Suit Filed Before SC's Patil Automation Judgment Can't Be Returned For Non-Compliance Of S.12-A Commercial Court Act: Allahabad High Court

Recently, the Allahabad High Court has held that a commercial court instituted prior to the Supreme Court's judgment in Patil Automation Private Limited and others Vs. Rakheja Engineers Private Limited cannot be returned for non-compliance of Section 12-A of the Commercial Court Act, 2015.It held that the mandate in the judgment regarding compulsory per-institution mediation and settlement as per Section 12-A of the Commercial Court Act, 2015 before filing a suit was applicable prospectively from the date of the judgment and not to the suits filed prior to the judgment of the Apex Court. Referring to the aforesaid judgment, the bench of Chief Justice Arun Bhansali and Justice Kshitij Shailendra held“The Court specifically provided that the declaration made by the Court under Section 12-A of the Act of 2015 was mandatory and that any suit instituted violating the mandate of Section 12-A must be visited with rejection of the plaint under Order VII Rule 11 CPC, would be effective from 20.08.2022 so that the concerned stakeholders become sufficiently informed.”Appellant filed a commercial suit on 12.08.2020 along with an application under Order XXXIX Rules 1 and 2 CPC seeking a decree for permanent injunction against the defendants regarding trademark and other things. On 19.09.2024, the Commercial Court, Kanpur Nagar ordered the plaint to be returned under provisions of Order VII Rule 10 CPC for non-compliance of provisions of Section 12-A of the Commercial Court Act, 2015 as per the judgment of the Apex Court in Patil Automation. Challenging the order of the Commercial Court, the appellant pleaded that since the plaint was filed before the date of judgment of the Apex Court, the judgment is not applicable to the case. The Court held that as the suit was filed before the date of the judgment and it was observed by the Supreme Court that the judgment will apply prospectively, the judgment will not apply to the suit between the parties instituted prior to the date of the judgment. Accordingly, the appeal was allowed and the Commercial Court, Kanpur Nagar was directed to decide the suit expeditiously. Case Title: M/s Jay Chemical Works v. M/s Sai Chemicals [COMMERCIAL APPEAL No. - 27 of 2025]Click Here To Read/Download Order

Suit Filed Before SC's Patil Automation Judgment Can't Be Returned For Non-Compliance Of S.12-A Commercial Court Act: Allahabad High Court

Upasna Agrawal

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