Will Procedure Under Commercial Courts Act, 2015, Apply To Cases Instituted Before Its Commencement? Delhi HC Refers Yes Bank's Appeal to Larger Bench

The principal question for consideration was whether an appeal filed by Yes Bank challenging an order dated 14.03.2019 allowing Modi Rubber's application under Order VI Rule 17 of the Code of Civil Procedure, 1908, (CPC) for amendment of the suit, was maintainable.

Counsel appearing for Yes Bank contended that the suit was filed before the Commercial Courts Act, 2015 came into force and therefore, the appeal provisions, as applicable to orders prior to the Commercial Courts Act, 2015 would be applicable. He relied on the decision of a Coordinate Bench in Brahmos Aerospace Pvt. Ltd. v. FIIT JEE Ltd. & Anr (2019) in support of his contention.

Counsel appearing for Modi Rubber countered the aforesaid submissions and argued that while referring to Section 15 of the Commercial Courts Act, 2015 and in particular to the proviso to Sub-section (2) of Section 15 of the Commercial Courts Act, 2015, the date of re-numbering the suit as a commercial suit would not be relevant because of the proviso to Section 15(2) of the Commercial Courts Act, 2015.

Upon hearing the arguments, a division bench of Justices Vibhu Bakhru and Tara Vitasta Ganju opined, “The contention that the provisions of Section 13 of the Commercial Courts Act, 2015 would not apply to suits that were instituted prior to the Commercial Courts Act, 2015 coming into force is prima facie unpersuasive. The express provision of Section 15 of the Commercial Courts Act, 2015 clearly imply that the provisions of Commercial Courts Act, 2015 would also cover certain pending suits.”

“The contention that a Coordinate Bench of this Court in Brahmos Aerospace Pvt. Ltd. v. FIIT JEE Ltd. & Anr. (supra) has accepted a view to the contrary is also unmerited. A plain reading of paragraphs 12 and 13 of the said judgment indicate that the Court had found that the date on which the suit was re-numbered as dipositive of the question whether the provisions of the Commercial Courts Act, 2015 would be applicable,” the bench added.

The Court expressed its reservations as to the views expressed by the Coordinate Bench of the Court in Brahmos Aerospace Pvt. Ltd. v. FIIT JEE Ltd. & Anr. (supra).

It observed that the ministerial act of re-numbering the suit cannot determine the rights of the parties.

Accordingly, due to the apparent difference of opinion between the bench and a coordinate bench's opinion, the appeal was placed before the Acting Chief Justice for necessary assignment before a larger bench. 

Case Title: Yes Bank Ltd Vs Modi Rubber Ltd & Anr

Citation: 2024 LiveLaw (Del) 167

Click Here To Read The Order