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HC held that disputes arising from the Employment Agreement and associated director fiduciary duties constitute a civil, non-commercial dispute and do not fall within the ambit of "commercial dispute" under Section 2(1)(c) of the Commercial Courts Act, 2015. It further held that Section 430 of the Companies Act does not bar the civil court's jurisdiction, as NCLT lacks competence to adjudicate breaches of personal service contracts, non-compete and confidentiality obligations, or to grant damages and injunctive reliefs sought. The court ruled that the plaint cannot be rejected, in whole or in part, under Order VII Rule 11 CPC at this preliminary stage. The defendant's application under Order VII Rule 11 CPC was dismissed, with liberty to raise objections at trial.
HC held that disputes arising from the Employment Agreement and associated director fiduciary duties constitute a civil, non-commercial dispute and do not fall within the ambit of "commercial dispute" under Section 2(1)(c) of the Commercial Courts Act, 2015. It further held that Section 430 of the Companies Act does not bar the civil court's jurisdiction, as NCLT lacks competence to adjudicate breaches of personal service contracts, non-compete and confidentiality obligations, or to grant damages and injunctive reliefs sought. The court ruled that the plaint cannot be rejected, in whole or in part, under Order VII Rule 11 CPC at this preliminary stage. The defendant's application under Order VII Rule 11 CPC was dismissed, with liberty to raise objections at trial.
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