In the case of Aditya A Birla Fashion and Retail Limited v. Saroj Tandon, the Hon’ble Delhi High Court ruled that pre-institution mediation, as mandated under Section 12-A of the Commercial Courts Act, 2015, is obligatory even for counter-claims involving commercial disputes, regardless of whether the pre-institution mediation undertaken before filing the original suit was unsuccessful.
The key question before the Court was whether Section 12-A of the Act extends to counter-claims in commercial disputes.
The Court reiterated that Section 12-A is a compulsory requirement, and a party filing a counter-claim cannot circumvent the procedural demands set forth by this provision.
Our Counsel Sohil Shah, Pricipal Associate Rushad Irani and Associate Rishab Jain undertake a detailed legal analysis of this case in today’s litigation update.
PioneerLegal LawAtPL CommercialCourtsAct MediationMandatory Section12A CounterClaims LegalPrecedent CommercialDisputes PreInstitutionMediation
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