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Punjab and Haryana HC upholds right to challenge interim commercial court orders under Constitution

The Punjab and Haryana High Court clarifies the limits of its supervisory powers and refuses to interfere in the Otsuka-Trans Engineers dispute.

Punjab and Haryana HC commerical court ordersThe Punjab and Haryana HC held that constitutional power cannot be used as a substitute for an appeal (File photo).

The Punjab and Haryana High Court last week ruled that parties can approach the High Court under Article 227 of the Constitution against interim orders passed by commercial courts, even though the Commercial Courts Act bars civil revision petitions against such orders. At the same time, the court underlined that this constitutional power cannot be used as a substitute for an appeal.

Article 227 gives High Courts supervisory control over all courts and tribunals within their jurisdiction, allowing them to step in only to correct serious jurisdictional errors or procedural injustice.

In a 91-page ruling dated January 12, Justice Sudepti Sharma dismissed two connected petitions filed by Otsuka Chemicals India Private Limited against orders of the Exclusive Commercial Court, Gurgaon, in a recovery dispute with Trans Engineers India Pvt. Ltd.

The challenge was to commercial court orders that allowed Trans Engineers to file a replication, submit additional documents and correct procedural affidavits in an ongoing suit. A replication is a reply filed by the plaintiff to counter claims raised by the defendant in its written statement.

Otsuka argued that Section 8 of the Commercial Courts Act clearly bars civil revision petitions against interlocutory orders, which are interim orders passed during the pendency of a case, and therefore, the High Court should not entertain the challenge at all.

The High Court rejected this argument, holding that while Section 8 does bar statutory revision petitions, it cannot limit the constitutional powers of the High Court under Article 227. The court said these powers flow directly from the Constitution and cannot be taken away by legislation.

However, the court refused to interfere with the commercial court’s orders. It observed that Article 227 does not allow the High Court to re-examine cases on merits or sit as an appellate court. Its role is limited to ensuring that lower courts act within their authority and follow fair procedure.

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Dispute background

The dispute arises from civil and structural work carried out by Trans Engineers for a chemical plant expansion project of Otsuka Chemicals at Kotpuli in Rajasthan. Trans Engineers was initially appointed as a consultant in 2016, with the engagement later expanding into supply and installation works under purchase orders worth about Rs 28 crore.

In 2018, Trans Engineers filed a summary suit seeking recovery of Rs 5.31 crore, claiming it had carried out additional work beyond the original scope. It relied on an email in which Otsuka was alleged to have acknowledged liability of Rs 4.15 crore plus GST and interest, sent after Trans Engineers issued a demand notice under the Insolvency and Bankruptcy Code.

The suit initially ran into jurisdictional issues and was returned in 2020 for filing before the appropriate commercial court. It was refiled in Gurugram in 2022 and later converted into a regular recovery suit after Otsuka was granted leave to defend.

Procedural dispute

The present petitions stemmed from orders passed in August 2024 allowing Trans Engineers to place further material on record after Otsuka filed its written statement. The commercial court permitted filing of additional documents, including purchase orders and email correspondence, on the ground that they were required to respond to defences raised by Otsuka for the first time.

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Otsuka contended that allowing around 600 pages of documents at this stage was irregular and caused prejudice.

The High Court disagreed, noting that the case was still at an early stage and that issues had not yet been framed. It said procedural rules should not be applied so strictly as to prevent a party from properly answering the other side’s defence, particularly when the opposite party will have a full opportunity to contest the material during trial.

Finding no serious legal error or unfairness in the commercial court’s approach, the High Court dismissed the petitions.

The ruling makes it clear that while High Courts retain constitutional supervision over commercial courts, they will not interfere with routine procedural orders unless there is a clear case of abuse of jurisdiction or denial of justice.

Manraj Grewal Sharma is a senior journalist and the Resident Editor of The Indian Express in Chandigarh, where she leads the newspaper’s coverage of north India’s most politically and institutionally significant regions. From Punjab and Haryana to Himachal Pradesh and the Union Territory of Chandigarh, she oversees reporting at the intersection of governance, law, politics and society. She also reports on the diaspora, especially in Canada and the US. With a career spanning journalism across several countries, academia and international development, Manraj brings a rare depth of perspective to regional reporting. She is widely regarded as a leading chronicler of Punjab’s contemporary history and socio-political evolution, particularly its long shadow of militancy, federal tensions and identity politics. Her book, Dreams after Darkness, remains a definitive account of the militancy years and their enduring aftermath. Professional Background & Expertise A gold medalist in mass communication and a post-graduate in English literature, Manraj has a multifaceted career spanning journalism, academia, and international development. She was also awarded a fellowship by National Foundation of India and did several in-depth pieces on Manipur. Internationally, she has reported from Israel, US, UK, Myanmar, and Mauritius Her key focus areas include: Regional Politics, History, Agriculture, Diaspora, and Security. Of late, she has started focusing on Legal & Judicial Affairs: Much of her recent work involves reporting on high-stakes cases in the Punjab and Haryana High Court, ranging from environmental policy to civil rights. International Consulting: She previously served as a consulting editor for the Asia Pacific Adaptation Network and a publishing consultant for the Asian Development Bank (ADB) in Manila. Academia: For five years, she was the managing editor of Gender, Technology and Development, a peer-reviewed international journal at the Asian Institute of Technology, Bangkok. Recent Notable Articles (Late 2025) Her recent reportage focuses heavily on judicial interventions and regional governance: 1. Environment & Governance "‘NGT can’t test legality of policy’: HC hears challenge to Punjab’s ‘Green Habitat’ plan" (Dec 22, 2025): Covering a critical legal battle over whether the National Green Tribunal has the authority to strike down a state policy regularizing farmhouses on delisted forest land. "High court pulls up Punjab poll panel over audio clip probe" (Dec 10, 2025): Reporting on judicial concerns regarding the transparency and fairness of local body elections. 2. Legal Rights & Social Welfare "HC issues notice to Punjab, Haryana over delay in building old age homes" (Dec 22, 2025): Reporting on a contempt petition against top officials for failing to establish government-run homes for the elderly as promised in 2019. "Victims can appeal acquittals in sessions court without seeking special leave" (Dec 19, 2025): Highlighting a significant procedural shift in criminal law following a Supreme Court ruling. "HC upholds benefits for Punjab FCI officer acquitted in 20-year-old bribery case" (Dec 19, 2025): A report on the concept of "honourable acquittal" and its impact on employee benefits. 3. Human Rights & Identity "As Punjab denies parole to MP Amritpal Singh, HC asks it to submit ‘foundational material’" (Dec 1, 2025): Covering the legal proceedings regarding the radical preacher and sitting MP's request to attend Parliament. "Protecting life paramount: HC backs Muslim woman in live-in after verbal divorce" (Nov 6, 2025): Analyzing judicial protections for personal liberty in the context of traditional practices. Signature Beats Manraj is recognized for her ability to decode complex judicial rulings and relate them to the everyday lives of citizens. Whether it is a 30-year-old land battle in Fazilka or the political implications of Kangana Ranaut’s candidacy in Mandi, her writing provides deep historical and regional context. Contact @grewal_sharma on X manrajgrewalsharma on Instagram ... Read More

 

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