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Whether "commercial transaction" include "professional transaction." for purpose

Started by bpagrawal, September 03, 2014, 02:28:49 PM

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Whether "commercial transaction" include "professional transaction." for purpose of S34 of CPC?

In view of this, 'profession' will have to be treated as different from 'industry', 'trade', and 'business'. There is a clear distinction between the profession on one hand, and industry, trade and business on the other. While dealing with the 'commercial transactions" for the purpose of Section 34, C.P.C. the Legislature has not used the word 'profession' along with the words, 'industry' 'trade, or 'business'. The commercial transactions which are strictly connected with the industry, trade or business alone are included for the purposes of Section 34, C.P.C. as provided in Explanation II. Though the 'commercial transaction" is inclusive of "industry, trade and business", but it is exclusive of "profession". The fact that the Legislature has not included the word 'profession' along with the, words "industry, trade and business" to specify the "commercial transaction" cannot be igorned. The proviso to Section 34, C.P.C. will, therefore, not govern the cases where the
loan is advanced for the 'profession' or for "professional transactions".
In our opinion, the words "commercial transaction" do not include the "profession" or "professional transaction."
We, therefore, find that the learned trial Judge was right in holding in the absence of any evidence to that effect that the present loan is a professional loan, and cannot be termed as a commerical transaction. Awarding future interest at the rate of 6 p.c. p.a. cannot be said to be in contravention of the provisions of Section 34, C.P.C.

Bombay High Court
Dena Bank, Ahmednagar vs Prakash Birbhan Kataria And ... on 26 April, 1993
Equivalent citations: AIR 1994 Bom 343, 1994 (1) BomCR 537, 1994 (1) MhLj 198