Interference With Functioning Of Petrol Pump Sufficient Ground To Bypass Pre-Institution Mediation Under Commercial Court Act: Allahabad HC

Recently, the Allahabad High Court has held that pre-institution mediation as provided in Section 12A(1) of Commercial Court Act, 2015 can be bypassed when there is interference with the functioning of a petrol pump.

Section 12A(1) of the of Commercial Courts Act, 2015 provides that where in a suit no urgent relief is contemplated, such suit may not be instituted unless remedy of pre-institution mediation has been exhausted by the plaintiff.

Defendant-appellant was owner of the property on which the petrol pump in question was situated. He had handed over the possession of the petrol pump to the plaintiff-respondent. Though the possession of the petrol pump was handed over to the plaintiff, the defendant failed to complete all formalities regarding transfer of the petrol pump and demanded extra money from the plaintiff despite payment of the entire consideration, it was alleged.

Plaintiff filed a suit seeking transfer of rights and application for injunction against the defendant from interfering in the working of the petrol pump. The Trial Court granted an ex-parte interim injunction in favour of the plaintiff which was challenged by the defendant in appeal before the High Court.

Counsel for defendant-appellant argued that the plaintiff had bypassed the remedy of pre-institution mediation under Section 12 of the Commercial Courts Act.

Per contra, counsel for plaintiff-respondent argued that the Trial Court had rightly granted the injunction after satisfying itself. It was argued that the appeal under Order 43 Rule 1(r) C.P.C against ex-parte interim injunction was not available to the defendant. It ought to file an application before the Trial Court under Order 39 Rule 4 C.P.C.

The Court observed that the defendant-appellant had not made any efforts for transferring the petrol pump to the plaintiff. It was held that pre-institution mediation under Section 12A(1) is necessary only when urgent relief is not claimed in the suit. Since there was interference with the functioning of the petrol pump, Justice Vipin Chandra Dixit held that urgent relief was needed in this case.

“Section 12A(1) provides that pre-institution mediation is mandatory, where in the suit there is no urgent interim relief is required, but in the present case, as the defendant is interfering in operation of petrol pump and there was an urgent need of interim relief, the provisions of Section 12A are not attracted in the present case.”

Further, the Court held that against the ex-parte interim injunction, defendant-appellant had the remedy under Order 39 Rule 4 C.P.C.

Accordingly, the first appeal was dismissed.

Case Title: Ashok Kumar Katiyar v. Charan Jeet Singh And 3 Others 2024 LiveLaw (AB) 546 [FIRST APPEAL FROM ORDER No. - 52 of 2024]

Case citation: 2024 LiveLaw (AB) 546

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