T.E. Thomson & Company Limited Vs. Swarnalata Chopra

T.E. Thomson & Company Limited Vs. Swarnalata Chopra Nee Kapur & Anr.:Date of Order: 18th June, 2025:Case Number: CS (COM) No. 4 of 2023:Court: High Court at Calcutta (Commercial Appellate Division), Original Side:Judges: Hon’ble Justice Soumen Sen and Hon’ble Justice Smita Das De

Very Brief Facts: The plaintiff filed a suit for eviction of the defendant from a commercial property after termination of the lease by a notice under Section 106 of the Transfer of Property Act, 1882. The dispute was whether the suit qualifies as a "commercial dispute" under Section 2(1)(c)(vii) of the Commercial Courts Act, 2015.

Dispute:Whether eviction suits filed after lease termination via Section 106 of the Transfer of Property Act can be treated as “commercial disputes.”

Conflict arose with a previous decision (Deepak Polymers Pvt. Ltd.), which had held that such suits are not commercial disputes as they arise solely from a statutory right.

Discussion by the Court:The judges considered legislative intent, the expansive interpretation of "arising out of" and "relating to" under the Commercial Courts Act, and the role of the lease agreement even after its termination.

The court analyzed conflicting decisions and jurisprudence, emphasizing the need to interpret Section 2(1)(c)(vii) with its explanation inclusively.

They concluded that a suit for eviction, even after lease termination, can involve examination of lease agreements, especially when the property was used exclusively for trade or commerce.

Questions Answered:

Issuance of Section 106 notice does not prevent a court from treating the dispute as a commercial one.

Such a suit can be treated as a commercial suit under Section 2(1)(c)(vii) read with its explanation if it concerns commercial immovable property.