Tirumala Durgarao Veerapaneni vs M/S. Titagarh Wagon Ltd
2024 Latest Caselaw 2948 Cal/2

Calcutta High Court

Tirumala Durgarao Veerapaneni vs M/S. Titagarh Wagon Ltd on 18 September, 2024

Author: Sugato Majumdar

Bench: Sugato Majumdar

OD - 10

                                  ORDER SHEET
                     IN THE HIGH COURT AT CALCUTTA
                ORDINARY ORIGINAL CIVIL JURISDICTION
                                 ORIGINAL SIDE

                                    CS/110/2019
                                 IA NO: GA/3/2021

                     TIRUMALA DURGARAO VEERAPANENI
                                    VS
                         M/S. TITAGARH WAGON LTD


BEFORE:
THE HON'BLE JUSTICE SUGATO MAJUMDAR
Date: 18th September, 2024
                                                                          Appearance:
                                                Mr. Pratyush Patwari, Adv.

                                                              ...for the Plaintiff.

                                                Mr. Sayantan Bose, Adv.
                                                Ms. Ankita Choudhury, Adv.

                                                               ...for the Defendant.


      The Court: GA 3 of 2021 is filed on behalf of the Defendant praying for

rejection of the plaint. Contention in the application is that the dispute between the

Plaintiff and the Defendant is a commercial one within meaning of Section 2 (vi) of

the Commercial Courts Act, 2015. Institution of the present suit, as pleaded, is

barred by law as the Plaintiff has neither exhausted the procedure prescribed in

Section 12A of the Commercial Courts Act, 2015 nor obtained leave for dispensation

thereof.
                                                                                      2|Page


       Affidavit-in-Opposition, filed by the Plaintiff refutes all the contentions made

in the application.


       I have heard rival submissions of the Counsels.


       Both the Counsels agreed that the suit involves commercial dispute. Prima

facie reading of the plaint impressed that the plaint discloses the dispute arising out

of contract for service by way of providing labour forces.


       Chapter IIIA containing Section 12A was inserted in the Commercial Courts

Act, 2015 by the Commercial Courts, Commercial Division and Commercial

Appellate Division of High Courts (Amdt.) Act, 2018 (Act 28 of 2018), dated

21/08/2018

w.e.f. 03/05/2018. The suit was filed on 27/06/2019, after the

amendment. Notification for Pre-Institution Mediation and Settlement was

published by the State Legal Services Authority in terms of the Notification dated

11/12/2020 after institution of the suit.

In Patil Automation (P) Ltd. v. Rakheja Engineers (P) Ltd.[(2022)

10 SCC 1] it was ruled by the Supreme Court of India :

"113.1. We declare that Section 12-A of the Act is mandatory and hold that

any suit instituted violating the mandate of Section 12-A must be visited with

rejection of the plaint under Order 7 Rule 11. This power can be exercised

even suo motu by the court as explained earlier in the judgment. We,

however, make this declaration effective from 20-8-2022 so that stakeholders

concerned become sufficiently informed."

Since notification on pre-institution mediation and settlement was published

after the institution of the suit, the plaint should not face the fate of rejection in view

of rulings made in Patil Automation's case as quoted above. In the circumstances

3|Page

it is proper that the suit should be transferred to the commercial division. Therefore,

it is ordered that the instant suit be transferred to the commercial division. The

Department shall take necessary steps for conversion. Parties shall take steps under

provisions of Commercial Court Act, 2015.

The instant GA 3 of 2021 stands accordingly disposed of.

Let the suit appear in the list on 12th December, 2024.

Sugato Majumdar, J