Bombay HC Clarifies Pre-litigation Mediation in Section 12A Commercial Courts Act
On 9.3.2023, the plaintiff – cooperative housing society filed the commercial suit against the promoter / developer for declaration of their rights of FSI / TDR, conveyance and also compensation of Rs.500 crores.
The plaintiffs also sought temporary injunction.
It is contended that the Suit has been filed on 9 March 2023 and the same was not moved even once for seeking urgent interim relief till November 2025. I am afraid, while deciding application under Order 7 Rule 11, the Court cannot take into consideration conduct of the Plaintiff post institution of the Suit.
Holistic reading of the entire plaint, as well as, examination of subject matter of the Suit, the cause of action and the prayer for interim relief makes it difficult for this Court to come to a conclusive finding that the prayer for urgent interim relief is a disguise or a mask to wriggle out of or get over requirement of Section 12A of the CC Act.
In my view therefore the conduct of the Plaintiff post filing of the Suit is irrelevant for the purpose of determining whether there is any contemplated urgency in seeking any interim relief within the meaning of Section 12A of the CC Act.
Therefore, in a case involving a continuous cause of action and continuation of the need to seek interim relief, mere delay in seeking interim relief cannot be a ground for presuming that the Suit does not contemplate any real urgency within the meaning of Section 12A of the CC Act.
Order dated 21.8.2026 of the High Court of Bombay on Interim Application No.No.6995 of 202 in Commercial Suit No.109 of 2023 in the matter between Exquisite Cooperative Housing Society Ltd and others Vs. Oberoi Realty Limited and others
