Summary Judgment In Commercial Suits Doesn't Require Defendant's Admissions Of Material Facts: Calcutta HC

The Calcutta High Court has held that a Commercial Court can grant summary judgment without requiring admissions of material facts by the defendant, unlike a judgment on admissions, which is founded on such admissions. A division bench of Justices Debangsu Basak and Md. Shabbar Rashidi made the observation while dismissing an appeal filed by Xclusive Inn Pvt Ltd against a decree directing its eviction from commercial premises. "Scope and area of operation of Order XII Rule 6 and Order XIIIA of...

Requirement To File Commercial Suits Before Commercial Division Applies To Applications Too: Calcutta High Court

The Calcutta High Court has held that the requirement to institute commercial disputes before its Commercial Division applies not only to suits but also to applications involving the specified value. A Division Bench of Justices Debangsu Basak and Md. Shabbar Rashidi clarified that Section 7 of the Commercial Courts Act, 2015 governs not only commercial suits but also applications, including petitions under Section 9 of the Arbitration and Conciliation Act, 1996. It accordingly set aside the...

Plaintiff In Commercial Suit Bound By 120-Day Time Limit To File Reply To Counterclaim: Supreme Court

The Supreme Court on Monday held that a plaintiff in a commercial suit cannot file a written statement to a defendant's counterclaim beyond the mandatory outer limit of 120 days prescribed under the Commercial Courts Act. It ruled that the statutory timeline applicable to defendants equally governs plaintiffs replying to counterclaims. A bench of Justices Sanjay Kumar and K. Vinod Chandran ruled that the mandatory timeline under the proviso to Order VIII Rule 1 of the Code of Civil Procedure...

Supreme Court Appoints Justice L. Nageswara Rao To Mediate Kalyani Family Dispute

The Supreme Court on Monday appointed former Supreme Court judge Justice L. Nageswara Rao to explore the possibility of an amicable settlement in the long-running property dispute between industrialist Babasaheb Neelkanth Kalyani and his sister Sugandha Hiremath. It also directed that proceedings on Babasaheb Kalyani's application seeking rejection of the suit before the Bombay High Court shall remain deferred until the mediation process concludes. The order comes over two months after the...

Intended Business Use Of Office Premises Does Not Make Dispute Commercial: Bombay High Court

The Bombay High Court has recently reiterated that merely intending to use office premises for business is insufficient to bring a dispute within the jurisdiction of a Commercial Court. It ruled that the Commercial Courts Act requires the immovable property to have been actually used exclusively in trade or commerce and not merely intended or proposed to be so used. Justice N.J. Jamadar observed, “Indeed, the Commercial Courts Act,2015 does not define the expression “trade” or “commerce”....

Commercial Courts Cannot Hear Eviction Suits Under Jharkhand Rent Act: Jharkhand High Court

The Jharkhand High Court has recently held that the Commercial Courts Act does not confer jurisdiction over eviction proceedings where a special rent control law vests that jurisdiction exclusively in the Rent Controller. It ruled that a Commercial Court cannot entertain such disputes merely because the leased premises are used exclusively for trade and commerce. Justice Ananda Sen delivered the judgment. The court held that the Jharkhand Building (Lease, Rent & Eviction) Control Act,...

Commercial Litigants Cannot Produce Additional Documents In Piecemeal Manner: Supreme Court

The Supreme Court on Thursday ruled that parties to commercial disputes cannot repeatedly seek to place additional documents on record after leading evidence, ruling that such an approach is incompatible with the purpose of ensuring the speedy resolution of commercial disputes. "The plaintiff when leading evidence, is expected to not only produce all documents but also properly anticipate the questions that may be put to its witnesses by the other side. What cannot be countenanced is a stop and...

Delhi High Court Restrains DUSIB From Acting On Bank Guarantees Furnished For Construction Of 7,400 EWS Houses

The Delhi High Court has granted interim protection to Supreme Infrastructure India Ltd by restraining the Delhi Urban Shelter Improvement Board (DUSIB) from taking any precipitative steps in relation to bank guarantees furnished for a project involving the construction of 7,400 Economically Weaker Sections (EWS) houses at Pocket-II, Bhalaswa, Jahangirpuri. Justice Sachin Datta passed the interim order while issuing notice on the petition. The court directed DUSIB to file its reply within two...

Can Mediation Period Be Excluded While Computing Limitation For Written Statements? Delhi HC Refers Issue To Larger Bench

The Delhi High Court has recently referred to a larger bench the question of whether the time spent in mediation should be excluded while calculating the limitation period for filing a written statement or replication under the Delhi High Court (Original Side) Rules, 2018. Justice Subramonium Prasad observed that conflicting judicial opinions within the high court have created uncertainty on the issue. The court held that an authoritative pronouncement is necessary to avoid conflicting...

No Statutory Limit On Amending Pleadings Before Trial In Commercial Suits: Calcutta High Court

The Calcutta High Court has recently held that litigants in commercial suits are free to seek amendment of their pleadings at any stage before commencement of trial. There is no statutory limit on the number of amendment applications, provided the proposed amendments are otherwise permissible in law. Justice Aniruddha Roy delivered the ruling while allowing an application filed by Mackintosh Burn and Northern Express Consortium and another to amend their written statement in a commercial suit...

Counter-Claims Must Ordinarily Comply With Section 12A Pre-Institution Mediation: Delhi High Court

On 1 July, the Delhi High Court held that a defendant filing a counter-claim in a commercial suit must ordinarily comply with the mandatory pre-institution mediation requirement under Section 12A of the Commercial Courts Act, unless the disputes forming part of the counter-claim had already undergone mediation. A Bench of Justices Anil Kshetarpal and Amit Mahajan dismissed Vijay's appeal against the order rejecting his counter-claim under Order VII Rule 11 of the Civil Procedure Code for...

Market Value Determines Specified Value In Commercial Property Disputes: Calcutta High Court

The Calcutta High Court on 22 June held that in commercial disputes arising from construction and infrastructure contracts involving immovable property, the “specified value” under the Commercial Courts Act must be determined solely on the market value of the property. A Division Bench of Justices Sabyasachi Bhattacharyya and Supratim Bhattacharya clarified that valuation cannot depend on the nature of the relief claimed in the suit and dismissed appeals filed by landowners against developer...