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2026 Supreme(Bom) 413

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
R.I. CHAGLA,  ADVAIT M. SETHNA, JJ.
Advanced Technology Products Inc. - Appellant 
Versus
Oriental Export Corporation - Respondent 
Commercial Appeal From Order No.2 of 2026 With Interim Application No.372 Of 2026
Decided On : 23-02-2026

Advocates Appeared:
For the Respondent: Mr. Gaurav Mehta with Mr. Ravitej Chilumuri, Ms. Afreen Noor, Mr. Prince Todi and Ms. Sanya Gandhi i/b. Khaitan & Co.
For the Respondent: Ms. Ankita Singhania, Burzin Somandy, Ariana Somandy, Rina Ram, and Nikita H. Joshi i/b. Somandy and Associates

Alternate judge cannot hear review under Order XLVII Rule 5 CPC if original judge available post short leave; violation invalidates exparte review order lacking notice and grounds, distinguishing from appellate power.

Headnote:(A) Code of Civil Procedure, 1908 - Order XLVII Rule 4(2) and Rule 5 - Commercial Courts Act, 2015 - Section 12A - Review application against order refusing suit institution without pre-institution mediation - No review without notice to opposite party - Same judge or judges who passed order must hear review if attached to court and available within two months - Alternate judge cannot entertain where original judge on leave for two weeks - Treating review as appeal without grounds invalidates order - Respondent impermissible to claim order incorrectly records submissions before alternate court. (Paras 4-13, 26-33)

(B) Review power - Limited to discovery of new evidence, error apparent or sufficient reason - Cannot re-appreciate merits or act as appeal - Coordinate judge cannot sit in appeal over another. (Paras 7-10, 31)

Facts of the case:
Manufacturer and distributor purchased pneumatic hose and tubing products from supplier for air brake systems sold in another jurisdiction. Quality defects discovered; supplier failed to respond adequately. Press release issued warning of potential deterioration without naming supplier; safety recall report mandatorily filed. Demand notice for indemnity; counter-notice for dues and against disparaging statements. Suit filed without pre-institution mediation claiming urgent interim relief; initial order refused registration; exparte review by alternate judge set aside original order; appeal challenging review.

Findings of Court:
Impugned review order set aside for violation of mandatory provisions on notice and hearing by appropriate judge.

Issues: Whether review against pre-institution mediation dispensation order requires notice to opposite party; whether alternate judge can hear when original judge available post short leave; validity of review lacking grounds and acting as appeal.

Ratio Decidendi: Order XLVII Rule 5 CPC mandates original judge hear review if available within two months; short leave does not justify alternate; no urgency warranted bypassing; review not rehearing or appeal; statements in order conclusive unless corrected by same judge. Result : Commercial Appeal allowed; impugned order set aside; no stay granted.

Table of Content
1. factual background of defective products and procedural history (Para 1 , 2 , 3)
2. mandatory prior notice to opposite party in review (Para 4 , 5)
3. same judge must hear review absent two-month unavailability (Para 6 , 7)
4. review requires specific grounds, not appellate rehearing (Para 8 , 9 , 10)
5. court records conclusive; urgency for trial court (Para 11 , 12 , 13)
6. no opposite party pre-suit mediation dispensation stage (Para 14 , 15 , 16 , 17 , 18 , 19 , 20)
7. no prejudice; suit institutes upon plaint numbering (Para 21 , 22)
8. alternate judge hears review on urgency despite short absence (Para 23 , 24 , 25)
9. order xlvii rule 5 violated by alternate judge (Para 26 , 27 , 28 , 30 , 31 , 32 , 33)
10. appeal allowed; order set aside; stay rejected (Para 34 , 35 , 36 , 37)

JUDGMENT :

R.I. CHAGLA J.

1. By this Commercial Appeal from Order, the Appellant / Original Defendant has challenged the exparte order dated 25th April, 2025 passed by the Presiding Judge, Court No.2, City Civil Court, Dindoshi (alternate Judge, Court No.3), in Review Application No.2 of 2025 in Commercial Suit No.149 of 2025.

2. By the impugned Order, the alternate Judge has set aside the order dated 17th April, 2025 (Original Order) passed by the Presiding Judge, Court No.3, City Civil Court, Dindoshi exparte and in review by inter alia allowing registration of the Suit without the Respondent / Original Plaintiff complying with the mandatory requirement of pre-institution mediation under Section 12A of the Commercial Court’s Act, 2015.

3. The relevant facts are as under:-

(i) The Appellant is a Corporation based in Ohio and is engaged in the manufacturing and distribution of pneumatic hose and tubing products.

(ii) The Appellant vide multiple purchase Orders between August, 2022 to September, 2024 purchased fitting and tubing products from the Respondent for use in air brake systems. The Appellant sold the products it purchased from the Respondent to its clients based in Ohio and in other parts of United States.

(iii) The Appellant’s customers informed it by Email dated 4th September, 2024 that they discovered quality defects in the products. The Email was forwarded by the Appellant to the Respondent immediately.

(iv) Thereafter correspondences were exchanged between the Appellant and Respondent in September, 2024 whereby the Appellant requested the Respondent to furnish lab reports and other documents demonstrating that Respondent’s tubing complied with the industry standards in North America. It is the Appellant’s case that the Respondent failed to provide any such response and / or attend meetings held by the Appellant and its customers to resolve the quality issues in the tubing products.

(v) In view of the Appellant having no clarity and / or information from the Respondent regarding the quality issues encountered in the Respondent’s tubing products, the Appellant had in public interest and in compliance with the laws applicable in the United States issued a press release dated 13th September, 2024 inter alia stating that it had received a report of potential deterioration of the tubing (supplied by the Respondent), when exposed to prolonged sunlight and is evaluating the said issue. The Appellant recommended that until such evaluation, any sale or use of the tubing be suspended. Pertinently, the Respondent’s name was not mentioned in the press release.

(vi) The Appellant’s customer, viz. Stoughton Trailers LLC (“Stoughton”) engaged a third party lab viz. Element Materials Technology to get the Respondent’s tubing products tested for UV and Ozone resistance tests and to ascertain their compliance with the industry standards. From the test report dated 7th October, 2024, it was found that one sample of Respondent’s tubing (from the production lot dated 6th January, 2024) failed the UV resistance test.

(vii) Based on the test report obtained by the Appellant, the Appellant submitted the part 573 Safety Recall Report (“Recall Report”) in respec

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