The Calcutta High Court while returning a suit to be filed before a proper forum opined that when the suit is for eviction and recovery of possession concerning a property where a business is run and the property is used for commercial purposes, the suit would be a commercial suit.
Brief Facts:
The suit is filed by the Plaintiff for eviction, recovery of possession, and mesne profit against the Defendant. The present application has been filed by the Defendant seeking the return/transfer of the plaint to the appropriate Court having jurisdiction to try the suit.
Contentions of the Defendant:
The Defendant contended that the premises referred to in the plaint show that the Defendant is running a business in the said premises. Based on this, it is argued that the suit should be transferred to an appropriate forum in accordance with Section 2(1)(c)(vii) of the Commercial Courts Act, 2015 (hereinafter referred to as “CCA”).
Contentions of the Plaintiff:
The Plaintiff argued that as per Section 2(1)(c)(vii) CCA, there should be an agreement between the parties that shows that Plaintiff let out the premises to the Defendant for business however, in the present case there is no such agreement between the parties. It was contended that the premises were let out to the partners of M/s Gecko Electricals. It was much later discovered that the partners were not associated with the Defendants and that the possession has been handed over to the Defendant No.1 and 2 with whom there was no such relationship. There is no relationship between the Plaintiff and the Defendants and therefore, this Court has the jurisdiction to try.
Observations of the Court:
The Court observed that the Plaintiff has himself admitted that the property consists of shops and is mainly for commercial purposes. It is also admitted that the property was let out for a shop. It was noted that the business is being run by the Defendant No. 3 in the shop and Defendants No.1 and 2 are the partners.
The decision of the Court:
Therefore, the High Court opined that the Defendants are in use of the said property for business purposes and the same would be a commercial dispute. Hence, the suit was returned to be presented to the proper Court.
Cause Title: Maharshi Commerce Limited v. Rajiv Balani & Ors.
Bench: Hon’ble Justice Krishna Rao
Decided on: November 10th, 2022
Read Judgment @LatestLaws.com
Picture Source :
