Lease of land converted for petrol station, under construction, qualifies as 'commercial dispute' under CC Act, including gestation phase.

C.A.V. JUDGMENT

(PER: HON'BLE MR. VIBHU BAKHRU ,CHIEF JUSTICE)

1. The appellants have filed the present appeal under Section 13(1A) of the Commercial Courts Act, 2015 [CC Act] read with Order XLIII Rule 1 of the Code of Civil Procedure, 1908 [CPC impugning an order dated 14.03.2024 passed by the Principal District and Sessions Judge, Chikkamagaluru [Commercial Court in Com.OS.FR No.104/2023 [impugned order]. In terms of the impugned order, the learned Commercial Court had directed return of the plaint to be presented before a proper court in accordance with law. The impugned order is premised on the basis that the suit instituted by the appellants did not involve any commercial dispute under Section 2(1) of the CC Act.

2. The only question to be addressed is whether the aforementioned suit instituted by the appellants involved a commercial dispute.

3. The appellants who are plaintiffs in the suit had filed the suit, inter alia, seeking a decree of ejectment of the respondents (defendants in the suit) from the suit property which was described as under:

"SCHEDULE PROPERTY

All the piece and parcel of the commercial land along with structures, if any, standing thereon admeasuring 1575 Square Meters out of total 4048 Square Meters land bearing Property No.:10-2-676, Ward No.11, Survey No.40/3 (Old Sy.No.:40), (One (1) Acre land In Survey No.40/3 as converted by order issued by the Deputy Commissioner, Chikmagalur District, order bearing No.:LAND10010464 dated 03.12.2018), situated at Berur Kaavalu Village, Berur Hobli, Kadur Taluk, Chikmagalur District, Karnataka and is bounded by:

On the East : Property of Chandana Bhargavi

On the West : Road

On the South : Property of Suresh

On the North : Property of K.H.Narayan"

4. Additionally, the appellants also sought a decree for recovery of the amount of `8,10,000/- as arrears of rent and for the mesne profits for occupying the suit property.

5. A plain reading of the plaint indicates that the appellants had claimed that appellant No.1 is the absolute owner of an immovable property measuring two acres falling in Survey No.40/3 (old Survey No.40), Berur Kaavalu Village, Berur Hobli, Kaduru Taluk, Chikkamagaluru District. Appellant No.2 is appellant No.1’s wife, and appellant Nos. 3 and 4 are their children.

6. The appellants state that under a Notification dated 31.08.2016, the National Highway Authority of India acquired 2023 sq. mtrs. of land out of the aforementioned land measuring 2 acres. After the said land was acquired, appellant No.1, who claimed to be the absolute owner of the suit property, applied for the conversion of one acre of the remaining land for commercial purposes for setting up a petroleum outlet. The said one acre of land was converted by an order dated 03.12.2018 for commercial use. The said property was accorded a new property number–property No.10-2-676 measuring 40.24 mts. from east to west and 100.60 mts. from north to south, totally measuring an area 4048 sq. mts. Out of the aforesaid area, 1575 sq. mts. [the suit property] was leased to respondent No.1 (arrayed as defendant No.1 in the suit) under a lease deed dated 06.03.2021. The lease was for a term of 29 years 11 months (commencing from 01.12.2020 till 31.10.2050), and the monthly rent was fixed at `30,000/-, inclusive of all taxes and rates. The appellants stated that respondent No.1 had obtained a licence for running a retail outlet/storage depot/retail station for retailing of petroleum products like MS/HSD/Lubes allied and other products and services. The appellants claim that respondent No.1 failed to pay the lease rentals as agreed. It is also averred that respondent No.1 was constructing a building for the installation of a petrol pump on the suit property. Subsequently, a Rectification Deed of Lease dated 25.02.2022 was executed between the parties. By virtue of the same, appellant No.2 and appellant Nos.3 and 4 (through their guardian, appellant No.2) were added as Lessors, as well as a rent enhancement of 8%