Employment contract is not a commercial dispute: Karnataka HC

Employment contract is not a commercial dispute: Karnataka HC

Karnataka High Court in Sanjay Kumar vs. Elior India Food Services LLP [Writ Petition No. 2584 of 2023] while examining the question that in order for an employment agreement to become a commercial dispute, whether the said agreement would come within the meaning of section 2(1)(c)(xviii) of the Commercial Courts Act, 2015, observed that a pure and simple employment contract cannot be given a colour of a commercial dispute by dressing it to be a provision of services. The Court further held that if the petitioner has invoked a wrong jurisdiction i.e., that of the commercial Court in a dispute, it would not become a commercial dispute, unless it comes within the definition of section 2(1)(c)(xviii) of the Commercial Courts Act, 2015 as it is settled principle of law that merely because a party invokes a wrong jurisdiction and a determination is made by the concerned Court without the parties objecting to it, will not clothe such Court with jurisdiction dehors the statute and become binding on any subsequent proceeding before the Court.

Also read: Probationer termination is not punishment: Bombay HC

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November 2024

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