Case Note & Summary
The dispute arose from a Civil Revision Petition filed under Section 115 of the Code of Criminal Procedure, 1973 (Cr.PC) against an order passed by the Principal District Judge (Commercial Court) at Cuddalore. The petitioner, Soundararajan Cashews, represented by its Proprietrix S.R. Kavitha, sought to set aside the order dated 20.07.2026, which rejected their application for the rejection of the plaint in a suit filed by African Kaju Trading Pvt Ltd for recovery of money. The petitioner contended that the transaction was merely a loan and did not constitute a commercial transaction as defined under Section 2(1)(c) of the Commercial Courts Act, 2015. The petitioner also argued that the suit was entertained without following the mandatory pre-litigation mediation process under Section 12A of the Act. The court analyzed the nature of the transaction, noting that both parties were engaged in the cashew business and that the loan was intended to clear claims raised by another merchant. The court concluded that the transaction was indeed a commercial dispute, as it involved two merchants in the course of their business. The court further noted that the lower court had already granted leave to dispense with the mediation requirement, thus rejecting the second ground for rejection of the plaint. Ultimately, the court upheld the lower court's order and dismissed the Civil Revision Petition, imposing no costs.
Headnote
A) Commercial Law - Definition of Commercial Transaction - Transaction qualifies as commercial dispute - Commercial Courts Act, 2015, Section 2(1)(c) - The court held that the transaction between two merchants involved in the same field of business constituted a commercial dispute, rejecting the argument that it was merely a loan transaction. (Paras 12-13) B) Civil Procedure - Rejection of Plaint - Grounds for rejection not satisfied - Code of Civil Procedure, 1908, Order VII Rule 11 - The court found that the lower court had granted leave to dispense with pre-litigation mediation, thus the plaint could not be rejected on that ground. (Paras 14-14)
Issue of Consideration
Whether the transaction in question qualifies as a commercial dispute under the Commercial Courts Act, 2015 and whether the plaint was liable to be rejected for not following pre-litigation mediation requirements.
Final Decision
The court upheld the order of the lower court and dismissed the Civil Revision Petition, stating that the transaction was a commercial dispute and the requirements for pre-litigation mediation had been satisfied.
Law Points
- Commercial transaction definition
- rejection of plaint
- pre-litigation mediation
- Section 115 Cr.PC
- Order VII Rule 11 CPC
- Section 2(1)(c) Commercial Courts Act
- 2015
