When Does An Appeal Lie To The Commercial Appellate Division Of The Court? Kerala High Court Discusses

The petitioner was challenging an order passed by the Commercial Courts (Principal Sub Court), Palakkad. The respondent challenged the maintainability of the appeal saying that the appeal should have been filed before the Commercial Appellate Court (Principal District Court), Palakkad. The petitioner had argued that the Kerala Civil Courts Act fixed the appellate jurisdiction of District Court at 20 Lakhs. Therefore, the Appeal would lie before the High Court.

The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 established special Courts to deal with commercial disputes. As these disputes involve complex legal questions, special courts were established for their early resolution.

The Act instituted Commercial Courts in district level and Commercial Division and Commercial Appellate Division in the High Court. The Commercial Court will have jurisdiction in territories over which High Court will have no ordinary original civil jurisdiction. All appeals from the Commercial Court and Commercial Division of the High Court will lie before the Appellate Division of the High Court.

By an amendment in 2018, the title of the Act was changed to Commercial Courts, Commercial Appellate Courts, Commercial Divisions and Commercial Appellate Divisions of High Courts Act. As per the original Act, the Judges of the Commercial Court has to be appointed from amongst the cadre of Higher Judicial Service in State. However, after the amendment the Judges could be either at the level of District Judge or just below the level of District Judge. Commercial Appellate Courts were established at District Judge level. The Appellate Courts will have jurisdiction over territories where High Court has no original ordinary civil jurisdiction.

After the amendment, Commercial Courts at District Judge Level can be instituted where High Courts have ordinary original jurisdiction after consultation with the concerned High Court. For such Courts at District Judge Level, the State can fix pecuniary limits. In cases where the value exceeds the pecuniary jurisdiction of the Commercial Courts at District Judge, the matter should be filed before the Commercial Division of High Court.

As per Section 13 of the Act, judgment of Commercial Court below the level of District Judge shall be filed before the Commercial Appellate Division. An order/ judgment of the Commercial Court at the District Judge level or of the Commercial Division of High Court shall be appealed before the Appellate Division of the High Court.

The Court observed that, therefore in this case the appeal will lie before the Commercial Appellate Court. Section 13 of the Act expressly lays down that no appeal shall lie from the order of a Commercial Court except in accordance with the provisions of this Act. The Court rejected the claim that the Commercial Appellate Court at District Judge level has no pecuniary jurisdiction as per the Kerala Civil Courts Act. Court observed that the Commercial Courts, Commercial Appellate Courts, Commercial Divisions and Commercial Appellate Divisions of High Courts Act does not give any power to State Government to fix pecuniary jurisdiction of the Appellate Court.

The Appeals were hence returned.

The petition was moved by Advocates C. S. Manilal, C. S. Nidheesh

Citation: 2024 LiveLaw Ker (326)

Case Title: Y. Sleebachan v State of Kerala and Another

Case Number: Coml. A. 6/ 2024

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