The Kerala High Court ruled that a commercial suit filed in an ordinary civil court cannot be rejected solely for want of jurisdiction under the Commercial Courts Act; instead, the plaint must be returned for presentation to the appropriate court.
Kerala HC: Commercial Suit Can't Be Rejected for Jurisdiction
The Kerala High Court has held that a commercial suit filed before an ordinary civil court cannot be outrightly rejected on grounds of lack of jurisdiction under the Commercial Courts Act, 2015. Instead, the correct remedy is to return the plaint under Order VII Rule 10 of the Code of Civil Procedure (CPC) for presentation before the designated commercial court.
The Court emphasized that the legislature intended expeditious disposal of commercial disputes and that administrative errors in filing should not result in loss of cause of action. The ruling reinforces Section 17 of the Commercial Courts Act, which mandates the establishment of commercial courts and benches, and clarifies that mere misplacement of a commercial suit does not render it non-est.
For practitioners, this decision underscores procedural diligence in filing commercial suits. While the plaint is not to be rejected summarily, it must be returned swiftly to avoid delay. Lawyers should ensure proper jurisdictional assessment at the outset, but can rely on this precedent to prevent dismissal of suits filed in error, provided timely steps are taken to refile in the competent commercial court.
Citations
- Commercial Courts Act, 2015, Section 17; CPC Order VII Rule 10
