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IN THE HIGH COURT OF KERALA AT ERNAKULAM
THE HONOURABLE MR. JUSTICE ANIL K.NARENDRAN & THE HONOURABLE MR. JUSTICE HARISANKAR V. MENON
Y.Sleebachen, S/O.Yohannan, Charuvila Veedu – Appellant
Versus
State Of Kerala – Respondent
Coml. Appeal Nos.6, 7, 8 and 9 of 2024
Decided on : 19-06-2024
COMMERCIAL COURTS - JURISDICTION AND APPEALS - Commercial Courts Act, 2015, Sections 1, 2, 3, 13, 14 - The court discussed the provisions of the Commercial Courts Act, 2015, particularly focusing on the jurisdiction of Commercial Courts and the appeal process. It highlighted the amendments made by the 2018 Amendment Act, which clarified the structure and jurisdiction of Commercial Courts and Appellate Courts, emphasizing the need for speedy resolution of commercial disputes. The court interpreted the provisions to determine the appropriate appellate forum for the appeals filed against the judgments of the Commercial Court, concluding that appeals from judgments of Commercial Courts below the level of a District Judge must be filed in the designated Commercial Appellate Courts rather than the High Court.
Fact of the Case:
The plaintiff filed Commercial Appeals against the judgments of the Commercial Court in suits for recovery of money and injunctions, originally filed in the Principal Sub Court, Palakkad. The appeals were challenged on the grounds of maintainability under the Commercial Courts Act, 2015, particularly regarding the appropriate appellate forum.
Finding of the Court:
The court found that the appeals should be filed in the Commercial Appellate Court designated under Section 3A of the Commercial Courts Act, as the judgments in question were from a Commercial Court below the level of a District Judge. The court emphasized the need to adhere to the statutory provisions regarding the appeal process.
Issues: The primary issue was whether the appeals against the judgments of the Commercial Court could be filed in the High Court or if they should be directed to the Commercial Appellate Court designated under the Commercial Courts Act.
Ratio Decidendi: The court held that the amendments to the Commercial Courts Act, particularly Sections 3 and 13, clearly delineate the jurisdiction of Commercial Appellate Courts and the process for appealing judgments from Commercial Courts. The court emphasized that the statutory framework mandates that appeals from judgments of Commercial Courts below the level of a District Judge must be filed in the designated Commercial Appellate Courts.
Final Decision: The court ordered the return of the memorandum of appeal to the appellant's counsel to enable them to file it in the appropriate Commercial Appellate Court, affirming the need to comply with the provisions of the Commercial Courts Act.
ORDER :
Anil K. Narendran, J.
These Commercial Appeals are filed by the plaintiff in Commercial Suit Nos.27 to 30 of 2023 on the file of the Commercial Court (Principal Sub Court), Palakkad, invoking the provisions under sub-section (1A) of Section 13 of the Commercial Courts Act, 2015, read with its proviso. The suits against the respondents herein-defendants, for recovery of money, declaration and perpetual prohibitory injunction, were originally filed before the Principal Sub Court, Palakkad, which were numbered as O.S.Nos.738, 752, 753 and 778 of 2010. By the order in I.A.No.484 of 2013 joint trial was ordered, treating O.S.No.738 of 2010 as the leading case. Thereafter, by the order in I.A.No.1230 of 2023, those suits were converted as Commercial Suits and numbered as C.S.Nos.27 to 30 of 2023.
2. By a common judgment dated 25.08.2023 of the Commercial Court, C.S.Nos.27 of 2023 and 30 of 2023 were decreed and C.S.No.29 of 2023 and 28 of 2023 were decreed in part. The operative portion of the common judgment dated 25.08.2023 reads thus;
1) C.S. No.27 of 2023 is decreed.
a) The 1st defendant shall pay an amount of Rs.24,70,654/- with interest at the rate of 6% per annum from the date of suit till realisation to the plaintiff.
b) It is declared that letter No.A3-843/01 dated 18.03.2008 issued by the 3rd defendant is arbitrary, unilateral, unreasonable, improper and unjust.
c) The defendants are prohibited from realising or taking any steps for realisation or enforcing recovery of any sum from the plaintiff on the basis of or in continuation of letter No.A3-843/01 dated 18.03.2008.
d) Parties shall suffer their respective costs.
2) C.S.No.30 of 2023 is decreed.
a) The 1st defendant shall pay an amount of Rs.49,56,812/- with interest at the rate of 6% per annum from the date of suit till realisation to the plaintiff.
b) It is declared that letter No.A3-843/01 dated 18.03.2008 issued by the 3rd defendant is arbitrary, unilateral, unreasonable, improper and unjust.
c) The defendants are prohibited from realising or taking any steps for realisation or enforcing recovery of any sum from the plaintiff on the basis of or in continuation of letter No.A3-843/01 dated 18.03.2008.
d) The 1st defendant shall repay an amount of Rs.18,19,454/- which has been illegally recovered from the plaintiff on the basis of letter No.A3-843/01 dated 18.03.2008.
d) Parties shall suffer their respective costs.
3) C.S No. 29 of 2023 is decreed in part:
a) The 1st defendant shall pay an amount of Rs.34,61,828/- with interest at the rate of 6% per annum from the date of suit till realisation to the plaintiff.
b) It is declared that G.O.(Rt)No.405/2009/WRD dated 07.04.2009 issued by the 3rd defendant is arbitrary, unilateral, improper and unjust. Unreasonable.
c) Parties shall suffer their respective costs.
4) C.S No. 28 of 2023 is decreed in part.
a) The 1st defendant shall pay an amount of Rs.29,64,033/- with interest at the rate of 6% per annum from the date of suit till realisation to the plaintiff.
b) It is declared that G.O.(Rt.)No.405/2009/WRD dated 07.04.2009 issued by the 1st defendant is arbitrary, unilateral, unreasonable, improper and unjust.
c) Parties shall suffer their respective costs.”?
3. The judgment and decree in C.S.Nos.29 of 2023 and 28 of 2023 are under challenge in Coml.App.Nos.6 of 2024 and 7 of 2024, to the extent of granting interest only at the rate of 6% per annum for the decreed amount, instead of 12% per annum, and the direction to the parties to suffer their respective costs. The judgment and decree in C.S.Nos.30 of 2023 and 27 of 2023 are under challenge in Coml.App.Nos.8 of 2024 and 9 of 2024 to the above extent and also to the extent certain reliefs are declined.
4. There was a delay of 45 days in re-presenting the memorandum of Commercial Appeals after curing the defects noted by the Registry. That delay was condoned by the order dated 05.03.2024 in C.M.Application No.1 of 2024 in the respective appeals. Thereafter, the filing de
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