Summary
An order rejecting a plaint under Order VII Rule 11 CPC is a deemed decree under Section 2(2) CPC and is therefore appealable to the Commercial Appellate Division under the main part of Section 13(1A) of the Commercial Courts Act, 2015; the proviso confining appeals to orders listed in Order XLIII CPC governs only interlocutory orders. The High Court's non-suit of the plaintiff's appeal was set aside and the appeal restored.
Issues
- Whether an order of a Commercial Court rejecting a plaint under Order VII Rule 11 CPC (for want of pre-institution mediation under Section 12A of the Commercial Courts Act, 2015) is appealable under Section 13(1A) of that Act.
- Whether the proviso to Section 13(1A), limiting appeals to orders enumerated in Order XLIII CPC, bars an appeal against rejection of a plaint.
Provisions considered
- Section 2(2), Code of Civil Procedure, 1908The definition of 'decree' expressly deems the rejection of a plaint to be a decree; the Court held that an order under Order VII Rule 11 finally decides the lis and is a decree. (¶¶ 8, 14)
- Order VII Rule 11, Code of Civil Procedure, 1908The trial Court rejected the plaint under this rule for non-compliance with pre-institution mediation; the Court treated that rejection as a deemed decree open to appeal. (¶¶ 6, 13, 14, 20)
- Section 13(1A) and proviso, Commercial Courts Act, 2015Read as two parts: the main provision allows appeals against judgments and orders of a Commercial Court; the proviso, as an exception, only restricts appeals against interlocutory orders to those listed in Order XLIII CPC and Section 37 of the Arbitration Act, and cannot curtail appeals against decrees. (¶¶ 15, 16, 17, 19)
- Order XLIII, Code of Civil Procedure, 1908Orders not enumerated in Order XLIII (such as orders refusing applications under Order VII Rule 10 or Rule 11(d)) are not appealable under Section 13(1A) and must be challenged by revision or under Article 227; this does not affect a decree rejecting the plaint. (¶¶ 17, 18, 19)
- Section 12A, Commercial Courts Act, 2015Mentioned as the ground on which the plaint was rejected (no pre-institution mediation); the Court did not decide the merits of that ground. (¶ 6)
Held
- An order rejecting a plaint under Order VII Rule 11 CPC decides the lis finally and is a decree within Section 2(2) CPC. (¶ 14)
- A decree of a Commercial Court at the level of District Judge, or of a Commercial Division of a High Court, is ordinarily appealable to the Commercial Appellate Division under the main part of Section 13(1A) of the Commercial Courts Act, 2015. (¶ 15)
- The proviso to Section 13(1A) is an exception that must be read harmoniously with the main provision; it restricts only appeals against interlocutory orders to those enumerated in Order XLIII CPC and Section 37 of the Arbitration and Conciliation Act, 1996, and does not cut down the right of appeal against judgments and decrees. (¶ 17)
- Bank of India v. Maruti Civil Works was distinguishable: it concerned orders refusing applications under Order VII Rule 10 and Rule 11(d), which are not listed in Order XLIII and are challengeable by revision or under Article 227, not by appeal under Section 13(1A). (¶¶ 18, 19)
- A plaintiff whose plaint is rejected under Order VII Rule 11 cannot be left without remedy or forced to file a fresh suit; the appeal under Section 13(1A) is maintainable. (¶¶ 20, 21)
Result
Appeal allowed; the High Court's order holding the appeal not maintainable was set aside, and the commercial first appeal was restored to its file and original number for decision on merits. No order as to costs.