Case Note & Summary
The Civil Revision Petition was filed by the petitioners (defendants in the suit) challenging the docket order dated 24.03.2022 passed by the Principal District Judge, Thiruvallur, registering the suit as a commercial suit. The respondents 1 and 2 (plaintiffs) had filed a suit seeking a declaration that various sale deeds executed by them in favour of the defendants 1 and 2 were null and void and for a consequential permanent injunction. The suit was originally filed as an ordinary suit, but the Trial Court registered it as a commercial suit. The petitioners entered appearance and filed an application (I.A.No.4 of 2023) seeking to convert the suit from a commercial suit to an ordinary original suit, which was dismissed. The petitioners then filed a revision before the High Court in C.R.P.No.1857 of 2024, which was dismissed on the technical ground that they had failed to challenge the earlier order dated 24.03.2022. Thereafter, the petitioners filed the present revision under Article 227 of the Constitution of India challenging the order dated 24.03.2022. The petitioners argued that the prayer in the plaint does not fall within the definition of 'commercial dispute' under Section 2(1)(c) of the Commercial Courts Act, 2015. The respondents contended that the petitioners had participated in the proceedings and the earlier revision had been dismissed, so they were not entitled to challenge the order. The High Court examined Section 2(1)(c) of the Commercial Courts Act, 2015 and held that the suit for declaration of sale deeds as void and for injunction does not arise out of ordinary transactions of merchants, bankers, financiers and traders or any other category specified in the definition. Therefore, the suit is not a commercial dispute. The Court allowed the revision petition, set aside the docket order dated 24.03.2022, and directed the Trial Court to return the plaint to the plaintiffs for presentation before the appropriate court having jurisdiction.
Headnote
A) Commercial Law - Commercial Dispute - Definition - Section 2(1)(c) Commercial Courts Act, 2015 - Suit for declaration that sale deeds are null and void and for permanent injunction does not arise out of ordinary transactions of merchants, bankers, financiers and traders or any other category under Section 2(1)(c) - Held that such a suit is not a commercial dispute and the Trial Court erred in registering it as a commercial suit (Paras 5-6).
Issue of Consideration
Whether a suit seeking declaration that sale deeds are null and void and for consequential permanent injunction falls within the definition of 'commercial dispute' under Section 2(1)(c) of the Commercial Courts Act, 2015, and whether the Trial Court erred in registering the suit as a commercial suit.
Final Decision
The Civil Revision Petition is allowed. The docket order dated 24.03.2022 passed by the Principal District Judge, Thiruvallur in O.S.(S.R.).No.6398 of 2022, subsequently numbered as O.S.No.153 of 2022, is set aside. The Trial Court is directed to return the plaint to the plaintiffs for presentation before the appropriate court having jurisdiction. No costs. Consequently, the connected miscellaneous petition is closed.
Law Points
- Interpretation of 'commercial dispute' under Section 2(1)(c) of Commercial Courts Act
- 2015
- Suit for declaration of sale deeds as void and injunction not a commercial dispute
- Challenge to docket order registering suit as commercial suit maintainable under Article 227
Case Details
C.R.P.No.3016 of 2024 and C.M.P.No.16218 of 2024
Mr.Ralph V.Manohar, Mr.R.Munuswamy
M/s.B.M.B. Foundations Private Limited, M/s. B.M.B. Foundations Private Limitted, Arvind Bagrecha
A.Mohanasundaram, M.Bhuvaneswari, M/s.Team Housing and Developers, V.Rameshvasan
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Nature of Litigation
Civil Revision Petition under Article 227 of the Constitution of India challenging the docket order of the Principal District Judge, Thiruvallur registering the suit as a commercial suit.
Remedy Sought
The petitioners sought to set aside the docket order dated 24.03.2022 and to return the plaint in O.S.No.153 of 2022 to be presented to the court in which the suit should have been initiated.
Filing Reason
The Trial Court registered the suit as a commercial suit despite the suit seeking declaration of sale deeds as null and void and permanent injunction, which does not fall within the definition of 'commercial dispute' under the Commercial Courts Act, 2015.
Previous Decisions
The petitioners' earlier application (I.A.No.4 of 2023) seeking conversion of the suit from commercial to ordinary was dismissed by the Trial Court. The revision against that dismissal (C.R.P.No.1857 of 2024) was dismissed on technical ground for not challenging the original docket order.
Issues
Whether the suit for declaration that sale deeds are null and void and for permanent injunction is a 'commercial dispute' under Section 2(1)(c) of the Commercial Courts Act, 2015?
Whether the Trial Court erred in registering the suit as a commercial suit?
Submissions/Arguments
Petitioners argued that the prayer in the plaint does not fit into the definition of 'commercial dispute' under Section 2(1)(c) of the Commercial Courts Act, 2015, and thus the Trial Court erred in registering the suit as a commercial suit.
Respondents argued that the petitioners participated in proceedings and belatedly filed an application for conversion, which was dismissed and confirmed by this Court, so they are not entitled to challenge the earlier order.
Ratio Decidendi
A suit seeking declaration that sale deeds are null and void and for permanent injunction does not arise out of ordinary transactions of merchants, bankers, financiers and traders or any other category specified in Section 2(1)(c) of the Commercial Courts Act, 2015, and therefore is not a commercial dispute. The Trial Court erred in registering such a suit as a commercial suit.
Judgment Excerpts
Section 2(1)(c) of the Commercial Courts Act, 2015 reads as follows:- “2.(1)(c) “commercial dispute” means a dispute arising out of- (i) ordinary transactions of merchants, bankers, financiers and traders such as those relating to...”
The prayer sought for in the plaint will not fit into to the definition of commercial disputes.
Procedural History
The respondents 1 and 2 filed a suit (O.S.(S.R.).No.6398 of 2022) seeking declaration and injunction. The Trial Court registered it as a commercial suit on 24.03.2022. The petitioners entered appearance and filed I.A.No.4 of 2023 seeking conversion to ordinary suit, which was dismissed. The petitioners filed C.R.P.No.1857 of 2024 against that dismissal, which was dismissed on technical ground for not challenging the original docket order. Thereafter, the petitioners filed the present revision under Article 227 challenging the docket order dated 24.03.2022.
Acts & Sections
- Commercial Courts Act, 2015: Section 2(1)(c)
- Constitution of India: Article 227
