Commercial Judge's judgment in a commercial dispute is not void for lack of jurisdiction despite procedural non-transfer.

The appellant (defendant), National Insurance Company Ltd., appealed against a judgment and decree dated December 20, 2022, regarding the fixation of mesne profits following an eviction decree

A decree for eviction was originally passed on May 7, 2015

Subsequently, a Special Referee was appointed on February 27, 2020, to assess mesne profits

The Trial Judge accepted the Special Referee's report, which the appellant challenged on two grounds: first, that the court lacked jurisdiction because the suit involved a commercial dispute and was not transferred to the Commercial Division under the Commercial Courts Act, 2015

second, that the Special Referee failed to account for a lack of amenities (car parking, lifts, ATM) when comparing the property to others for rent valuation

1. Whether the judgment and decree were a nullity due to a lack of jurisdiction for not transferring the suit to the Commercial Division under the Commercial Courts Act, 2015.

2. Whether the assessment of mesne profits by the Special Referee and Trial Judge was perverse due to the alleged failure to consider the lack of modern amenities in the subject premises.

The Court primarily applied the principle established by the Hon’ble Supreme Court in Shri Balaji Industrial Engineering Ltd. Vs. Steel Authority of India Ltd. (2026), which dictates that a judgment involving a commercial dispute cannot be faulted for lack of jurisdiction simply because it was not formally transferred to the Commercial Division, provided the Judge was otherwise designated/empowered for the Commercial Division

Regarding the assessment of damages/profits, the court applied the standard of "perversity," holding that appellate interference is only warranted if findings are not supported by evidence or are irrational

Regarding the jurisdictional challenge, the Court noted that the appellant's reliance on precedents regarding the "nullity" of non-commercial transfers was overruled by the recent Supreme Court orientation in Shri Balaji Industrial Engineering Ltd.

It found that since the Judge held the relevant determination/roster, the procedural omission of a formal transfer was not fatal to the decree

On the merits of mesne profits, the Court observed that the Special Referee had considered the building's location, available features, and prevailing market rates in the surrounding area

The Court reasoned that the mere absence of certain amenities did not render the valuation incorrect, as both the Referee and the Trial Judge had evaluated multiple valuer reports and provided rational reasons for the accepted rate

On the second issue, it held that the findings on mesne profits were not perverse and were based on the material evidence provided

Consequently, the High Court dismissed the appeal (APD/14/2023) and upheld the judgment and decree of the Trial Judge without any order as to costs