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IN THE HIGH COURT OF KARNATAKA
Alok Aradhe, Anant Ramanath Hegde, JJ.
M/S. Prestige Estate Projects Ltd. – Appellant
Versus
Svn Prestige Garden – Respondent
Commercial Appeal No.321 of 2022
Decided On : 11-07-2023
COMMERCIAL COURTS ACT - PRE-INSTITUTION MEDIATION - The court clarified that Section 12A of the Commercial Courts Act, which mandates pre-institution mediation, does not apply when a suit seeks urgent interim relief, such as in cases of trademark infringement. The court found that the Commercial Court erred in returning the plaint based on this provision, leading to the appeal's allowance and the directive for the Commercial Court to proceed with the case.
Fact of the Case:
The appellant, a company, filed a suit for permanent injunction against the respondent for infringing its registered trademark, seeking urgent interim relief. The Commercial Court returned the plaint, citing non-compliance with Section 12A of the Commercial Courts Act.
Finding of the Court:
The court found that the Commercial Court incorrectly applied Section 12A, as the appellant's suit involved a request for urgent interim relief, which exempted it from the pre-institution mediation requirement.
Issues: Whether the provisions of Section 12A of the Commercial Courts Act apply to a suit seeking urgent interim relief.
Ratio Decidendi: The court held that Section 12A applies only to suits that do not seek urgent interim relief, and since the appellant's suit did seek such relief, the Commercial Court's decision to return the plaint was erroneous.
Final Decision: The appeal was allowed, the order of the Commercial Court was set aside, and the court directed the Commercial Court to deal with the plaint expeditiously.
JUDGMENT
Ms.Medhini Rao, learned counsel for Mr.Harikrishna S.Holla, learned counsel for the appellant.
None for the respondent though served.
1. This appeal under Section 13(1A) of the Commercial Courts Act, 2015, has been filed against the order dated 05.07.2022 passed in Com.O.S.No.943/2022 by the LXXXII Additional City Civil and Sessions Judge, Bengaluru (for short, 'the Commercial Court') by which the commercial Court has directed return of the plaint on the ground that the appellant has failed to comply with Section 12A of the Commercial Courts Act.
2. The facts giving rise to filing of the appeal briefly stated are that the appellant, which is the company incorporated under the provisions of the Companies Act, 1956, filed a suit for permanent injunction restraining the respondent from infringing the plaintiff's registered trademark in respect of the Prestige and Prestige Group and Prestige Estates. Along with the suit, the plaintiff filed an application seeking ad-interim order of injunction under Order XXXIX Rule 1 and 2 of CPC.
3. The Commercial Court, however, by an order dated 05.07.2022 returned the plaint on the ground that the plaintiff has failed to comply with the mandate contained in Section 12A of the Commercial Courts Act, 2015.
4. We have heard the learned counsel for the appellant at length.
5. Section 12A of the Commercial Courts Act, is extracted below for facility of reference:
6. Thus, it is evident that the provisions of Section 12A of the Commercial Courts Act apply to a suit which does not contemplate any urgent interim relief. In the instant case, the appellant, along with the plaint, has filed an application seeking ad-interim relief which in the matter of infringement of trademark can be said to be an urgent interim relief.
7. The Commercial Court, therefore, grossly erred in applying the provision of Section 12A of the Commercial Courts Act to the facts of the case.
8. For the aforementioned reasons, the impugned order dated 05.07.2022 is set-aside. The Commercial Court is directed to deal with the plaint expeditiously in accordance with law.
In the result, the appeal is allowed.
Section 12A of the Commercial Courts Act does not require pre-institution mediation for suits seeking urgent interim relief.
Maintainability of commercial suit – Suit which does not contemplate any urgent interim reliefs cannot be instituted unless plaintiff exhausts mandatory remedy provided under Section 12A of Commercia....
Mandatory compliance with Section 12A of the Commercial Courts Act, 2015 for suits not contemplating urgent interim relief, and the prevention of deceptive invocation of urgent relief to circumvent t....
Application for injunction denied due to parties' mutual agreement to stop using each other's trademarks, highlighting the importance of prior mediation under Section 12A of the Commercial Courts Act....
Section 12A of the Commercial Courts Act requires pre-institution mediation for suits not seeking urgent relief, establishing a mandatory procedural framework.
Mandatory compliance with Section 12A of the Commercial Courts Act for Pre-Institution Mediation is required for the maintainability of commercial suits.
Rejection of plaint – Commercial suit which does not contemplate any urgent relief under Commercial Courts Act shall not be instituted unless plaintiff exhausts remedy of Pre-Institution Mediation.
The main legal point established in the judgment is the interpretation and application of Section 12a of the Commercial Courts Act, 2015, particularly in relation to suits seeking injunction, damages....
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