PUSHPSHREE HOSPITALS AND RESEARCH CENTER Vs. KOTHARI CHEMIST

JUDGEMENT

(1.) This Miscellaneous Petition under Article 227 of the Constitution of India assails the order dtd. 1/7/2022 (Annexure-P/4) passed in Comms- 20/2022 whereby the application under Order 7 Rule 11 of the Code of Civil Procedure, filed by the petitioners/defendants has been rejected.

(2.) Briefly stated facts of the case are that the respondents are plaintiffs before the trial Court who have filed a suit for recovery under Order 7 Rule 1 of the CPC read with Sec. 16 of the Commercial Courts Act, 2015 (hereinafter referred to as the Act of 2015). On the basis of the transactions and averments, plaintiffs have sought recovery of the amount. After issuance of notice, petitioners/defendants filed an application under Order 7 Rule 11 of CPC contending that Sec. 2 of the Commercial Courts Act defines "Commercial Disputes" and looking to the aforesaid definition, the alleged transaction is not covered under any of the clauses mentioned in Sec. 2 of the Act and therefore, the provisions of the Act are not applicable and the plaint is liable to be rejected. Another ground that was raised in the application was the non- compliance of Sec. 12-A of the Act as the suit was filed without exhausting the remedy of pre-institution mediation, hence the same is not maintainable.

(3.) Learned trial Court, while passing the impugned order held that as per Sec. 2 (1)(c-xviii) which provides for 'Agreement for sale of goods or provisions of services', there is a commercial dispute between the parties. It was further held that the compliance of provisions of Sec. 12-A of the Act of 2015 is not mandatory, and accordingly the application under Order 7 Rule 11 filed by the petitioners/defendants was rejected. Hence, this petition.