ORDER COMMERCIAL COURT – SECTION 12A BAR

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COMMERCIAL COURT – SECTION 12A BAR

(Pre-Institution Mediation Mandatory)

IN THE COMMERCIAL COURT AT [PLACE]
Commercial Civil Suit No. __ of 20__

ORDER BELOW EXH. __ (Order VII Rule 11(d) CPC)

  1. The defendant has filed the present application seeking rejection of the plaint on the ground that the suit is barred under Section 12A of the Commercial Courts Act, 2015 for non-compliance of mandatory pre-institution mediation.

  2. It is undisputed from paragraph __ of the plaint that no urgent interim relief is sought. The plaint also does not disclose that pre-institution mediation was undertaken.

  3. Section 12A of the Commercial Courts Act mandates that a suit, which does not contemplate urgent interim relief, shall not be instituted unless the plaintiff exhausts the remedy of pre-institution mediation.

  4. The Hon’ble Supreme Court in
    Patil Automation Private Limited v. Rakheja Engineers Private Limited
    has categorically held that compliance with Section 12A is mandatory and non-compliance would render the plaint liable to rejection under Order VII Rule 11.

  5. In the present case, from a plain reading of the plaint, it is evident that:

    • The suit is a commercial dispute of specified value.

    • No urgent interim relief is claimed.

    • No mediation under Section 12A was undertaken.

  6. Therefore, the bar is apparent on the face of the plaint itself.

ORDER

Application Exh. __ is allowed.
The plaint stands rejected under Order VII Rule 11(d) CPC.
This order shall operate as a decree.

No order as to costs.

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