The Kerala High Court held that a commercial suit filed before an ordinary civil court cannot be dismissed for lack of jurisdiction under the Commercial Courts Act. Instead, the plaint must be returned for presentation before the appropriate commercial court.
Commercial Suit Cannot Be Rejected for Want of Jurisdiction: Kerala HC
The Kerala High Court has ruled that a commercial suit erroneously filed before a regular civil court cannot be dismissed outright for want of jurisdiction. Instead, the proper course is to return the plaint under Order VII Rule 10 of the CPC, enabling the plaintiff to re-file it before the designated commercial court.
The Court emphasized that the Commercial Courts Act, 2015, does not oust the jurisdiction of ordinary civil courts altogether but creates a hierarchy of designated courts for commercial disputes above a specified value. Dismissing a suit on jurisdictional grounds without allowing the plaintiff an opportunity to approach the correct forum would result in a failure of justice.
Legal practitioners must now ensure proper forum selection at the filing stage. However, this decision provides a safety net against dismissal on technical grounds, reinforcing procedural fairness. Practitioners should promptly refile returned plaints in the competent commercial court to avoid delays.
