Shalimar Incense Pvt. Ltd. Vs Sri Nitin Kanji Shah HUF — Company and Corporate | Karnataka HC (2026)

Shalimar Incense Pvt. Ltd. Vs Sri Nitin Kanji Shah HUF — Company and Corporate | Karnataka HC (2026)

What the court decided

AI extract

Outcome

All three writ petitions allowed; the Commercial Court's common order dated 19.10.2024 rejecting the Order VII Rule 10 CPC return-of-plaint applications in Com.O.S.No.207/2021, Com.O.S.209/2021 and Com.O.S.No.208/2021 was set aside; the applications were allowed; the Commercial Court was directed to return the plaints to the plaintiffs for presentation before the appropriate court within 30 days of receipt of certified copies; the Trial Court was directed to dispose of any suits so filed expeditiously; all contentions kept open.

Issue for consideration

Whether the disputes in Com.O.S.No.207/2021, Com.O.S.209/2021 and Com.O.S.No.208/2021 constitute 'commercial disputes' under the Commercial Courts Act, 2015, or whether the plaints should be returned under Order VII Rule 10 of CPC for presentation before the appropriate civil court.

Court's answer

By allowing the return-of-plaint applications, the court accepted the premise advanced in the proceedings that the transactions between the parties do not constitute 'ordinary transactions of merchants' and the disputes are not 'commercial disputes' under the Commercial Courts Act, 2015, permitting prosecution of the suits before the appropriate civil court.

Ratio / Principle

The writ petitions are allowed.

Key takeaways

The common order dated 19.10.2024 passed by the Commercial Court on the Order VII Rule 10 CPC applications in Com.O.S.No.207/2021, Com.O.S.209/2021 and Com.O.S.No.208/2021 is set aside.ratio¶86
The applications filed by defendant No.4 under Order VII Rule 10 of CPC in the respective suits are allowed, i.e., the plaints are to be returned.ratio¶87
The Commercial Court is directed to return the plaints to the plaintiffs for presentation before the appropriate court within 30 (thirty) days from receipt of the certified copies of the plaints.

Detailed headnote1 paragraphs

High Court of Karnataka, Bengaluru (H.T. Narendra Prasad, J), 07.04.2026 — Allowed three Article 227 (GM-CPC) writ petitions filed by Shalimar Incense Pvt Ltd, defendant No.4 in the money-recovery suits Com.O.S.Nos.207/2021, 209/2021 and 208/2021 before the LXXXIII Addl. City Civil and Sessions Judge (Commercial Court), Bengaluru (CCH-84), challenging the common order dated 19.10.2024 dismissing its applications under Order VII Rule 10 of CPC for return of the plaints on the ground that the disputes are not 'commercial disputes' under the Commercial Courts Act, 2015. The impugned order was set aside; the return-of-plaint applications were allowed; the Commercial Court was directed to return the plaints for presentation before the appropriate court within 30 (thirty) days of receipt of certified copies; the Trial Court was directed to dispose of any suits so filed expeditiously; all contentions were kept open. Plaintiffs in the three suits: Sri Nitin Kanji Shah HUF, Smt Karina Shah and Smt Savitha Nithin Shah; common respondents: Shalimar Agarbatti Company (dissolved partnership), Sri. Vinod Kanji Shah and Sri. Alkesh Shah.

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HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 7^TH DAY OF APRIL, 2026

BEFORE

THE HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD WRIT PETITION NO. 33639 OF 2024 (GM-CPC)

C/W

WRIT PETITION NO. 33436 OF 2024 (GM-CPC) WRIT PETITION NO. 33636 OF 2024 (GM-CPC)

IN WP No. 33639/2024

BETWEEN:

Digitally signed by DHANALAKSHMI MURTHY Location: HIGH COURTOF KARNATAKA

SHALIMAR INCENSE PVT LTD A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 2013 HAVING ITS REGISTERED OFFICE AT SHALIMAR HOUSE, NO.32 AND 33 3^RD CROSS, SRIRAMPURAM BENGALURU 560 021 REP. BY ITS DIRECTOR SRI. ALKESH VINOD SHAH FORMERLY M/S VKS INCENSE PVT. LTD.

(BY SRI. VARUN S., ADVOCATE)

…PETITIONER

AND:

SRI NITIN KANJI SHAH HUF REP. BY ITS KARTHA SRI. NITIN KANJI SHAH AGED ABOUT 54 YEARS S/O LATE SRI. KANJI DEVSHI SHAH R/AT NO.7, KUNAL, FIRST FLOOR UPPER PINE LINE ROAD KUMARA PARK WEST BENGALURU 560 020.

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HC-KAR

SHALIMAR AGARBATTI COMPANY A PARTNERSHIP FIRM HAVING OFFICE AT NO.32 AND 33 3RD CROSS, SRIRAMPURAM BENGALURU 560 021. SINCE DISSOLVED AND REP. BY ITS PARTNERS.

SRI. VINOD KANJI SHAH AGED ABOUT 67 YEARS S/O LATE KANJI SHAH R/AT NO.7, KUNAL, GROUND FLOOR UPPER PIPELINE ROAD, KUMARA PARK WEST BENGALURU 560 020.

SRI. ALKESH SHAH AGED ABOUT 40 YEARS S/O SRI. VINOD SHAH R/AT KALPAVRUKSH HOMES NO.51, 1ST FLOOR, CHAKRAVARTHY IYENGAR EXTENSION, SHESHADRIPURAM BENGALURU 560 020.

…RESPONDENTS

(BY SRI.SWAROOP S., ADVOCATE FOR R1: SRI. NIKIT BALA, ADVOCATE FOR C/R4 AND FOR R2 TO R4)

THIS WRIT PETITION IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA PRAYING ISSUE A WRIT OF CERTIORARI SETTING ASIDE THE ORDER DATED: 19.10.2024 ( ANNEXURE-D) PASSED BY THE LD. LXXXIII ADDL. CITY CIVIL AND SESSIONS JUDGE (COMMERCIAL COURT), BENGALURU (CCH-84) IN COM. OS.NO. 207/2021 WITH RESPECT TO DISMISSAL OF THE PETITIONERS APPLICATION FILED UNDER ORDER VII RULE 10 OF THE CPC , 1908 SEEKING RETURN OF PLAINT (IA NO. 9) VIDE ANNEXURE-B AND ETC.

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HC-KAR

IN WP NO. 33436/2024

BETWEEN:

SHALIMAR INCENSE PVT LTD A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 2013 HAVING ITS REGISTERED OFFICE AT SHALIMAR HOUSE, NO.32 AND 33 3^RD CROSS, SRIRAMPURAM BENGALURU 560 021 REP. BY ITS DIRECTOR SRI. ALKESH VINOD SHAH FORMERLY M/S VKS INCENSE PVT. LTD.

…PETITIONER

(BY SRI. VARUN S., ADVOCATE)

AND:

SMT KARINA SHAH AGED ABOUT 31 YEARS W/O SRI. TANUJ BATAVIA R/AT NO.7, KUNAL, FIRST FLOOR UPPER PINE LINE ROAD KUMARA PARK WEST BENGALURU 560 020.

SHALIMAR AGARBATTI COMPANY A PARTNERSHIP FIRM HAVING OFFICE AT NO.32 AND 33, 3RD CROSS SRIRAMPURAM, BENGALURU 560 021. SINCE DISSOLVED AND REPRESENTED BY ITS PARTNERS.

SRI. VINOD KANJI SHAH AGED ABOUT 67 YEARS S/O LATE KANJI SHAH R/AT NO.7, KUNAL, GROUND FLOOR UPPER PIPELINE ROAD, KUMARA PARK WEST BENGALURU 560 020.

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HC-KAR

SRI. ALKESH SHAH AGED ABOUT 40 YEARS S/O SRI. VINOD SHAH R/AT KALPAVRUKSH HOMES NO.51, 1ST FLOOR CHAKRAVARTHY IYENGAR EXTENSION SHESHADRIPURAM BENGALURU 560 020.

...RESPONDENTS

(BY SRI.SWAROOP S, ADVOCATE FOR R1: SRI NIKIT BALA, ADVOCATE FOR R2 TO R4 VAKALATH FILED FOR R2 & R3)

THIS WRIT PETITION IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI SETTING ASIDE THE ORDER DATED 19TH OCTOBER 2024 (ANNEXURE-D) PASSED BY THE LEARNED LXXXIII ADDL. CITY CIVIL AND SESSIONS JUDGE (COMMERCIAL COURT), BENGALURU (CCH-84) IN COM.O.S.NO.209/2021 WITH RESPECT TO DISMISSAL OF THE PETITIONERS APPLICATION FILED UNDER ORDER VII RULE 10 OF THE CODE OF CIVIL PROCEDURE, 1908 SEEKING RETURN OF PLAINT (I.A.NO.8) VIDE (ANNEXURE-B) AND ETC.

IN WP NO. 33636/2024

BETWEEN:

SHALIMAR INCENSE PVT LTD A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 2013 HAVING ITS REGISTERED OFFICE AT SHALIMAR HOUSE, NO.32 AND 33 3^RD CROSS, SRIRAMPURAM BENGALURU 560 021

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HC-KAR

REP. BY ITS DIRECTOR SRI. ALKESH SHAH FORMELRY M/S VKS INCENSE PVT. LTD

…PETITIONER

(BY SRI. VARUN S.,ADVOCATE)

AND:

SMT SAVITHA NITHIN SHAH AGED ABOUT 53 YEARS W/O SRI. NITIN SHAH R/AT NO.7, KUNAL, FIRST FLOOR UPPER PINE LINE ROAD KUMARA PARK WEST BENGALURU 560 020.

SHALIMAR AGARBATTI COMPANY A PARTNERSHIP FIRM HAVING OFFICE AT NO.32 AND 33, 3RD CROSS SRIRAMPURAM, BENGALURU 560 021. SINCE DISSOLVED AND REPRESENTED BY ITS PARTNERS.

SRI. VINOD KANJI SHAH AGED ABOUT 67 YEARS S/O LATE KANJI SHAH R/AT NO.7, KUNAL, GROUND FLOOR UPPER PIPELINE ROAD, KUMARA PARK WEST BENGALURU 560 020.

SRI. ALKESH SHAH AGED ABOUT 40 YEARS S/O SRI. VINOD SHAH R/AT KALPAVRUKSH HOMES NO.51, 1ST FLOOR CHAKRAVARTHY IYENGAR EXTENSION SHESHADRIPURAM BENGALURU 560 020.

...RESPONDENTS

(BY SRI.SWAROOP S, ADVOCATE FOR R1 SRI NIKIT BALA, ADVOCATE FOR R2 TO R4)

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HC-KAR

THIS WRIT PETITION IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI AND SET ASIDE THE ORDER DATED: 19.10.2024 VIDE ANNEXURE-D PASSED BY THE LD. LXXXIII ADDL. CITY CIVIL AND SESSIONS JUDGE (COMMERCIAL COURT), BENGALURU (CCH-84) IN COM. OS.NO. 208/2021 WITH RESPECT TO DISMISSAL OF THE PETITIONERS APPLICATION FILED UNDER ORDER VII RULE 10 OF THE CPC , 1908 SEEKING RETURN OF PLAINT (IA NO. 8) VIDE ANNEXURE-B AND ETC.

THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD

ORAL ORDER

In these writ petitions, the petitioner-defendant No.4 has called in question the common order dated 19.10.2024 passed by the LXXXIII Additional City Civil and Sessions Judge, Commercial Court, Bangalore, (for short ‘Commercial Court’) on I.A.No.9, I.A.No.8 and I.A.No.8 filed by defendant No.4 under Order VII Rule 10 of CPC in

Com.O.S.No.207/2021, Com.O.S.209/2021 and Com.O.S.No.208/2021 respectively, whereby the

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HC-KAR

Commercial Court has rejected the said applications filed seeking for return of the plaints.

For the sake of convenience, the parties are referred to as per their ranking before the Commercial Court in Original Suit.

The plaintiff instituted respective suits before the Commercial Court for recovery of money. On service of summons, defendants appeared through their counsel and filed written statement. Defendant No.4 filed application under Order VII Rule 10 of CPC in the respective suits seeking for return of plaints on the ground that the disputes are not ‘commercial disputes’ under the Commercial Courts Act, 2015. The Commercial Court, after hearing the parties, by impugned order, has dismissed the said applications in respective suits. Aggrieved by the same, the petitioner-defendant No.4 is before this court.

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HC-KAR

Learned counsel for the petitioner–defendant No.4

contended that, in terms of Section 2(1)(c) of the Commercial Courts Act, the disputes in question do not fall within the ambit of “commercial disputes,” as the transactions between the plaintiff and the defendants do not constitute ‘ordinary transactions of merchants’. It is therefore submitted that the Trial Court erred in dismissing the applications filed under Order VII Rule 10 of CPC.

Learned counsel for the respondent No.1–plaintiff submitted that the plaintiff is a merchant. However, it is contended that the transactions in question do not amount to “ordinary transactions” as contemplated under the Commercial Courts Act. It is further submitted that, in such circumstances, the plaintiff may be permitted to prosecute the respective suits before the appropriate civil court.

In view of the above, the following order is passed:

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HC-KAR

ORDER

a) The writ petitions are allowed.

b) The order dated 19.10.2024 passed by the LXXXIII Additional City Civil and Sessions Judge, Commercial Court, Bangalore, on I.A.No.9, I.A.No.8 and I.A.No.8 filed by defendant No.4 under Order VII Rule 10 of CPC in Com.O.S.No.207/2021, Com.O.S.209/2021 and Com.O.S.No.208/2021 respectively, is set aside.

c) The applications filed by the defendant No. 4 under Order VII Rule 10 of CPC in respective suits, are allowed.

d) The Commercial Court is directed to return the plaint to the plaintiff to present the same before the appropriate court within 30 (thirty) days from the date of receipt of the certified copies of the plaint from the Commercial Court.

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HC-KAR

e) If such suits are filed, the Trial Court is directed to dispose of the same as expeditiously as possible.

f) All the contentions of the parties are kept open.

Sd/(H.T. NARENDRA PRASAD) JUDGE

DM

List No.: 1 Sl No.: 53