Supreme Court Annual Digest 2022- Commercial Courts Act 2015

Commercial Courts Act, 2015 - Mediation lightens the load of the judges- Section 12A contemplated only for a class of suits not requiring urgent relief- suits which contemplate urgent interim relief, the Law-giver has carefully vouch-safed immediate access to justice as contemplated ordinarily through the courts. The carving out of a class of suits and selecting them for compulsory mediation, harmonises with the attainment of the object of the law. The load on the Judges is lightened. They can concentrate on matters where urgent interim relief is contemplated and, on other matters, which already crowd their dockets. (Para 54) Patil AutomationPvt. Ltd. v. Rakheja Engineers Private Ltd., 2022 LiveLaw (SC) 678 : AIR 2022 SC 3848 : (2022) 10 SCC 1

Commercial Courts Act, 2015 - Order excluding period between 15.03.2020 till 28.02.2022 for the purposes of limitation in Re: Cognizance of Extension of Limitation 2022 LiveLaw (SC) 31 - Applicable with respect to the limitation prescribed under the Commercial Courts Act, 2015 also. Babasaheb Raosaheb Kobarne v. Pyrotek India Pvt. Ltd., 2022 LiveLaw (SC) 520

Commercial Courts Act, 2015; Section 3 - State Government can confer jurisdiction to hear applications under Sections 9, 14 and 34 of the Arbitration and Conciliation Act, 1996, upon Commercial Courts which are subordinate to the rank of the Principal Civil Judge in the District - All applications or appeals arising out of arbitration under the provisions of Act, 1996, other than international commercial arbitration, shall be filed in and heard and disposed of by the Commercial Courts, exercising the territorial jurisdiction over such arbitration where such commercial courts have been constituted. (Para 6-11) Jaycee Housing Pvt. Ltd. v. Registrar (General), Orissa High Court, 2022 LiveLaw (SC) 860 : AIR 2022 SC 5239

Commercial Courts Act, 2015 - Pre-institution mediation - Section 12A not a procedural provision- Exhausting pre-institution mediation by the plaintiff, with all the benefits that may accrue to the parties and, more importantly, the justice delivery system as a whole, would make Section 12A not a mere procedural provision. The design and scope of the Act, as amended in 2018, by which Section 12A was inserted, would make it clear that Parliament intended to give it a mandatory flavour. (Para 43) Patil AutomationPvt. Ltd. v. Rakheja Engineers Private Ltd., 2022 LiveLaw (SC) 678 : AIR 2022 SC 3848 : (2022) 10 SCC 1

Commercial Courts Act, 2015; Section 12A - Code of Civil Procedure, 1908; Order VII Rule 11 - In a clear case, where on allegations in the suit, it is found that the suit is barred by any law, as would be the case, where the plaintiff in a suit under the Act does not plead circumstances to take his case out of the requirement of Section 12A, the plaint should be rejected without issuing summons. (Para 68) Patil Automation Pvt. Ltd. v. Rakheja Engineers Private Ltd., 2022 LiveLaw (SC) 678 : AIR 2022 SC 3848 : (2022) 10 SCC 1

Commercial Courts Act, 2015; Section 12A - Pre-institution mediation declared to be mandatory- any suit instituted violating the mandate of Section 12A must be visited with rejection of the plaint under Order VII Rule 11. This power can be exercised even suo moto by the court- Declaration with effect from 22.08.2022. (Para 84) Patil Automation Pvt. Ltd. v. Rakheja Engineers Private Ltd., 2022 LiveLaw (SC) 678 : AIR 2022 SC 3848 : (2022) 10 SCC 1

Commercial Courts Act, 2015; Section 16 - Code of Civil Procedure, 1908; Order V Rule 1, Order VIII Rule 1 and Order VIII Rule 10 CPC - The orders passed by the Supreme Court on 23.03.2020, 06.05.2020, 10.07.2020, 27.04.2021 and 23.09.2021 in SMWP No. 3 of 2020 applies in relation to the period prescribed for filing the written statement - Unrealistic and illogical to assume that while the Court has provided for exclusion of period for institution of the suit and therefore, a suit otherwise filed beyond limitation (if the limitation had expired between 15.03.2020 to 02.10.2021) could still be filed within 90 days from 03.10.2021 but the period for filing written statement, if expired during that period, has to operate against the defendant - the period envisaged finally in the order dated 23.09.2021 is required to be excluded in computing the period of limitation even for filing the written statement and even in cases where the delay is otherwise not condonable - The orders in SMWP No. 3 of 2020 were of extraordinary measures in extraordinary circumstances and their operation cannot be curtailed with reference to the ordinary operation of law. (Para 20.2) Prakash Corporates v. Dee Vee Projects Ltd; 2022 LiveLaw (SC) 162 : AIR 2022 SC 946 : (2022) 5 SCC 112

Commercial Courts Act, 2015; Section 16 - Code of Civil Procedure, 1908 - Order V Rule 1, Order VIII Rule 1 and Order VIII Rule 10 CPC - In the ordinary circumstances,On expiry of 120th day from the date of service of summons, the defendant forfeits the right to file the written statement and no Court can make an order to extend such time beyond 120 days from the date of service of summons. (Para 16) Prakash Corporates v. Dee Vee Projects Ltd., 2022 LiveLaw (SC) 162 : AIR 2022 SC 946 : (2022) 5 SCC 112

Commercial Courts Act, 2015; Section 16 - Code of Civil Procedure, 1908; Section 10, Order V Rule 1, Order VIII Rule 1 and Order VIII Rule 10 CPC - These provisions are intended to provide the consequences in relation to a defendant who omits to perform his part in progress of the suit as envisaged by the rules of procedure and are not intended to override all other provisions of CPC like those of Section 10. (Para 26.1) Prakash Corporates v. Dee Vee Projects Ltd., 2022 LiveLaw (SC) 162 : AIR 2022 SC 946 : (2022) 5 SCC 112