Commercial disputes under Section 2(1)(c)(vi) of the Commercial Courts Act must pertain to agreements that exhibit commercial characteristics beyond private contracts, requiring strict interpretation of applicable provisions.

ORDER :

ASHISH SHROTI, J.

1. The question that arises for consideration in this civil revision is as to whether the impugned order, dated 28.05.2024, passed by 7th District Judge, Gwalior in RCSA No.8/2015, refusing to transfer the suit filed by non-applicant/plaintiff under Section 15 (2) of Commercial Courts Act, 2015 (in short 'Act') to the concerned Commercial Court, was justified in the facts and circumstances of this case. It is the submission of applicants (hereinafter referred as 'defendants') that although the suit filed by non-applicant (hereinafter referred as 'plaintiff') pertains to a prayer for grant of decree for specific performance of agreement, dated 10.10.2013, by applying definition of 'commercial dispute' as defined under Section 2 (1)(c)(vi) of the Act, the subject matter of the suit is a commercial dispute and by virtue of Section 15 (2) of the Act, the suit ought to have been transferred to the concerned Commercial Court.

2. The plaintiff has filed a suit stating to be a suit for specific performance for agreement, dated 10.10.2013, before the learned Trial Court. As per the pleadings made in paragraph - 2, the defendants entered into an agreement with the plaintiff for reconstruction of their residential house. Paragraph - 2 & 3 of the plaint narrates the nature of transaction between the parties and the same are reproduced hereunder:

3. Alleging non-compliance of the clause (फ) of the agreement, the plaintiff has filed the aforementioned suit praying for a decree for execution of the sale-deed in its favour, in respect of half portion of ground and first floor of the house in question and in the alternative, it has prayed for refund of amount spent by it in reconstruction of the house along with the interest.

4. The suit was filed on 31.08.2015. It is pending before the Trial Court and is at the stage of final argument. The defendants filed the application under Section 15 of the Act of 2015 read with Order 7 Rule 10 of CPC alleging that the subject matter of the suit is a 'commercial dispute' as defined under Section 2 (1)(c) of Act of 2015. It is their case that the subject matter of the suit falls within clause - (vi) of Section 2 (1)(c) and therefore, pursuant to the provisions of Section 15 (2) of the Act of 2015, the suit ought to have been transferred to the concerned Commercial Court. It is their submission that after coming into force of Act of 2015, learned Trial Court is divested of its jurisdiction to try the suit.

5. The aforesaid application was opposed by the plaintiff and submitted that it is a simple suit for specific performance of contract and does not fall within the definition of commercial dispute and, therefore, learned trial Court has the jurisdiction to try the suit. The learned counsel for non-applicants submitted that the agreement was for construction of a residential building and it was not a commercial transaction between the parties, therefore, for this reason also it does not fall within the definition of commercial dispute.

6. In order to resolve the controversy, certain provisions of Act of 2015, which has deemed to have came into force w.e.f. 23.10.2015, needs to be considered. Section 2 (1)(c)(vi) provides as under :

2. Definitions.—(1) In this Act, unless the context otherwise requires :

(a) - (b) xxx xxx xxx

(c) “commercial dispute” means a dispute arising out of ––

(i) - (v) xxx xxx xxx;

(vi) construction and infrastructure contracts, including tenders;

(vii) - (xxii) xxx xxx xxx

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