Madras High Court
Vaata Smart Private Ltd vs The Repatriates Co-Operative Finance ... on 18 November, 2025
C.S. No.541 of 2007
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 18.11.2025
CORAM
THE HONOURABLE DR. JUSTICE R.N.MANJULA
C.S. No.541 of 2007
and A.Nos.5128 & 307 of 2025
Vaata Smart Private Ltd.,
Registered Office at
th
No.16, Cenotaph Road, 4 Floor,
Teynampet,
Chennai – 600 018. ... Plaintiff
(Amended as per order dated 29.11.2024 passed in A.No.5717/2024)
Vs.
The Repatriates Co-operative Finance and
Development Bank Ltd., (Repco Bank Ltd.,)
REPCO Tower, No.33, North Usman Road,
Chennai – 600 017. ... Defendants
Civil Suit is filed under Order IV Rule 1 C.P.C. of O.S.Rules read
with Order VII Rule 1 C.P.C. to pass a judgment and decree against the
defendants by:
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C.S. No.541 of 2007
i) directing the Defendant to execute and register the sale deed in
respect of the schedule mentioned property in favour of the Plaintiff or their
nominee and further directing the Defendant to make good and refund the
excess payment of Rs.9,30,90,495/- (Rupees Nine Crores thirty lakhs ninety
thousand four hundred and ninety five only) to the Plaintiff together with
future interest at 14% per annum compounded at monthly rests from 30-06-
2007 till the date of payment.
i a) Or in the alternative directing the Defendant to refund of the sale
advance and all other payments made to the Defendant, amounting to a sum
of Rs. 7,49,96,209/- (Rupees Seven Crores forty nine lakhs ninety six
thousand two hundred and nine only) towards the principal, and together
with compensation for interest loss, amounting to Rs. 8,40,94,286/- (Rupees
Eight Crores forty lakhs ninety four thousand two hundred and eighty six
only) both aggregating to Rs.15,90,90,495/- (Rupees Fifteen Crores ninety
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C.S. No.541 of 2007
lakhs ninety thousand four hundred and ninety five only) as on 30-06-2007,
together with further pendente lite interest at 14%, compounded monthly, till
the date of payment.
(Amended as per order dated 21.06.2023 passed in Application No.337 of
2022)
ii) directing the Defendant to hand over all the original title deeds
pertaining to the Schedule mentioned property to the Plaintiff.
iii) for permanent Injunction restraining the Defendant their men,
servants and agents or any one claiming through or under them from selling,
alienating, encumbering, disposing of or dealing with the schedule
mentioned property or interfering with the Plaintiff’s peaceful possession
and enjoyment of the schedule mentioned property in any manner
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C.S. No.541 of 2007
whatsoever.
iv. declaring that the Defendant is liable to pay the additional stamp
duty and registration charges as on the date of registration of the sale deed,
consequential to the increase in the guideline value of the Schedule B
property;
v. directing the Registrar, Original Side, High Court Madras, to deliver the
original lease deeds pertaining to the Schedule mentioned property which
have been deposited into this Hon’ble Court in C.S.No.306 of 1999;
vi) directing the Sub-Registrar, Chennai Central to register the sale
deed in favour of the Plaintiff herein in terms of the Schedule mentioned
property within thirty days from the decree copy being handed over to the
Plaintiff.
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C.S. No.541 of 2007
vii) For the costs of the suit.
For Plaintiff : Mr.M.S.Krishnan, Senior Counsel
for Mr.S.K.Srinivasan
For Defendant : Mr.A.Ilangovan
JUDGMENT
The learned counsel for the plaintiff that the suit will fall before the
Bench dealing with Commercial Suits. It is further stated that both the
parties are juridical and commercial entities and as per Section 15(2) of the
Commercial Courts Act, 2015, all suits and applications relating
to a commercial dispute of specified value pending in any Civil Court have
to be transferred to the Commercial Division. This is irrespective of the fact
whether issues are framed or evidence is commenced. So it is claimed by the
plaintiff that the matter has to be transferred to the Commercial Division
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Court.
2. In the present suit the issues are framed and trial has been
commenced and proof affidavit of P.W.1 has been filed. It is submitted that
the suit property, which the subject matter of the suit, is also commercial in
nature and hence it has to be transferred to the Commercial Court division.
Various documents have been produced to show that the suit property is a
commercial property. No doubt the plaintiff is a company and the defendant
is also involved in a business. Even the defendant did not quarrel that there
are commercial entities functioning in the suit property. But the only
contention of the defendant is that all those developments are subsequent to
the mortgage and hence such developments cannot be taken into account. It
is further submitted that the plaintiff had availed loan for Rs.7 Crores as
mortgage loan from the defendant by creating a registered mortgage deed.
3. Section 2 (1) (c) of the Commercial Courts Act describes as under:
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“ 2. (1) .. (c) “commercial dispute” means a dispute arising out
of -
i) ordinary transactions of merchants, bankers, financiers and traders
such as those relating to merchantile documents, including enforcement
and interpretation of such documents;
ii) export or import of merchandise or services;
iii) issues relating to admiralty and maritime law;
iv) transactions relating to aircraft, aircraft engines, aircraft equipment
and helicopters, including sales, leasing and financing of the same;
v) carriage of goods;
vi) construction and infrastructure contracts, including tenders;
vii) agreements relating to immovable property used exclusively in trade
or commerce;
viii) franchising agreements;
ix) distribution and licensing agreements;
x) management and consultancy agreements;
xi) joint venture agreements;
xii) shareholders agreements;
xiii) subscription and investment agreements pertaining to the services
industry including outsourcing services and financial services;
xiv) technology development agreements;
xv) partnership agreements;
xvi) technology development agreements;
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xvii) intellectual property rights relating to registered and unregistered
trademarks, copyright, patent, design, domain names, geographical
indications and semi-conductor integrated circuits;
xviii) agreements for sale of goods or provisions of services;
xix) exploitation of oil and gas reserves or other natural resources
including electro-magnetic spectrum;
xx) insurance and re-insurance;
xxi) contracts of agency relating to any of the above; and
xxii) such other commercial disputes as may be notified by the Central
Government.”
4. Even though the suit is filed for the relief of specific performance
and the suit sale agreement has not been explicitly agreed for conducting
any commercial activities, the fact remains that the suit property is used as a
commercial property. As per Section 2(1)(c) and15(2) of The Commercial
Court Act, the present suit falls within the purview of commercial division
and thus it has to be transferred to the Commercial Division Court.
5. In view of the above observations, the Registry is directed to
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transfer this suit to the Commercial Division of this Court.
13.11.2025
Index : Yes/No
Speaking Order : Yes / No
bkn
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R.N.MANJULA, J.,
bkn
13.11.2025
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