Case Note & Summary
The case involves a civil revision petition filed by the petitioners (defendants in the suit) challenging the 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 declaration that various sale deeds executed by them in favour of the defendants were null and void and for 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 later filed an application (I.A.No.4 of 2023) seeking conversion of the suit from commercial to 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 not challenged the earlier order dated 24.03.2022 registering the suit as a commercial suit. Thereafter, the petitioners filed the present revision challenging that order. The legal issue was whether the suit falls within the definition of 'commercial dispute' under Section 2(1)(c) of the Commercial Courts Act, 2015. The petitioners argued that the prayer for declaration of sale deeds as void does not fit into the definition of commercial disputes. The respondents contended that the petitioners had participated in proceedings and their earlier application for conversion was dismissed, which was confirmed by the High Court, so they cannot now challenge the registration order. The court examined Section 2(1)(c) and found that the dispute does not arise out of ordinary transactions of merchants, bankers, financiers and traders as specified in the provision. The court held that the trial court erred in registering the suit as a commercial suit and allowed the revision petition, setting aside the order dated 24.03.2022 and directing the return of the plaint for presentation before the appropriate court.
Headnote
A) Commercial Law - Commercial Dispute Definition - Section 2(1)(c) Commercial Courts Act, 2015 - Suit for Declaration of Sale Deeds as Void - The suit sought declaration that various sale deeds executed by plaintiffs in favour of defendants were null and void and for consequential permanent injunction. The court held that such a dispute does not arise out of ordinary transactions of merchants, bankers, financiers and traders as specified in Section 2(1)(c) and therefore cannot be treated as a commercial dispute. The trial court's order registering the suit as a commercial suit was set aside. (Paras 2-5) B) Civil Procedure - Maintainability of Revision - Challenge to Registration Order - The petitioners had earlier filed an application to convert the suit from commercial to ordinary suit, which was dismissed, and the revision against that dismissal was dismissed on technical ground. However, the present revision challenging the original registration order was held maintainable as the earlier dismissal did not bar the challenge to the initial order. (Paras 2-4)
Issue of Consideration
Whether a suit seeking declaration that sale deeds are null and void and for consequential 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 it 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 plaint in O.S.No.153 of 2022 shall be returned to be presented before the court in which the suit should have been initiated. Consequently, the connected miscellaneous petition is closed.
Law Points
- Commercial dispute definition
- Section 2(1)(c) Commercial Courts Act 2015
- Suit for declaration of sale deeds as void not a commercial dispute
- Challenge to registration order maintainable despite earlier dismissal of conversion application
