The Kerala High Court ruled that a commercial suit filed before an ordinary civil court must be returned, not rejected, if jurisdiction lies with a designated commercial court under the Commercial Courts Act.
Kerala HC Clarifies Procedure for Misplaced Commercial Suits
The Kerala High Court has held that when a commercial suit is filed before a regular civil court without jurisdiction under the Commercial Courts Act, 2015, the plaint should be returned to the appropriate forum rather than being outrightly rejected. The ruling emphasizes procedural fairness and access to justice.
Under Section 15 of the Commercial Courts Act, matters above a specified pecuniary threshold must be filed before designated commercial courts. The Court noted that rejection of plaint under Order VII Rule 11 of the CPC would bar refiling due to limitation. Instead, returning the plaint under Section 24 CPC allows the plaintiff to present it to the correct court, preserving the cause of action.
The Court observed that
procedural technicalities must not override substantive justice, particularly where jurisdictional error is curable. This decision reaffirms that misfiling by a litigant should not result in dismissal if jurisdiction can be rectified. Legal practitioners handling commercial disputes must ensure correct forum selection at the outset, but may rely on return of plaint as a corrective mechanism where errors occur.
