Pre-Institution Mediation – a stepping stone towards amicable dispute resolution!

Introduction

Recently, the Bench comprising Justice KM Joseph and Justice Hrishikesh Roy of the Supreme Court, delivered a judgement having far-reaching consequences upon commercial disputes in the country. The Apex Court in the case of M/s Patil Automation Private Limited and others versus Rakheja Engineers Private Ltd¹ and connected matters held that the pre-institution mediation contemplated by Section 12A of the Commercial Courts Act, 2015 ("Act") is mandatory. The Apex Court further upheld that the suits violating the provisions of Section 12A of the Act will be liable to be rejected at the threshold in an application filed by the defendant seeking rejection of the plaint, under the provisions of Order VII Rule 11 of the Code of Civil Procedure, 1908 ("CPC").