In a significant ruling by the Delhi High Court, a key appeal was allowed concerning the interpretation of the Standard Operating Procedure (SOP) in relation to Section 12A of the Commercial Courts Act. The Court restored the suit to its original stage, setting the stage for further legal proceedings. Stay informed about this crucial development in the case before the Court.
Analysis
- The learned Commercial Court incorrectly interpreted the Standard Operating Procedure (SOP) as a declaration that Section 12A of the Commercial Courts Act is mandatory.
- The SOP does not specify the consequences of non-compliance with Section 12A or make a declaration about its mandatory nature.
- The central issue in the appeal is the interpretation of the SOP in relation to Section 12A of the CC Act.
- The Supreme Court’s decision in Patil Automation Private Limited & Ors. v. Rakheja Engineers Private Limited does not support the Commercial Court’s conclusion.
- The suit in question was filed before the Supreme Court’s decision, and therefore, the prospective effect of the decision does not apply to the appellant.
- The Commercial Court’s reliance on a letter and the SOP to declare Section 12A mandatory was incorrect.
- Based on the misinterpretation of the SOP, the Commercial Court concluded that the appellant would not be entitled to any relief.
- The judgment interpreting Section 12A of the Commercial Courts Act is prospective from 20th August 2022.
- The suit filed in 2018 does not benefit from the said judgment.
- Similar views were expressed by learned Single Judges in other cases like CEPCO Industries Private Limited v. Tewari Restaurant Private Limited, Jai Pal Singh Sharma Trust v. SRM Education & Financial Consultant Pvt. Ltd, and Odeon Builders Pvt. Ltd. v NBCC (India) Limited.
- The appellant’s suit is restored before the Commercial Court to its original stage as of 08.02.2023.
- This issue has been considered in various decisions including Santosh Kumar Aggarwal v. M/s. Aluco Panel Limited by this Court.
Decision
- Parties directed to appear before the Commercial Court on 29.05.2024.
- The appeal has been allowed.
- The specific terms of the allowance were not provided in the summary.
Case Title: MS HAREY KRISHNA CORPORATION Vs. SERVOTECH POWER SYSTEMS LTD & ANR. (2024:DHC:3717-DB)
Case Number: RFA(COMM)-68/2023
