Point of Law: Pre-Institution Mediation and Settlement - Provisions of Section 12A of Act and Rules, in the context of pre-existing provisions of Code and General Rule Civil, as made applicable to proceedings under Act.

JUDGMENT :

1. Certified copy of the formal order filed today. Taken on record.

2. Defect reported stands cured. Office to allot regular number to the appeal.

3. Heard Shri Shashank Tripathi, learned counsel for the appellant.

4. The appeal has been heard on the following question of law:-

"Whether deposit of court fee on the valuation of the plaint is a pre-condition to maintain an application under Section 12A of The Commercial Courts Act, 2015 read with Rule 3 of The Commercial Courts (Pre-Institution Mediation and Settlement) Rules, 2018?"

5. Present appeal has been filed under Section 13(1)A of The Commercial Courts Act, 2015 (hereinafter referred to as the Act) against the order of the Presiding Officer, Commercial Court, Jhansi (hereinafter also referred to as the 'learned court below'), dated 4.1.2021. By that order, the learned court below has rejected the appellant's application - paper no.14C/2, praying for issuance of notice to the respondent for pre-institution mediation and settlement. Also, order has been passed rejecting the other application paper no. 15C/2 filed by the appellant praying for extension of time, to deposit the deficient court fee on the valuation of the plaint, pending pre-institution mediation.

6. Briefly, the appellant is a dealer in electronic vehicles (E-rickshaws and E-carts) manufactured by the company - respondent no.1, of which respondent no.2 is the Managing Director. Bereft of unrelated details, it may be noticed, disputes have arisen between the parties arising from the appointment of the appellant as a dealer by the respondent company. The appellant claims to have transferred Rs.4,36,000/- to the respondent through banking channel but corresponding supply of goods has not been made to the appellant. In such circumstances, the appellant presented a plaint before the learned court below, proposing to institute a suit against the respondents, seeking delivery of the goods (in lieu of the money paid by the appellant) and for compensation. Owing to deficiency of Court fees, it was registered as Misc. Case No. 17 of 2020.

7. At the same time, besides the plaint document, the appellant had moved an application under Section 12A of the Act before the learned Presiding Officer, Commercial Court, Jhansi, seeking pre-institution mediation. That application was numbered as paper no. 14C/2. It had also applied for extension of time to deposit the deficient court fees, as reported on the plaint in the Misc. Case No. 17 of 2020. It was numbered as paper no. 15C/2. By the impugned order, the learned court below has rejected those applications on the reasoning that the plaint presented by the appellant is deficient in court fee. Relying on General Rule Civil, Section 149 Civil Procedure Code, 1908 (hereinafter referred to as the 'Code') and the decision of the Supreme Court in A. Nawab John & Ors. Vs. V.N. Subramaniyam, (2012) 7 SCC 738, it has been held by the learned court below that -“The Court proceedings are conducted by General Rule Civil. Admittedly the applicant appears is more keen to get the relief, without filing the basis of suit or filing the Court fee.”

8. Relying on Section 12A of the Act read with The Commercial Courts (Pre-Institution Mediation and Settlement) Rules, 2018 (hereinafter referred to as the 'Rules') it has been submitted, that law provides for a complete Code for initiation and conduct of pre-institution mediation-by way of a mandatory pre-condition to institute a suit proceeding under the Act. Inasmuch as the Act read with the Rules only requires payment of prescribed fees for conduct of pre-institution mediation, the learned court below could not have imposed any further condition on the petitioner to deposit the entire court fee payable on the plaint. The court fee may become due only on the failure of pre-institution mediation. He would further submit; the language of the aforesaid provisions is clear. If payment of court fee is enforced at this stage, the entire purpose of se