Supreme Court: Money Recovery Suit Won't Be Commercial Suit Unless Disputed Property Is 'Actually Used' In Trade and Commerce

 The above issue was considered in Ambalal Sarabhai Enterprises

Limited v. K.S. Infraspace LLP & Anr. reported in (2020) 15 SCC 585 where the implication of Section 2(1)(c)(vii) was construed. In

the concurring judgment, the following was expressed by Justice

Banumathi:

“37. A dispute relating to immovable property per se

may not be a commercial dispute. But it becomes a

commercial dispute, if it falls under sub-clause

(vii) of Section 2(1)(c) of the Act viz. “the

agreements relating to immovable property used

exclusively in trade or commerce”. The words “used

exclusively in trade or commerce” are to be

interpreted purposefully. The word “used” denotes

“actually used” and it cannot be either “ready for

use” or “likely to be used” or “to be used”. It

should be “actually used”. Such a wide interpretation

would defeat the objects of the Act and the fast

tracking procedure discussed above.” {Para }

 S U P R E M E C O U R T O F I N D I A

 RECORD OF PROCEEDINGS

SPECIAL LEAVE PETITION (CIVIL) Diary No(s). 2986/2024

S.P. VELAYUTHAM & ANR. Vs M/S EMAAR MGF LAND LIMITED.

CORAM : HON'BLE MR. JUSTICE HRISHIKESH ROY

 HON'BLE MR. JUSTICE PRASHANT KUMAR MISHRA

 Date : 26-02-2024 .

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Whether suit for recovery of money can be filed as Commercial Suit?

The counsel for the plaintiffs, on being asked to show under which Clause of Section 2(1)(c) of the Commercial Courts Act, 2015, the present claim constitutes a commercial dispute, draws attention to clause (i) of Section 2(1)(c) of the Commercial Courts Act but which provides for “ordinary transactions of merchants, bankers, financiers and traders such as those relating to mercantile documents, including enforcement and interpretation of such documents” to constitute commercial disputes.

30. However, all suits for recovery of monies cannot fall under Clause (i) supra of Section 2(1)(c) of the Commercial Courts Act. Suffice it is to state that the suit is not based on any transaction relating to mercantile documents. Thus, the suit is found to have been wrongly filed as a commercial suit.

31. The Registry to re-number the suit as an ordinary suit.

In the High Court of Delhi at New Delhi

(Before Rajiv Sahai Endlaw, J.)

Kailash Devi Khanna   v.  DD Global Capital Ltd.

CS(COMM) 34/2016 & IAs No. 7958/2018 

Decided on August 28, 2019

Citation: 2019 SCC OnLine Del 9954

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