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Patna High Court

Railway,versusAfcon Infrastructure Limited,

Decided
Disposal
ALLOWED

Holding

An Additional District Judge is not a Commercial Court under the Commercial Courts Act, 2015 and therefore lacks jurisdiction to entertain a Section 34 application; such matters must be heard by the Commercial Court constituted by the Principal District Judge.

Summary

The appellants, a group of railway officials, challenged an arbitral award of Rs.1,73,84,96,092 awarded to Afcon Infrastructure Ltd. The Additional District Judge, Patna, upheld the award and dismissed the Section 34 challenge, but the appellants appealed on the ground that the ADJ lacked jurisdiction to entertain the application. The High Court examined the definition of "District Judge" under Section 2(e) of the Commercial Courts Act, 2015 and the notifications constituting Commercial Courts in Bihar, concluding that only the Principal District Judge (as Commercial Court) can hear Section 34 applications in commercial arbitrations. The Court held that the ADJ‑XXVI was not a Commercial Court and therefore had no jurisdiction, setting aside the impugned order. The matter was transferred to the Principal District Judge, Patna, to be heard as a Commercial Court. The appeal was allowed.

Issues considered

  • Whether an Additional District Judge has jurisdiction to entertain an application under Section 34 of the Arbitration and Conciliation Act, 1996 in a commercial dispute where a Commercial Court has been constituted under the Commercial Courts Act, 2015.
  • Interpretation of the term "District Judge" under Section 2(e) of the Commercial Courts Act, 2015 and its applicability to Additional District Judges.
  • Whether the Bihar notifications constituting Commercial Courts limit jurisdiction to the Court of the District Judge alone.
  • Whether prior judgments (South Bihar Power Distribution Co., Vishal Builtech, Johnson Paints, Bihar State Road Development Corp.) are binding on the present issue.
  • Whether the principle of res judicata applies to the order of the Additional District Judge.

Legislation cited

Subjects

  • Arbitration
  • Commercial Courts
  • Section 34
  • Jurisdiction
  • Additional District Judge
  • Commercial Courts Act 2015
  • Arbitral award
  • Res judicata
  • Statutory interpretation

Judgment

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                     COMMERCIAL APPEAL No.4 of 2025
                                       In
                      Miscellaneous Appeal No.264 of 2024
     ======================================================
1.   The Secretary, Union of India, Ministry of Railway, Rail Bhawan, New
     Delhi - 110001.
2.   The Chairman, Railway Board, Ministry of Railway, Rail Bhawan, New
     Delhi - 110001.
3.   The General Manager, East Central Railway, Hazipur, District Vaishali,
     Bihar, Pin - 844101.
4.   The Chief Engineer, East Central Railway, Mahendru Ghat, District Patna,
     Pin - 800004.
5.   The Deputy Chief Engineer, Construction, East Central Railway,
     Mughalsarai, District Chandauli, Pin - 232101.
                                                                  ... ... Appellants
                                        Versus
     Afcon Infrastructure Limited, A Company registered under the Companies
     Act, 1956 with its registered office situated in the State of Maharashtra at
     Afcon's House, 16, Shah Industrial Estate, Veera Desai Road, Azad Nagar
     Post Office P.O. Box No. 11978, Andheri (W), Mumbai - 400053 through its
     Authorised Signatory G.C. Sinha Roy, AGM (Execution)
                                                                ... ... Respondent
     ======================================================
     Appearance :
     For the Appellants     :       Dr. Mourya Vijay Chandra, CGC
                                    Mr. Arjun Kumar, CGC
                                    Mr. Barun Kumar Jha, Advocate
                                    Ms. Preety Ranjan, Advocate
                                    Mr. Gaurav Govinda, Advocate
     For the Respondent     :       Mr. Y.V. Giri, Senior Advocate
                                    Mr. Raju Giri, Senior Advocate
                                    Mr. Harsh Vardhan, Advocate
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD
             and
             HONOURABLE MR. JUSTICE KUMAR MANISH
     CAV JUDGMENT
     (Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)

     Date : 18-06-2026


                 This Commercial Appeal arises out of order dated

     13.10.2023 passed in Miscellaneous (Arbitration) Case No. 37 of

     2018 by learned Additional District Judge-XXVI, Patna.
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                   2. By the order under appeal (hereinafter called the

       ‘impugned order’), the learned ADJ-XXVI, Patna has been pleased

       to uphold the award passed by learned Arbitral Tribunal in ARB

       No. 107 of 2016. The Tribunal has been pleased to award a sum of

       Rs.1,73,84,96,092/- in favour of the respondent with further award

       to pay the interest at the rate of 5% per annum from the date of

       award till the date of realization and also cost of Rs.64,68,740/-.

       The learned Arbitral Tribunal further directed that in case of failure

       of the appellants to pay the amount under the impugned award, the

       appellants would be liable to pay penal interest at the rate of 18%

       per annum till the date of actual payment and also the cost on the

       account of expenses will carry interest at the rate of 6% per annum

       till the date of actual payment. The Tribunal further directed that

       the bank guarantee will be released within 15 days from the date of

       the award failing which the bank guarantee will be realized at the

       interest    of    3%     per    annum       till      the   date   of   actual

       communication/release is confirmed.

                            Submissions on behalf of the Appellant

                   3. Dr. Mourya Vijay Chandra, learned counsel

       representing the appellants has raised various grounds challenging

       the impugned award and the order passed by the learned ADJ-

       XXVI, Patna in Miscellaneous (Arbitration) Case No. 37 of 2018.
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                   4. At the outset, learned counsel for the appellants

       submits that the learned ADJ has grossly erred in deciding the

       matter under Section 34 of the Arbitration and Conciliation Act,

       1996 (hereinafter referred to as the ’Act of 1996’). It is submitted

       that in the case of South Bihar Power Distribution Company

       Limited Vs. Bhagalpur Electricity Distribution Company

       Private Limited (Miscellaneous Appeal No. 172 of 2018), a

       learned Single Judge of this Court had occasion to consider as to

       whether the court of learned Additional District Judge would be a

       competent court in terms of Section 3 of the Commercial Courts

       Act, 2015 (hereinafter referred to as the ‘Act of 2015’) read with

       notification dated 03.03.2017 issued by the Department of Law,

       Government of Bihar. The Court held that since the statutory court

       was already notified by the State Government in exercise of power

       under Section 3 of the Act of 2015, it was the District Judge posted

       in the Civil Court at Divisional Headquarter alone and no other

       District Judge or Additional District Judge could have jurisdiction

       to hear and pass order on an application under Section 34 of the

       Act of 1996. It is further submitted that in the case of M/s Vishal

       Builtech India Private Limited Vs. The Union of India and

       Others (MJC No. 1323 of 2018), the Hon’ble Division Bench of

       this Court held that it is the Commercial Court alone who may
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       hear and dispose of an application under Section 34 of the Act of

       2015. It is submitted that both the judgments of this Court were

       placed before the learned ADJ, Patna which have been taken note

       of in the impugned order but the learned court took a view that the

       definition of District Judge as given in Section 2(e) of the Act of

       2015 read with Article 236(a) of the Constitution of India could

       not be brought to the notice of the Hon’ble High Court either in

       the case of South Bihar Power Distribution Company Limited

       (supra) or in the case of M/s Vishal Builtech India Pvt. Ltd.

       (supra).

                   5. It is submitted that very recently, this Court had

       occasion to consider an identical issue in the case of M/s Johnson

       Paints     Pvt.    Ltd.    Vs.    M/s     Johnson     Paints   Company

       (Commercial Appeal No. 8 of 2024) wherein the Hon’ble

       Division Bench has taken a view that by virtue of Section 21,

       which gives overriding effect to the Act of 2015 and also Sections

       10 and 15, even in a challenge under Section 34 of the Arbitration

       Act, though ordinarily the jurisdiction lies before the Principal

       Civil Court of original jurisdiction in a district, the matter shall be

       filed in, and heard and disposed of by the Commercial Court

       exercising territorial jurisdictional over such arbitration where

       such Commercial Court has been constituted as per Section 10(3)
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       of the Act of 2015. In the case of M/s Johnson (supra), the

       Hon’ble Division Bench observed that the learned District Judge

       erred in making over the case to the learned ADJ-XIV. The case

       was transferred to the learned District Judge, Patna who had been

       constituted as Commercial Court and the order passed by the

       learned ADJ has been held being without jurisdiction and non est

       in law.

                   6. Learned counsel submits that in the case of M/s Bihar

       State Road Development Corporation Ltd. Vs. M/s MG

       Contractors (P) Ltd (Commercial Appeal No. 10 of 2024), this

       Court again dealt with this issue in its judgment dated 08.04.2026.

       This Court dealt with the notification dated 03.03.2017 and the

       notification dated 02.08.2019 issued by the Law Department in

       exercise of its power under Section 3 of the Act of 2015 (as

       amended up to date). This Court held that on a conjoint reading of

       Section 3 and Section 8 of the Bengal, Agra and Assam Civil

       Courts Act, 1887 (hereinafter referred to as the ‘Act of 1887’), the

       court of the District Judge and the court of the Additional Judge

       are two different courts. The Courts of Additional Judges have

       been envisaged for the speedy disposal of the cases pending before

       any District Judge, and once the same is assigned to an Additional

       Judge by the District Judge, he would discharge his duties in
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       respect of the assigned matters, and while doing so, the learned

       Additional Judges would carry all the functions of a District Judge,

       they shall exercise the same power as the District Judge. But

       having said so, this Court has referred the notifications constituting

       a Commercial Court under Section 3 of the Act of 2015. It has

       been held that the notification has got itself confined to the Court

       of Civil Judge (Senior Division) and to the court of District Judge,

       in all the districts of the State of Bihar. The District Judge who has

       been constituted as a Commercial Court within the meaning of the

       Act of 2015 does not derive any power to further transfer its

       adjudicatory power as a Commercial Court to the Additional

       Judges.

                   7. It is submitted that in this case, firstly, the learned

       District Judge, Patna erred in directing the office to transfer the

       arbitration case to the court of ADJ-XXVI, Patna for hearing and

       disposal. Thereafter, when the matter came before the learned

       ADJ, Patna, the learned ADJ, Patna wrongly assumed jurisdiction

       upon himself to decide the matter. It is submitted that the

       impugned order passed by the learned ADJ, Patna suffers from

       jurisdictional error and the impugned order is liable to be set aside

       on this ground alone. It is submitted that if the appeal succeeds on
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       this ground alone, then this Court would not be required to go into

       the other grounds at this stage.

                           Submissions on behalf of the Respondent

                   8. On the other hand, Mr. Y. V. Giri, learned Senior

       Counsel representing the respondent, has contested the appeal

       stating that the judgments of this Court in the case of South Bihar

       Power Distribution Company Ltd. (supra), M/s Vishal Builtech

       India Private Limited (supra), M/s Johnson Paints Private

       Limited (supra), and M/s Bihar State Road Development

       Corporation Limited (supra) are distinguishable. It is submitted

       that the Act of 2015 is a special statute and in terms of Section 2(1)

       (e) of this Act, “District Judge” shall have the same meaning as

       assigned to Clause (a) of Article 236 of the Constitution of India. It

       is submitted that the expression “District Judge” under Article 236

       of the Constitution of India includes the District Judge, Joint

       District Judge, Assistant District Judge, Chief Judge of a small

       cause court, Chief Presidency Magistrate, Additional Chief

       Presidency Magistrate, Sessions Judge, Additional Sessions Judge,

       and Assistant Sessions Judge.

                   9. Mr. Giri, Learned Senior Counsel, submits that in case

       of M/s Bihar State Road Development Corporation Limited

       (supra), this Court has referred the Act of 1887 and held that the
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       court of a District Judge and that of Additional District Judge are

       two different courts, whereas Article 236(a) is otherwise. Reliance

       has been placed on the judgment of the Hon'ble Supreme Court in

       the case of Santhosh Maize and Industries Limited versus State

       of Tamil Nadu and Another reported in(2023) 20 SCC 356 to

       submit that if any statutory rule or statutory notification contains

       two expressions- one in general words and the other is in special

       terms, under the rule of interpretation, it has to be understood that

       the special terms were not meant to be included in the general

       expression. In other words, in a statute which contains general

       provision as well as special provision, the latter must prevail.

                   10. Learned Senior Counsel submits that in the case of

       M/s Vishal Builtech India Private Limited (supra) and M/s

       Johnson Paints Private Limited (supra), Section 2(1)(e) of the

       Act of 2015 has not been taken into consideration. Reliance has

       been placed on the judgment of the Hon'ble Supreme Court in the

       case of Odisha State Financial Corporation versus Vigyan

       Chemical Industries and Another reported in 2025 SCC OnLine

       SC 1609 to submit that a judgment is an authority only for what it

       decides. When a judgment fails to address other issues raised, it is

       said to be ‘sub silentio’ and cannot be held as a binding precedent

       on those undecided issues.
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                   11. It is submitted that an Additional District Judge is

       competent to decide appeals assigned to him by the District Judge

       for disposal, and while doing so, he exercises the same power as

       that of the District Judge. Reliance in this regard has been placed

       on the judgment of the Hon'ble Calcutta High Court in the case of

       West       Bengal       Housing          Infrastructure   Development

       Corporation Vs. M/s Impression & Analogous Cases reported in

       AIR 2026 Calcutta 236 and on the judgment of this Court in the

       case of Smt. Narmada Devi vs. State of Bihar and Others

       reported in AIR 1999 Pat 3. It is submitted that the learned

       District Judge had transferred the case to the learned Additional

       District Judge vide order dated 7/8/2023, but the said order was

       not questioned by the appellant. It is, thus, submitted that in view

       of the judgment of the Hon'ble Supreme Court in the case of

       Ishwar Dutt vs. Land Acquisition Collector and Another

       reported in (2005) 7 SCC 190, the order has attained finality and

       the principle of res judicata shall apply.

                                      Consideration

                   12. Having heard learned counsel for the parties, we have

       perused the materials available on the record, including the

       judgments relied upon by the parties.

                   13. At this stage, this Court is considering a question as to

       whether the ADJ Court has jurisdiction to entertain, hear, and
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       adjudicate the application filed under Section 34 of the Act of 1996.

       It is not in dispute that an arbitral award may be challenged by

       making an application under Section 34 of the Act of 1996 on the

       grounds stated under Clause (a) and Clause (b) of sub-section (2) of

       Section 34 of the Act of 1996. Sub-section (2-A) of Section 34

       provides that an arbitral award arising out of arbitrations other than

       international commercial arbitrations, may also be set aside by the

       court if the court finds that the award is vitiated by patent illegality

       appearing on the face of the award. The proviso to sub-section (2-A),

       however, states that an award shall not be set aside merely on the

       ground of an erroneous application of the law or by reappreciation of

       evidence.

                   14. The Act of 2015 came into force on the 23 rd day of

       October 2015. The purpose behind the enactment is to provide for the

       constitution of Commercial Courts, Commercial Appellate Courts,

       Commercial Division, and Commercial Appellate Division in the

       High Court for adjudicating the commercial disputes of specific

       value and for matters connected therewith or incidental thereto.

       Clause (c) under Section 2 of the Act of 2015 defines “commercial

       dispute”. The word “District Judge” is defined under Clause (e) of

       Section 2. The District Judge has been defined in the following

       terms:
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                                                  “2. Definitions.- (e) “District Judge” shall have the
                                                  same meaning as assigned to it in clause (a) of article
                                                  236 of the Constitution of India;”
                                          15. Section 3 of the Act of 2015 provides for the

                           constitution of Commercial Courts. We reproduce Section 3

                           hereunder for a ready reference:-

                                                 “3. Constitution of Commercial Courts.—(1) The State
                                                 Government, may after consultation with the concerned
                                                 High Court, by notification, constitute such number of
                                                 Commercial Courts at District level, as it may deem
                                                 necessary for the purpose of exercising the jurisdiction
                                                 and powers conferred on those Courts under this Act:
                                                 3
                                                  [Provided that with respect to the High Courts having
                                                 ordinary original civil jurisdiction, the State Government
                                                 may, after consultation with the concerned High Court,
                                                 by notification, constitute Commercial Courts at the
                                                 District Judge level:
                                                 Provided further that with respect to a territory over
                                                 which the High Courts have ordinary original civil
                                                 jurisdiction, the State Government may, by notification,
                                                 specify such pecuniary value which shall not be less than
                                                 three lakh rupees and not more than the pecuniary
                                                 jurisdiction exercisable by the District Courts, as it may
                                                 consider necessary.]
                                                 4
                                                  [(1-A) Notwithstanding anything contained in this Act,
                                                 the State Government may, after consultation with the
                                                 concerned High Court, by notification, specify such
                                                 pecuniary value which shall not be less than three lakh
                                                 rupees or such higher value, for whole or part of the
                                                 State, as it may consider necessary.]


3. Substituted by Act 28 of 2018, S. 6, for the proviso (w.r.e.f. 3-5-2018).
4. Inserted by Act 28 of 2018, S. 6 (w.r.e.f 3-5-2018).
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                                                (2) The State Government shall, after consultation
                                                with the concerned High Court specify, by
                                                notification, the local limits of the area to which
                                                the jurisdiction of a Commercial Court shall
                                                extend and may, from time to time, increase,
                                                reduce or alter such limits.
                                                             1
                                                (3) The       [State Government may], with the
                                                concurrence of the Chief Justice of the High Court
                                                appoint one or more persons having experience in
                                                dealing with commercial disputes to be the Judge
                                                or Judges, of a 2[Commercial Court either at the
                                                level of District Judge or a court below the level of
                                                a District Judge]”


                                       16. The jurisdiction of Commercial court is provided

                         under Section 6 which reads as under:-

                                                 “6. Jurisdiction of Commercial Court.—The
                                                Commercial Court shall have jurisdiction to try all
                                                suits and applications relating to a commercial
                                                dispute of a Specified Value arising out of the entire
                                                territory of the State over which it has been vested
                                                territorial jurisdiction.
                                                 Explanation. - For the purposes of this section, a
                                                commercial dispute shall be considered to arise out
                                                of the entire territory of the State over which a
                                                Commercial Court has been vested jurisdiction, if the
                                                suit or application relating to such commercial
                                                dispute has been instituted as per the provisions of
                                                sections 16 to 20 of the Code of Civil Procedure,
                                                1908 (5 of 1908).”

1. Substituted by Act 28 of 2018, S. 6 for “State Government shall” (w.r.e.f 3-5-2018).
2. Substituted by Act 28 of 2018, S. 6 for “Commercial Court, from amongst the cadre of Higher Judicial Service in
the State” (w.r.e.f 3-5-2018).
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                   17. Section 10 of the Act of 2015 lays down the

       provision relating to jurisdiction in respect of arbitration matters. It

       would be appropriate to reproduce Section 10 hereinafter:-

                             10. Jurisdiction in respect of arbitration
                            matters.—Where         the   subject-matter    of   an
                            arbitration is a commercial dispute of a Specified
                            Value and––
                             (1) If such arbitration is an international
                            commercial arbitration, all applications or appeals
                            arising out of such arbitration under the provisions
                            of the Arbitration and Conciliation Act, 1996 (26
                            of 1996) that have been filed in a High Court, shall
                            be heard and disposed of by the Commercial
                            Division where such Commercial Division has
                            been constituted in such High Court.
                             (2) If such arbitration is other than an
                            international       commercial     arbitration,     all
                            applications or appeals arising out of such
                            arbitration under the provisions of the Arbitration
                            and Conciliation Act, 1996 (26 of 1996) that have
                            been filed on the original side of the High Court,
                            shall be heard and disposed of by the Commercial
                            Division where such Commercial Division has
                            been constituted in such High Court.
                             (3) If such arbitration is other than an
                            international       commercial     arbitration,     all
                            applications or appeals arising out of such
                            arbitration under the provisions of the Arbitration
                            and Conciliation Act, 1996 (26 of 1996) that
                            would ordinarily lie before any principal civil
                            court of original jurisdiction in a district (not being
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                            a High Court) shall be filed in, and heard and
                            disposed of by the Commercial Court exercising
                            territorial jurisdiction over such arbitration where
                            such Commercial Court has been constituted.


                   18. On a bare reading of the aforementioned

       provisions, it would appear that these special provisions have

       been brought into existence in order to expedite the resolution of

       commercial disputes at various levels. Where the subject matter

       of an arbitration is a commercial dispute of a specific value and

       such arbitration is other than an international commercial

       arbitration, all applications or appeals arising out of such

       arbitration under the provisions of the Act of 1996 that would

       ordinarily lie before any principal civil court of original

       jurisdiction in a district, (not being a High Court), shall be filed

       in, and heard and disposed of by the Commercial Court

       exercising territorial jurisdiction over such arbitration, where

       such Commercial Court has been constituted. Sub-section (3) of

       Section 10 very clearly talks of constitution of Commercial

       Court and it clearly provides that in a district (not being a High

       Court), all applications or appeals that would ordinarily lie

       before any Principal Civil Court of Original Jurisdiction shall be

       filed in and heard and disposed of by the Commercial Court.
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                                    19. It is a matter of record which finds discussion in

                       the judgment of this Court in the case of M/s Bihar State Road

                       Development Corporation (supra)that in the State of Bihar,

                       Commercial Court has been constituted. Previously, the

                       notification vide Memo No. 1150/J dated 03-03-2017 of the Law

                       Department published in the Bihar Gazette on 7 March, 2017

                       read as under:-

                                                “fcgkj xtV

                                             vlk/kkj.k vad
                                       fcgkj ljdkj }kjk izdkf”kr
                    &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
                                         16 QkYxqu 1938 ¼”k0½
                                ¼la0 iVuk 189½ iVuk] eaxyokj] 7 ekpZ 2017
                    &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
                                              fof/k foHkkx
                                               &&&&&&
                                              vf/klwpuk,a
                                              3 ekpZ 2017
,l0 vks0 11] fnukad 7 ekpZ 2017& ‘The Commercial Courts, Commercial Division And
Commercial Appellate Division of High Courts Act, 2015’ (No.-4 of 2016) dh
/kkjk&3 }kjk iznRr “kfDr;ksa dk iz;ksx djrs gq,] fcgkj jkT; ljdkj] ,rn}kjk] iVuk mPp U;k;ky; ds
ijke”kZ ls] ,d djksM+ :i;s vFkok blls vf/kd ewY; ds okf.kfT;d fooknksa dh lquokbZ gsrq] jkT; ds lHkh
izeaMfy; eq[;ky;ksa esa fLFkr ftyk O;ogkj U;k;ky;ksa esa okf.kfT;d U;k;ky; (Commercial Courts)
xfBr djrh gS rFkk izeaMyh; eq[;ky; fLFkr O;ogkj U;k;ky; esa inLFkkfir ftyk U;k;k/kh”k (District
Judge) dks mDr izeaMy esa blds v/khu xfBr okf.kfT;d U;k;ky; dk U;k;k/kh”k fu;qDr djrh gS] tks
vius lkekU; dk;ksZa ds vfrfjDr bl U;k;ky; dk Hkh dk;Z djsaxs(
   ¼d½ bu U;k;ky;ksa dh LFkkuh; vf/kdkfjrk lacaf/kr izeaMy dh jktLo lhek,a gksxh]
   ¼[k½ ;g vf/klwpuk jkti= esa blds izdk”ku dh frfFk ls izo`r gksxhA
                                                         ¼la0la0 ,0@,DV&10@2016&1150@ts0½
                                                               fcgkj&jkT;iky ds vkns”k ls
                                                                     lqjsUnz izlkn “kekZ]
                                                                      ljdkj ds lfpoA
         ,l0vks0 12] ,l0vks0 11] fnukad 7 ekpZ 2017 dk vaxzsth esa fuEufyf[kr vuqokn fcgkj&jkT;iky
ds izkf/kdkj ls blds }kjk izdkf”kr fd;k tkrk gS] tks Hkkjrh; lafo/kku ds vuqPNsn&348 ds [k.M ¼3½ ds
v/khu mldk izkf/kd`r ikB le>k tk;sxkA
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                                            ¼la0la0 ,0@,DV&10@2016&1150@ts0½
                                                      fcgkj&jkT;iky ds vkns”k ls
                                                           lqjsUnz izlkn “kekZ]
                                                           ljdkj ds lfpoA

                                    The 3rd March 2017
                   S.O. 11, dated the 7th March 2017- In exercise of the powers
       conferred by section 3 of 'The Commercial Courts, Commercial Division
       And Commercial Appellate Division of High Courts Act, 2015' (No.-4 of
       2016), the State Government of Bihar, in consultation with the High Court
       of Judicature at Patna, is hereby pleased to constitute the Commercial
       Court in the District Civil Courts situated in all the Divisional Head
       quarters of the State to hear cases of Commercial disputes of the value of
       Rupees one crore or above and appoints the District Judge posted in the
       Civil Court of the Divisional Headquarter as Judge of the Commercial
       Court constituted hereunder in the concerned Division, who will discharge
       the duties of this court in addition to his normal duties;
                   (a) The local jurisdiction of these courts shall be the revenue
       limits of the concerned Division,
                   (b) This Notification shall come into force with effect from the
       date of its publication in the official Gazette.
                                               (F.No. A/Act-10/2016-1150/J)
                                         By Order of the Governor of Bihar
                                                Surendra Prasad Sharma,
                                             Secretary to the Government.”

                   20. The notification dated 07th March, 2017 was,

       however, superseded by the notification dated 02.08.2019. We

       reproduce the notification dated 02.08.2019 hereunder:-

                             “fcgkj xtV

                          vlk/kkj.k vad
                    fcgkj ljdkj }kjk izdkf”kr
    &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
                       11 Jko.k 1941 ¼”k0½
     ¼la0 iVuk 912½ iVuk] “kqØokj] 2 vxLr 2019
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                                         NOTIFICATION

               S. 0.351, dated 2nd August 2019-In exercise of the powers conferred by Section 3 of
The Commercial Courts, Commercial Appellate Courts, Commercial Divisions and Commercial
Appellate Divisions of High Courts Act, 2015 (No. 4 of 2016), the State Government of Bihar, in
consultation with the High Court of Judicature at Patna superseding the previously issued
notification memo no.-1150/J dated-03.03.17 of Law Department, Bihar, Patna on the subject, is
hereby pleased to:-

              (a) constitute the Court of Civil Judge (Senior Division) of each district as a
              Commercial Court to exercise original jurisdiction in respect of commercial disputes
              where the value of the suit or dispute is not less than Rs. 3 Lacs and up to Rs.1 Crore;
              (b) constitute the Court of District Judge in all the districts of the State of Bihar as a
              Commercial Court to exercise original Jurisdiction in respect of commercial disputes
              where the value of the suit or dispute exceeds Rs.1 Crore in respect of the entire
              territorial area of the district; and
              (c) designate the Court of District Judge in each district as Commercial Appellate
              Court to exercise appellate jurisdiction and dispose of the appeals arising out of the
              judgments and orders passed by a Commercial Court below the level of the District
              Judge.

        This notification shall come into force with effect from the date of its publication in the
official Gazette.

                                                                    (File No.-A/act-10/2016/5250/J)
                                                                 By Order of the Governor of Bihar,
                                                                 MADAN KISHORE KAUSHIK,
                                                                 Secretary to Government of Bihar.”

                                  21. It is evident from the notification published on

                     02ndAugust, 2019 that the Court of Civil Judge (Senior Division)

                     of each district and the Court of District Judge in each district

                     has been designated as Commercial Court to exercise original
Patna High Court COMMERCIAL APP No.4 of 2025 dt.18-06-2026
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       jurisdiction in respect of commercial disputes of the specific

       value. This Court had occasion to consider Section 2 (1)(e) of

       the Act of 2015 and Article 236 (a) of the Constitution of India

       in the case of M/s Bihar State Road Transport Corporation

       (supra). An identical argument was raised by learned counsel for

       the respondent in the said case which has been taken note of by

       this Court in paragraph ‘20’ of the judgment. This Court noticed

       that under the provisions of the Act of 1887, that existed at the

       relevant time, Section ‘3’ which deals with the constitution of

       Civil Courts provided the classes of courts and Section ‘8’

       provided that when the business pending before any District

       Judge requires the aid of Additional Judges for its speedy

       disposal, the State Government may, having consulted the High

       Court, appoint such Additional Judges as may be requisite.

       According to sub-section (2) of Section 8, Additional Judges so

       appointed shall discharge all the functions of a District Judge,

       which the District Judge may assign to them, and in the

       discharging of those functions they shall exercise the same

       powers as the District Judge.

                   22. We reproduce Sections 3 and 8 of the Act of 1887

       hereunder:-
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                                              “3. Classes of Courts.—There shall be the
                                           following classes of Civil Courts under this
                                           Act, namely:—
                                              (1) the Court of the District Judge;
                                              (2) the Court of the Additional Judge;
                                              (3) the Court of the 3[Civil Judge (Senior
                                           Division]; and
                                              (4) the Court of the 3[Civil Judge (Junior
                                           Division].
                                              8.   Additional     Judges.—(1)        When     the
                                           business pending before any District Judge
                                           requires the aid of Additional Judges for its
                                           speedy disposal, the 2[State] Government may,
                                           5
                                              [having consulted] the High Court 4[***] (4.
                                           The words “and with the previous sanction of
                                           the G. G. in C.”rep. by Act 16 of 1911, s. 3),
                                           appoint such Additional Judges as may be
                                           requisite.
                                              (2) Additional Judges so appointed shall
                                           discharge any of the functions of a District
                                           Judge which the District Judge may assign to
                                           them, and, in the discharge of those functions,
                                           they shall exercise the same powers as the
                                           District Judge.”


                                   23. In paragraphs ‘33’, ‘34’ and ‘35’ of the judgment in

                       the     case      of        M/s    Bihar       State      Road        Transport

                       Corporation(supra), this Court has held as under:-

3. Subs by Bihar Amdt. Act, 2013 (Act No.14 of 2014) vide Bihar Gazettte (Ex. Ord.) No. 697, dt.
25.08.2014).
2.Subs. by the A.L.O.
5. Subs. by the A.L.O. for "upon the recommendation of."
4."And with the previous sanction of the Governor General in Council" rep. by Act 16 of 1911, S.3.
Patna High Court COMMERCIAL APP No.4 of 2025 dt.18-06-2026
                                        20/28




                           “33. A conjoint reading of Section ‘3’ and Section ‘8’
                           of the Act of 1887 would leave no room for doubt
                           that the Court of the District Judge and that of the
                           Court of the Additional Judge are two different
                           Courts. There is no iota of doubt that the Court of the
                           Additional Judges have been envisaged for the
                           speedy disposal of the cases pending before any
                           District Judge and once the same is assigned to an
                           Additional Judge by the District Judge, he would
                           discharge his duties in respect of the assigned matters
                           and while doing so, the learned Additional Judges
                           would carry on the functions of a District Judge, they
                           shall exercise the same power as the District Judge.
                           34. To this Court, it is evident that the Notification
                           dated 02.08.2019, constituting a Commercial Court
                           under Section 3 of the Act of 2015 has kept itself
                           confined to the Court of Civil Judge (Senior
                           Division) and to the Court of District Judge, in all
                           the Districts of the State of Bihar. The Notification
                           dated 02.08.2019 as framed cannot be construed in
                           the manner suggested by learned counsel for the
                           sole respondent.
                           35. The District Judge (now known as 'Principal
                           District Judge) of a District who has been
                           constituted as a Commercial Court within the
                           meaning of Act of 2015 does not derive any power
                           to further transfer its adjudicatory power as a
                           Commercial Court to the Additional Judges. This
                           was obviously not the position under the Kerala
                           Civil Court Rules.”


                   24. It is evident from the discussions made in the

       judgment of this court in the case of M/s Bihar State Road
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       Transport Corporation (supra) that the contention of the

       respondent that the Act of 2015 has adopted the meaning of the

       word “District Judge” as occurring under Article 236(a) of the

       Constitution of India and the definition of the word “District

       Judge” as contained under Section 2(1)(e) of the Act of 2015 have

       been duly considered by this Court but did not find favour with it.

                   25. We, therefore, find that the contention of Mr. YV

       Giri, learned Senior Counsel, that the judgment of this court in the

       case of M/s Bihar State Road Development Corporation Ltd.

       (supra) is distinguishable, has no leg to stand.

                   26. Mr. Giri, learned Senior Counsel has relied upon the

       judgment of the Hon'ble Supreme Court in the case of Santhosh

       Maize & Industries Ltd. (supra). Paragraph ‘35’ of the judgment

       has been referred to which reads as under:-

                             “35. Law is well settled that if in any statutory
                             rule or statutory notification two expressions are
                             used—one in general words and the other in
                             special terms—under the rules of interpretation, it
                             has to be understood that the special terms were
                             not meant to be included in the general
                             expression; alternatively, it can be said that where
                             a statute contains both a general provision as well
                             as a specific provision, the latter must prevail.”


                   27. On going through the judgment in case of Santhosh

       Maize (supra), we find that the said matter relates to Tamil Nadu
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       General Sales Tax Act wherein a question arose as to whether the

       appellant is entitled to exemption under Schedule III Part B Entry

       8 by treating it as same as maize or taxable under Schedule I, Part

       B, Entry 61 as a distinct product derived from maize. In the said

       context, the observations were made in paragraph ‘35’. We are of

       the considered opinion that the contention of Mr. YV Giri, learned

       Senior Counsel, based on the observations of the Hon'ble Supreme

       Court in paragraph ‘35’ of the judgment in case of Santhosh

       Maize (supra) is completely misconceived and misplaced as the

       same does not arise in this case. In the present case, it is crystal

       clear that the application under Section 34 of the Act of 1996 is to

       be heard and disposed of by a Commercial Court and such a

       Commercial Court is to be constituted by virtue of Section 3 of the

       Act of 2015. The notifications by which the Commercial Court has

       been constituted talks of the “court of District Judge”. Therefore,

       the meaning of this notification cannot be extended to mean and

       understand that it covers the “courts of Additional District Judges”,

       which is a distinct class of court.

                   28. We further find that the reliance placed on the

       judgments in the case of Odisha State Financial Corporation

       (supra), West Bengal Housing Infrastructure Development

       Corporation (supra), Smt. Narmada Devi (supra) and Ishwar
Patna High Court COMMERCIAL APP No.4 of 2025 dt.18-06-2026
                                        23/28




       Dutt (supra) are equally misconceived and misplaced as those

       judgments are not dealing with identical issues. In the opinion of

       this Court, these judgments would not be applicable in the facts of

       the present case.

                   29. In the case of Odisha State Financial Corporation

       (supra), the Hon'ble Supreme Court was considering a challenge to

       the judgment of the High Court of Uttarakhand in Writ Petition

       (M/S) No. 2314 of 2022, which was filed by the appellant under

       Article 227 of the Constitution of India, challenging the civil

       proceedings and orders passed by the courts below. One of the

       contentions raised before the Hon'ble Supreme Court was that the

       execution application filed by Respondent No. 1 was not

       maintainable before the Civil Court in view of Section 15 (2) of

       the Act of 2015. Under the said case, the Hon'ble Supreme Court

       noticed that Respondent No. 1 had instituted a money suit for

       recovery of dues from Respondent No. 2 on account of default in

       payment for the supply of goods. Initially, the appellant was not a

       party to the suit, but subsequently Respondent No. 1 impleaded the

       appellant, a State Financial Corporation, which took action under

       Section 29 of the SFC Act, 1951, against Respondent No.2. The

       suit was decreed on 20.08.2001. Thereafter, Respondent No. 1

       filed an application under Section 21 of the Limitation Act, 1963
Patna High Court COMMERCIAL APP No.4 of 2025 dt.18-06-2026
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       before the trial court, pending appeal. The trial court allowed the

       application, holding that the suit against the appellant was deemed

       to be initiated from the original date of filing the suit. By a

       subsequent order, it was held by the trial court that the suit was not

       barred by limitation as against the appellant. The finding of the

       Appellate Court and the High Court on limitation alone was

       upheld by the Hon’ble Supreme Court. In this background, the

       Hon’ble Supreme Court held that the decision of the Court was

       confined only to the issue of limitation and remained silent on all

       other material questions placed. The doctrine of ‘sub silentio’ has

       been discussed in the said background. It refers to a situation,

       where a rule or a principle on a particular point of law is applied or

       passed upon by a Court silently, without any consideration of the

       applicable law or without argument, and the judgment is rendered

       on another question of law or fact. We once again come to a

       conclusion that the judgment of the Hon'ble Supreme Court in the

       case of Odisha State Financial Corporation (supra) has been

       rendered in a completely different context and the same would

       have no application in the matter before this Court.

                   30. Mr. Y.V. Giri, learned Senior Counsel has placed

       reliance on an Hon’ble Larger Bench judgment of the Hon'ble

       Calcutta High Court in the case of West Bengal Housing
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                                        25/28




       Infrastructure Development Corporation (Supra). Perusal of the

       said judgment would show that the short question which fell for

       consideration before the Larger Bench was whether the court of

       learned Additional District Judge is a court within the meaning of

       Section 2(1)(e) of the Act of 1996. The provisions of the Act of

       2015 did not come up for consideration before the Larger Bench of

       the Hon'ble Calcutta High Court. We are afraid that the judgment

       of the Hon'ble Calcutta High Court, by no means, may be cited to

       submit that the court of Additional District Judge would be a

       Commercial Court within the meaning of Section 3 of the Act of

       2015 read with notification dated 02.08.2019.

                   31. Reliance placed on the judgment of a learned Single

       Judge of this Court in case of Smt. Narmada Devi(supra) is

       equally misconceived and misplaced. The said judgment was

       rendered in the year 1999 when the Act of 2015 had not come into

       existence, therefore, there is no discussion on the provision of the

       Act of 2015.

                   32. Equally misconceived is the reliance placed on the

       judgment of the Hon'ble Supreme Court in case of Ishwar Dutt

       (supra). In the said case, the Hon'ble Supreme Court was

       considering a challenge to the order passed by the High Court of

       Himachal Pradesh dismissing claim of the appellant-claimant for
Patna High Court COMMERCIAL APP No.4 of 2025 dt.18-06-2026
                                        26/28




       interest at the rate of 12% granted by an earlier order of the

       Hon’ble Division Bench of the same High Court in CWP No. 510

       of 1985 dated 09.09.1985 on equitable consideration for depriving

       them of their lands without taking proceedings under the Land

       Acquisition Act and for payment of compensation. The Hon’ble

       Supreme Court found that there had been earlier round of litigation

       in the matter of fixation of the compensation amount and the High

       Court had awarded payment of interest only with effect from

       07.05.1989 or with effect from the date of publication of the

       notification under Section 4(1) of the Act and not from

       18.12.1968. The Hon’ble Supreme Court found that the award of

       the Land Acquisition Officer directing payment of additional

       interest had attained finality. In that context, it was held that the

       reference court or for that matter, the High Court exercising its

       appellate jurisdiction under Section 54 of the Act could not have

       dealt with the said question. The principle of res judicata is a

       species of the principle of estoppel and when a proceeding based

       on a particular cause of action has attained finality, the principle of

       res judicata shall fully apply.

                   33. This Court finds that the question relating to

       jurisdiction of the Additional District Judge-XXVI, Patna to deal

       with the present case under Section 34 of the Act of 1996 as a
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       Commercial Court was raised before the learned Additional

       District Judge Patna, the Division Bench judgments of this Court

       were brought to the notice of the learned Presiding Officer who

       took note of those judgments but then went on to take a view that

       in the case of South Bihar Power Distribution Company

       Limited (supra) or M/s Vishal Builtech India Pvt. Ltd (supra),

       the definition of “District Judge” as given in Section 2(e) of the

       Act of 2015 read with Article 236(a) of the Constitution of India

       could not be brought to the notice of this Court. It is evident that

       the learned Additional District Judge-XXVI, Patna rejected the

       plea of the appellant as regards his jurisdiction and proceeded to

       decide the matter taking upon himself the jurisdiction of the

       Commercial Court by ignoring the judgments of the High Court.

       In such circumstances, plea of res judicata cannot succeed. The

       learned Additional District Judge-XXVI, Patna, was bound by the

       judgment of the Hon'ble High Court in the case of South Bihar

       Power Distribution Company(supra) and M/s Vishal (supra) but

       by committing an act of judicial indiscipline, the Presiding Officer

       did not abide by the judgment of this Court.

                   34. In result, we find no merit in the contentions

       advanced on behalf of the respondent. The impugned order dated

       13.10.2023 passed by the learned Additional District Judge-XXVI,
              Patna High Court COMMERCIAL APP No.4 of 2025 dt.18-06-2026
                                                      28/28




                     Patna, in Miscellaneous (Arbitration) Case No. 37 of 2018 is

                     hereby set aside.

                                 35. The records of the Miscellaneous Arbitration Case

                     are transferred to the court of Principal District Judge, Patna, who

                     is the Commercial Court constituted under the Act of 2015. The

                     learned     Commercial        Court,      Patna,      shall   consider   the

                     Miscellaneous Arbitration Case on its own merit after giving

                     appropriate opportunity of hearing to the parties.

                                 36. We have confined our consideration to the limited

                     issue of jurisdiction and have not gone into the other grounds.

                     Thus, all other contentions are left open to the parties.

                                 37. This appeal is allowed to the extent indicated

                     hereinabove.



                                          (Rajeev Ranjan Prasad, J)


                                                (Kumar Manish, J)
lekhi/-
AFR/NAFR                   AFR
CAV DATE                   16.06.2026
Uploading Date             19.06.2026
Transmission Date


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