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Supreme Court Decision on Disputes on Immovable Property Supreme Court Decision on Disputes on Immovable Property

Bronze medal Reporter Adv Rose Posted 5 Oct 2019 Read More News and Blogs
Supreme Court Decision on Disputes on Immovable Property

A new supreme court judgment has been formulated on disputes related to immovable property. The court observed that "We feel that the very purpose for which the CC Act of 2015 has been enacted would be defeated if every other suit was merely because it is filed before the Commercial Court is entertained. This is for the reason that the suits which are not actually relating to commercial dispute but being filed merely because of the high value and with the intention of seeking early disposal would only clog the system and block the way for the genuine commercial disputes which may have to be entertained by the Commercial Courts as intended by the lawmakers. In commercial disputes as defined a special procedure is provided for a class of litigation and a strict procedure will have to be followed to entertain only that class of litigation in that jurisdiction. If the same is strictly interpreted it is not as if those excluded will be non-suited without any remedy. The excluded class of litigation will, in any event, be entertained in the ordinary Civil Courts wherein the remedy has always existed.

A dispute relating to immovable property per se may not be a commercial dispute. But it becomes a commercial dispute, if it falls under sub-clause (vii) of Section 2(1)(c) of the Act viz. "the agreements relating to immovable property used exclusively in trade or commerce". The words "used exclusively in trade or commerce" are to be interpreted purposefully. The word "used" denotes "actually used" and it cannot be either "ready for use" or "likely to be used" or "to be used". It should be "actually used". Such a wide interpretation would defeat the objects of the Act and the fast-tracking procedure discussed above".This is one of the topmost legal judgments in India.

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