The Kerala High Court held that a commercial suit filed before an ordinary civil court cannot be rejected for lack of jurisdiction. Instead, the plaint must be returned for presentation to the appropriate commercial court.
Commercial Suit Filed Before Ordinary Civil Court Must Be Returned, Not Rejected: Kerala HC
In a significant procedural ruling, the Kerala High Court has held that when a commercial suit is filed before an ordinary civil court without jurisdiction, the plaint cannot be summarily rejected. Instead, it must be returned under Order VII Rule 10 of the Civil Procedure Code for presentation before the appropriate Commercial Court.
The Court emphasized that Section 17 of the Commercial Courts Act, 2015 mandates exclusive jurisdiction for Commercial Courts in disputes of a commercial nature exceeding the specified value. Filing such a suit before a regular civil court does not strip the matter of its commercial character. The proper course, the Court observed, is to return the plaint rather than reject it, thereby preserving the plaintiff’s right to refile before the designated Commercial Court without risking limitation issues.
This decision clarifies the remedial course under the Commercial Courts Act and reinforces procedural fairness. Practitioners must ensure proper jurisdictional assessment at the filing stage, but litigants are protected from technical dismissal due to incorrect forum selection. The ruling supports access to justice in commercial litigation by prioritizing substance over procedural default.
Citations
- Commercial Courts Act, 2015, Section 17
- CPC Order VII Rule 10
