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Issues: (i) Whether Section 12A of the Commercial Courts Act, 2015 is mandatory and a suit seeking urgent interim relief is excluded from the requirement of pre-institution mediation; (ii) Whether the commercial court may examine the plaint and reliefs to determine whether a prayer for urgent interim relief is a camouflage to bypass Section 12A and reject the plaint under Order VII, Rule 11 of the Code of Civil Procedure, 1908.
Issue (i): Whether Section 12A of the Commercial Courts Act, 2015 is mandatory and a suit seeking urgent interim relief is excluded from the requirement of pre-institution mediation.
Analysis: The statutory scheme makes pre-institution mediation mandatory for a commercial suit that does not contemplate urgent interim relief. The expression used in Section 12A qualifies the suit and the determination is to be made from the plaint, the reliefs claimed, and the surrounding pleadings. The requirement is not a formal one dependent upon a separate application for exemption. Where the plaint itself seeks urgent interim relief, the suit falls outside the mediation mandate.
Conclusion: The provision is mandatory, but a suit that genuinely contemplates urgent interim relief is not hit by the pre-institution mediation requirement.
Issue (ii): Whether the commercial court may examine the plaint and reliefs to determine whether a prayer for urgent interim relief is a camouflage to bypass Section 12A and reject the plaint under Order VII, Rule 11 of the Code of Civil Procedure, 1908.
Analysis: The court is not bound to accept a mere label of urgent interim relief if the pleadings and surrounding facts show that the relief is illusory or designed to evade the statutory bar. A limited judicial scrutiny is permissible to see whether the plaint, viewed holistically, truly contemplates urgent interim relief. At the same time, refusal of ad interim relief or eventual denial of interim relief on merits does not by itself justify rejection of the plaint. On the facts, the plaint did seek urgent interim relief and the challenge to rejection of the plaint was therefore unsustainable.
Conclusion: The commercial court can make a limited scrutiny for camouflage, and the rejection of the plaint was upheld as lawful.
Final Conclusion: The special leave petition failed, and the dismissal of the application under Order VII, Rule 11 was affirmed because the suit was found to contemplate urgent interim relief within the meaning of Section 12A.
Ratio Decidendi: In a commercial suit, the applicability of Section 12A depends on whether the plaint, read as a whole, truly contemplates urgent interim relief, and the court may reject a colourable invocation of such relief to bypass mandatory pre-institution mediation.
Mandatory pre-institution mediation in commercial suits does not apply where the plaint genuinely seeks urgent interim relief.
Section 12A of the Commercial Courts Act makes pre-institution mediation mandatory for a commercial suit unless the plaint genuinely seeks urgent interim relief. That assessment depends on the plaint, the reliefs claimed, and the surrounding pleadings, not on a separate exemption request. The court may look beyond the label of urgent interim relief and reject a colourable invocation intended to evade the statutory bar under Order VII Rule 11 CPC. However, a refusal of interim relief on merits does not by itself justify rejection of the plaint. Applying that approach, the plaint was found to contemplate urgent interim relief and the rejection of the plaint was upheld.
Pre-litigation mediation mandatory under Section 12A of the Commercial Courts Act - Suit which "contemplates any urgent interim relief" - effect on applicability of Section 12A - Court's limited role to examine whether a plaint genuinely contemplates urgent interim relief - No statutory requirement for a separate exemption application from Section 12A where urgent interim relief is pleaded - Rejection of plaint under Order VII, Rule 11 of the Code for non-compliance with Section 12A - permissible only where plaint does not contemplate urgent interim reliefPre-litigation mediation mandatory under Section 12A of the Commercial Courts Act - Whether Section 12A's pre-litigation mediation requirement is mandatory and its impact where plaint contemplates urgent interim relief. - HELD THAT: - The Court reiterated the binding principle in Patil Automation that Section 12A is mandatory and a suit which does not contemplate urgent interim relief cannot be instituted without exhausting pre-litigation mediation. However, where the plaint contemplates urgent interim relief, Section 12A does not apply. The phrase "contemplates any urgent interim relief" must be read in the context of the plaint and the reliefs sought; it denotes that the suit, on its face, indicates a need for urgent interim relief. This reading preserves the legislative object of Section 12A while recognising the carve-out for genuinely urgent reliefs. [Paras 2]Section 12A is mandatory, but in suits that contemplate urgent interim relief Section 12A does not apply.No statutory requirement for a separate exemption application from Section 12A where urgent interim relief is pleaded - Whether a plaintiff must file a separate application seeking exemption from pre-litigation mediation when urgent interim relief is prayed for. - HELD THAT: - The Court held that Section 12A does not mandate a formal application for exemption; pleadings and oral submissions indicating that urgent interim relief is sought are sufficient. While an application seeking waiver may assist the court and allay challenges, it is not a statutory condition precedent to the institution of the suit under Section 12A. The determination is made by reference to whether the suit "contemplates" urgent relief as shown by the plaint and supporting material. [Paras 3]No separate statutory application for exemption is required where the plaint contemplates urgent interim relief; pleadings and submissions suffice.Court's limited role to examine whether a plaint genuinely contemplates urgent interim relief - Rejection of plaint under Order VII, Rule 11 of the Code for non-compliance with Section 12A - permissible only where plaint does not contemplate urgent interim relief - Extent of the commercial court's role in scrutinising whether a plaint is a camouflage to bypass Section 12A and whether a suit may be dismissed under Order VII, Rule 11 for non-compliance. - HELD THAT: - The Court explained that commercial courts have a limited but real role to scrutinise whether the plaint, its documents and the reliefs sought genuinely indicate the need for urgent interim relief, in order to prevent camouflage intended to bypass mandatory pre-institution mediation. That scrutiny is confined to a prima facie examination at the stage of registration/admission; non-grant of interim relief after hearing does not automatically justify dismissal under Order VII, Rule 11. Dismissal for non-compliance with Section 12A is proper only where the plaint does not, on its face, contemplate urgent interim relief or where deception is apparent. [Paras 7, 8]Commercial courts may undertake a limited prima facie examination to ensure a genuine claim for urgent interim relief; dismissal under Order VII, Rule 11 for non-compliance with Section 12A is not warranted where the plaint genuinely contemplates urgent interim relief.Application under Order VII, Rule 11 of the Code - Whether the defendant's application under Order VII, Rule 11 to reject the plaint for non-compliance with Section 12A in the present case was rightly dismissed. - HELD THAT: - The Court noted as an accepted fact that the plaint contained a prayer for urgent interim relief and therefore satisfied the condition that it "contemplates" such relief. Applying the principles above, the High Court's affirmation of the trial court's order rejecting the defendant's Order VII, Rule 11 application was held to be correct. The factual posture showing that urgent relief was contemplated precluded dismissal of the suit for non-compliance with Section 12A. [Paras 4]The dismissal of the defendant's application under Order VII, Rule 11 was correct because the plaint contemplated urgent interim relief.Final Conclusion: The special leave petition is dismissed. The Court affirmed that Section 12A's pre-litigation mediation requirement is mandatory except where a plaint contemplates urgent interim relief, no separate statutory exemption application is required when such relief is pleaded, courts have a limited prima facie role to detect camouflage, and on the facts the defendant's Order VII, Rule 11 challenge was rightly rejected.