Delhi High Court
Bimla Aggarwal vs M/S Gupta International & Ors on 2 November, 2016
$~A-11
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of decision : 2.11.2016
+ TR.P.(C.) 117/2016 & CM Nos.38068-38069/2016
BIMLA AGGARWAL ..... Petitioner
Through Mr.P.D.Gupta, Sr.Adv.with
Mr.Abhishek Gupta, Advocate
versus
M/S GUPTA INTERNATIONAL & ORS ..... Respondent
Through Mr.Anil Kumar Gupta, Ms.Nishtha
Garg and Mr.Abhishek Rana, Advocates for R-1 to
R-3
CORAM:
HON'BLE MR. JUSTICE JAYANT NATH
JAYANT NATH, J. (ORAL)
1. By the present petition filed under section 24 of the Code of Civil
Procedure the petitioner seeks transfer of Suit No.226 /2016 (re-numbered as
CS(OS)612827/2016) titled as M/s Gupta International and Others vs.
Ashok Kumar Singhal & Another pending in the court of Ms.Savita Rao,
Additional District Judge (West) to be tried before Commercial Division of
this court. The admitted case of the parties is that the subject matter of the
suit is a commercial dispute. M/s Gupta International, Smt.Bimla Gupta and
Shri Om Prakash Gupta i.e. the respondents No.1 to 3 filed a suit against the
petitioner and respondent No.4 on the original side of this Court in respect
of a dispute relating to partnership agreement between the parties. The suit
CM(M)836/2013 Page 1
was transferred by this Court vide order dated 10.5.2016 to the Court of
Additional District Judge, West in view of Notification No.27187/DHC/
Orgl. Dated 24.11.2015.
2. The petition relies upon a circular of this Court dated 28.4.2016 to
contend that the suit is now to be tried by a Commercial Division of this
court.
3. Learned senior counsel appearing for the petitioner relies upon a
judgment of this Court in the case of Kamal Sharma & Ors. vs. Blue Coast
Infrastructure Development Pvt Ltd., 229(2016) DLT 438 to contend that
in pending suits involving commercial disputes which were pending before
this Court and were transferred to the District Court vide notification
No.27187/DHC/Orgl. dated 24.11.2015 are to be re-transferred back to this
court to be heard by the Commercial Division of this Court.
4. The notification dated 28.4.2016 issued by the Registrar General of
this Court reads as follows:-
"Hon'ble the Chief Justice vide Notification dated 28 th April,
2016 has been pleased to order issuance of the following
addendum to Notification No.27187/DHC/Orgl. dated
24.11.2015:-
"All suits and applications covered by the first proviso
to Section 7 of the Commercial Courts, Commercial
Division and Commercial Appellate Division of High
Courts Act, 2015 filed or pending as on 26.10.2015 on
the Original Side of the Delhi High Court, shall remain
in the Delhi High Court and shall be heard and
disposed of by the Commercial Division of Delhi High
Court."
In terms of the said addendum, all suits and applications relating
to commercial disputes stipulated by an Act to lie in a Court not
CM(M)836/2013 Page 2
inferior to a District Court, which have been transferred to the
District Courts pursuant to the Notification No.27187/DHC/Orgl.
Dated 24.11.2015 shall be recalled back to the Delhi High Court
for being heard and disposed of by the Commercial Division of
Delhi High Court. Parties to such suits or applications may also
approach the concerned District Courts for sending such suits or
applications to Delhi High Court for disposal by the Commercial
Division of Delhi High Court. All such suits and applications
that shall be recalled, on receipt from the District Courts, in the
first instance shall be listed before the Joint Registrars for
fixation of dates for listing before the Commercial Division of
the Delhi High Court."
5. The said Notification dated 28.4.2016 is issued as an addendum to the
earlier Notification dated 24.11.2015. The said Notification dated 28.4.2016
states that suits and applications of commercial disputes which were
transferred to the District Court vide Notification dated 24.11.2015 are to be
recalled back to be heard by the Commercial Division of this Court.
6. This court in the case of Kamal Sharma & Ors. vs. Blue Coast
Infrastructure Development Pvt Ltd. (supra) also noted that even suits or
applications which fell below the specified value of Rs.1 crore being
pending commercial disputes will continue to be heard by the commercial
division of this court. Relevant portion of the judgment reads as follows:-
"17. Consequently, pending cases involving a commercial
dispute of the specified value of Rs.1 crore and above, were
retained in this Court for purpose of trial.
18. So far as the suits and applications, which were filed and
pending prior to the enforcement of the Commercial Courts
Act are concerned, the first proviso to Section 7 carves out a
limited exception by providing that all suits and applications
relating to commercial disputes, "stipulated by an Act to lie in
a Court not inferior to a District Court", and filed or pending
CM(M)836/2013 Page 3
on the original side of the High Court, shall be heard and
disposed of by the Commercial Division of the High Court.
This means that even if such suits or applications fall below
the specified value of Rs.1 crore, the pending commercial
disputes would continue to be heard by the Commercial
Division of the High Court, provided that such commercial
disputes, under a statutory stipulation, could lie in a Court not
inferior to the Court of a District Court."
7. Reference may also be had to the judgment of this Court in the case
of Guiness World Records Limited vs. Sababbi Mangal, 230 (2016) DLT
377 wherein it was noted as follows:-
"8.It is clear that the expression 'and filed' has been elaborated
by the Legislature to mean those cases which are filed or
pending i.e even if a case is pending as on the date of bringing in
the Commercial Courts, Commercial Division and Commercial
Appellate Division of High Courts Act, 2015, such pending
cases will be continued to be tried by the Commercial Division
of the High Court irrespective of these matters not being above
the specified value and being below the specified value upto Rs.
1 crore. There cannot be any other interpretation of the
expression being of the words and 'filed or pending' as found in
the first proviso to Section 7 of the Act of 2015. If these words
are to be interpreted to mean that cases which are filed and
pending will have to be transferred since their pecuniary value is
less than rupees one crore, then the same will defeat the
intention of the legislature in changing the language of the first
proviso to Section 7 whereby the words 'and filed' has been
amended to 'and filed or pending'."
8. It is manifest from a reading of the above Notification and judgments
of this court that the matter being a commercial dispute which was pending
before this court and was transferred to the District Court in view of the
earlier Notification dated 24.11.2015 has now to be re-transferred back to be
CM(M)836/2013 Page 4
heard by the Commercial Division of this court.
9. The present petition is accordingly allowed. The matter will stand
transferred from the court of Ms.Savita Rao, Additional District Judge
(West) and will be listed before the concerned Joint Registrar on
21.12.2016.
10. Petition and all pending applications stand disposed of accordingly.
JAYANT NATH, J
NOVEMBER 02, 2016
n
CM(M)836/2013 Page 5
