In order to appreciate the controversy, we would first reproduce the relevant definition clause, i.e. 2 (1) (c) (vii), as also the explanation thereto:-
"Definitions.-(1) In this Act, unless the context otherwise requires-
(c) "commercial dispute" means a dispute arising out of-
(vii) agreements relating to immoveable property used exclusively in trade or commerce;
Explanation.-A commercial dispute shall not cease to be a commercial dispute merely because-
(a) It also involves action for recovery of immoveable property or for realisation of monies out of immoveable property given as security or involves any other relief pertaining to immoveable property;
(b) One of the contracting parties is the State or any of its agencies or instrumentalities, or a private body carrying out public functions;"
It cannot be disputed that action for recovery of immoveable property would be covered under sub-clause (vii) to clause (c) when the immoveable property is exclusively used in trade or commerce. Read in this manner, we do not think that claim for recovery of rent or mesne profit, security deposit etc., relating to immoveable property which was used exclusively in trade or commerce should not be treated as a commercial dispute in view of the language, ambit and scope of sub-clause (vii) to clause (c) to Section 2 of the Act. These would qualify and have to be regarded as commercial disputes. The use of expression "any other relief pertaining to immoveable property" would mean disputes relating to breach of agreement and damages payable on account of breach of agreement would be covered under sub-clause (vii) to clause (c) to Section 2 of the Act when it is arising out of agreement relating to immoveable property exclusively used in trade and commerce.
IN THE HIGH COURT OF DELHI
FAO (OS) No. 166/2016
Decided On: 22.09.2017
Jagmohan Behl Vs. State Bank of Indore
Hon'ble Judges/Coram:
Sanjiv Khanna and A.K. Chawla, JJ.
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"Definitions.-(1) In this Act, unless the context otherwise requires-
(c) "commercial dispute" means a dispute arising out of-
(vii) agreements relating to immoveable property used exclusively in trade or commerce;
Explanation.-A commercial dispute shall not cease to be a commercial dispute merely because-
(a) It also involves action for recovery of immoveable property or for realisation of monies out of immoveable property given as security or involves any other relief pertaining to immoveable property;
(b) One of the contracting parties is the State or any of its agencies or instrumentalities, or a private body carrying out public functions;"
It cannot be disputed that action for recovery of immoveable property would be covered under sub-clause (vii) to clause (c) when the immoveable property is exclusively used in trade or commerce. Read in this manner, we do not think that claim for recovery of rent or mesne profit, security deposit etc., relating to immoveable property which was used exclusively in trade or commerce should not be treated as a commercial dispute in view of the language, ambit and scope of sub-clause (vii) to clause (c) to Section 2 of the Act. These would qualify and have to be regarded as commercial disputes. The use of expression "any other relief pertaining to immoveable property" would mean disputes relating to breach of agreement and damages payable on account of breach of agreement would be covered under sub-clause (vii) to clause (c) to Section 2 of the Act when it is arising out of agreement relating to immoveable property exclusively used in trade and commerce.
IN THE HIGH COURT OF DELHI
FAO (OS) No. 166/2016
Decided On: 22.09.2017
Jagmohan Behl Vs. State Bank of Indore
Hon'ble Judges/Coram:
Sanjiv Khanna and A.K. Chawla, JJ.
