TaxTMI 
TaxTMI 
2024 (7) TMI 1818
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....ery of outstanding Legal and Professional Fees on account of legal representation and services offered to the petitioner/defendant to the tune of Rs. 18,56,511/- along with pendente lite interest @2% per month from the date on which the right to receive the payment accrued until realisation. 3. Upon perusal of the plaint, the following facts and circumstances have come up for consideration before this Court: a) In 2017, the petitioner/defendant retained the professional services of the Respondent/plaintiff as legal counsel and representative of the petitioner/defendant company before the Supreme Court of India. b) Subsequently, the Respondent/plaintiff started duly representing the petitioner/defendant in legal proceedings pending against the petitioner/defendant company and accordingly issued proforma invoices upon the petitioner/defendant for services rendered, however the petitioner/defendant defaulted in paying the respondent/plaintiff despite multiple reminders and assurances. c) Thereafter, the petitioner/defendant unilaterally terminated the retainership agreement between the parties and claimed that it stood terminated in December 2019, as oppo....
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.... "4.9 Though Ld counsel for the defendant relied upon The State of Orissa Vs. Sudhanshu Shekhar Misra AIR 1968 SC 647 and Davinder Singh Vs. State of Punjab MANU/SC/0697/2010 to contend that a judgment should be treated as an authority only for what it actually decides, however, the authorities as discussed above unambiguously and unequivocally clinches the issue and puts to rest the controversy as regards the nature of activity carried out by a lawyer. The work of an advocate cannot be said to be of a commercial character. While undoubtedly the judgments, as discussed above, are not on the Commercial Courts Act, 2015 but that by itself is no reason to conclude that these authorities do not apply to the interpretation of Section 2 (c) (xviii). The term 'services' has to be read in the context of the other sub clauses which pertain to commercial activities. An interpretation cannot be given which would bring a dispute relating to an activity of a non-commercial character within the ambit of the term commercial dispute. 4.10 Though Ld. counsel for the defendant, while relying upon notification dated 28.06.2017 issued by the Ministry of Finance, Government of India, argued....
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....20) to demonstrate that even though lawyers do not carry out commercial activity but when two lawyers enter into partnership agreement and a dispute arises out of such a partnership agreement, then such dispute has been held to be a "commercial dispute" within the CC Act by this Court, even though it does not arise out of commercial activity. 11. Thirdly, it is contended by the petitioner/defendant that the ld. Trial court erred in relying upon the judgments cited by the respondent/plaintiff, in ignorance of the law laid down by the apex Court in Secundrabad Club and Ors. Vs. C.I.T.-V and Ors (MANU/SC/0894/2023) qua importance of contextual interpretation of judgments rendered by the higher courts. 12. Lastly, it is submitted by the petitioner/defendant that the term "services" used in Section 2(1)(c)(xviii) of the CC Act should be given an unrestricted interpretation since the doctrine of ejusdem generis is inapplicable in the present case in view of the fact that there is no distinct genus discernible from the language of Section 2 (1)(c) of the CC Act. 13. Per contra, learned counsel for the respondent/plaintiff has challenged all the pleas espoused by the petitioner/de....
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....nd acknowledged by the petitioner-defendant. The dispute arising out of the nature of services that were envisaged to be rendered by the respondent/plaintiff could never be termed as a "commercial dispute or a "dispute between a master and servant" or in the nature of a "contract of service" as understood in the legal jurisprudence. 17. There is no gainsaying that the primary aim and object of the Commercial Courts Act, as can be deciphered from its Statement of Objects and Reasons, is to provide speedy disposal of high value commercial disputes in order to reduce the pendency of cases. The relevant portion of the Statement of Objects and Reasons reads as under: "The proposal to provide for speedy disposal of high value commercial disputes has been under consideration of the Government for quite some time. The high value commercial disputes involve complex facts and questions of law. Therefore, there is a need to provide for an independent mechanism for their early resolution. Early resolution of commercial disputes shall create a positive image to the investor world about the independent and responsive Indian legal system." 18. There is also no gainsaying that Secti....
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....ed one, substantial part of which would be mental rather than manual. Therefore, having regard to the nature of work of a professional, which requires high level of education, training and proficiency and which involves skilled and specialized kind of mental work, operating in the specialized spheres, where achieving success would depend upon many other factors beyond a man"s control, a Professional cannot be treated equally or at par with a Businessman or a Trader or a Service provider of products or goods as contemplated in the CP Act. Similarly, the services rendered by a Businessman or a Trader to the consumers with regard to his goods or products cannot be equated with the Services provided by a Professional to his clients with regard to his specialized branch of profession. The legislative draftsmen are presumed to know the law and there is no good reason to assume that the legislature intended to include the Professions or the Professionals or the services provided by the professionals within the ambit of the CP Act. Any interpretation of the Preamble or the scheme of the Act for construing "Profession" as "Business" or "Trade"; or "Professional" as "service provide....
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....service, and similarly the greater the degree of independence of such control the greater the probability that the services rendered are of the nature of professional services and that the contract is not one of service." (Underlined portion emphasized) 20. It was thus held that the services rendered by professionals such as lawyers do not fall within the scope and ambit of the Consumer Protection Act, 1986. 21. In view of the foregoing discussion, reverting back to the instant matter, the dispute between a lawyer and his client where the former is seeking recovery of professional fees, cannot be held to be a "commercial dispute". Lawyers are not "tradesmen" or "businessmen" as held in the case of Bar of Indian Lawyers through its President (supra). Lawyers and advocates are supposed to be professional legal experts and major stakeholders in the "adversarial justice delivery system" who render legal advice & services to their clients but have larger duties as officers of the Court whenever they are engaged for providing legal representation to their clients in the Courts of law. 22. The agreement between an advocate and his/her client envisaging provisions of legal advi....