Section 24 CPC permits transfer of specified-value commercial suits despite Commercial Courts Act requirements.

The petitioner sought transfer of Civil Suit No. CS DJ 185/2022, titled Subhash Chander Bansal v. K.G. Infosystem Pvt. Ltd., pending before the Additional District Judge-01, South-East District, Saket Courts, New Delhi, to a Commercial Court of competent jurisdiction under Section 15(5) of the Commercial Courts Act, 2015 (“CC Act”) read with Section 24 of the Code of Civil Procedure, 1908 (“CPC”).

The suit was at the stage of the plaintiff’s evidence.

The respondent expressly stated that it had no objection to the transfer, but sought liberty to raise all objections available in law before the transferee court, including objections concerning compliance with the CC Act.

The High Court granted that liberty.

1. Whether Section 24 of the CPC continues to empower the High Court to transfer a suit relating to a commercial dispute of specified value to a Commercial Court, notwithstanding the procedural and statutory requirements under the CC Act?

2. Whether non-compliance with requirements under the CC Act, including pre-institution mediation, filing of a compliant plaint, and Statement of Truth, prevents transfer of the pending suit or may be considered by the transferee court?

3. Whether the pending suit should be transferred in the circumstances of the present case, particularly when the respondent had no objection to such transfer?

Section 24 CPC continues to apply to suits concerning commercial disputes of specified value because it has not been excluded or amended by the Schedule to the CC Act; there is no implied exclusion of the High Court’s power of transfer.

Statutory objections under the CC Act, including non-compliance with Section 12A concerning pre-institution mediation, remain open for determination by the transferee court and are not defeated by the transfer.

Procedural requirements applicable to commercial suits, including filing a plaint in the prescribed format and filing a Statement of Truth, may be complied with before the transferee Commercial Court.

A Commercial Court constituted under the CC Act is subordinate to the High Court for purposes of Section 24 CPC.

The Court held that Section 24 CPC remained fully operative in relation to commercial disputes of specified value, as the CC Act had neither expressly removed nor impliedly excluded that provision.

Consequently, the pendency of the suit before an ordinary civil court did not prevent its transfer to a competent Commercial Court.

The Court further distinguished the power to transfer from the merits of objections concerning statutory compliance: objections relating to Section 12A, the form and contents of the plaint, Statement of Truth, or any other legal bar could be raised and adjudicated by the transferee court.

Since the respondent had expressly consented to the transfer and its rights had been preserved, the Court found no impediment to allowing the petition.

Civil Suit No. CS DJ 185/2022 was directed to be transferred from the Court of the Additional District Judge-01, South-East District, Saket Courts, New Delhi, to a Commercial Court of competent jurisdiction at the stage at which it presently stood.

Compliance with the CC Act, including filing of the Statement of Truth and other prescribed requirements, could be undertaken before the transferee court.

The respondent retained liberty to raise all objections available in law before that court.

The trial court was directed to transmit the complete record within four weeks, after which the matter was to be listed before the transferee Commercial Court.