Calcutta High Court
Gyan Traders Limited vs Mahendra Kumar Agarwal on 4 September, 2024
Author: Sugato Majumdar
Bench: Sugato Majumdar
OD 13
IN THE HIGH COURT AT CALCUTTA
Ordinary Original Civil Jurisdiction
ORIGINAL SIDE
CS/141/2024
[OLD NO CS/233/2019]
IA NO: GA/1/2019(Old No:GA/2583/2019),
GA-COM/2/2024
GYAN TRADERS LIMITED
VS
MAHENDRA KUMAR AGARWAL
BEFORE:
The Hon'ble JUSTICE SUGATO MAJUMDAR
Date : 4th September, 2024.
Appearance:
Mr. Nirmalya Dasgupta, Adv.
Ms. Pritha Basu,Adv.
Mr. Saptarshi Kar,Adv.
...for the plaintiff.
Mr. Rohit Banerjee,Adv.
Mr. Suryaneel Das,Adv.
Mr. Aditya Halder, Adv.
Ms. Srishti Das, Adv.
...for the defendant.
The Court:- In terms of Order dated 20th June, 2024, this Court
observes that the suit was transferred to Commercial Division without any
Order of the Co-ordinate Bench. The Co-ordinate Bench noted in the Order
dated 14.03.2024 that the matter was listed in Commercial Division but
there was no Order of transfer. As a result, although once transferred to the
Commercial Division without any sanctity the suit was re-transferred to the
Ordinary Original Civil Jurisdiction. GA-COM/2/2024 is actually pending for
transfer of the suit to Commercial Division, fate of which is yet to be decided.
In the plaint, it is averred that the plaintiff is a non-banking financial
institute and lent a sum of Rs.50,00,000/- to the defendant for the purpose
of business; the loan was advanced in the usual course of business.
Mr. Dasgupta, learned Advocate for the plaintiff submits that at the
time of institution of the suit, the value of which is Rs.51,64,382/-, the suit
did not come within jurisdiction of Commercial Division because of specific
valuation. At that time, pecuniary jurisdiction was above Rs.1crore.
Subsequently, the limit of pecuniary jurisdiction was lowered bringing the
suit within the ambit of Commercial Division.
Mr. Banerjee, learned Advocate for the defendant submits that the
proper way of transfer is to return the plaint under Order 7 Rule 10 of C.P.C.
Mr. Banerjee relies on two decisions of a Co-ordinate Bench. One
passed in "RVWO 10 of 2023 in ANE Industries Private Limited versus
J.K. Engineering Private Limited" and a previous reported Judgment
passed in AIR 2021 Cal 190 "Laxmi Polyfab Private Limited versus Eden
Realty Ventures Private Limited".
In RVWO 10 of 2023, initially, specified value was not less than Rs.1
crore and the suit filed by the plaintiff was more than Rs. 1 crore. In view of
that, it was observed and concluded that the suit could not be transferred to
the Commercial Division but the plaint should be returned to the plaintiff
for presentation before the proper Court.
In Laxmi Polyfab (supra), a Co-ordinate Bench of this Court observed
as follows:-
"69. Section 15 has a terminus by reason of the user of the word
„pending‟. The terminus is the date when the Specified Value is
notified. The terminus shifts with the reworking of the Specified Value.
In other words, in a given case, if the authorities issue a notification
stipulating that the Specified Value under the Act of 2015 would be
Rs.3 lakhs then, all suits and applications relating to a commercial
dispute of such Specified Value pending in a High Court where there is
a Commercial Division and in any Civil Court in respect of which a
Commercial Court has been constituted, shall be transferred to the
Commercial Division or the Commercial Court as the case may be."
This Judgment was subsequently affirmed by the Supreme Court in
"Patil Automation (P) Ltd. vs. Rakheja Engineers (P) Ltd., (2022) 10 SCC
1".
In terms of the Notification dated 15.11.2018, issued by the
Government of West Bengal value of Commercial Disputes in respect of
Commercial Division was "not less than Rupees One Crore". A subsequent
Gazette Notification dated 20.03.2020 conferred pecuniary jurisdiction on
the Commercial Division for trying commercial suits having value exceeding
rupees ten lakhs.
This suit was filed when specified value of Commercial Division was
Rs.1 crore or more disabling the suit to be filed in Commercial Division.
Subsequently, specified value was lowered by virtue of which the instant
application could be heard in the Commercial Division and should be
transferred to that. Accordingly, the instant application filed being GA-
COM/2/2024 is allowed.
Let the suit be transferred to Commercial Division.
The Department shall take necessary steps accordingly.
The parties shall comply with the provision of the Commercial Courts
Act, 2015.
The suit will appear in the list on 19th November, 2024.
GA-COM/2/2024 is disposed of.
(SUGATO MAJUMDAR, J.)
D.Ghosh
AR(CR)
