Arbitration Act | Section 9 Order By Subordinate Judge Acting As Commercial Court Appealable Before Commercial Appellate Court, Not HC: Kerala HC

The Kerala High Court recently held that an order passed by a Subordinate Judge's Court acting as a Commercial Court under a Government notification, would be appealable only before the concerned Commercial Appellate Court as per Section 13 of the Commercial Courts Act, and not before the High Court, as per the Arbitration & Conciliation Act, 1996 ('Act, 1996). 

The Court in this case was seized of an appeal against an order passed by the Subordinate Court under Section 9 of the Act, 1996. Section 9 of the Act states interim measures to be taken by the Court. 

The appellants contended that an appeal would lie only before the District Court going by the definition of “Court” as the Principal Civil Court of original jurisdiction in a District.

It was thus argued that an order under Section 9 of the Act by the District Court would be appealable only before the High Court, as per Section 37. ('Appealable Orders'). 

The respondents however argued that as per the Government notification issued in February 2020, the Principal District Courts in each District had been notified as Commercial Appellate Courts, and thus, appeals would lie only before the District Courts. 

Taking note that the impugned order had been passed by the Commercial Court, Kattappana, a single bench of Justice Sathish Ninan observed that since the government notification had designated the Principal District Courts in each district as Commercial Appellate Courts, they would be competent to deal with commercial appeals from subordinate court orders, and the same would not lie before the High Court. It said:

"The Subordinate Judge's Court, Kattappana is acting as the Commercial Court by virtue of a notification dated 18.03.2022 issued by the Government in terms of Section 3 of the Commercial Courts Act, 2015. Section 13 of the Commercial Courts Act provides for an appeal against an order of the Commercial Court before the Commercial Appellate Court. The Government has issued a notification designating the Principal District Courts in each Districts as Commercial Appellate Courts. Therefore, the appeal against the order impugned lies before the concerned Commercial Appellate Court – District Court". 

The appeal was thus dismissed finding the same not to be maintainable. 

Counsel for the Appellant: Advocates R. Asalatha Varma, Dennis Jose, and Arjun Varma 

Counsel for the Respondents: Advocate Jawahar Jose

Citation: 2024 LiveLaw (Ker) 25 

Case Title: Sabu George & Ors. v. James George & Ors. 

Case Number: ARB.A NO. 29 OF 2023

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