Delhi High Court - Orders
M/S. V. J. Cranes Private Limited ... vs M/S. Ajinkya Infra Projects & Ors on 19 May, 2023
Author: Yashwant Varma
Bench: Yashwant Varma, Dharmesh Sharma
$~3
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ FAO (COMM) 16/2021
M/S. V. J. CRANES PRIVATE LIMITED THROUGH ITS
DIRECTOR, S. GURPREET SINGH ..... Appellant
Through: Mr. Jaspreet Singh, Adv.
versus
M/S. AJINKYA INFRA PROJECTS & ORS...... Respondents
Through: Appearance not given
CORAM:
HON'BLE MR. JUSTICE YASHWANT VARMA
HON'BLE MR. JUSTICE DHARMESH SHARMA
ORDER
% 19.05.2023
1. This appeal has been preferred in respect of the order dated 07 October 2020 passed by the Trial Judge rejecting the suit on account of non-compliance with Section 12A of the Commercial Courts Act, 2015 [„the Act‟].
2. The parties before the Court do not dispute the fact that the issues as raised stands settled in light of the judgment rendered by the Supreme Court in Patil Automation (P) Ltd. vs. Rakheja Engineers (P) Ltd. [(2022) 10 SCC 1]. It becomes pertinent to note that while Patil Automation holds that the provisions of Section 12A of the Act are mandatory, the declaration of the law was accorded prospective effect. This would be evident from the following paragraphs of the report which are extracted hereinbelow:-
"113. Having regard to all these circumstances, we would dispose of the matters in the following manner:
113.1. We declare that Section 12-A of the Act is mandatory and hold that any suit instituted violating the mandate of Section 12-A must be visited with rejection of the plaint under Order 7 Rule 11. This power can be exercised even suo motu by the court as explained earlier in the judgment. We, however, make this declaration effective from 20-8-2022 so that stakeholders concerned become sufficiently informed.
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 24/09/2023 at 16:02:16 113.2. Still further, we however direct that in case plaints have been already rejected and no steps have been taken within the period of limitation, the matter cannot be reopened on the basis of this declaration. Still further, if the order of rejection of the plaint has been acted upon by filing a fresh suit, the declaration of prospective effect will not avail the plaintiff.
113.3. Finally, if the plaint is filed violating Section 12-A after the jurisdictional High Court has declared Section 12-A mandatory also, the plaintiff will not be entitled to the relief.
114. In civil appeal arising out of SLP (C) No. 14697 of 2021 taking note of the fact that it is a case where the appellant would have succeeded and the plaint rejected, it is also necessary to order the following. The written statement filed by the appellant shall be treated as the application for leave to defend filed within time within the meaning of Order 37 and the matter considered on the said basis.
115. While we disapprove of the reasoning in the impugned orders we decline to otherwise interfere with the orders and the two appeals shall stand disposed of accordingly.
116. In civil appeal arising out of SLP (C) No. 5737 of 2022, we set aside the order directing payment of costs of Rs 10,000. The petition for permission to file SLP in SLP (C) Diary No. 29458 of 2021 and the said SLP shall stand disposed of as already indicated in the judgment."
3. Undisputedly, the plaint in the present matter had come to be presented and the suit registered prior to 20 August 2022. In view of the aforesaid and since the suit has come to be dismissed only on the aforenoted solitary ground, the appeal must succeed.
4. Accordingly, the instant appeal is allowed. The order dated 07 October 2020 shall consequently stand set aside.
5. The suit shall stand restored on the board of the concerned District Judge.
YASHWANT VARMA, J.
DHARMESH SHARMA, J.
MAY 19, 2023/sp This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 24/09/2023 at 16:02:16