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Issues: (i) whether the refusal to reject the plaint under Order VII Rule 11(d) of the Code of Civil Procedure, 1908 was appealable and could be examined by the Division Bench; (ii) whether the plaint was liable to be rejected as barred by law on the ground that the dispute was a commercial dispute and that the existence of the underlying agreement was itself in dispute.
Issue (i): whether the refusal to reject the plaint under Order VII Rule 11(d) of the Code of Civil Procedure, 1908 was appealable and could be examined by the Division Bench.
Analysis: An order refusing rejection of a plaint is a judgment for the purpose of Clause 15 of the Letters Patent and is therefore appealable before the Division Bench. The objection to maintainability was not accepted, and the appeal was held fit for consideration on merits.
Conclusion: The appeal was maintainable.
Issue (ii): whether the plaint was liable to be rejected as barred by law on the ground that the dispute was a commercial dispute and that the existence of the underlying agreement was itself in dispute.
Analysis: For an application under Order VII Rule 11(d), the Court must look only at the plaint averments and must reject the plaint only when the bar of law is apparent from those averments. Where the core controversy depends on whether the term sheet and related documents culminated in a binding agreement, the issue involves disputed facts and cannot be decided at the threshold without evidence. The character of the dispute as commercial under the Commercial Courts Act, 2015 also depends on first determining whether any agreement came into existence. The question of compliance with pre-institution procedure and the forum objection therefore could not be conclusively decided at that stage.
Conclusion: The plaint was not liable to be rejected at the threshold.
Final Conclusion: The refusal to reject the plaint was sustained, and the order under appeal was modified only to remove the inconsistent observation regarding the non-commercial character of the dispute.
Ratio Decidendi: A plaint can be rejected under Order VII Rule 11(d) only when the bar of law is apparent from the plaint itself; if the objection depends on disputed facts, including whether a binding agreement exists, the issue must await evidence and cannot be decided at the threshold.
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