Commercial Courts Act, Section 12A- Delay in Filing a Lawsuit Does Not Ensure That No “Urgent Interim Relief” Is Needed; Allahabad High Court
Title: Indian Oil Corporation Ltd. Mumbai Having Divisional Office,Lko. Thru. G.M. Engineering Department vs. Commercial Court-II, Lko. And Another
Decided on: 12th May, 2023
MATTERS UNDER ARTICLE 227 No. – 1220 of 2023
CORAM: Hon’ble Manish Mathur,J.
Introduction.
The Allahabad High Court has supported the Lucknow Commercial Court’s decision to deny a petitioner’s request to maintain the legality of a business lawsuit without first using pre-institution mediation as required by Section 12 A of the Commercial Courts Act 2015, and has affirmed that decision.
Analysis.
It rejected the petitioner’s argument that the filing of a lawsuit to contest a contract termination after two months showed there was no pressing need to forego pre-institution mediation.
The Court noted that there is no urgency if the order of termination is not being carried out when it dismissed the petition under Article 227 of the Indian Constitution. Waiver of Section 12 A is necessary since the current case involves the enforcement of a termination order and the beginning of legal proceedings against the Respondent/Plaintiff.
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Written by- Varada Hawaldar