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Urgent Relief and Pre Institution Suit mediation under Section 12 A of Commercial Court Act 2015

The intersection of urgent relief and pre-institution suit mediation under Section 12A of the Commercial Courts Act, 2015, forms the crux of the case under discussion. Presented as a revision petition by the appellant/defendant, it challenges an order issued by the District Judge (Commercial)-04, South District, Delhi, in a commercial suit numbered C.S (COMM.) No. 03/2023 titled as M/s R.H. Agro Overseas Pvt. Ltd & Anr. Vs. Dhiraj Kumar & Anr.

The Order under Challenge:
The impugned order, dated 09th May, 2023, saw the trial court dismissing the defendant's application under Order VII Rule 11 of the Civil Procedure Code (CPC). Notably, the court did not invoke pre-litigation mediation under Section 12A of the Commercial Courts Act, 2015. Instead, it proceeded to issue summons and granted an ad interim injunction.

The Court's Observation:
Upon appeal, the Hon'ble High Court of Delhi dismissed the revision petition. The court's rationale rested on the initial grant of an ex parte injunction and subsequent failed mediation proceedings between the parties. Despite the defendant's attempt to seek pre-institution mediation under Order VII Rule 11 of the CPC, the court deemed it ineffective given the urgent relief sought by the plaintiff and the progression of the suit proceedings.

The observation by the Hon'ble Single Judge that urgent relief was pursued by the plaintiff and the suit proceedings had advanced underscores the practical challenges associated with invoking pre-institution mediation at a later stage in the litigation process. In such scenarios, the efficacy of resorting to mediation before instituting the suit becomes limited, especially when one party seeks urgent relief and the litigation is already underway.

This case exemplifies the intricate balance required between the need for urgent relief and the statutory provision for pre-institution suit mediation. While the law promotes alternative dispute resolution mechanisms like mediation, the exigencies of commercial litigation often necessitate immediate judicial intervention to address pressing issues.

Case Title: Shri Dhiraj Kumar vs R H Agro Overseas Pvt Ltd
Order Date: 20.02.2024
Case No. CM(M)-IPD 16/2023
Name of Court: Delhi High Court
Neutral Citation:NA
Name of Hon'ble Judge:Anish Dayal,H J.

Ideas, thoughts, views, information, discussions and interpretation expressed herein are being shared in the public Interest. Readers' discretion is advised as these are subject to my subjectivity and may contain human errors in perception, interpretation and presentation of the fact and issue involved herein.

Written By: Advocate Ajay Amitabh Suman, IP Adjutor - Patent and Trademark Attorney
Email: [email protected], Ph no: 9990389539

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