[Commercial Courts Act] Disputes Related To Immovable Property Used Exclusively For Trade Are 'Commercial Disputes: Allahabad High Court

The Allahabad High Court, while considering the case of a hotel, has held that a dispute related to an immovable property that is used exclusively for the purpose of trade or commerce would fall under the ambit of a 'Commercial Dispute' under Section 2 of the Commercial Courts Act, 2015. “Agreements relating to immovable property used exclusively in trade or commerce fall under the purview of “commercial disputes” as definer by Section 2 of the CC Act. It was held that as per clause of the Act, “agreements relating to immovable property used exclusively in trade or commerce” would fall under the heading of “commercial disputes”. The Court relied on the decisions of the Gujarat High Court in Vasu Healthcare Private Limited v. Gujarat Akruti TCG Biotech Limited And 1 wherein it was held that “the word “used” denotes “actually used” and it cannot be said to be either “ready for use” or “likely to be used”; or to “to be used”.” The Court also relied on Jagmohan Behl v. State Bank of Indore where the Delhi High Court held that a harmonious reading of Section 2 of the Act would include all disputes that arose of an agreement relating to an immoveable property being used exclusively for the purpose of trade and commerce.