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2022 Supreme(Cal) 1263

IN THE HIGH COURT AT CALCUTTA CIVIL APPELLATE JURISDICTION COMMERCIAL DIVISION
HARISH TANDON, PRASENJIT BISWAS, JJ.
M/s. Odisha Slurry Pipeline Infrastructure Ltd. & Anr. – Appellants
Versus
IDBI Bank Ltd. & Ors. – Respondents
F.M.A.T 360 of 2022 With CAN 1 of 2022 and F.M.A.T 314 of 2022 With CAN 1 of 2022
Decided on : 09-12-2022

Advocates:
Advocate Appeared:
For the Appellants : Mr. Deepak Khosla, Adv., Ms. Anjana Banerjee, Adv., Mr. Rohan S. Nandy, Adv.
For the Respondents: Mr. Jaydip Kar, Sr. Adv., Mr. Abhishek Swaroop, Adv., Mr. Arkaprava Sen, Adv., Mr. Anupam Prakash, Adv., Mr. Naman Kamdar, Adv.

Headnote:

Civil Procedure Code, 1908 - Arbitration and Conciliation Act, 1996 - Commercial Courts Act, 2015 - Section 12 A - Limitation Act, 1963 - Pre-Institution Mediation and Settlement - Slew of litigations - Commercial disputes - Litigation mediation contemplated - Remedy of pre-institution mediation - Held, Court do not think that any interference to such observation is required in instant case, therefore, same cannot be allowed to withstand and is hereby set aside - Appellant is directed to serve a copy of injunction application filed before Commercial Court upon the defendants within a week from date and said application for injunction is made returnable before Commercial Court after two week from date - Commercial Court shall fix a date in light of observations made hereinabove and if prayer for interim relief is renewed will consider on its merit in presence of defendants after service and pass a reasoned order in accordance with law - Appeal disposed of.

JUDGMENT :

Harish Tandon, J.

1. The slew of litigations have been percolated in the docket of the Court raising the questions which are common in nature though argued separately by the different set of counsels and were heard in phase manner as the point of law remained common and if decided would impact the decision several such litigations on the factual matrix.

2. The seminal question involved in the aforesaid matters relates to institutions of a suit involving commercial disputes covering the specified value without exhausted the pre litigation mediation contemplated under Section 12 A of the Commercial Courts Act, 2015 whether or not involving the urgent interim reliefs.

3. The Commercial Courts Act was promulgated in the year 2015 with the avowed object of securing the speedy disposal of the high value commercial disputes through a special forum i.e. by establishing the commercial Courts, Commercial Division and the Commercial Appellate Division of the High Court. At the time of birth of the said Act, there was no concept of pre-institution mediation which sees the light of the day after introduction of Chapter III-A of the said Act by Act 28th of 2018 w.e.f 3.5.2018. The said chapter contained only one section i.e. Section 12A which mandating that the suit shall not be instituted unless the plaintiff exhausts the remedy of pre-institution mediation. The aforesaid provisions further contained the provision that the period within which the pre-institution mediation has to be completed shall be excluded from the purview of the Limitation Act, 1963. The most important facet of the aforesaid provision introduced subsequently can further be visualised that the settlement arrived in a mediation process shall have the same status and effect that of the arbitral award and it can be reasonably inferred that the same is capable of being executed and/or enforced as a decree in accordance with the provision of the Code of Civil Procedure, 1908. The legislatures were conscious that the mediation process may consume a considerable time and the reliefs may be delayed, fixed the time in which the mediation process should be completed putting outer cap beyond which cannot be extended even a party consented for such extension. The object is laudable that the aforesaid newly inserted provision was not only to avoid the unnecessary explosion in the docket of the Court but acknowledges the party autonomy in resolving the disputes through such recognised process to avoid the time consumed in a conventional adjudicatory system and cost effected although the schedule prescribed therein includes a cost to be shared by both the parties which is minimal in comparison to the litigations travelling in the ordinary Civil Courts. The process of mediation is unique in the sense that the carriage of the proceedings remained with the parties as opposed to an ordinary litigation before the Civil Courts and the settlement bring the solace and/or satisfaction but restore the relationship which may have been temporarily broken and therefore, it is conventionally known as a win-win situation. There was a common discordant amongst the legal fraternity that the activation of the process of pre-institution mediation simply delayed the adjudicatory process and imposition of unnecessary expenditures. It is no doubt true that every dispute may not be settled through a mediation process and the innumerable cases received a death as the defendant either chose not to undergo such process or there is a failure on account of non-consensus between the litigating parties. The rules framed under the aforesaid Act contained the provision and in the event the defendant chose not to participate in the proceedings the report would be treated as non-starter. The concept of mediation though claimed to be new in the legal system yet, being introduced after a long discourse, it is a collective duty of the citizenry to accept the legislative intent as sensitised themselves to make it w

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