Sep 30, 2022

SC Rules That Statutory Pre-Litigation Mediation Contemplated Under Commercial Courts Act is Mandatory

The SC in Patil Automation Pvt. Ltd. & Ors. v. Rakheja Engineers Pvt. Ltd.[1] held that the pre-litigation mediation under Section 12A of the Commercial Courts Act, 2015 is a mandatory provision and any suits instituted in violation of the provision are liable to be rejected under Order VII Rule 11 of the Code of Civil Procedure, 1908 (‘CPC’). The SC clarified that the declaration in the judgment would be made effective from August 20, 2022 so as to keep the concerned parties sufficiently informed.

 

[1] Patil Automation Pvt. Ltd. & Ors. v. Rakheja Engineers Pvt. Ltd., 2022 SCC OnLine SC 1028.

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