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2025 Supreme(Mad) 2528

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
R.Vijayakumar, J.
M/s. Arunachala Impex Pvt.Ltd. and ors. - Petitioners
Versus
M/s. Shadiram and Sons Pvt.Ltd. and ors. - Respondents
C.R.P.(PD)(MD).Nos.7 & 8 of 2025 and CMP(MD).Nos.104 & 105 of 2025
Decided On : 07-04-2025


Advocates:
Advocate Appeared:
For the Petitioner: Mr. Raghuvaran Gopalan for Mr.R.L.Dhilipan Pandian
For the Respondent: Mr. G.Prabhu Rajadurai

The court held that failure to inform defendants of the commercial nature of the suit led to their inability to file a timely written statement, which was unjust and warrants restoration of rights.

Headnote:(A) Commercial Courts Act, 2015 - Order 7 Rule 11, Order 5 Rule 1, Order VI Rule 15-A - Contractual dispute for recovery of Rs.49,38,820/- for lentils - Suit treated as a commercial suit without informing defendants - Defendants' written statement filed 146 days after summons - Court's error contributed to misunderstanding - Defendants not informed of applicability of Commercial Courts Act until a communication in 2023. (Paras 2, 4, 30, 35)

(B) Suit's nature and court's responsibility - Court must clearly state whether a suit is commercial to inform defendants correctly and ensure the fair application of rules. (Paras 30, 35)

Facts of the case:
The defendants entered into a contract to purchase lentils but did not make payment; a suit was filed by the plaintiff for recovery. The defendants challenged the classification as a commercial suit, claiming lack of notice.

Findings of Court:
The defendants were misled by court procedures and should be allowed to file a written statement despite the lapse; the commercial nature of the suit was not satisfactorily conveyed to parties involved.

Issues: Whether the defendants were adequately informed of the suit's commercial nature and if their rights to file a written statement were rightly forfeited.

Ratio Decidendi: The court ruled that the trial court's failure to inform the defendants about the suit being classified as a commercial suit led to their misunderstanding; thus, justice requires restoring their right to file a written statement.

Result: The order forfeiting the defendants' right to file a written statement was set aside, while the dismissal of the application to reject the plaint was confirmed.

Table of Content
1. contract details and monetary claims. (Para 2 , 3 , 5)
2. defendants' arguments on jurisdiction and procedural flaws. (Para 6 , 7 , 8 , 9 , 11 , 12 , 13 , 14 , 15)
3. plaintiff's counterarguments on the commercial nature of the suit. (Para 17 , 18 , 19 , 20 , 21)
4. timeliness and jurisdiction under commercial suits. (Para 22 , 23 , 24)
5. factual timeline of events relevant to the case. (Para 25 , 26 , 27)
6. court's observation on defendants' knowledge of commercial suit status. (Para 28 , 29 , 30 , 31 , 32)
7. court's responsibility for informing defendants about commercial suit classification. (Para 33 , 34 , 35 , 36)
8. ruling on the application for dismissal. (Para 37)
9. final orders and conclusions of the court. (Para 38)

ORDER :

R.Vijayakumar, J.

These two revision petitions have been filed by the defendants in O.S.No.88 of 2019 on the file of the Principal District Court, Thoothukudi.

(A) Factual Matrix:

2.A perusal of the plaint averments reveals that the defendants in the suit have entered into a contract at Thoothukudi for purchase of 2643 bags of laird yellow lentils and 2440 bags of Eston yellow lentils from Thoothukudi godown. After lifting the cargo, since the payment was not paid, the suit has been filed for recovery of the above said amount.

3.The respondent herein had filed the above said suit for the relief of recovery of money for a sum of Rs.49,38,820/- from the defendants with future interest at the rate of 12% per annum and for payment of cost. 4.CRP(MD).No.7 of 2025 has been filed challenging the dismissal of an application filed by the defendants under Order 7 Rule 11 of C.P.C to reject the plaint. CRP(MD).No.8 of 2025 has been filed by the defendants challenging the allowing of an application filed by the plaintiff under Order 5 Rule 1 of the COMMERCIAL COURTS ACT 2015 wherein the trial Court has passed an order forfeiting the rights of the defendants to file a written statement. The written statement that was already filed after a lapse of 120 days has to be taken off the record.

5.Challenging both these orders, the present revision petitions have been filed by the defendants.

(B)Submissions made on either side:

6.According to the learned counsel for the revision petitioners, the summons received by the defendants did not indicate that it is a commercial suit. The copy of the plaint served along with the summons also does not indicate that it has been filed or treated as a commercial suit. Only when the defendants counsel received a communication from the Sheristadar of the District Court on 06.02.2023, the defendants came to know that the suit has been treated as a commercial suit. The defendants were not privy to the return orders passed by the District Court while entertaining plaint. The defendants were not put to notice at any point of time that the suit has been initiated as a commercial suit. The written statement has been filed on the 146th day from the date of receipt of summons.

7.The learned counsel for the petitioners had further contended that the verification of pleadings in a commercial suit as contemplated under Order-VI Rule 15-A of COMMERCIAL COURTS ACT has also not been filed along with the plaint. When a copy application was filed seeking a copy of the verification of pleadings as contemplated under Order-VI Rule 15-A, it was returned by the office of the Principal District Court stating that no such verification has been filed.

8.The learned counsel for the revision petitioners had further contended that in Paragraph No.10 of the order impugned in the revision petition (CRP(MD).No.8 of 2025), the Principal District Judge has only relied upon a return order passed by the office on 09.09.2019 to arrive at a finding that the suit is taken on file as a commercial suit, though the number was given only as O.S.No.88 of 2019. According to the petitioners, the defendants were not aware of this return order and the return order was not made known to the defendants at any point of ti

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