Case Note & Summary
The plaintiff, Sanghvi Premises Pvt. Ltd., filed a Commercial Suit No. 181 of 2018 seeking specific performance of permanent alternate accommodation agreements and/or agreement contained in consent, against defendants including Rajesh Mahadev Mane and others. The defendants filed Interim Application No. 557 of 2022 seeking a declaration that the dispute is not a commercial dispute under Section 2(1)(c) of the Commercial Courts Act, 2015. The applicants argued that the suit concerns surrender of tenancy and that the plaint did not justify filing under the Commercial Courts Act. The court, after hearing arguments, held that the suit involves specific performance of agreements related to development of property, which is a commercial dispute. The application was dismissed.
Headnote
A) Commercial Law - Commercial Dispute - Specific Performance - Section 2(1)(c) of Commercial Courts Act, 2015 - The issue was whether a suit for specific performance of permanent alternate accommodation agreements, which involved surrender of tenancy, constitutes a commercial dispute. The court held that the suit is commercial as it relates to agreements for development of real estate and specific performance thereof, falling within the ambit of Section 2(1)(c) of the Commercial Courts Act, 2015. The application to declare the suit non-commercial was dismissed. (Paras 1-6)
Issue of Consideration
Whether the suit for specific performance of permanent alternate accommodation agreements is a commercial dispute under Section 2(1)(c) of the Commercial Courts Act, 2015.
Final Decision
The Interim Application is dismissed.
Law Points
- Commercial dispute
- Specific performance
- Permanent alternate accommodation agreement
- Section 2(1)(c) Commercial Courts Act
- 2015
- Jurisdiction
Case Details
2022 LawText (BOM) (02) 67
Interim Application No. 557 of 2022 in Commercial Suit No. 181 of 2018
Mr. Girish Godbole a/w Ms. Namrata Pandit and H.G. Dharmadhikar for Applicant/Defendant Nos.1, 3 to 12; Mr. Naushad Engineer a/w Mr. Aditya Shiralkar, Ms. Riya Makwana and Ms. Apeksha Khetan i/b I.C. Legal for Plaintiff; Mr. Pramod Patil a/w Mr. Ajit Hon, Ms. Komal Mestry for Defendant No.13; Ms. Lalita Phadke for Applicant/Intervenor in CHSCD/178/2019
Rajesh Mahadev Mane & Ors.
Sanghvi Premises Pvt. Ltd.
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Nature of Litigation
Interim application seeking declaration that suit is not a commercial dispute under Commercial Courts Act, 2015.
Remedy Sought
Applicants sought an order declaring that the dispute raised in the suit is not a commercial dispute under Section 2(1)(c) of Commercial Courts Act, 2015.
Filing Reason
Applicants contended that the suit for specific performance of permanent alternate accommodation agreements concerns surrender of tenancy and is not commercial.
Issues
Whether the suit for specific performance of permanent alternate accommodation agreements is a commercial dispute under Section 2(1)(c) of the Commercial Courts Act, 2015.
Submissions/Arguments
Mr. Godbole submitted that the suit concerns surrender of tenancy and is not commercial; the plaint does not justify filing under Commercial Courts Act.
Mr. Engineer submitted that the suit is commercial as it relates to development agreements and specific performance.
Ratio Decidendi
A suit for specific performance of permanent alternate accommodation agreements, which are part of a development project, is a commercial dispute under Section 2(1)(c) of the Commercial Courts Act, 2015.
Judgment Excerpts
By this Interim Application, the Applicant has sought an order declaring that the dispute raised in the present Suit is not a commercial dispute under Section 2 (1)(c) of Commercial Courts Act, 2015.
He has submitted that the Suit has been incorrectly filed as a Commercial suit as the Suit concerns a surrender of tenancy of the Defendants under the permanent alternate accommodation agreements.
Procedural History
The plaintiff filed Commercial Suit No. 181 of 2018. The defendants filed Interim Application No. 557 of 2022 seeking declaration that the suit is not a commercial dispute. The application was heard and dismissed on 26 February 2022.
Acts & Sections
- Commercial Courts Act, 2015: Section 2(1)(c)
