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2026 Supreme(Bom) 805

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
RAJESH S. PATIL, J.
Sugandha Hiremath - Appellant
Vs.
Babasaheb Neelkanth Kalyani - Respondent
Interim Application No. 5241 of 2025 In Suit No. 250 of 2023
Decided On : 04-05-2026

Advocate Appeared:
For the Appellant : Mr. Janak Dwarkadas, Senior Counsel a/w. Mr. Kunal Dwarkadas, Counsel, Mr. Rahul Dwarkadas, Ms. Sukhada Wagle, Ms. Shireen Mistri and Mr. Aniket Kharote i/b. RJD and Partners
For the Respondent:Dr. Virendra Tulzapurkar, Senior Counsel a/w. Mr. Simil Purohit, Senior Counsel, Mr. Farhan Khan, Mr. Munaf Virjee, Mr. Swapnil Khatri and Ms. Shruti Salian i/b. AMR Law, Mr. Yash Chokshi a/w. Ms. Taha Mirza and Ms. Kanika Sharma i/b. Khaitan & Co., Advocates, Mr. Prabhav Shroff a/w. Ms. Aditi Bhansali and Ms. Deepti Prabhu i/b. AZB and Partners, Advocates, Ms. Kavita Sharma a/w. Mr. Harsh Shah i/b. Ganesh and Co.

Mediation cannot be imposed on unwilling party in family disputes without mutual consent and realistic settlement possibility, aligning with legislative intent in amended CPC Section 89 and Mediation Act, 2023, distinguishing from mandatory commercial mediation.

Headnote:(A) Code of Civil Procedure, 1908 - Section 89 (as amended), Order X Rule 1-A - Mediation Act, 2023 - Section 5 (not in force) - Commercial Courts Act, 2015 - Section 12-A - Referral to mediation in family dispute - Mediation is voluntary requiring mutual consent of parties - Cannot be thrust upon unwilling party even in familial matters - Legislative intent emphasizes voluntariness, unlike mandatory pre-institution mediation in commercial suits - Prior failed mediation attempts, absence of settlement proposals and indications of no useful purpose preclude referral. (Paras 7, 8, 10, 15, 17)

(B) Alternative Dispute Resolution - Scope - Court must be satisfied of settlement possibility before referral despite opposition - Failed prior mediations by higher courts and lower courts, news publications embarrassing one party, and non-serious settlement efforts justify refusal - Parties at liberty to exchange proposals without prejudice, but none exchanged. (Paras 11, 12, 16)

Facts of the case:
Suit for specific performance of 1994 family arrangement between closely related parties. Interim application under Order VII Rule 11 filed by original defendant. Court suggested mediation due to family ties; defendant unwilling citing past failures, news leaks affecting business, and plaintiffs' actions in parallel proceedings. No concrete settlement offers exchanged despite opportunities.

Findings of Court:
No possibility of settlement through mediation exists; request for referral rejected. Matter to proceed on merits.

Issues: Whether closely related parties in family dispute should be referred to mediation despite one party's unwillingness and prior failed attempts.

Ratio Decidendi: Mediation under CPC Section 89 and Mediation Act requires consent and prospect of success; imposition on objecting party contravenes legislative scheme, especially post-amendments emphasizing voluntariness and distinguishing from commercial suits. Result : Plaintiffs' request to refer to mediation rejected.

Table of Content
1. suit background and initial mediation suggestions in family dispute (Para 1 , 2 , 3 , 4)
2. parties argue consent requirement for mediation referral (Para 5 , 6)
3. mediation voluntary under cpc, mediation act in civil suits (Para 7 , 8 , 9 , 10)
4. prior family mediation attempts failed despite efforts (Para 11 , 12)
5. precedents affirm mediation cannot be imposed without consent (Para 13)
6. referral viable only if settlement possibility exists (Para 14)
7. no mediation referral absent settlement prospects (Para 15 , 16 , 17)

JUDGMENT :

RAJESH S. PATIL, J.

“The question before me is to decide, whether the parties who are closely related should be referred to mediation, when one of them is not willing to go for mediation.”

1. The present Suit is filed for specific performance of a family arrangement of 1994. Plaintiff No. 1 is the sister of Defendant Nos. 1 and 5. In the Suit, an Interim Application has been preferred by Defendant No. 1 under the provisions of Order VII, Rule 11 of the Code of Civil Procedure, 1908 (for short “CPC”). Plaintiffs have filed their reply to the said Interim Application. Defendant No. 1 further filed his Affidavit in re-joinder. Hence, the pleadings in the Interim Application are complete.

2. On 27 March, 2026, when the Interim Application was listed for hearing, after the Counsel for Defendant No. 1 initially narrated the facts, this Court suggested the parties to consider the option of mediation as the parties are closely related to each other. On the said suggestion, Dr. Tulzapurkar, learned Senior Counsel for Defendant No. 1 submitted that, he will take instructions from his client on the suggestion which has fallen from the Court. Hence, the matter was adjourned to 15 April, 2026.

3. When the matter was called out on 15 April, 2026, Mr. Dwarkadas, Ld. Sr. Counsel appeared for the Plaintiffs and made his submissions on the issue of dispute between the parties to be referred to mediation as Dr. Tulzapurkar was not available. Mr. Dwarkadas submitted that he would talk to Dr. Tulzapurkar on the issue about the parties opting for mediation. Hence, the matter was adjourned to 16 April, 2026.

4. On the next day, when the matter was called out, after hearing the parties following Order was passed :-

“1. Heard Mr. Dwarkadas, learned Senior Counsel for some time. By consent, stand over to 28.04.2026. The matter to come up under the caption “For Directions”.

2. Post lunch, Mr. Purohit, learned Senior Counsel for Defendant No. 1 orally submitted that a news item is published online, which supports the concern raised by him in the morning session. He tendered a photocopy of the news item. He submitted that it is the Plaintiff who only can publish this news. On instructions, he submits that he would like to go on with the matter on merits. He further submits that if the Plaintiffs genuinely want to give an offer for settlement, they can do so and his client will immediately respond to the same.

3. Mr. Janak Dwarkadas, learned Senior Counsel for the Plaintiffs that the news item which has been tendered by Defendant No. 1 is not published by his client and they have no role in the publishing the same. If Defendant No. 1 is not interested to settle the dispute amicably, he will proceed with his arguments on the next date of hearing.

4. Let this matter to come up on board on 28.04.2026 at 1.00 p. m., in the meanwhile, parties are free, without prejudice to their rights and contentions to exchange their settlement proposal.”

[Emphasis Supplied]

5. Thus, the parties were at liberty without prejudice, to exchange their settlement proposals. Dr. Tulzapurkar, Ld. Sr. Counsel for Defendant No.1, submitted that on the previous hearing i. e. 16 April, 2026, the Plaintiffs were directed to give their offer without prejudice to the rights and contentions of both the parties. However, there was no offer given and only a communication in the form of an email was sent by the Plaintiffs on 28 April, 2026 around 12.00 noon.





















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