CALCUTTA HIGH COURT
SHAH SPONGE AND POWER LIMITED – Appellant
Versus
TRUVOLT ENGINEERING CO. PRIVATE LIMITED AND ANR – Respondent
FMAT 144 / 2026
##PAGE1##
Form No.J(2)
IN THE HIGH COURT AT CALCUTTA
Civil Appellate Jurisdiction
Appellate Side
Present : The Hon’ble Mr. Justice Sabyasachi Bhattacharyya
&
The Hon’ble Mr. Justice Biswaroop Chowdhury
FMAT No. 144 of 2026
+
CAN 1 of 2026
Shah Sponge & Power Limited
Vs.
Truvolt Engineering Co. Private
Limited and another
For the appellant : Ms. Urmila Chakraborty,
Mr. Orijit Chatterjee,
Ms. Swati Dalmia,
Ms. Sabarni Mukherjee,
Ms. Safura Ahmed, Advs.
For the
plaintiff/respondent no. 1 : Mr. Tapan Coomaar Dey,
Mr. V. N. Jana,
Ms. Shreya Chatterjee, Advs.
Heard on : May 21, 2026.
Judgment on : May 21, 2026.
Sabyasachi Bhattacharyya, J.:
1. The present appeal has been preferred against an order of ad
interim injunction restraining the defendant no. 2/appellant
##PAGE2##2
from invoking three performance bank guarantees furnished by
the plaintiff/respondent no. 1.
2. Learned counsel for the appellant contends that the suit, as
evident from the plaint, pertains to a commercial dispute and
as such, the learned trial Judge, sitting in ordinary civil
jurisdiction, could not have entertained the same, since the bar
hits at the very root of the prima facie case for injunction.
3. Secondly, it is argued that it is a settled proposition of law that
injunctions in respect of invocation of bank guarantees are not
readily granted unless a case of fraud or apprehension of
irretrievable injustice is made out in the context of the parent
agreement between the parties.
4. It is contended that the present dispute pertains to the service
to be provided by the plaintiff/respondent no. 1 in respect of
transformers / sub-stations.
5. It is argued that, while obtaining the injunction, the
plaintiff/respondent no. 1 suppressed several complaints
registered by the appellant with the plaintiff/respondent no. 1
by way of several e-mails or other communications relating to
delay in such performance as well as different deficiencies in
respect thereof.
##PAGE3##3
6. As such, it is argued that the learned trial Judge erred in law in
granting injunction.
7. Learned counsel appearing for the plaintiff/respondent no. 1
submits that in the City Civil Court at Calcutta, both
commercial and regular civil suits are filed. As such, it cannot
be said beyond doubt that the impugned order was passed
sitting in ordinary civil jurisdiction.
8. Secondly, it is argued that in the event the three performance
bank guarantees are invoked, the plaintiff/respondent no. 1 will
suffer irreparably.
9. Even otherwise, it is submitted that, as pleaded in the plaint,
there is no dispute on the substance of the agreement of
supply of such service.
10. Thus, it is argued that the invocation of bank guarantees, if
permitted at this juncture, would not only be contrary to the
contract between the parties but also create irreparable injury
for the plaintiff/respondent no. 1.
11. Upon perusal of the plaint of the suit, from which the
present appeal arises, we find that although the suit has been
valued only at Rs.100/-, the same squarely pertains to claims
of deficiencies in the services to be rendered by the plaintiff in
##PAGE4##4
respect of transformers, sub-stations and other machineries
supplied by the plaintiff/respondent no. 1.
12. It is quite obvious that the valuation of such
transformers/services would much exceed the specified value
as stipulated in the Commercial Courts Act, 2015.
13. In terms of Section 2(1)(c)(xviii) of the 2015 Act, disputes
arising out of agreements for sale of goods or provision of
services comes within the ambit of commercial disputes.
14. It is to be noted that the paradigm of a commercial suit is
entirely different from any other ordinary civil suit, in view of
the provisions of Section 12A of the said Act, which mandates
pre-litigation mediation, and also the summary nature of a
commercial suit as opposed to a regular civil suit.
15. It is the frame of the suit which is to be looked into in order
to ascertain whether the dispute is commercial or not. From
the plaint itself, it is clear that the suit has not been couched as
a commercia
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