Madras High Court
M/S.Bhoruka Steels Ltd vs M/S.Visveswaraya Iron And Steel Ltd on 14 October, 2025
Author: G.Jayachandran
Bench: G. Jayachandran
Tr.Appl.No.1 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 14-10-2025
CORAM
THE HONOURABLE DR JUSTICE G. JAYACHANDRAN
AND
THE HONOURABLE MR.JUSTICE MUMMINENI SUDHEER KUMAR
TR APPL No. 1 of 2025
M/s.Bhoruka Steels Ltd.,
Rep.by its Branch Manager,
No.308, (Old No.179),
III Floor, Thambu Chetty Street,
Chennai - 600 001.
... Applicant/Plaintiff
Vs.
1. M/s.Visveswaraya Iron and Steel Ltd.,
State Bank of Mysore Building,
Rep. by its Managing Director,
th
Having Office at 4 Floor,
No.231 NSC Bose Road,
Chennai - 600 001.
2.M/s.Seaways Shipping Ltd.,
Rep. by its Managing Director,
Having Office at No.51,
Armenian Street,
Chennai - 600 001.
... Respondents/Defendants
Prayer: Judges Summons under Order XIV Rule 8 of the Original Side Rules
read with Section 15(5) of Commercial Courts Act, 2015, pleased to transfer the
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Tr.Appl.No.1 of 2025
O.S.No.3744 of 2012 pending on the file of VI Additional City Civil Court at
Chennai to the Commercial Court at Egmore as mandated under Section 15(5)
of the Commercial Courts Act, 2015.
For Appellant(s): Mrs.G.Thilakavathi, Senior Advocate,
for Mr.R.Gophinath
For Respondent(s): Mr.N.Nithianandam, for R1
No appearance, for R2
ORDER
(Order of the Court was made by G.Jayachandran J.)
The suit is for recovery of money arising out of an agreement laid
against two defendants.
st
2. The 1 defendant is the importer of the merchandise through the
nd
2 defendant acting as the shipping agent. The plaintiff, as the stevedoring
agent, provided the yard for storing the merchandise imported. Due to certain
st
litigation between M/s.Dalhousie Investment Trust Company and the 1
defendant herein, the materials stored in the yard of the plaintiff not cleared and
it appears being a bailor, the plaintiff, after obtaining permission of the Court
had sold the stock to recover the dues payable by the bailee, for realization of
the balance amount, the suit has been filed.
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3. Initially, the suit was filed before the Hon'ble High Court in
C.S.No.852 of 2000 but it was later transferred to City Civil Court, Chennai, on
the ground of jurisdiction and renumbered as O.S.No.3744 of 2012.
4. When the matter is pending trial, in view of Commercial Courts
Act, 2015 as well as some of the judgments of the higher Courts, the plaintiff is
prompted to file a memo before the trial Court stating that the dispute being in
the nature of Commercial dispute, same has to be transferred to the notified
Commercial Court at Chennai.
5. The Learned Trial Judge, after considering the memo seeking
transfer of the suit to the jurisdiction Commercial Court, has passed the
following order:
“Both counsel present. Parties are not present. The
Learned Counsel for plaintiff filed a memo and submits
that the nature of the case falls under Commercial dispute.
Therefore it has to be transferred to the Commercial Court
for disposed according to Commercial Court Act. The
plaint averments carefully perused. From the averments,
it does not disclose any Commercial transaction. It is
after all a suit for recovery of money in other words. The
plaintiff claiming arrears of rent to be collected from the
defendants. In facts the prayer is recovery of money
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towards the rent payable by the defendant. The Learned
Counsel for plaintiff is required to clarify clearly whether
the present suit fall under the Commercial nature much
less. The relief is sought to recover the rent for the
premises which has been shown in the plaint schedule
mentioned property. Call on 05.12.2024.”
6. The trial Court has held that the suit is not commercial in nature
and the relief sought is for recovery of rent for the premises which has been
shown in the plaint schedule and accordingly posted the matter for trial on
05.12.2024.
7. Being aggrieved by the order of the trial Court, the appellant has
filed the present transfer application to determine whether the dispute falls
within the definition of “Commercial dispute” as defined under Section 2(1)(c)
of Commercial Courts Act, 2015.
8. The Learned Senior Counsel appearing for the applicant/plaintiff
submits that the plaintiff is a bailee for the merchandise initially imported by
st
M/s.Dalhousie Investment Trust Company for the 1 defendant Visveswaraya
Iron & Steel Limited. As a service provider, the plaintiff acting as stevedoring
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agent, stored the material in its yard. In view of the dispute between the
importer and the purchaser, i.e., the 1st defendant, the stock stored in the yard
not cleared by the parties. Therefore, the suit is for recovery of the rent. It is
incorrect on the part of the trial Court to hold that it is a simpliciter landlord-
tenant dispute and the suit is merely for recovery of rental arrears.
st
9. The Learned Counsel appearing for the 1 respondent submitted
that the merchandise stored in the premises of the plaintiff could not be cleared
by the 1st defendant in view of the litigation between the supplier namely,
M/s.Dalhousie Investment Trust Company. While the dispute between the 1st
defendant and the supplier may have the trapping of commercial dispute but not
the present dispute regarding recovery of rent, which is subject matter of
O.S.No.3744 of 2012 pending on the file of VI Additional City Civil Court,
Chennai.
10. This Court, on perusing the pleadings and Section 2(1)(c) of the
Commercial Courts Act, 2015, is of the view that the dispute pertains to the
merchandise imported and stored in the premises of the plaintiff in a capacity as
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bailer. This cannot be termed as an ordinary landlord-tenant dispute but as a
case of complex ramification dealing the responsibilities of the bailer vis-a-vis,
the clearing agent and the importer. The elements of a commercial transaction
involved in this matter palpably seen and same has to be dealt not as a landlord-
tenant dispute simpliciter but in the light of the provisions dealing with the
bailor responsibilities, duties and rights qua bailee/the 1st defendant. Therefore,
the case in hand squarely attracts Section 2(1)(c)(i) & (ii) of the Commercial
Courts Act, 2015, which reads as below:-
2. Definitions.— (1) In this Act, unless the context
otherwise requires,–
(a)....
(b)...
(c) “commercial dispute” means a dispute arising
out of–
(i) ordinary transactions of merchants, bankers,
financiers and traders such as those relating to mercantile
documents, including enforcement and interpretation of
such documents;
(ii) export or import of merchandise or services;
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11. Section 7 of the Commercial Courts Act, stipulates that all suits
and applications relating to commercial disputes, shall be heard and disposed of
by the notified Commercial Courts in the Districts.
12. Whereas, in this case, the Commercial Court at Egmore is the
notified Court in the District to deal the commercial disputes arising within its
jurisdiction. Therefore, it is appropriate to transfer O.S.No.3744 of 2012
pending on the file of VI Additional City Civil Court, Chennai, to the
Commercial Court at Egmore. While ordering the transfer of the suit to the
designated Court, we are also conscious of the fact that the dispute between the
parties arose in the year 2002 and pending for nearly quarter century. It is
appropriate for the Special Court to give priority to this case and dispose it as
expeditiously as possible.
13. In fine, the Transfer Appeal No.1 of 2025 is allowed. No costs.
(G.JAYACHANDRAN, J.) (MUMMINENI SUDHEER KUMAR, J.)
14-10-2025
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Index :Yes/No.
Internet :Yes
Note: The Registry is directed to forward the order copy to the Court below
forthwith.
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To,
1. The VI Additional City Civil Court, Chennai.
2. The Commercial Court, Egmore.
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G.JAYACHANDRAN, J.
AND
MUMMINENI SUDHEER KUMAR, J.
bsm
14-10-2025
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