Pre-institution mediation is mandatory before the initiation of any commercial suit, and courts cannot require a plaint to be filed concurrently, as per legislative intent.

ORDER :

A.D. Jagadish Chandira, J.

This revision petition has been filed seeking to set aside the Docket order dated 07.08.2024 in O.S.SR.No.1646 of 2024 on the file of the Principal District and Sessions Judge, Chengalpattu returning the Mediation Application Form filed under Rule 3(1) of the Commercial Courts (pre-Instituition Mediation and Settlement) Rules, 2018 and consequently direct the Authority to receive the Mediation Application Form in accordance with law.

2. Brief facts of the case:

The petitioner is landlady and she had rented out the premises in question to the respondent for running a diagnostic centre (for commercial purpose) for a period of 11 months and the monthly rent was fixed at Rs.1,37,500/- p.m. The respondent/tenant had failed to pay the rents. The petitioner had intended to file a commercial suit for recovery of outstanding rental amount, however, in view of the mandate under Section 12A of the COMMERCIAL COURTS ACT , the petitioner had filed an application for Pre-Institution Mediation in accordance with Rule 3 (1) of the said Rules for the recovery of outstanding rental amount of Rs.8,25,000/- (From January 2024 till the date of filing the application). The learned Principal District and Sessions Judge, Chengalpattu, by docket order dated 07.08.2024, had returned the papers directing the petitioner to file the plaint copy. Challenging the same the present revision has been filed.

3. Mr.Adarsh Mohandas, learned counsel appearing for the petitioner would submit that the Principal District and Sessions Judge, Chengalpattu/the designated Commercial Court has erred in returning the Pre-Institution Mediation Application Form filed by the petitioner insisting the petitioner to file the plaint copy along with the Pre-Institution Mediation Application Form. He would submit that the Rules do not prescribe that the plaint should be filed along with the pre-Institution Mediation Application Form and the intention of the legislature for introduction of Section 12A of the COMMERCIAL COURTS ACT is that a suit shall not be instituted unless the plaintiff exhausts the remedy of pre-institution mediation. The pre- institution mediation must be carried out even prior to the filing of the suit unless it contemplates for any urgent interim relief under the Act and depending upon the same, the suit proceedings may eventually be instituted in case of failure of mediation or non starter of mediation. As per the mandate, the Commercial Court cannot insist for the plaint to be accompanied with the Mediation Application Form and if the prescribed fee is paid, the Court should forward it to the Legal Services Authority. He further submitted that as per Rule 3(1) of the Said Rules, the pre- requisites are that the party to a commercial dispute should make an application to the Authority as per Form-I Specified in schedule I, either online or by post or by hand along with fee of Rs.1000/- payable to the authority either by way of demand draft or through online. The petitioner in due compliance of Rule 3(1) of the said Rules, had also enclosed a demand draft payable to the Chairman, District Legal Services Authority, Chengalpattu, dated 10.07.2024. In such circumstances when the conditions have been complied, the application has to be taken on file without insisting for the plaint copy and he would seek to set aside the order of the learned Principal District and Sessions Judge, Chengalpattu returning of the Mediation Application Form and subsequently direct the District Legal Services Authority to take the application and proceed in accordance with law.

4. Heard the learned counsel for the petitione