The Court finds procedural errors in the Commercial Court's dismissal, mandates re-presentation before a competent forum for a fair trial.
In a significant ruling, the Delhi High Court has overturned the dismissal of a suit filed by Pramod Kumar, a former Deputy General Manager, against his ex-employer, M/s Gannon Dunkerley and Co. Ltd. The suit, initially dismissed by the Commercial Court on grounds of not being a "commercial dispute," has been ordered to be returned for presentation before an appropriate forum. The High Court's decision, delivered by Justices Anil Kshetarpal and Amit Mahajan, highlights critical procedural missteps by the lower court in handling jurisdictional matters.
Pramod Kumar, who served the respondent company for over 27 years, had filed a suit seeking recovery of terminal dues including unpaid salary, leave encashment, and other benefits. The Commercial Court had dismissed the suit, stating that the matter did not qualify as a "commercial dispute" under Section 2(1)(c) of the Commercial Courts Act, 2015.
However, the High Court found fault with this approach, emphasizing that the correct legal procedure, as outlined in Order VII Rule 10 of the Code of Civil Procedure, required the plaint to be returned to be filed in a competent court rather than dismissing it outright. The Court noted that dismissal amounted to a final adjudication on the merits, whereas the return of a plaint is merely a procedural step to rectify jurisdictional errors.
The ruling underscores the importance of procedural correctness in jurisdictional matters, as emphasized in past judgments such as AJ Organica Pvt. Ltd. v. State of Maharashtra and Ambalal Sarabhai Enterprises Ltd. v. K.S. Infraspace LLP. The High Court's decision allows Kumar to pursue his claims in a suitable forum, ensuring that procedural technicalities do not obstruct substantive justice.
The High Court has restored the suit to its original position and directed the Commercial Court to return the plaint, allowing Kumar to present his case afresh. The decision mandates a de novo trial, permitting the use of existing pleadings and evidence to expedite the process.
This judgment reiterates the judiciary's commitment to ensuring access to justice and underscores the procedural safeguards available to litigants under Indian law.
Bottom Line:
Commercial Courts Act, 2015 - Suit dismissed by Commercial Court on finding that the dispute was not a "commercial dispute" under Section 2(1)(c) - Held, dismissal was erroneous as the correct procedure under Order VII Rule 10 of the CPC was to return the plaint for presentation to the appropriate forum.
Statutory provision(s): Commercial Courts Act, 2015 Section 2(1)(c), Order VII Rule 10 CPC, Section 13 of the Commercial Courts Act, 2015
Pramod Kumar v. M/s Gannon Dunkerley and Co. Ltd., (Delhi)(DB) : Law Finder Doc id # 2841368
