Dispute Arising Out Of Agreements Relating To Property Used Exclusively In ‘Trade & Commerce’ Constitutes “Commercial Dispute”: Gujarat High Court

Dispute Arising Out Of Agreements Relating To Property Used Exclusively In ‘Trade & Commerce’ Constitutes “Commercial Dispute”

Case: Kushal Limited Through Auto. Sign. And Managing Director Mr. Yogesh Ghanshyambhai Patel V/S Tirumala Technocast Private Limited

Coram: Justice NV Anjaria and Justice Samir Dave

Case No.: C/SCA/3572/2022

Court Observation: “Dispute arising out of agreements relating to property used exclusively in trade and commerce would constitute a commercial dispute…a commercial dispute would otherwise not cease to be commercial dispute merely because action involves recovery of immovable property or realisation of money out of immovable property or involve any other relief pertaining to immovable property.”

“The test that the property is actually used for trade or commerce and for business purpose as warehouse, is satisfied in the present case.” “When the godown owned by the plaintiffs was rented by the defendant on a fixed rent, and the suit claim and relief sought for pertained to damages arising out of such subject transaction, the dispute arising therefrom becomes a ‘commercial dispute’ within the meaning of the Section 2(1)(c) of the Act.”

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