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KRISHNA RAO
Aditya Birla Finance Limited – Appellant
Versus
Williamson Financial Services Limited – Respondent
ORDER :
1. The question which arises for consideration is whether the petitioner is entitled for leave to file the instant suit without exhausting the remedy of pre-institution mediation as provided under Section 12-A of the Commercial Courts Act , 2015.
2. The petitioner has filed the suit praying for a decree of Rs. 132,00,04,279/-along with interest and allied prayers against the respondents.
3. The petitioner has also filed an application for grant of ad interim injunction against the respondents. The petitioner has also filed the instant application for grant of leave under Section 12-A of the Commercial Courts Act, 2015 for dispense with requirement for pre-institution of mediation and settlement.
4. The case of the petitioner in the plaint that in the month of February and March, 2017 in WM Group through the respondent nos. 2 and 3 and other entities of the WM Group, including respondent nos. 1 and 4 approached the petitioner and represented that it was in dire requirement of funds and proposed to avail of term loan facilities of Rs.150 crores and the same would be repaid by sale of treasury shares of the respondent no. 6 held by its wholly owned subsidiary, the respondent no. 1
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....
The mandatory nature of pre-institution mediation under Section 12A of the Commercial Courts Act requires genuine urgency to bypass mediation.
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....
Pre-institution mediation is mandatory before filing a commercial suit, and failure to demonstrate urgency can lead to rejection of the plaint under Order VII Rule 11.
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