High Court upholds mandatory transfer of pending commercial disputes under Section 15(2) of the Commercial Courts Act, 2015, as binding authority for subordinate civil courts
Summary
| Category | Data |
|---|---|
| Case Name | WPMS/3489/2024 of MS SHAKTI INDUSTRIES Vs PASHUPATINATH DISTRIBUTORS PVT LTD |
| CNR | UKHC010198952024 |
| Date of Registration | 16-12-2024 |
| Decision Date | 26-08-2025 |
| Disposal Nature | ALLOWED |
| Judgment Author | Hon’ble Mr. Justice Pankaj Purohit |
| Court | High Court of Uttarakhand at Nainital |
| Bench | Single Judge |
| Overrules / Affirms | Affirms application of Section 15(2) of the Commercial Courts Act, 2015 |
| Type of Law | Procedural (Commercial Courts Act, 2015) |
| Questions of Law | Whether suits pending in a civil court must, by operation of Section 15(2), be transferred to a Commercial Court once constituted? |
| Ratio Decidendi |
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| Logic / Jurisprudence / Authorities Relied Upon by the Court | Plain interpretation of Section 15(2), Commercial Courts Act, 2015 |
| Facts as Summarised by the Court |
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| Citations |
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Practical Impact
| Category | Impact |
|---|---|
| Binding On | All subordinate civil courts in districts where Commercial Courts are constituted |
| Persuasive For | Other High Courts considering transfer under Section 15(2), Commercial Courts Act, 2015 |
What’s New / What Lawyers Should Note
- The High Court confirms that once a Commercial Court is constituted, Section 15(2) mandates transfer of all pending commercial dispute suits of specified value; no discretion exists to return a plaint under Order 7 Rule 10 CPC.
- Civil courts must actively transfer such pending suits; failure will be quashed by High Court.
- Lawyers can cite this judgment to oppose return-of-plaint orders when Commercial Courts have jurisdiction under the Act.
Summary of Legal Reasoning
- Statutory Text: The court quoted Section 15(2) of the Commercial Courts Act, 2015, emphasizing its mandatory language: “shall be transferred to such Commercial Court.”
- Interpretation: A plain-language approach shows no room for discretion once a Commercial Court is in place.
- Error of Trial Court: Returning the plaint under Order 7 Rule 10 CPC was patently illegal as jurisdiction was displaced by Section 15(2).
- Relief Granted: The High Court set aside the return order and directed transfer of Original Suit No. 105 of 2019 to the Commercial Court, Dehradun.
Arguments by the Parties
Petitioner (M/s Shakti Industries)
- Section 15(2) creates a statutory duty to transfer pending commercial suits to the Commercial Court once constituted.
- The trial court erred in returning the plaint for lack of jurisdiction.
Respondents
No representation despite personal service; no arguments recorded.
Factual Background
M/s Shakti Industries filed Original Suit No. 105 of 2019 in the Civil Court at Haridwar alleging a commercial dispute. After the Commercial Court, Dehradun, was constituted, the trial court on 06.12.2024 returned the plaint under Order 7 Rule 10 CPC for lack of jurisdiction. The petitioner moved this writ petition seeking a direction to transfer the pending suit under Section 15(2) of the Commercial Courts Act, 2015.
Statutory Analysis
- Section 15(2), Commercial Courts Act, 2015: “All suits and applications, including applications under the Arbitration and Conciliation Act, 1996 (26 of 1996), relating to a commercial dispute of a Specified Value pending in any civil court in any district or area in respect of which a Commercial Court has been constituted, shall be transferred to such Commercial Court.”
- The High Court applied a literal interpretation, holding that the word “shall” imposes a mandatory obligation.
Alert Indicators
- ✔ Precedent Followed – Existing statutory transfer mechanism under Section 15(2) affirmed.
Citations
- CNR UKHC010198952024
- Writ Petition (M/S) No.3489 of 2024, High Court of Uttarakhand at Nainital, order dated 26-08-2025 (Pankaj Purohit, J.)