Dispute Over Share Purchase Agreement Not Maintainable Before Commercial Court :Karnataka High Court
- Case Name: Bhaskar Naidu v Arvind Yadav
The Karnataka High Court ruled that disputes related to a Share Purchase Agreement do not fall under the jurisdiction of the Commercial Court as per Section 2(1)(c)(xii) of the Commercial Courts Act.
The case involved a money recovery suit where the petitioner, a Bengaluru Fresh Fruits Pvt. Ltd. shareholder, sought to sell shares to a third party under an agreement dated 09.10.2020. The agreement is only a Share Purchase Agreement and is not a Shareholder Agreement.
The Court held that only Shareholder Agreement disputes qualify as commercial disputes.
It directed the case to be transferred to the Principal City Civil and Sessions Judge, Bengaluru, for re-allotment.
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