The learned District Judge failed to examine and transfer the Money Suit to the Commercial Court has resulted in defeating the very object of the enactment of the Act to provide for speedy disposal of high-value commercial disputes. Such an opinion was held by The Hon’ble High Court of Sikkim before The Hon’ble Mrs. Justice Meenakshi Madan Rai and The Hon’ble Mr. Justice Bhaskar Raj Pradhan in the matter of M/s Thomas Enterprises and Ors Vs. M/s Yuksom Breweries Limited [R.F.A. No. 04 of 2018].
The facts of the case were related to an application filed against the impugned judgment passed by the learned District Judge, South Sikkim, at Namchi dated 30.07.2018. The matter was found to be a commercial dispute and ought to be tried as per the Commercial Courts Act, 2015. According to both the counsel the impugned judgment and decree should be set aside and the Money Suit to the Commercial Court. The respondent filed a Money Suit and sought a decree against the appellants for a sum of Rs.1,29,00,728/- along with interest @ 12% per annum on and from 01.04.2014 till realization.
It was stated that a suit that did not contemplate any urgent interim relief under the Act, shall not be instituted unless the plaintiff exhausted the remedy of pre-institution mediation. A settlement arrived at is required to be reduced into writing and signed by the parties and the mediator. The settlement had the same status as an arbitral award on agreed terms under sub-section (4) of Section 30 of the Arbitration and Conciliation Act, 1996. However, the Money Suit was not dealt with in the manner required under the Act.
The Hon’ble Court considering all the facts stated that “We are thus of the considered view that the impugned judgment and decree dated 30.07.2018 passed by the learned District Judge in the Money Suit must be set aside and the Money Suit transferred to the files of the Commercial Court. The Money Suit shall then be tried by the Commercial Court as per the provisions of the Act. It is accordingly ordered. Pending application is also disposed.”
Judgment reviewed by Bipasha Kundu