The Kerala High Court held that a commercial suit filed before an ordinary civil court cannot be rejected outright for lack of jurisdiction under the Commercial Courts Act; the plaint must instead be returned for presentation to the appropriate forum.
Commercial Suit Jurisdiction: Kerala HC Clarifies Civil Court Jurisdiction
The Kerala High Court ruled that a commercial suit filed before an ordinary civil court cannot be summarily rejected on grounds of lack of jurisdiction under the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015. Instead, such plaint must be returned to the plaintiff for presentation before the appropriate commercial court, ensuring compliance with the statutory framework.
The Court emphasized that rejection of a plaint under Order VII Rule 10 of the Code of Civil Procedure (CPC) — which deals with ground of non-jurisdiction — is impermissible in cases involving designated commercial courts. The proper remedy, as laid down, is to return the plaint under Rule 10(1)(c) for filing before the competent commercial court. This ensures that litigants are not denied relief merely due to a procedural misstep in forum selection.
The ruling underscores the legislative intent behind the Commercial Courts Act to expedite resolution of commercial disputes through specialized forums. Practitioners must ensure that commercial suits — defined under Section 2(1)(f) of the Act — are instituted only in designated commercial courts to avoid delays and procedural objections. However, this decision clarifies that an erroneous filing in a regular civil court does not result in outright dismissal but triggers a procedural return.
Citations
- Commercial Courts Act, 2015, Section 2(1)(f); CPC Order VII Rule 10
