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        2019 (10) TMI 1601 - SC - Indian Laws

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        Commercial dispute jurisdiction requires actual exclusive use of immovable property in trade or commerce, not future intention. A suit for enforcement of a mortgage deed relating to immovable property falls within the Commercial Courts Act only where the plaint pleads that the ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                            Commercial dispute jurisdiction requires actual exclusive use of immovable property in trade or commerce, not future intention.

                            A suit for enforcement of a mortgage deed relating to immovable property falls within the Commercial Courts Act only where the plaint pleads that the property was actually and presently used exclusively in trade or commerce. On the pleaded facts, the agreement concerned enforcement of a memorandum of understanding and execution of a mortgage deed, but contained no foundational averment that the land was so used on the relevant dates. A mere intended or future commercial use is insufficient and would expand Section 2(1)(c)(vii) beyond its text. The dispute was therefore outside commercial jurisdiction, the Commercial Court lacked jurisdiction, and the plaint had to be returned to the proper court.




                            Issues: Whether a suit seeking enforcement of a mortgage deed relating to immovable property falls within the definition of a commercial dispute under Section 2(1)(c)(vii) of the Commercial Courts Act, 2015 when the plaint does not plead that the property was used exclusively in trade or commerce.

                            Analysis: The expression "agreements relating to immovable property used exclusively in trade or commerce" requires that the property be actually and presently used for trade or commerce. The pleadings in the suit did not state that the land was being so used on the date of the agreement or on the date of the suit. The relief sought was essentially for enforcement of the terms of the memorandum of understanding and execution of a mortgage deed, without any foundational averment attracting the commercial jurisdiction of the Commercial Court. A liberal construction that includes property merely intended or likely to be used for commercial purposes would enlarge the provision beyond its text and undermine the statutory scheme.

                            Conclusion: The dispute did not fall within Section 2(1)(c)(vii) of the Commercial Courts Act, 2015, and the Commercial Court lacked jurisdiction. The plaint was rightly ordered to be returned for presentation before the proper court, and the appeal failed.

                            Ratio Decidendi: For jurisdiction under Section 2(1)(c)(vii) of the Commercial Courts Act, 2015, the immovable property must be actually used exclusively in trade or commerce, and such jurisdiction cannot be founded on a mere future or intended commercial use.


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