{"id":270673,"date":"2022-07-26T18:00:14","date_gmt":"2022-07-26T12:30:14","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=270673"},"modified":"2022-07-29T11:23:11","modified_gmt":"2022-07-29T05:53:11","slug":"thin-line-between-adjudication-and-legislation-delhi-high-court-rules-out-retrospective-application-of-commercial-courts-amendment-act-2018","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/07\/26\/thin-line-between-adjudication-and-legislation-delhi-high-court-rules-out-retrospective-application-of-commercial-courts-amendment-act-2018\/","title":{"rendered":"‘Thin line between adjudication and legislation’; Delhi High Court rules out retrospective application of Commercial Courts (Amendment) Act, 2018"},"content":{"rendered":"
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Delhi High Court<\/span>: A Division Bench of Satish Chandra Sharma, CJ and Subramonium Prasad, J. refused to transfer the civil suits pending before the Additional District Judge, Patiala House Courts, New Delhi, to the designated Commercial Court as the Commercial Courts (Amendment) Act, 2018 (\u2018Amending Act’) shall not apply retrospectively and thus, the advantage provided under Section 19 of the Amending Act cannot be taken, as dispute relates before to the date of commencement of the Act, i.e., 03-05-2018.<\/p>\n

The instant transfer petition was filed seeking transfer of civil suits relating to a commercial dispute pending before Additional District Judge, Patiala House Courts, New Delhi to the designated Commercial Courts in wake of Section 15<\/a> Commercial Act, 2015<\/a> Act on the ground that the suits are commercial in nature and pertain to \u2018commercial disputes’ as defined under the Commercial Act, 2015<\/a> Act.<\/p>\n

The main point of contention by petitioner was that even though the Amending Act, 2018 was to apply to cases filed on or after the institution of Amending Act, 2018, the Saving Clause enumerated in Section 19 of the Amending Act, 2018 conveyed that the Amending Act would have a retrospective impact to the extent that pending cases of the lowered specified value could also be transferred to a Commercial Court.<\/p>\n

The issue under consideration is whether the Commercial Courts (Amendment) Act, 2018 (\u2018the Amending Act’) would apply retrospectively to the instant petition or not?<\/p>\n

The Commercial Courts, Commercial Division and Commercial Appellate Division Act, 2015 (\u20182015 Act’), now known as Commercial Courts Act, 2015<\/a> as amended in 2018 was enacted by the Legislature under which all suits over a sum of Rs.1 Crore was to be transferred from Ordinary Courts to the designated Commercial Courts. The amendment was promulgated whereby territories in which the High Courts had ordinary Original civil jurisdiction, Commercial Courts were to be established at the level of the District Courts as well, and any appeal from these Commercial Courts at the District Level would lie before the Commercial Appellate Division of the High Court. Further, the Amending Act reduced the specified value to Rupees three lakhs and, therefore, widened the pecuniary jurisdiction exercised by such District Courts (Commercial).<\/span><\/p>\n

It was brought to the attention of the Court that the administrative side of this Court vide order dated 04-02-2020 ruled that the Amending Act would be applicable to only those cases which were instituted on or after 03-05-2018 and accordingly vide order dated 25-03-2022 notice was issued to the High Court to produce the record so as to demonstrate the rationale of the said order.<\/p>\n

Dr. Amit George, Standing Counsel for the Delhi High Court, substantiated that the Amending Act is not applicable retrospectively, on the following grounds:<\/p>\n