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Pre-institution mediation under Section 12A is mandatory for...
Urgent interim relief exception permits commercial suit without pre-institution mediation where immediate disclosure and asset protection are genuinely required.
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Pre-institution mediation under Section 12A is mandatory for commercial suits that do not contemplate urgent interim relief. Whether the exception applies must be assessed from the plaintiff's standpoint, considering the suit's nature, cause of action and pleaded need for immediate protection; an unfounded urgency plea cannot bypass mediation. Urgent relief was genuinely contemplated where the suit sought investor recovery, earlier disclosures were inadequate, and ad-interim disclosure and asset-protection measures had already been granted despite existing regulatory restraints. The subsequent delay objection failed because investor claims had to be received before institution. Pre-institution mediation was therefore not a condition precedent, and rejection of the plaint under Order VII Rule 11 was unwarranted.
Pre-institution mediation under Section 12A is mandatory for commercial suits that do not contemplate urgent interim relief. Whether the exception applies must be assessed from the plaintiff's standpoint, considering the suit's nature, cause of action and pleaded need for immediate protection; an unfounded urgency plea cannot bypass mediation. Urgent relief was genuinely contemplated where the suit sought investor recovery, earlier disclosures were inadequate, and ad-interim disclosure and asset-protection measures had already been granted despite existing regulatory restraints. The subsequent delay objection failed because investor claims had to be received before institution. Pre-institution mediation was therefore not a condition precedent, and rejection of the plaint under Order VII Rule 11 was unwarranted.
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