Contours Of Urgent Interim Relief Under Pre-Institution Mediation

Introduction

Since its introduction by way of an amendment in 2018, Section 12A of Commercial Courts Act, 2015 (Act) has garnered significant attention, specifically regarding the mandatory requirement for pre-institution mediation. Further a question arose as to whether suits instituted without recourse to mandatory pre-institution mediation ought to be rejected upon an application being filed under Order VII Rule 11 of the Code of Civil Procedure, 1908¹(CPC). While some considered the statutory requirement under Section 12A to be mandatory, others considered it to be directory.

The Supreme Court of India in the case of Patil Automation Private Limited and Ors. v. Rakheja Engineers Private Limited (Patil Automation Case), settled this debate by holding that Section 12A of the Act mandates pre-institution mediation and that any suit violating this mandate must be rejected unless it contemplates urgent interim relief (our views on the same can be accessed here).