the Commercial Courts Act, appeals from decrees of Commercial Courts and Commercial Appellate Divisions are provided. But no provisions incorporated in the Commercial Courts Act permitting the filing of Second Appeal, in tune with Section 100 read with Order XLII of CPC. It is also pointed out that as per Section 13(2), a notwithstanding clause has been incorporated in the Statute, thereby, appeal from decrees of Commercial Courts is confined as per the provisions of the Commercial Courts Act. Therefore, the present Second Appeal is not provided by the Commercial Courts Act and as such the same is not maintainable. Accordingly, the learned counsel for the plaintiff submitted that the second appeal deserves dismissal for the said reason.

5. The learned Special Government Pleader submitted that even though the Commercial Courts Act does not contain provisions providing second appeal, when there is substantial question of law involved, there should be Forum to decide the same and therefore, the present second appeal is to be maintained to decide the substantial question of law, in tune with Section 100 read with Order XLII of CPC.

6. Now, the question poses for consideration is;

Whether second appeal is provided from the appellate decree and judgment passed by a Commercial Appellate Court?

7. In this regard, it is relevant to extract Section 13 of the Commercial Courts Act dealing with Appeals from decrees of Commercial Courts and Commercial Divisions.

The provisions are as under:

    “13. Appeals from decrees of Commercial Courts and Commercial Divisions.—(1) Any person aggrieved by the judgment or order of a Commercial Court below the level of a District Judge may appeal to the Commercial Appellate Court within a period of sixty days from the date of judgment or order.

(1A) Any person aggrieved by the judgment or order of a Commercial Court at the level of District Judge exercising original civil jurisdiction or, as the case may be, Commercial Division of a High Court may appeal to the Commercial Appellate Division of that High Court within a period of sixty days from the date of the judgment or order:

Provided that an appeal shall lie from such orders passed by a Commercial Division or a Commercial Court that are specifically enumerated under Order XLIII of the Code of Civil Procedure, 1908 (5 of 1908) as amended by this Act and section 37 of the Arbitration and Conciliation Act, 1996 (26 of 1996).

(2) Notwithstanding anything contained in any other law for the time being in force or Letters Patent of a High Court, no appeal shall lie from any order or decree of a Commercial Division or Commercial Court otherwise than in accordance with the provisions of this Act.”

8. Section 16 of the Commercial Co

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