Delhi High Court: Employment Dispute Cannot Be Treated as Commercial Case Under Commercial Courts Act

The Delhi High Court held that disputes arising from employment agreements cannot be treated as commercial disputes under Section 2(1)(c) of the Commercial Courts Act, 2015.

The Court observed that clauses such as confidentiality, non-compete, or intellectual property obligations do not transform an employment contract, fundamentally a personal service agreement, into a commercial arrangement.

It noted that allegations relating to breach of fiduciary duties, misuse of confidential information, statutory non-compliance, salary revisions, and post-resignation conduct arise from personal service obligations. 

The Court held that such matters fall within the jurisdiction of civil courts and dismissed the plea seeking rejection of the plaint.

[ARM Digital Media Pvt Ltd v. Ritesh Singh]