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.

ORDER :

Prayer in CRP No. 3672 of 2022: Civil Revision Petition filed under Article 227 Constitution of India to reject the plaint filed in C.O.S. No. 118 of 2021 in terms of Order VII Rule 11(a) and (d) of the CIVIL PROCEDURE CODE .

Prayer in CRP No. 3800 of 2022: Civil Revision Petition filed under Article 227 Constitution of India to set aside the order and decreetal order dated 03.09.2022 made in I.A.No. 4 of 2022 in COS No. 9 of 2022 on the file of the Commercial District Judge, C.R.P.Nos.3672, 3800 of 2022, 338 and 2123 of 2023 & C.M.P.Nos.19457, 20005 of 2022, 12931 of 2023 Salem by allowing the present Revision.

Prayer in CRP No. 338 of 2023: Civil Revision Petition filed under Article 227 Constitution of India to set aside the docket order dated 20.10.2022 in I.A.No. 6 of 2022 in C.O.S. No. 9 of 2022 on the file of the learned District Judge, Commercial Court, Salem as illegal and incompetent without jurisdiction.

Prayer in CRP No. 2123 of 2023: Civil Revision Petition filed under Article 227 Constitution of India to strike off the plaint in C.O.S. No. 10 of 2023 on the file of the learned District Judge, Commercial Court, Salem for want of compliance of Section 12-A of the COMMERCIAL COURTS ACT , 2015 (4 of 2016) together with lack of jurisdiction in terms of Section 9 of the Code of the Civil Procedure.

1. Since the parties in the Revisions are one and the same, they are taken up together and a common order is being passed.

2. The brief facts leading to the Revisions are as follows:

(i) The respondent in the first two Revisions, viz., CRP Nos.3672 and 3800 of 2022, viz., Madhanraj, HUF represented by its Kartha Madhanraj filed commercial original suit in C.O.S. No. 118 of 2021 [Lateron, on the formation of Commercial Court transferred from the Principal District Court, Salem and renumbered as C.O.S.No. 9 of 2022]. As per said the plaint averment, the defendant who is the revision petitioner in C.R.P. Nos.3672 and 3800 of 2022 and 2123 of 2023 and respondent in CRP No. 338 of 2023 was then and there borrowing money from the respondent / plaintiff herein on from various dates from 21-11-2013 onwards either by bank account transfer or by cash for the defendant/petitioner's urgent personal and business requirements by assuring to the repay the debt with interest at the rate of Rs.1/- per 100 per month. As per the account maintained by the plaintiff, the defendant was liable to pay a sum of Rs.2,09,72,300/- towards principal and interest as on 7-12-2019. On which day, the amount due was rounded off to Rs.2,05,00,000/- to which, the defendant acknowledged and executed the promissory note for Rs.2,05,00,000/- on 7-12-2019. Thereafter, on 18-02-2021, the defendant borrowed Rs.29,00,000/- from the plaintiff for the urgent personal use and executed a promissory note on C.R.P.Nos.3672, 3800 of 2022, 338 and 2123 of 2023 & C.M.P.Nos.19457, 20005 of 2022, 12931 of 2023 18-2-2021 in favour of the plaintiff assuring to repay the same with an interest at the rate of Rs.1 per 100 per month to the plaintiff.

(ii) It is further alleged in the plaint that when the plaintiff demanded the defendant to repay the debt, the defendant issued cheques on 08-05-2021 dated 21-7-2021 for a sum of Rs.20,00,000/- and cheque dated 25-06-2021 for a sum of Rs 25,00,000/- and two cheques dated 26-7-2021 for a sum of Rs.50,00,000/- each. It is stated in the plaint that when the cheques were presented, it was dishonoured under the endorseme