Requirement Of Pre-institution Mediation Under The Commercial Courts Act

The Apex Court¹ has resolved the long-standing controversy whether statutory pre- institution mediation under Section 12-A of the Commercial Courts Act 2015 ("Act") is mandatory. Holding in the affirmative, the Court has further held that unless urgent interim reliefs are sought, the plaint is liable to rejected if the statutory pre-institution mediation is not complied with.

Background Facts:

The Court was dealing with Special Leave Petitions challenging orders of various High Courts dismissing applications for rejection of the plaint for non – compliance with the statutory pre-institution mediation.

• The Respondent filed a commercial suit before the District Court, Faridabad, seeking recovery of monies. The Appellant preferred an application for rejection of the plaint for non – compliance with the statutory pre-institution mediation.