IN THE HIGH COURT OF MADRAS
V. SIVAGNANAM, J.
Divya A. Nichani – Petitioner
Versus
Dipti D. Palicha & Others – Respondents
C.R.P. No. 856 of 2024
Decided On : 15-03-2024
Urgent Interim Relief - Recovery of Amount - Commercial Court Act 2015 - Section 12-A, Order XXXVIII Rule 5 of CPC - 2022(1) SCC 1 - 1983 (96) LW 599 - C.S.(comm.Div.) No.202 of 2022 and O.A.No.612 of 2022 and A.No.4870 of 2022 - [Summary of Acts and Sections discussed by the court]
Fact of the Case:
The petitioner/plaintiff filed a suit for the recovery of amount due under promissory notes executed by the defendants. The trial court returned the plaint for representation for non-compliance with Section 12-A of the Commercial Court Act 2015, as it was not satisfied with the urgent interim relief sought by the petitioner/plaintiff.
Finding of the Court:
The Court found that the petitioner/plaintiff failed to satisfy the requirements of urgent interim relief to bypass the statutory mandate of pre-litigation mediation under Section 12-A of the Commercial Court Act 2015. The Court upheld the trial court's decision and dismissed the Civil Revision Petition.
Issues: Non-compliance with Section 12-A of the Commercial Court Act 2015, Urgent Interim Relief, Pre-litigation Mediation
Ratio Decidendi: The Court's decision was influenced by the interpretation of Section 12-A of the Commercial Court Act 2015, the principles outlined in 2022(1) SCC 1 and 1983 (96) LW 599, and the requirements for urgent interim relief under Order XXXVIII Rule 5 of CPC.
Final Decision: The Civil Revision Petition was dismissed, and no costs were awarded.
JUDGMENT :
(Prayer: Civil Revision Petition has been filed under Article 227 of the Constitution of India to set aside the order dated 05.02.2024 made in C.O.S.S.R.No.06/2024 made by the learned Commercial Court Judge, Chennai and thereby direct the registration of the case.)
1. This Civil Revision Petition has been filed to set-aside the order dated 05.02.2024 passed by the learned District Judge, Chennai made in C.O.S.S.R.No.6 of 2024 made and thereby direct the registration of the case.
2. The petitioner/plaintiff has presented the plaint for the relief of recovery of amount due under the promissory note executed by the defendants and the same was returned for representation for non-compliance of Section 12-A of the Commercial Court Act 2015 on the ground that the trial court is not satisfied with the urgent interim relief sought by the petitioner/plaintiff to get over Section 12-A of the C.C. Act.
3. The learned counsel for the petitioner submitted that the prayer for an urgent interim relief should be examined by the Court with the nature and subject matter of the suit, the cause of action and the prayer for interim relief. The facts and circumstances of the case have to be considered from the standpoint of the plaintiff, but, the trial Court failed to consider the fact from the standpoint of the plaintiff. Therefore, he had pleaded to set-aside the impugned order dated 05.02.2024 passed by the Commercial Court. To support his argument, the learned counsel relied upon the judgment of the Hon'ble Supreme Court in 2024 SCC online SC 1382 (Yamini Maohar vs. TKD Keerthi).
4. Heard the submission made by the learned counsel appearing for the petitioner and perused the materials available on records carefully.
5. On perusal of the records, the fact reveals that the petitioner/plaintiff has presented the plaint, for the relief of recovery of amount due under promissory notes said to have been executed by the respondents/defendants, stating that the respondents/defendants, who are known person to the petitioner/plaintiff's, had availed financial assistance from the petitioner/plaintiff and there were exchange of emails, notice, reply notice, re-joinder and sur-rejoinder. The petitioner/plaintiff along with the plaint has filed a petition under Order XXXVIII Rule 5 of CPC for attachment before judgment, alleging that the respondents/defendants are seriously attempting to alienate the immovable properties, in which, a third party affidavit from a broker dealing with real estate business has also been produced. He has not availed the remedy provided for pre-institution mediation and settlement under Section 12-A of Commercial Court Act, 2015 and sought for exemption from invoking from the said PIMS, on the ground that the petition for ABJ would fulfill the requirements of urgent interim relief.
6. The principle under Section 12-A of the Commercial Court Act 2015 has been considered by Hon'ble Supreme Court in the case of Patil Automation Private Limited and others vs. Rakheja Engineers Private Limited reported in 2022(1) SCC 1 Act and summarised the principle as follows:
Patil Automation Private Limited and others vs. Rakheja Engineers Private Limited
The Court emphasized the mandatory nature of Section 12-A of the Commercial Court Act 2015 and the importance of complying with the requirements for urgent interim relief.
Mandatory nature of Section 12-A of the Commercial Court Act 2015 and the essential requirements for invoking the power of the Court to effect an attachment before judgment under Order 38, Rule 5(1) ....
The main legal principle established is the mandatory nature of pre-litigation mediation and the requirement for the suit to contemplate urgent interim relief under Section 12A of the Commercial Cour....
Urgent interim relief can be granted without prior mediation under Section 12A of the Commercial Courts Act if urgency is established, allowing plaintiffs to proceed with their suit.
The Commercial Courts Act mandates pre-institution mediation only for suits that do not seek urgent interim relief. Courts must assess the necessity for such relief based on the facts presented.
The court upheld that urgency in a suit is determined by the latest events leading to its filing, justifying the need for urgent interim relief under section 12A of the Commercial Courts Act, 2015.
The High Court's supervisory jurisdiction under Article 227 is limited and does not permit re-evaluating evidence; intervention is warranted only in cases of clear jurisdictional flaws or miscarriage....
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