Writ Of Certiorari Against Commercial Court Orders Is Not Maintainable Rules Orissa High Court

In a significant ruling clarifying the boundaries of judicial review, the High Court of Orissa has determined that judicial orders issued by Commercial Courts are not amenable to writ jurisdiction under Article 226 of the Constitution of India. The division bench, comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman, emphasized that while these orders are immune to certiorari jurisdiction, they remain subject to the High Court’s supervisory power under Article 227.

Case Background

The dispute arose from a commercial arbitration matter involving M/s. Rashmi Metaliks Limited and the Union of India (East Coast Railway). Following an arbitral award, the respondent moved the Senior Civil Judge (Commercial Court), Bhubaneswar, seeking a stay on execution under Section 36(2) of the Arbitration and Conciliation Act, 1996. The Commercial Court granted a conditional stay, which was subsequently challenged via a composite application invoking Articles 226 and 227. A Single Judge initially set aside the Commercial Court’s order, prompting the current appeal.

Legal Analysis and Precedents

The central legal question before the division bench was whether a High Court can issue a writ of certiorari against an order passed by a Civil Court. The bench relied heavily on the Supreme Court of India's decision in Radhey Shyam v. Chhabi Nath (2015), which overruled the earlier judgment in Surya Dev Rai v. Ram Chander Rai . The Court observed that Radhey Shyam established a clear embargo on invoking Article 226 against judicial orders passed in civil proceedings.

Addressing the status of Commercial Courts, the bench held that since these courts are empowered to adjudicate commercial disputes of a specified value that would otherwise fall under the jurisdiction of a Civil Court , they possess the "trapping of a Civil Court ." Consequently, proceedings before these tribunals are classified as civil proceedings, thereby barring the issuance of a writ of certiorari .

Key Observations

The High Court underscored the importance of jurisdictional discipline and the authority of the Chief Justice as the "master of the roster," noting:

  • "Once the power under jurisdiction exercised by each of the Judges is assigned by the Chief Justice, usurpation of power dehors such category of cases would relate to an exercise of the jurisdiction without any authority."
  • "Judicial orders of the civil court are not amenable to writ jurisdiction under Article 226 of the Constitution."
  • "The Commercial Court has a trapping of a Civil Court and the proceeding initiated before it, is regarded as ' civil proceeding '. Thus, the order passed by the Commercial Court is regarded as an order of a Civil Court ."

Court’s Decision and Practical Implications

The High Court set aside the impugned order and directed the Registry to re-register the petition exclusively under Article 227 of the Constitution. This ensures that the matter is placed before the appropriate bench assigned with the roster for supervisory jurisdiction. By reinforcing the distinction between Articles 226 and 227, the Court has effectively curbed the practice of "forum shopping" through composite applications, ensuring that litigants adhere to the established jurisdictional framework for challenging subordinate court orders.