Commercial Courts Act, 2015 – Term “Used” including the expression “capable of being used” in Sec.2(1)(c)(vii) denotes “actually used” and it cannot be either “ready for use” or “likely to be used” or “to be used”.

Two different suits were filed for specific performance of two agreements for development of the land for commercial and residential projects with prayers for damages and in the alternative, for refund of earnest money and damages.

The defendants filed applications under Order VII Rule 11(d) of the Code of Civil Procedure on the ground that the Commercial Court has jurisdiction to entertain and try the suits since the property would be used in trade or commerce.

HELD that a dispute relating to immovable property per se may not be a commercial dispute but it becomes commercial dispute if the agreement relating to immovable property used exclusively in trade or commerce.   The word “used” denotes “actually used” and it cannot be either “ready for use” or “likely to be used” or “to be used”.   If all such suits are transferred to the Commercial Court, there shall be no difference between a regular Civil Court and the Commercial Court.  The expression “used” must mean “actually used” or “being used”.   The suit for specific performance of the contract of immovable property without reference to the actual use of the immovable property in trade or commerce as on the date of the suit will not be a suit relating to a commercial dispute.

Judgment dated 19.3.2024 in Civil Revision Application No.30 of 2023 of J.P. Realities Pvt Ltd and another Vs. Mahesh Chandrabhan Kingrani and others with connected matter.