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2022 Supreme(Telangana) 473

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
A. Venkateshwara Reddy, J.
M/s Madupu Enterprises Private Limited and Others – Petitioner
Versus
Dr.B.Suryanarayana Murthy and Others – Respondents
Tr.C.M.P.No.240 of 2021
Decided On : 08-08-2022

Advocates:
Advocate Appeared:
For the Petitioner: C. Raghu
For the Respondent: G. Arun

The central legal point established in the judgment is the delineation of the jurisdiction of the Principal District Judge or the Chief Judge, City Civil Court in transferring cases, particularly in relation to the Special Court for trial of Commercial Disputes under the Commercial Courts Act, 2015.

Headnote:

Transfer Civil Miscellaneous Petition - Jurisdiction of District Court - Section 24 of CPC, 1908 - Summary of Acts and Sections: Section 24 of CPC, Section 2(4) of CPC, Section 3 of CPC, Section 4(1) of CPC, Telangana Civil Courts Act, 1972 - The court discussed the general power of transfer and withdrawal under Section 24 of CPC, the definition of 'District' under Section 2(4) of CPC, subordination of courts under Section 3 of CPC, and the saving provision under Section 4(1) of CPC. The judgment also referenced the Telangana Civil Courts Act, 1972 and its provisions. The court's decision was influenced by the interpretation of these legal provisions and their application to the jurisdiction of the Principal District Judge or the Chief Judge, City Civil Court.

Fact of the Case:

The petitioners filed a Transfer Civil Miscellaneous Petition under Section 24 of the Civil Procedure Code, 1908 to set aside orders transferring a case from one court to another. The respondents contested the transfer, leading to a dispute over the jurisdiction of the courts involved.

Finding of the Court:

The court found that the Principal District Judge or the Chief Judge, City Civil Court has the power to withdraw and transfer cases within the unit, but lacks the authority to transfer cases to the Special Court for trial of Commercial Disputes under the Commercial Courts Act, 2015. The court also directed that challenges to such orders should be made through a Civil Revision Petition under Article 227 of the Constitution of India.

Issues: The issues revolved around the jurisdiction of the Chief Judge, City Civil Court to transfer cases to the Special Court for trial of Commercial Disputes and the appropriate legal remedy for challenging such transfers.

Ratio Decidendi: The court's decision was based on the interpretation of Section 24 of CPC, the definition of 'District' under Section 2(4) of CPC, and the provisions of the Commercial Courts Act, 2015. It established that while the Principal District Judge has the power to transfer cases within the unit, the transfer of cases to the Special Court for trial of Commercial Disputes falls outside its jurisdiction.

Final Decision: The Transfer Civil Miscellaneous Petition was allowed, setting aside the orders transferring the case to the Special Court for trial of Commercial Disputes. The court directed that challenges to such orders should be made through a Civil Revision Petition under Article 227 of the Constitution of India.

ORDER :

The petitioners have filed this Transfer Civil Miscellaneous Petition under Section 24 of the Civil Procedure Code, 1908 (for short ‘CPC’) with a prayer to set aside the orders dated 23.11.2021 in Tr.OP No.2 of 2021 on the file of the learned Chief Judge, City Civil Court, Hyderabad and to pass such other orders, as this Court deems fit and proper.

2. Notice served on the respondents. Heard learned counsel on both sides. Perused the material available on record. The submissions made on either side have received due consideration of this Court.

3. The petitioners, who are the respondents in Tr.OP No.2 of 2020 before the learned Chief Judge, City Civil Court, Hyderabad, have filed this application under Section 24 of CPC assailing the docket orders dated 23.11.2021 wherein and whereunder the learned Chief Judge, City Civil Court, Hyderabad has allowed Tr.OP No.2 of 2021 with an observation that the parties to the suits and subject matter are the same, though the reliefs sought are different being rival parties, the outcome in one suit will have a direct bearing on the other suit, as both are interconnected, hence to avoid multiplication of evidence and pronouncement of conflicting decisions, it is necessary that both the suits be tried by one court either jointly or separately. As a result, OS No.908 of 2019 pending on the file of the learned X Additional Chief Judge, City Civil Court, Hyderabad was withdrawn and transferred the same to the Special Judge for trial of Commercial Disputes, Hyderabad, to be tried along with COS No.37 of 2019 pending on the file of that Court.

4. The respondents in Tr.OP No.2 of 2021, who are the plaintiffs in COS No.37 of 2019 and defendants in OS No.908 of 2019 on the file of the learned X Additional Chief Judge, City Civil Court, Hyderabad, have filed this Tr.CMP assailing the said orders on the following grounds:

    i) that the suit in COS No.37 of 2019 is filed on the file of the Special Judge, Commercial Court claiming for damages and perpetual injunction.

ii) that the Commercial Court is a Special Court constituted under the provisions of Commercial Courts Act, 2015, whereas, the respondents herein have filed OS No.908 of 2009 before the learned X Additional Chief Judge, City Civil Court, Hyderabad, for recovery of possession, arrears of rents and mesne profits, which is not a commercial dispute.

iii) that the learned Chief Judge, City Civil Court, Hyderabad has no jurisdiction to withdraw OS No.908 of 2019 from the file of X Additional Chief Judge, City Civil Court, Hyderabad and to transfer the same to the Special Court constituted under the provisions of Commercial Courts Act.

iv) that the Commercial Court is not a subordinate Court to the Chief Judge, City Civil Court, Hyderabad and the learned Chief Judge, City Civil Court has erroneously exercised the powers under Section 24 of CPC.

5. The respondents have not filed counter. However, the learned counsel for the respondents strenuously contends that Section 24 of CPC deals with the general power of transfer and withdrawal and for the purpose of this section, all the Courts in the Unit are subordinate to the Court of Principal District Judge or the Chief Judge, City Civil Court, Hyderabad and in that view of the matter, the learned Chief Judge, City Civil Court, Hyderabad is justified in withdrawing OS No.908 of 2019 from the file of X Additional Chief Judge and rightly made over the said matter to the Special Judge for trial of Commercial Disputes and there are no grounds to interfere with the order impugned, prayed for dismissal of the transfer petition.

6. In the light of rival contentions and material available on record, the following points would emerge for consideration:

    i) Whether the Chief Judge, City Civil Court, Hyderabad/Principal District Judge is competent to withdraw and transfer to any Court subordinate to it pending on the file of the Additional District Judge to the file of another Additional District Judge?

ii) Whether t

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