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2024 Supreme(Cal) 927

I. P. MUKERJI, BISWAROOP CHOWDHURY
Shristi Infrastructure Development Corporation Limited – Appellant
Versus
Sarga Hotel Private Limited – Respondent


Advocates:
Advocate Appeared:
For the Appellants : S.N. Mitra, Sakya Sen, Aniruddha Mitra, Subhojit Roy, Mayuri Ghosh, Swastika Sengupta.
For the Respondents: Abhrajit Mitra, Anirban Ray, S. Sharma, Rishav Dutt, Joy Saha, S. Bhattacharya.

Judgement Key Points

Certainly. Based on the provided legal document, here are the key points:

  1. Section 12A of the Commercial Courts Act, 2015 mandates pre-institution mediation for suits that do not seek urgent interim relief. The section is interpreted as both procedural and substantive law, influencing the appealability of certain orders (!) (!) .

  2. The rejection of a plaint under Order 7 Rule 11 of the Civil Procedure Code is considered a decree, which is appealable. Therefore, an order rejecting a plaint on this basis can be challenged through an appeal (!) (!) .

  3. The court emphasized that the determination of whether a suit contemplates urgent relief should be based on a holistic examination of the nature, subject matter, cause of action, and relief sought in the plaint. The court must also consider whether the facts and circumstances indicate a need for urgent relief (!) (!) (!) .

  4. The phrase "contemplates any urgent interim relief" in Section 12A(1) is interpreted to mean that the plaint and related documents should show an indication or possibility of urgent relief being required, rather than requiring explicit pleadings of such relief (!) (!) .

  5. The court clarified that the process of instituting a suit involves the registration and acceptance of the plaint, but the actual institution is not complete until the court admits the plaint and issues summons. Rejection at the stage of Order 7 Rule 11 is a decree and appealable (!) (!) .

  6. The court also noted that the procedural framework under Section 12A does not require obtaining specific leave to institute a suit where the mediation process has not been exhausted. Instead, the court has the discretion to assess whether the suit, based on the plaint's contents, contemplates urgent relief (!) (!) .

  7. The importance of examining the facts holistically and ensuring that the suit is not dismissed at the threshold solely due to the absence of explicit pleadings for urgent relief was highlighted. The court should allow the suit to proceed while directing parties to consider mediation, especially if the suit involves significant Court fees and potential for settlement (!) (!) .

  8. The appeal was allowed, and the lower court's order was set aside, with directions to proceed with the suit expeditiously. The court also noted that procedural irregularities in recording the institution of the suit could be remedied without invalidating the process (!) .

  9. The interpretation of the relevant legal provisions underscores the importance of judicial discretion in assessing the nature of the suit and the need for urgent relief, to uphold the legislative intent of promoting alternative dispute resolution methods before formal adjudication (!) (!) .

  10. The court reiterated that orders rejecting a plaint under Order 7 Rule 11 are decrees and thus appealable, reinforcing the procedural rights of the parties involved (!) (!) .

Please let me know if you need further analysis or assistance regarding this document.


JUDGMENT :

I.P. MUKERJI, J.

1. This appeal raises very interesting questions. These questions now arise in many appeals where the interpretation and application of Section 12A of the Commercial Courts Act, 2015 are involved. To appreciate the question, the facts need to be told.

2. This commercial suit was filed by the appellant/plaintiff in the learned court below, without undergoing pre-litigation mediation. The suit was accompanied by an application for interim relief under Order 39 Rule 1 and 2 of the Civil Procedure Code. After institution of the suit the appellant/plaintiff applied before the court asking for dispensation of pre-litigation mediation. As the defendants had filed a caveat in the court they were given notice of the above applications. On notice of the application the defendants filed an application under Order 7 Rule 11 of the Civil Procedure Code.

3. By a detailed examination of the plaint the learned judge went into the question whether an interim relief was “contemplated” in the suit. She ruled that no such interim relief could be said to be contemplated.

4. By a judgment and order dated 24th May, 2024 the plaint was rejected.

5. The other applications for interim

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