The Kerala High Court held that commercial suits filed before ordinary civil courts cannot be rejected outright; instead, the plaint must be returned to enable filing before the designated commercial court.
Kerala HC Clarifies Jurisdiction in Commercial Suits
The Kerala High Court has ruled that commercial suits falling under the Commercial Courts Act, 2015, cannot be summarily rejected by ordinary civil courts for lack of jurisdiction. Instead, the plaint must be returned to the plaintiff under Order VII Rule 10 of the CPC to facilitate filing before the appropriate commercial court.
The Court held that
"denial of remedy on technical grounds defeats the purpose of the Commercial Courts Act, which aims at expeditious disposal of commercial disputes". The judgment underscores that jurisdictional defects in commercial matters are curable through return of plaint, not outright rejection.
This decision aligns with the legislative intent of the Commercial Courts Act. Practitioners must ensure timely amendment of causes of action and verification of threshold value, but may rely on procedural safeguards if a suit is initially misfiled. Courts are now obligated to direct returns, not dismissals.
Citations
- Commercial Courts Act, 2015
- Code of Civil Procedure, 1908, Order VII Rule 10
