Case Note & Summary
The petitioners, original defendants in a suit for specific performance of an agreement to sell immovable property, filed a writ petition challenging the order of the Joint Civil Judge Senior Division, Nagpur, which refused to transfer the suit to the Commercial Court under Section 15(2) of the Commercial Courts Act, 2015. The suit was filed by respondent no.1 seeking specific performance of an agreement dated 04-04-2015, whereby petitioner no.1 agreed to sell certain immovable property. The petitioners contended that since the property was intended to be used for commercial purpose, the dispute was a 'commercial dispute' under Section 2(1)(c) of the Act, and therefore the suit ought to be transferred. The trial court rejected the application, holding that the suit for specific performance of an agreement to sell immovable property does not fall within the definition of commercial dispute. The High Court upheld this view, noting that the definition under Section 2(1)(c) does not include a suit for specific performance simpliciter. The court observed that the suit is essentially for enforcement of a contract for sale of immovable property, which is not a commercial dispute as defined. The petition was dismissed, and the trial court's order was upheld.
Headnote
A) Commercial Courts Act, 2015 - Commercial Dispute - Section 2(1)(c) - Suit for Specific Performance of Agreement to Sell Immovable Property - The suit for specific performance of an agreement to sell immovable property does not fall within the definition of 'commercial dispute' under Section 2(1)(c) of the Commercial Courts Act, 2015, even if the property is intended to be used for commercial purpose. The definition under Section 2(1)(c) does not include a suit for specific performance simpliciter. The trial court was justified in refusing to transfer the suit to the Commercial Court. (Paras 2-8)
B) Commercial Courts Act, 2015 - Transfer of Suit - Section 15(2) - Application for Transfer - The application under Section 15(2) of the Commercial Courts Act, 2015 for transfer of a suit to the Commercial Court is maintainable only if the suit is a commercial dispute as defined under Section 2(1)(c). Since the suit for specific performance of an agreement to sell immovable property is not a commercial dispute, the application for transfer was rightly rejected. (Paras 2-8)
Issue of Consideration
Whether the suit for specific performance of an agreement to sell immovable property, which is intended to be used for commercial purpose, constitutes a 'commercial dispute' under Section 2(1)(c) of the Commercial Courts Act, 2015, and whether the trial court was justified in refusing to transfer the suit to the Commercial Court under Section 15(2) of the said Act.
Final Decision
The High Court dismissed the writ petition, upholding the trial court's order refusing to transfer the suit to the Commercial Court. The court held that the suit for specific performance of an agreement to sell immovable property does not fall within the definition of 'commercial dispute' under Section 2(1)(c) of the Commercial Courts Act, 2015, and therefore the application under Section 15(2) was rightly rejected.
Law Points
- Commercial dispute
- Specific performance
- Immovable property
- Commercial purpose
- Transfer of suit
- Section 2(1)(c) Commercial Courts Act
- 2015
- Section 15(2) Commercial Courts Act
Case Details
2019 LawText (BOM) (02) 107
Writ Petition No.4080 of 2018
Mr. A.G. Gharote for petitioners, Mr. R.T. Anthony for respondent no.1, Mr. R.R. Shrivastava for respondent nos.2 and 3
Kanchanganga Realtors Pvt. Ltd, Rajesh Ashokji Dawda, Sudhanshu Mohan Degwekar
M/s Monarch Infrastructure Developers Pvt. Ltd., Dr. Mahesh Chandumal Fulwani, Narendra Dharnidhar Gandhi
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Nature of Litigation
Writ petition challenging the order of the trial court refusing to transfer a suit for specific performance to the Commercial Court under Section 15(2) of the Commercial Courts Act, 2015.
Remedy Sought
The petitioners (original defendants) sought transfer of the suit filed by respondent no.1 for specific performance of an agreement to sell immovable property to the Commercial Court, contending that it is a commercial dispute.
Filing Reason
The trial court rejected the application for transfer, holding that the suit for specific performance of an agreement to sell immovable property does not fall within the definition of 'commercial dispute' under Section 2(1)(c) of the Commercial Courts Act, 2015.
Previous Decisions
The trial court passed the impugned order dated 26-04-2018 refusing to transfer the suit.
Issues
Whether the suit for specific performance of an agreement to sell immovable property constitutes a 'commercial dispute' under Section 2(1)(c) of the Commercial Courts Act, 2015.
Whether the trial court was justified in refusing to transfer the suit to the Commercial Court under Section 15(2) of the Commercial Courts Act, 2015.
Submissions/Arguments
Petitioners argued that the immovable property in question was intended to be used for commercial purpose, and therefore the dispute falls within the definition of 'commercial dispute' under Section 2(1)(c) of the Act of 2015, and the suit ought to be transferred under Section 15(2).
Respondent no.1 opposed the application, contending that the suit for specific performance of an agreement to sell immovable property is not a commercial dispute as defined under the Act.
Ratio Decidendi
A suit for specific performance of an agreement to sell immovable property is not a 'commercial dispute' under Section 2(1)(c) of the Commercial Courts Act, 2015, even if the property is intended to be used for commercial purpose. The definition under Section 2(1)(c) does not include a suit for specific performance simpliciter. Consequently, an application under Section 15(2) for transfer of such a suit to the Commercial Court is not maintainable.
Judgment Excerpts
The question that arises for consideration in this petition is, as to whether the impugned order passed by the Court of Joint Civil Judge Senior Division, Nagpur (trial Court), in refusing to transfer the suit filed by respondent no.1, under Section 15(2) of the Commercial Courts Act, 2015 to the Commercial Court, was justified in the facts and circumstances of the present case.
It is the contention of the petitioners (original defendants) that although the suit filed by respondent no.1 pertains to a prayer for grant of decree of specific performance of agreement dated 04-04-2015, by applying definition of 'commercial dispute' under Section 2(1)(c) of the Act of 2015, the suit filed by respondent no.1 pertains to a commercial dispute and that under Section 15(2) of the Act of 2015, the suit ought to have been transferred to the Commercial Court.
Procedural History
Respondent no.1 filed a suit for specific performance of an agreement to sell immovable property before the Joint Civil Judge Senior Division, Nagpur. The petitioners (defendants) filed an application under Section 15(2) of the Commercial Courts Act, 2015 seeking transfer of the suit to the Commercial Court. The trial court rejected the application by order dated 26-04-2018. The petitioners challenged this order by filing the present writ petition before the Bombay High Court, Nagpur Bench. The High Court heard the matter and dismissed the petition on 08-02-2019.
Acts & Sections
- Commercial Courts Act, 2015: Section 2(1)(c), Section 15(2)
