Pre-Litigation Mediation Mandatory In Commercial Cases

The Hon`ble Supreme Court recently passed a judgement in Patil Automation Private Limited and Ors vs Rakheja Engineers Private Limited wherein Section 12A of the Commercial Courts Act 2015 (Act) has been declared to be mandatory with effect from 20 August 2022 and the plaint filed in non-adherence of the same has been held to be liable for rejection under Order VII Rule 11 of the Code of Civil Procedure 1908 (CPC) .

ISSUE

The seminal question which arises for consideration is whether the statutory pre-litigation mediation contemplated under Section 12A of the Act is mandatory and whether the courts should reject the plaints filed in non-compliance of the same under Order VII Rule 11 of the CPC.