S&S
S & S Co.
Advocates & Solicitors
Bar Council of India: Notice

Important Disclaimer & Notice

As per the rules of the Bar Council of India, advocates are not permitted to solicit work or advertise in any manner. By proceeding, you acknowledge that you are seeking information relating to S & S Co. of your own accord and that there has been no solicitation, advertisement or inducement by S & S Co. or any of its members.

The content of this website is provided solely for informational purposes and should not be construed as legal advice. S & S Co. shall not be liable for any consequence of any action taken by the user relying on material provided herein.

Any information shared through this website does not create an attorney-client relationship. Transmission of information herein is not intended to constitute, nor does receipt thereof constitute, an attorney-client relationship.

The contents of this website are the intellectual property of S & S Co. No part constitutes legal advice. Readers are requested to seek formal legal counsel before acting upon any information contained herein.
About Practice Areas Locations Legal Updates Legal News Team Blog Search Contact Us
Commercial Litigation · 15 May 2025

Rejection of a Commercial Suit for Skipping Pre-Institution Mediation Applies Only Prospectively, From 20 August 2022: Supreme Court Clarifies Patil Automation

Source: Based on the Supreme Court's judgment in Dhanbad Fuels Pvt. Ltd. v. Union of India & Anr., 2025 INSC 696, decided on 15 May 2025, as reported across multiple independent legal commentary and case-reporting sources. This article has been independently researched and written by S&S Co. Advocates & Solicitors for informational purposes. Readers should verify current developments against the underlying judgment and primary sources.

Section 12A of the Commercial Courts Act, 2015 requires a plaintiff to attempt pre-institution mediation before filing a commercial suit, except where the suit contemplates urgent interim relief. The Supreme Court had already held, in its earlier decision in Patil Automation Pvt. Ltd. v. Rakheja Engineers Pvt. Ltd., that this requirement is mandatory, and that a commercial suit instituted without first attempting such mediation is liable to be rejected under Order VII Rule 11 of the Code of Civil Procedure. What had remained less settled was how that rejection rule should apply to suits that had already been filed, without pre-institution mediation, before Patil Automation was decided.

In Dhanbad Fuels, the Supreme Court reconciled its earlier decisions and clarified that the rejection consequence recognised in Patil Automation operates prospectively rather than retrospectively. Specifically, the Court held that non-compliance with Section 12A will result in rejection of the plaint only for commercial suits instituted on or after 20 August 2022, the date by which the Court considered the mediation infrastructure and standard operating procedures to have become sufficiently operational across the country. For suits filed before that date without pre-institution mediation, the Court held that the appropriate course is not outright rejection, but for the court to keep the suit in abeyance and direct the parties to undertake mediation at that stage instead.

The Court's rationale rested on the practical unfairness of penalising litigants, with outright rejection of an otherwise validly pleaded suit, for failing to use a mediation mechanism that was not yet meaningfully functional at the time they filed. At the same time, the judgment reaffirmed, without qualification, that Section 12A itself remains mandatory going forward, and that the urgent-interim-relief exception continues to be construed narrowly rather than as a routine escape route from the mediation requirement.

Newsletter

Fortnightly Legal Updates,
By Practice Area

A short digest of significant rulings, regulatory changes and practical guides across our practice areas, sent every two weeks. For general information only, not legal advice.

Get In Touch

Have a Question About
Commercial Litigation?

Tell us about your situation, and we'll help you figure out the right next step.

Contact S&S Co. →

A full-service law firm headquartered in Noida, Delhi and Kolkata, providing commercial litigation, arbitration, corporate advisory and regulatory counsel across Delhi NCR, Kolkata and pan-India.

Practice

Commercial Litigation All Practice Areas

Locations

Noida All Locations

Firm

Team Legal Updates Legal News Blog Newsletter Contact