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2023 Supreme(J&K) 170

IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT JAMMU
SANJAY DHAR, J.
Raj Kumar and Ors. – Appellant
Versus
Shiv Shakti Sai Satguru Kabir Bir and Others and Ors. – Respondents
Ref (C) No. 9 Of 2023, Ref (C) No. 10 Of 2023, Ref (C) No. 11 Of 2023, Ref (C) No. 13 Of 2023, Ref (C) No. 14 Of 2023
Decided On : 13-09-2023

Headnote:

The court was tasked with determining whether five suits should be tried by an ordinary Civil Court or by a Commercial Court, as per the Commercial Courts Act 2015. The court analyzed the definition of 'Commercial Dispute' under Section 2(1)(c) of the Act and applied it to the subject matter of each suit. It found that only one suit qualified as a commercial dispute, as it pertained to the carriage of goods, while the others did not meet the criteria. Therefore, the suits were to be tried by an Ordinary Civil Court.

Fact of the Case:

The court was asked to decide whether five suits should be tried by an ordinary Civil Court or by a Commercial Court, as per the Commercial Courts Act 2015.

Finding of the Court:

The court found that only one suit qualified as a commercial dispute, as it pertained to the carriage of goods, while the others did not meet the criteria.

Issues: The main issue was whether the subject matter of the suits qualified as commercial disputes under the Commercial Courts Act 2015.

Ratio Decidendi: The court applied the definition of 'Commercial Dispute' under Section 2(1)(c) of the Commercial Courts Act 2015 to determine the nature of the subject matter in each suit.

Final Decision: The court decided that only one suit qualified as a commercial dispute and should be tried by a Commercial Court, while the others were to be tried by an Ordinary Civil Court.

ORDER :

1. By this common order aforetitled references made by the learned Principal District Judge, Jammu are proposed to be disposed of.

2. It appears that with the coming into force of Commercial Courts Act 2015 in the Union Territory of Jammu and Kashmir, five civil suits titled Balwant Singh and another Vs. Pooja Devi and others, New India Assurance Company Limited Jammu and another Vs. M/s New Star Goods Carrier Jammu and another, Jogesh Sharma Vs. Nathu Ram, Raj Kumar Vs. Shiv Shakti Sai Satguru Kabir Bir and others and Ghani Vs. Rakesh Kumar which were pending before the court of learned 1st Additional District Judge, Jammu were referred by the said court to Principal District Judge, Jammu in terms of identical orders passed on various dates with the recommendation that the said suits may be transferred to the court of Additional District Judge (Bank Cases) which has been designated as a Commercial court for District Jammu in terms of SO 47 dated 04.02.2020.

3. The reference was accepted by the learned Principal District Judge, Jammu in terms of different orders passed in aforetitled five suits passed on different dates and the suits came to be transferred to the court of Additional District Judge (Bank Cases) Jammu i.e. the Commercial Court, Jammu. The said court in terms of five different orders passed in the aforetitled five suits has referred the matter back to the Principal District Judge, Jammu with the observations that the aforetitled suits are not the commercial suits as defined under Section 2 (1) (c) of the Commercial Courts Act 2015.

4. The learned Principal District Judge, Jammu has, through the medium of this reference sought an opinion of this Court on the question as to whether the aforetitled five suits are to be tried by an ordinary Civil Court or by a Commercial Court.

5. In order to determine as to whether the subject matter of the aforetitled five suits qualifies to be a commercial dispute, it would be apt to have a look at the definition of the “Commercial Dispute” as contained in Section 2 (1)(c) of the Commercial Courts Act, which is reproduced as under:

    “2(1)(c) “Commercial dispute means a dispute arising out of-

(i) Ordinary transactions of merchants, bankers, financiers and traders such as those relating to mercantile documents, including enforcement and interpretation of such documents;

(ii) Export or import of merchandise or services;

(iii) Issues relating to admiralty and maritime law;

(iv) Transactions relating to aircraft, aircraft engine, aircraft equipment and helicopters, including sales, leasing and financing of the same;

(v) Carriage of goods;

(vi) Construction and infrastructure contracts, including tenders;

(vii) Agreements relating to immovable property used exclusively in trade or commerce;

(viii) Franchising agreements;

(ix) Distribution and licensing agreements;

(x) Management and consultancy agreements;

(xi) Joint venture agreements;

(xii) Shareholders agreements;

(xiii) Subscription and investment agreements pertaining to the services industry including outsourcing services and financial services;

(xiv) Mercantile agency and mercantile usage;

(xv) Partnership agreements;

(xvi) Technology development agreements;

(xvii) Intellectual property rights relating to registered and unregistered trademarks, copyright, patent, design, domain, names, geographical, indications and semiconductor integrated circuits;

(xviii) Agreements for sale of goods or provision of services;

(xix) Exploitation of oil and gas reserves or other natural resources including electromagnetic spectrum;

(xx) Insurance and re-insurance;

(xxi) Contracts of agency relating to any of the above; and

(xxii) Such other commercial disputes as may be notified by the Central Government.

Explanation--- A commercial dispute shall not cease to be a commercial dispute merely because---

(a) It also involves action for recovery of immovable property or for realisation of monies out of immovable property given as security or in

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