Commercial Courts Barred from Entertaining Eviction Suits Under Jharkhand Building Act Despite Commercial Use of Property
In a significant ruling, the Jharkhand High Court has reaffirmed the exclusive jurisdiction of Rent Controllers over eviction suits filed under the Jharkhand Building (Lease, Rent & Eviction) Control Act, 2011. This decision came in the case of Aditya Birla Lifestyle Brands Limited v. Devanand Singh & Son HUF, where the petitioner challenged the jurisdiction of the Rent Controller in an ongoing eviction proceeding.
The petitioner, Aditya Birla Lifestyle Brands Limited, argued that the dispute, being commercial in nature due to the use of the immovable property for trade, should fall under the jurisdiction of the Commercial Courts as per the Commercial Courts Act, 2015. The company contended that the property was used exclusively for business purposes, and with the valuation exceeding Rs.43,00,000, the matter should be governed by the provisions of the Commercial Courts Act. The petitioner further argued that Section 21 of the Commercial Courts Act, which provides overriding effect, should apply, barring the Rent Controller's jurisdiction.
However, the Jharkhand High Court, presided by Justice Ananda Sen, dismissed these arguments, stating that the eviction suits under the Jharkhand Building Act fall exclusively under the jurisdiction of the Rent Controller. The court highlighted that Section 11 of the Commercial Courts Act expressly bars the jurisdiction of Commercial Courts in matters where Civil Court jurisdiction is expressly or impliedly barred by other statutes. Thus, despite the commercial nature of the property, the Rent Controller retains the authority to adjudicate eviction proceedings.
The judgment clarified that the Controller, defined under Section 2(d) of the Jharkhand Building Act, is an Executive Officer of the State, not below the rank of Sub-Divisional Officer and Executive Magistrate. This appointment signifies a shift from judicial to executive oversight in eviction matters, emphasizing the legislative intent to centralize such jurisdiction within the Rent Controller.
Addressing the petitioner's claim regarding possession and the role of the franchisee, the court asserted that these are disputed facts requiring evidentiary proceedings. Such matters cannot be resolved at the initial stage and must be addressed during the eviction proceedings before the Rent Controller. The court urged the Rent Controller to expedite the case without unnecessary adjournments.
The decision underscores the delineation of jurisdiction between Commercial Courts and Rent Controllers, maintaining that eviction proceedings remain outside the purview of commercial adjudication despite the property's use. This ruling is expected to have broader implications for similar disputes, reinforcing the Rent Controller's authority in eviction matters under the Jharkhand Building Act.
Bottom line:-
Commercial Courts do not have jurisdiction over eviction suits filed under the Jharkhand Building (Lease, Rent & Eviction) Control Act, 2011, even if the immovable property is used exclusively for trade and commerce.
Statutory provision(s): Jharkhand Building (Lease, Rent & Eviction) Control Act, 2011, Section 19, Commercial Courts Act, 2015, Sections 2(1)(c)(vii), 11, and 21.
