Delhi HC Grants Exemption from Section 12A Mediation in Urgent Commercial Suit: Capital Foods vs. Adinath Agro - 2025-09-03

Navigating Urgency: Delhi HC Waives Mediation in Capital Foods Dispute

In a procedural development within the commercial litigation landscape, the High Court of Delhi has granted Capital Foods Private Limited an exemption from the mandatory pre-institution mediation requirement under the Commercial Courts Act. Presided over by Justice Tejas Karia, the order emphasizes the court's willingness to prioritize urgent interim relief in commercial disputes when specific criteria are met.

The Conflict at Hand

The dispute involves Capital Foods Private Limited and Adinath Agro Processed Foods Private Limited . As the matter reached the High Court under case number CS(COMM) 935/2025, the plaintiff sought various interim measures, including an ad-interim injunction against the defendant. The core of the legal question revolved around the immediate necessity of court intervention, which prompted the request to bypass the standard mediation process.

Legal Pathways: The Mediation Waiver

Central to the proceedings was the plaintiff’s application for exemption from pre-litigation mediation under Section 12A of the Commercial Courts Act. Relying on the legal principle established by the Supreme Court in * Yamini Manohar v. T.K.D. Krithi (2023)*, the High Court scrutinized whether the nature of the suit warranted an immediate bypass of statutory mediation.

Finding that the matter contemplated urgent interim relief, the Court exercised its judicial discretion, allowing the suit to proceed directly to the registration phase.

Key Observations

The Court’s order highlights the strict procedural rigor required for commercial suits, balanced with the necessity of urgent access to justice:

• "As the present matter contemplates urgent interim relief, in light of the judgment of the Supreme Court in Yamini Manohar v. T.K.D. Krithi , 2023 SCC OnLine SC 1382, exemption from the requirement of pre-institution Mediation is granted."
• "The Defendant shall file the Written Statement within 30 days from the date of the receipt of Summons. Along with the Written Statement, the Defendant shall also file an Affidavit of Admission / Denial of the documents of the Plaintiff."
• "Liberty is granted to the Plaintiff to file Replication, if any, within 30 days from the receipt of the Written Statement."

Judicial Directives and Future Outlook

Justice Karia’s order sets a clear trajectory for the litigation. Beyond the mediation waiver, the Court has granted the plaintiff a two-week window to settle outstanding court fees. The defendants have been served with summons and are required to file their written statements and affidavits of admission/denial within 30 days.

Furthermore, the Court has scheduled a hearing for November 3, 2025, to address the application for an ad-interim injunction (I.A. 21726/2025). This timeline ensures that while procedural fairness is maintained through the filing of replies and rejoinders, the underlying dispute regarding the alleged trademark or commercial rights—implied by the nature of the suit—will remain on a fast-track course for judicial resolution. This ruling serves as a vital reminder to practitioners that while the Commercial Courts Act prioritizes mediation, the doors to the Court remain open for those who can establish a compelling case for urgency.