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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
GAURI GODSE
Warana Sugar Limited Commercial Complex Warananagar – Appellant
Versus
IL & FS Financial Services Limited – Respondent
| Table of Content |
|---|
| 1. commercial suit seeks recovery; rejects plaint for missing section 12a mediation. (Para 1 , 2 , 3 , 4 , 5) |
| 2. no urgent relief; mandatory pre-institution mediation required. (Para 6 , 7 , 8 , 9 , 10) |
| 3. urgent interim relief needed against asset disposal. (Para 11 , 12 , 13 , 14 , 15) |
| 4. pleadings detail defaults, guarantees, settlement failures. (Para 16 , 17 , 18 , 19) |
| 5. examine plaint holistically for genuine urgent relief need. (Para 20 , 21) |
JUDGMENT :
GAURI GODSE, J.
1. This application is filed by the defendants under Order VII Rule 11 of the Code of Civil Procedure, 1908 (“CPC”), praying for rejection of the plaint at the threshold on the ground that it is barred for non-compliance with the mandatory provision under Section 12A of the Commercial Courts Act, 2015 (“the said Act”).
2. The suit is filed for recovery of an amount of approximately Rs. 123,50,10,401/-, which, according to the plaintiff, is due and payable as on 30th September 2022. The plaintiff is a non-banking financial company engaged in financial and advisory services. As pleaded in the plaint, defendant no. 1 is the borrower, and defendant no. 2 is the personal guarantor who has guaranteed the fa
Commercial suit plaint not rejected for skipping pre-institution mediation if pleadings holistically show urgent interim relief contemplated from plaintiff's view to avert asset disposal and irrepara....
Urgent interim relief must be justified by clear pleadings indicating its necessity, assessed holistically from the plaintiff's perspective, in line with Section 12A of the Commercial Courts Act.
Urgent interim relief must be substantively justified by the plaintiff's pleadings; merely seeking such relief does not bypass mandatory compliance with pre-litigation mediation under Section 12A.
Commercial suit plaint not rejected under O VII R 11 for bypassing Sec 12-A pre-mediation if urgent interim relief contemplated from plaintiff's plaint averments showing apprehension of harm from bre....
(1) Contemplation –Contemplation thus would not mean an instant immediacy but the prejudice and the irreparable loss and injury that the plaintiff is likely to suffer if the plaintiff is made to wait....
Compliance with mandatory provisions of Section 12-A of the Commercial Courts Act 2015 is necessary before instituting suits, but earlier submissions for rejection based on non-compliance are invalid....
Section 12A of the Commercial Courts Act mandates exhaustion of pre-institution mediation unless a suit clearly contemplates urgent interim relief, a point upheld by the court in dismissing the petit....
Rejection of plaint – Simply because plaintiffs did not succeed in obtaining interim relief, same cannot be a ground for rejection of plaint – Even a weak case for urgent relief cannot be thrown out.
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