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2026 Supreme(Online)(Del) 193

IN THE HIGH COURT OF DELHI AT NEW DELHI
Rajneesh Kumar Gupta, J
VANITA BATHLA – Appellant
Versus
SMT. SHASHI BAJAJ – Respondent
CM(M)-1762/2025



Advocates:
For the Petitioners: Kirti Uppal, Anurag Ahluwalia, Ankit Banati, Umang Tyagi, Zuber Ali, Archisha Satyarthi, Siddharth Sharma
For the Respondents: Roshan Santhalia, Kavya Arora, Himanshu Kumar Pathak

Mandatory pre-institution mediation under Section 12A of Commercial Courts Act is dispensed with if the suit involves genuine urgent interim relief or if mediation has already taken place in a prior ordinary suit arising from the same dispute.

Headnote:(A) Commercial Courts Act, 2015 - Section 12A - Pre-institution mediation - Mandatory requirement - Exception for urgent interim relief - Test for urgency - Whether mediation already undertaken in prior ordinary suit satisfies mandatory compliance - Order VII Rule 10 CPC - Order XXXIX Rule 1 and 2 CPC.

(B) Pre-institution mediation under Section 12A of the Commercial Courts Act is mandatory but a suit contemplating urgent interim relief may be filed without compliance; leave of court is not required. The test is whether, from the plaintiff's standpoint, the interim relief sought is genuine and not a mere ruse. Even if the interim relief is ultimately denied, the suit may proceed if the test is satisfied. (Paras 5, 7)

(C) Where parties have already undergone mediation in a prior ordinary suit that was later returned for filing as a commercial suit, the object of Section 12A is fulfilled; it would be burdensome to require fresh pre-institution mediation and re-filing of the suit. (Para 6)

Facts of the case:
The respondent/plaintiff filed a suit for possession of leased property after termination of tenancy. The suit was initially instituted as an ordinary suit but later returned under Order VII Rule 10 CPC for re-filing before the Commercial Court. During the pendency of the ordinary suit, the parties participated in mediation which ended as 'Not Settled'. Upon re-filing, the petitioner/defendant challenged the suit on the ground that the mandatory pre-institution mediation under Section 12A was not complied with, and that the prayer for urgent interim relief was a mere pretext. The trial court rejected the plea.

Findings of Court:
The High Court upheld the trial court's order. It found that the suit involved urgent interim relief because failure to grant the interim protection (status quo) would render the main relief of possession infructuous and lead to multiplicity of litigation. Additionally, the prior mediation between the parties in the ordinary suit satisfied the object of Section 12A, and requiring fresh mediation would be unjust. The court also noted that the respondent had filed an application for exemption from pre-institution mediation, but that was irrelevant as the test for urgent interim relief was satisfied.

Issues: (i) Whether the suit discloses a genuine case of urgent interim relief so as to exempt compliance with Section 12A? (ii) Whether the pre-institution mediation requirement is considered complied with when mediation had already taken place in a prior ordinary suit arising from the same dispute?

Ratio Decidendi: The court held that the interim relief sought was 'urgent' as the status quo orders were necessary to prevent alienation of the suit property and to avoid the main relief becoming infructuous. The court also held that the object of mandatory pre-institution mediation is to promote settlement and reduce litigation; once mediation has been attempted between the same parties on the same dispute, even if in an ordinary suit, the mandatory requirement stands satisfied. The court further relied on the Supreme Court's decision in Dhanbad Fuels to clarify that leave of court is not required for filing a suit without pre-institution mediation in urgent cases.

Result: Petition dismissed; impugned order dated 7th August, 2025 upheld; pending applications disposed of. (Para 8)

$~

* IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 09th January, 2026 Date of Decision :16th January, 2026 + CM(M) 1762/2025, CM APPL. 57124/2025 & CM APPL.

70629/2025 VANITA BATHLA .....Petitioner Through: Mr. Kirti Uppal and Mr. Anurag Ahluwalia, Senior Advocates with Mr. Ankit Banati, Mr. Umang Tyagi, Mr. Zuber Ali, Ms. Archisha Satyarthi and Mr. Siddharth Sharma, Advocates.

versus SMT. SHASHI BAJAJ .....Respondent Through: Mr. Roshan Santhalia, Ms. Kavya Arora and Mr. Himanshu Kumar Pathak, Advocates.

CORAM:

HON’BLE MR. JUSTICE RAJNEESH KUMAR GUPTA

O R D E R

1. The present petition has been filed by the petitioner/defendant under Article 227 of the Constitution of India assailing the order dated 07th August, 2025 (hereinafter referred to as the “Impugned Order”) passed by the trial Court in CS (COMM) 364/2023, whereby the trial Court has rejected the plea raised by the petitioner alleging the non-compliance of the mandatory requirement of pre-institution mediation under Section 12A of the Commercial Courts Act, 2015 (hereinafter referred to as the ‘the Act’)

before filing of the suit.

2. Learned Senior Counsels on behalf the petitioner have argued that as the respondent has failed to exhaust the mandatory remedy of pre-institution mediation under Section 12A of the Act, and also that the suit does not disclose any case of “urgent interim relief”, so the plaint is liable to be rejected in accordance with law. The plaint in this respect is vague, non- specific, and a mere eyewash intended to circumvent the mandatory provisions of Section 12A of the Act. The application of the respondents seeking exemption from pre-institution mediation is still pending which shows that there is no “urgent interim relief” involved in the suit. It is further argued that vide order dated 15th April, 2023, the plaint in the suit bearing no. Civ DJ No. 159/2020 was returned on the ground that the dispute constituted a commercial dispute and was, therefore, required to be instituted before the Commercial Court and Consequently, pre-institution mediation was mandatory before instituting the suit in the Commercial Court.

Per Contra, learned Counsel for the respondent has argued that the trial Court has passed the impugned order after considering the material on record. There is no illegality or infirmity in the impugned order. The arguments of the petitioner are without any merit and the petition is liable to be dismissed.

3. I have heard the learned counsels for the parties. Record perused.

4. In brief, the case of the respondent/plaintiff as alleged in the plaint is that they are the owners of the suit property i.e., Shop No. A-3/264, Eastern Side, Ground Floor, admeasuring 750 sq. ft., situated at Paschim Vihar, Delhi, which was jointly purchased by Ms. Shashi Bajaj and Smt. Neelam Bajaj vide a sale deed dated 28th September, 2009. On the request of the petitioner/defendant, the respondent/plaintiff vide rent agreement dated 15th April, 2015, leased out the suit property to the petitioner for a period of nine (09) years only, commencing from 1st May, 2015 till 30th April, 2024. As the petitioner began committing defaults in payment of rent, so the respondent in exercise of his rights as per Clause 5 of the rent agreement terminated the tenancy of the petitioner vide a legal notice dated 08th January, 2020. To the said notice the petitioner issued a frivolous reply fabricating a false story that the respondent had executed an agreement to sell dated 07th March, 2015 in favour of the petitioner for a total consideration of Rs.60,00,000/- (60 Lakhs). The petitioner has refused to vacate the suit property. Thereafter, the respondent has filed the present suit claiming the relief of possession of the suit property alongwith other reliefs.

4.1 Alongwith the plaint, the respondent has also filed an application under Order XXXIX Rule 1 and 2 of the CPC, in which it is prayed that ex-parte ad-interim injunction be granted to restrain the petitioner from

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