2024 (9) TMI 1015 - HC - Indian Laws

Commercial Suit Petition Revived: Court Clarifies Order IX Rule 7 Application for Procedural Fairness and Justice Access.

M/s Axis Global Automation, S. Sathesh and A. Ezhilmaran Versus M/s Tonglit Autogistic Private Limited

The HC allowed the Civil Revision Petition, overturning the order that returned the petition under Order IX Rule 7 of CPC in a commercial suit. The court ... Seeking a direction for numbering and taking on file of the petition filed by the petitioners/defendants for setting aside the exparte order, under Order IX Rule 7 of CPC, pending on the file the Principle District Court (Commercial Court) at Chengalpattu - HELD THAT:- In view of Section 13 of the Commercial Courts Act, the appeal will lie only for the orders passed by the Commercial Court Act, that has been specifically enumerated under Order 43 of CPC. But, in the Order 43 of CPC, there is no provision for appeal, to set aside the exparte order under Order IX Rule 7 CPC. In such circumstances, since the Commercial Courts Act, does not preclude the applicability of Order IX Rule 7 of CPC in the commercial suit, the impugned order of return, passed by learned Principal District Judge, Chengalpattu, dated 18.12.2023 is liable to be set aside. The impugned returned order, dated 18.12.2023 is set aside. The learned Principal District Judge, Chengalpattu is directed to take on file the petition filed by the petitioners under Order IX Rule 7 and dispose of the same on merits. This civil revision petition is allowed. Issues:1. Maintainability of a petition under Order IX Rule 7 of CPC in a commercial suit.2. Interpretation of Section 13 of the Commercial Courts Act, 2015.3. Applicability of Order IX Rule 7 of CPC in commercial suits.Analysis:The Civil Revision Petition was filed to address the issue of whether a petition under Order IX Rule 7 of CPC is maintainable in a commercial suit. The petitioners, who were defendants in a commercial suit for recovery of money and damages, were set exparte and filed a petition to set aside the exparte order. The petition was returned with a query regarding its maintainability under the Commercial Act. The court examined the provisions of the Commercial Courts Act, 2015, specifically Section 13, which outlines the appeal process for orders passed by Commercial Courts. The petitioners argued that the Act does not preclude the applicability of Order IX Rule 7 of CPC in commercial suits, as it does not specifically address setting aside exparte orders.The court further analyzed the relevant sections of the Commercial Courts Act and the CPC. Section 13 of the Commercial Courts Act specifies the appeal process for orders passed by Commercial Courts, mentioning that appeals shall lie for orders enumerated under Order 43 of CPC. However, Order 43 of CPC does not provide for an appeal to set aside an exparte order under Order IX Rule 7 of CPC. The court noted that since the Commercial Courts Act does not exclude the application of Order IX Rule 7 of CPC in commercial suits, the impugned order returning the petition was deemed incorrect.Ultimately, the court allowed the Civil Revision Petition, setting aside the order returning the petition and directing the Principal District Judge to consider and dispose of the petition filed under Order IX Rule 7 on its merits. The judgment clarified that the Commercial Courts Act does not prevent the application of Order IX Rule 7 of CPC in commercial suits, emphasizing the importance of procedural fairness and access to justice in such matters.