Single Transaction Of Assignment Of Debt Not 'Commercial Dispute': Bombay HC Imposes Cost Of ₹5 Lakh On Plea For Return Of Plaint In Summary Suit
4 months, 1 week ago

Single Transaction Of Assignment Of Debt Not 'Commercial Dispute': Bombay HC Imposes Cost Of ₹5 Lakh On Plea For Return Of Plaint In Summary Suit

Live Law  

The Bombay High Court has observed that a dispute arising out of a singular transaction of assignment of debt cannot be considered a 'commercial dispute' under Section 2 of the Commercial Courts Act, 2015. Varanium Cloud Ltd filed an interim application for return of plaint on the ground that the suit was incorrectly instituted by Rolta Private Ltd as an Ordinary Summary Suit. It further stated, “In my view, just because the dispute arises purportedly out of a contract which has been referred to as a commercial contract for the purposes of levying interest which has not been stated in the agreement cannot be used to say that the dispute arising out of a purported breach of the said contract is a commercial dispute, even if the transaction is a commercial one in a general sense as the dispute to be a commercial dispute has to arise out of the specific items listed in Section 2 to, which is not the case here.” The Court thus held that the suit was not a commercial suit and dismissed Varanium's application for rejection of plaint. Furthermore, on Varanium's application, the Court remarked that it was “quite surprising and rather curious” that Varanium as a defendant was persuading a court to register a summary suit as a commercial suit.

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History of this topic

NCLAT Sets Aside Admission Of S.7 Application Upon Finding Transaction Was In Nature Of 'Operational Debt'
3 months ago

NCLAT Sets Aside Admission Of S.7 Application Upon Finding Transaction Was In Nature Of 'Operational Debt'

Live Law  

The NCLAT New Delhi bench of Justice Rakesh Kumar Jain, Mr. Barun Mitra and Mr. Indevar Pandey has held that the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, was not maintainable as the transaction in question constituted an 'operational debt' and was not covered under Section 5 but was governed by Section 5 and Section 21 …

[Commercial Courts Act] Disputes Related To Immovable Property Used Exclusively For Trade Are 'Commercial Disputes: Allahabad High Court
9 months, 1 week ago

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

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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 …

NCLT Kolkata: Dismissal Of Scheme Of Compromise At First Motion, Liquidator Not Entitled To Claim Fees And Other Costs
1 year, 5 months ago

NCLT Kolkata: Dismissal Of Scheme Of Compromise At First Motion, Liquidator Not Entitled To Claim Fees And Other Costs

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The National Company Law Tribunal Kolkata Bench comprising Bidisha Banerjee and D. Arvind allowed the application filed in Radhasiriya Properties Pvt. The Tribunal held that when scheme of compromise and arrangement proposed by Applicant is rejected at its first motion by Creditors, Proviso to Rule 2B of Liquidation Process Regulations 2016 does not apply and Liquidator is not entitled to …

'Abuse Of Process, Frivolous Litigation' : Supreme Court Affirms Cost Of Rs 5 Lakhs Imposed On Litigant
2 years, 8 months ago

'Abuse Of Process, Frivolous Litigation' : Supreme Court Affirms Cost Of Rs 5 Lakhs Imposed On Litigant

Live Law  

Strongly criticising the filing of numerous proceedings before the tiers of forums upto the Supreme Court itself and the deliberate non-disclosure of absolutely relevant facts, the Apex Court went on to record that it was initially persuaded to initiate contempt proceedings against the Petitioner, but it is not doing so purely due to the age of the Petitioner as she …

If 'Value of Commercial Dispute' Is More Than Rs. One Crore, Section 9 Application Under A&C Act Would Lie Only Before The Commercial Court: Telangana High Court
2 years, 9 months ago

If 'Value of Commercial Dispute' Is More Than Rs. One Crore, Section 9 Application Under A&C Act Would Lie Only Before The Commercial Court: Telangana High Court

Live Law  

The Telangana High Court has ruled that if a dispute constitutes a 'commercial dispute' under Section 2 of the Commercial Courts Act, 2015, and the dispute is the subject matter of a domestic arbitration whose 'Specified Value' is more than Rs. The appellant Telangana State Tourism Development submitted before the High Court that since the dispute between the parties was …

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