Karnataka High Court
Raymond Uco Denim Private Limtied vs M/S Genesis Embroidery on 23 January, 2020
Author: Aravind Kumar
Bench: Aravind Kumar
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 23RD DAY OF JANUARY 2020
PRESENT
THE HON'BLE MR. JUSTICE ARAVIND KUMAR
AND
THE HON'BLE MR. JUSTICE E.S. INDIRESH
COMMERCIAL APPLICATION NO.2/2019
BETWEEN:
RAYMOND UCO DENIM PRIVATE LIMITED
A COMPANY INCORPORATED UNDER
THE COMPANIES ACT, HAVING IT'S
REGISTERED OFFICE AT NEW HIND HOUSE
KNAROTTAM MORAJI MARG
BALLARD ESTATE, MUMBAI - 400 001.
...APPLICANT
(BY SRI. DHYAN CHINNAPPA, SR. COUNSEL FOR
SRI. SUNDARA RAMAN M.V, ADVOCATE)
AND:
M/S GENESIS EMBROIDERY
PRESENTLY AT NO.30, 2ND CROSS
BILLA REDDY LAYOUT, BANASAWADI
BANGALORE - 560 043
REPRESENTED BY ITS PROPRIETRIX
MRS. V.S. D'SOUZA
WIFE OF VINCENT PAULRAJ
REPRESENTED BY HER HUSBAND AND
POWER OF ATTORNEY HOLDER
MR. VINCENT PAULRAJ.
...RESPONDENT
(BY SRI. PAPI REDDY G, ADVOCATE)
THIS COMMERCIAL APPLICATION IS FILED UNDER
SECTION 15(5) OF THE COMMERCIAL COURT ACT, 2015
PRAYING TO SET ASIDE THE IMPUGNED ORDER DATED
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21.08.2019 PASSED BY THE SENIOR CIVIL JUDGE,
DODABALLAPURA, BANGALORE RURAL DISTRICT,
DISMISSING THE MEMO FILED BY THE APPLICANT
SEEKING TRANSFER OF THE ORIGINAL SUIT NO.176 OF
2012 TO APPROPRIATE COMMERCIAL COURT, PRODUCED
AS ANNEXURE-A .
THIS COMMERCIAL APPLICATION COMING ON FOR
ADMISSION THIS DAY, ARAVIND KUMAR J., DELIVERED
THE FOLLOWING:
ORDER
Though application is listed for admission, by consent of learned Advocates appearing for parties it is taken up for final disposal. Order dated 21.08.2019 passed by Senior Civil Judge, Doddaballapura, Bangalore Rural District in O.S.No.176/2012 rejecting the memo dated 25.02.2019 filed by the defendant seeking transfer of said suit to Commercial Court, this application has been presented.
2. We have heard the arguments of Sri. Dhyan Chinnappa, learned Senior Counsel appearing for applicant-defendant and Sri. G.Papi Reddy, learned counsel appearing for respondent-plaintiff. Perused the case papers. Parties are referred to as per their rank in the trial court.
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3. Respondent-plaintiff instituted a suit O.S.No.176/2012 against appellant-defendant for recovery of money of Rs.1,03,71,756/- together with costs and current interest @ 18% p.a. on the grounds urged in the plaint (Annexure-B). On service of suit summons defendant appeared, filed written statement vide Annexure-C and has been contesting the matter.
4. When this was the factual scenario The Commercial Courts Act, 2015 came into force w.e.f. 23.10.2015 by Act 4 of 2016. Government of Karnataka in exercise of power vested under sub-sections (1) and (2) of Section 3 of The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Act, 2018 (28 of 2018) (w.r.e.f. 03.05.2018) and in supersession of its previous notification issued a notification dated 31.07.2018- Annexure-D to establish Commercial Courts in various districts of the State of Karnataka after consulting the High Court of Karnataka from the date on which the respective Presiding Officers would assume charge of the 4 Courts. Pursuant to said notification High Court of Karnataka by notification dated 09.01.2019 transferred and posted the officers of Judicial Department in the cadre of District Judge as Presiding Officers of the Commercial Courts so established vide Annexure-E and I Additional City Civil, Bengaluru City, was appointed as Presiding Officer of the newly established Commercial Court to exercise jurisdiction in respect of commercial disputes arising with respect to Bengaluru City and Bengaluru Rural jurisdiction. It is in this background, applicant/defendant filed a memo on 25.02.2019 - Annexure-F in O.S.No.176/2012 contending that lis pending would fall within the ambit and jurisdiction of Commercial Court constituted under the Commercial Courts Act, 2018 and it ought to be adjudicated by the Commercial Court and as such sought for transfer.
5. Respondent-plaintiff filed objections to the said memo opposing the matter for being transferred to the Commercial Court and said memo along with objections was heard by the learned Senior Civil Judge, 5 Doddaballapur, adjudicating suit O.S.No.176/2012 and rejected the said memo by arriving at a conclusion that provisions of the Act namely Section 2(c) r/w Section 2(i) of the Act would be applicable only to the suits which are filed after 23.10.2015 i.e., after coming into force and suit in question having been filed on 16.07.2012 i.e., prior to Commercial Court Act coming into force, there is no need or necessity of transferring the suit to Commercial Court. Hence, this appeal.
6. A plain reading of Section 15 of the Commercial Courts Act, 2015, would clearly indicate that all suits and applications including applications filed under Arbitration and Conciliation Act, 1996, relating to a commercial dispute of a Specified Value pending in any commercial court or any district or area in respect of which a commercial court has been constituted, shall be transferred to such commercial court. However, those suits or applications where the matter is listed for final judgment after having been reserved for the said purpose is an exception to sub- 6 section (2) by virtue of proviso to sub-section (2) of Section 15 of the Act. In other words, matters which have been heard and reserved for judgment by the Civil Court is not required to be transferred to a Commercial Court. In the instant case, there is no dispute to the fact that suit is still at the stage of final arguments being advanced or in other words, final arguments has not yet been commenced or heard by the transferor court and matter is not reserved for judgment. Hence, proviso to Section 15(2) of the Act would not come to the rescue of respondent-plaintiff to contend that suit is not required to be transferred.
7. That apart, Commercial Court having been established by the Central Government, which is followed by issuance of notification on 31.07.2018 by Government of Karnataka establishing Commercial Courts, which was followed by a notification issued by High Court of Karnataka on 09.01.2019 - Annexure-E by deputing a Presiding Officer to preside over sad Commercial Court, then necessarily under Section 15 (2) 7 of the Commercial Courts Act, the dispute pending in O.S.No.176/2012 ought to be transferred to the Commercial Court. As such impugned order cannot be sustained.
For reasons aforestated, we proceed to pass the following:
ORDER
(i) Application is hereby allowed.
(ii) Order dated 21.08.2019 - Annexure-
A passed in O.S.No.176/2012 by Senior Civil Judge, JMFC, Doddaballapura, is set aside and memo dated 25.02.2019-Annexure-F filed by applicant/defendant is hereby allowed and suit O.S.No.176/2012 is ordered to be transferred from the Court of Senior Civil Judge, Doddaballapura, to Commercial Court at Bangalore.
(iii) Transferor Court shall take immediate steps to the transmit the 8 records to jurisdictional Transferee Court (Commercial Court) at Bengaluru.
(iv) Both parties agree that they would appear before the Commercial Court, Bangalore City, on 25.02.2020 at 11.00 a.m. without any further notice. Hence, it is made clear that Transferee Court (Commercial Court, Bengaluru) is not required to issue any notice to parties.
(v) No costs.
SD/-
JUDGE
SD/-
JUDGE
DR