A High Court has reaffirmed that pre-institution mediation under Section 12A of the Commercial Courts Act, 2015 is mandatory for any commercial suit that does not contemplate urgent interim relief, and has directed rejection of a plaint filed by a party that bypassed the process altogether.
Copperhill Steels Pvt. Ltd. had filed a commercial suit against Adarsh Fabricators for recovery of dues under a supply contract without first attempting the pre-institution mediation that Section 12A requires. Adarsh objected at the threshold, contending that the suit was not maintainable in its present form since Copperhill had neither sought nor been granted any urgent interim relief that would have exempted it from the mediation requirement.
The Court held that Section 12A uses mandatory language, and that the exemption for suits contemplating urgent interim relief is a narrow one: available only where the plaint genuinely discloses a need for urgent relief, not where a plaintiff merely appends a token prayer for interim relief to sidestep mediation. On the facts, the suit was a straightforward recovery claim with no urgency established, and the Court held the plaint could not proceed without first completing the Section 12A process.
The Court clarified that this defect is curable, the plaintiff may withdraw the suit, complete pre-institution mediation, and refile, but that the suit as filed could not be entertained on merits until that statutory pre-condition was satisfied.