Section 12A -Commercial Courts Act – Legal notice for mediation

On 2112.2024, the legal notice was sent to the respondent no.2 for outstanding dues.   Since there was no response, the petitioner had sent mediation request on 24.12.2024 but there was no response.

Thereafter, the petitioner filed commercial suit.  However, the Registry rejected the plaint on 14.1.2025 that in the absence of non-starter report or certificate of non-settlement from the mediation authority, the requirements of section 12A of CCA are not complied with.

HELD that the legal notice for mediation and non-response of the respondent no.2 is purely in the realm of non-statutory regime and does not comply with the statutory frame work of pre-mediation.

Moreover, the legal framework of sub-section (4) of Section 12A of the CCA treating “settlement” in mediation as award enforceable under sub-section 30(4) of the AA.   This cannot be supplanted or even supplemented by the legal notice for mediation.

Judgment dated 19.2.2025 in W.P. [C] 2039/2025 of Renewflex Recycling   Vs.   Facilitation Centre Rohini Courts and others