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RAJA BASU CHOWDHURY
OGO USA INC – Appellant
Versus
Krishna Tissue Pvt. Ltd. – Respondent
JUDGMENT :
Raja Basu Chowdhury, J.
1. The present revisional application has been filed, inter alia, challenging the order dated 9th August, 2024 passed by the learned Judge, Commercial Court, Rajarhat, North – 24 Parganas in Commercial Suit being T.S. No. 26 of 2021 (C.C) whereby the plaintiff/petitioner’s application under Order VII Rule 11 of the Code of Civil Procedure, 1908 (hereinafter referred to as the Code) and the application under Order VIII Rule 6C of the Code has been rejected.
2. To understand the scope of the aforesaid revisional application, it would be relevant to note down the facts leading to filing of such application. The petitioner who is the plaintiff in the above commercial suit claims to have been incorporated under the relevant laws of United States of America and is engaged in the business of International Trade of paper and other allied products. The plaintiff claims to have entered into the contractual relationship with the defendant in respect of supply of waste paper of agreed quantity and specifications. The plaintiff claims that it was agreed by and between the parties that the payment would be in the form of letter of credit which would be 180 days fr
Counter-claims can be independent of the original cause of action and do not require compliance with pre-institution mediation provisions under Section 12A of the Commercial Courts Act.
The court clarified that there is no fixed time limit for filing additional written statements to counter-claims, and such filings can be made upon obtaining leave from the court.
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.
The court held that compliance with the pre-institution mediation requirement under Section 12-A of the Commercial Courts Act is mandatory for sustaining a commercial suit.
A counterclaim directed solely against a co-defendant is typically impermissible; however, if it intertwines with a plaintiff's claim, it may hold validity under commercial agreements.
The judgment establishes the mandatory nature of pre-institution mediation under Section 12A of the Commercial Courts Act, emphasizing the retrospective effect of the provision and the distinction be....
The court emphasized the importance of pre-institution mediation in commercial disputes, the need for proper infrastructure and trained mediators, and the court's discretion to adjust equities for th....
The mandatory requirement of pre-institution mediation under Section 12-A of the Commercial Courts Act, 2015 must be complied with for a suit to be maintainable.
The mandatory period of 120 days for filing Written Statements applies to Counter-claims, and improper service of the Counter-claim prevents the limitation period from commencing.
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