IN THE HIGH COURT OF KERALA AT ERNAKULAM
KAUSER EDAPPAGATH, J.
H. Musthafa, S/o. Hussain – Petitioner
Versus
Abdullakutty Haji, S/o. Thappy Aboobacker – Respondent
OP(C) No.753 Of 2024, CRP No.133 Of 2024
Decided On : 25-09-2024
(A) Commercial Courts Act, 2015 - Section 15(2) - Maintainability of counter-claim - The trial court dismissed the application under Order XII Rule 6 CPC, ruling that the counter-claim is a commercial dispute and should be transferred to the Commercial Court - The court confirmed that the dispute involved is a commercial dispute of specified value, as the property was used exclusively for trade or commerce. (Paras 6, 12, 13, 19, 34)
(B) Admissions - The court emphasized that admissions must be clear and unequivocal for invoking Order XII Rule 6, and the trial court rightly refrained from exercising discretion in this case. (Paras 10, 12)
Facts of the case:
The plaintiff took a shop room on license from the defendant to run a supermarket, but defaulted on license fee payments, leading to a counter-claim for eviction. The trial court found the counter-claim maintainable as a commercial dispute.
Findings of Court:
The court upheld the trial court's decision that the counter-claim is a commercial dispute and confirmed the dismissal of the application under Order XII Rule 6.
Issues: The main issues were the maintainability of the counter-claim and the nature of the dispute as a commercial one.
Ratio Decidendi: The court ruled that the counter-claim qualifies as a commercial dispute under the CC Act, emphasizing the importance of admissions in legal proceedings.
Result: The dismissal of IA No.6/2024 is confirmed, and the plaintiff is directed to pay the arrears of the license fee.
ORDER :
(Dr. Kauser Edappagath, J.)
The common order passed in IA No.6/2024, and the issue of maintainability of counter-claim in OS No.206/2023 on the file of the Principal Sub Court, Palakkad (for short, 'the trial court') is under challenge in the above Original Petition and Civil Revision Petition.
2. I refer to the status of the parties hereunder as they are referred to in the suit, i.e., the plaintiff and the defendant.
3. The plaint schedule property comprising a shop room having a plinth area of 12,000 sq. ft situated on the ground floor of a shopping mall viz. Thappy's Mall at Court Road, Palakkad admittedly belongs to the defendant. It was taken on a license basis by the plaintiff from the defendant to run a supermarket as per the license deed executed between them on 26/4/2018 (marked as Ext.A1). The period of license was ten years w.e.f. 26/4/2018. The license fee initially agreed was Rs.3,50,000/- per month with an enhancement @5% per annum. At present, the license fee per month is Rs.3,95,000/-. There is no dispute between the parties regarding their jural relationship and the rate of license fee.
4. The plaintiff instituted the suit originally as OS No.200/2023 at the Munsiff Court, Palakkad, against the defendant for a permanent prohibitory injunction restraining him from trespassing into the plaint-schedule property or interfering with the plaintiff in running the business conducted in the plaint-schedule building. It is alleged in the plaint that the defendant obstructed the plaintiff in running the business in the plaint-schedule building to pressurise him to vacate the building so as to let it out to a third party for higher rent. The suit was subsequently transferred to the trial court as per the order in Transfer OP No.167/2023 of the District Court, Palakkad and it was renumbered as OS No.206/2023. The defendant entered appearance and filed a written statement along with a counterclaim. In the written statement, it was contended that the plaintiff defaulted the payment of the license fee and the arrears of the license fee as of March 2023 would come to Rs.1,34,07,140/-. It was further contended that since the plaintiff defaulted the payment of the license fee, the defendant revoked the license invoking Clauses (5) and (10) of the agreement on 20/12/2022 w.e.f. 1/04/2023. It was also contended that on 27/4/2023, through the mediator, the plaintiff approached the defendant, agreed to surrender the vacant possession of the plaint schedule building, made an endorsement on the reverse side of Ext. A1 agreement that he would vacate it and hand over the key within twenty days and handed over the original agreement to the defendant. The said endorsement was separately marked as Ext. A1(a). In the counter-claim, the defendant sought a mandatory injunction to eject the plaintiff from the plaint-schedule building. Thereafter, the defendant filed an application as IA No.6/2024 under Order XII Rule 6 of CPC seeking to direct the plaintiff to leave the plaint-schedule property based on the alleged admission. The plaintiff filed a counter affidavit to the application inter alia, contending that the counter-claim is not maintainable before the civil court as the dispute involved is a commercial dispute, and it has to be transferred to the Commercial Court under Section 15(2) of the Commercial Courts Act, 2015 (‘CC Act’ for short). The trial court, after hearing both sides, dismissed IA No.6/2024, and the counter-claim along with the suit was ordered to be transferred to the Commercial Court. CRP No. 133/2024 has been filed by the defendant challenging the common order. OP(C) No.753/2024 has been filed by the plaintiff to the extent of transferring the counter-claim to the Commercial Court.
5. I have heard Sri. P. B. Krishnan, the learned Senior Counsel for the plaintiff, and Sri. B. Krishnan, the learned counsel for the defendant.
6. I will address the challenge to the order in IA No.6/2024 and the maintainability of the
The court confirmed that the counter-claim is a commercial dispute under the Commercial Courts Act, emphasizing the need for clear admissions for invoking judgment on admissions.
The court established that disputes arising from license agreements for properties used exclusively for trade qualify as commercial disputes under the CC Act.
The court confirmed the trial court's ruling that the counter-claim is a commercial dispute under the Commercial Courts Act, emphasizing the importance of clear admissions in legal proceedings.
A counter-claim related to a licensee's possession falls under the jurisdiction of the relevant authority, not a civil court, as it necessitates a substantive evaluation of the agreement's terms.
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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Valuation of suit – It is nature of relief claimed in plaint which is decisive of question of suit valuation – Market value does not become decisive of suit valuation merely because an immovable prop....
The main legal point established in the judgment is that the correct payment of court fee in a suit must be determined in accordance with settled legal principles and the specific provisions of the C....
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