Commercial Court Has Jurisdiction Over Suit Property Used For Trade/ Commerce: Andhra Pradesh High Court

Brief facts of the case

The application was filed by the petitioner under Section 24 of Code of Civil Procedure to withdraw the suit from Senior Civil Judge's Court and transfer to Commercial Court for trial and disposal.

The case of the petitioner was that based on the dissolution deed of the partnership firm, she had filed the suit seeking partition and separate possession of suit schedule property consisting of movable and immovable assets. It was stated that the petitioner inadvertently and by mistake filed the suit before the Senior Civil Judge's Court whereas the dispute raised in the suit is commercial dispute.

In the counter affidavit, the respondent contended that the transfer petition was filed only to harass the respondents and delay the proceedings when it had almost reached the finality. Furthermore, the dispute in respect of immovable property cannot be transferred to a commercial court.

Ruling of the Court

The court observed that the dispute is a commercial dispute for specified value defined under Section 2(1)(c)(vii) [agreements relating to immovable property used exclusively in trade or commerce] and 2(1)(c)(xv) [partnership agreements] of the Commercial Courts Act as the value of the suit is more than Rs. 3 lakhs and the property was exclusively used for trade and commerce in a partnership agreement.

The suit has been filed based on the dissolution of partnership deed. The subject property was used for business of the partnership firm wherein the petitioner was a partner. Hence, the Commercial Court will have jurisdiction to adjudicate schedule property exclusively used for trade or commerce.

The court thus allowed the petition finding it just and appropriate to transfer the suit.

Cause Title: GANGISETTY ANURADHA Versus BIJALA SUBRAMANYAM

Citation: 2022 LiveLaw (AP) 19

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