The Kerala High Court ruled that a commercial suit filed before an ordinary civil court cannot be rejected outright for lack of jurisdiction under the Commercial Courts Act; it must instead be returned for presentation to the appropriate forum.
Commercial Suit Filed in Civil Court Must Be Returned
The Kerala High Court held that a commercial suit mistakenly filed before an ordinary civil court should not be rejected on the grounds of lack of jurisdiction under the Commercial Courts Act, 2015. Instead, such plaints must be returned for presentation to the proper commercial court, preserving the plaintiff’s rights under Section 14 of the Limitation Act.
The court emphasized that rejection of a plaint under Order 7 Rule 11 of the CPC would lead to a loss of cause of action if limitation expires, whereas returning the plaint allows for timely re-filing.
The jurisdictional objection in a commercial suit does not render the claim non-est; it is a curable procedural defect,the bench observed.
This decision clarifies a critical procedural safeguard for litigants and law firms handling commercial disputes. Practitioners filing in commercial matters must now ensure correct forum selection, but even if filed incorrectly, the remedy lies in return of plaint, not dismissal. Courts across jurisdictions may follow this rationale to prevent technical barriers to justice.
Citations
- Commercial Courts Act, 2015; CPC Order VII Rule 11
