MCX Commercial Suit Dismissed – Bombay HC Imposes costs of Rs.20 Lakhs for Procedural Abuse
Defendants sought rejection of the plaint under Order 7 Rule 11(a) of CPC.
The plaintiff Multi Commodity Exchange of India Pvt Ltd has filed the commercial suit against Defendant No.1 Company and its Directors – Defendant Nos.2 to 6.
The claim is based on the invoices for 2008 to 2010. The suit was filed in 2014. Moreover, the invoices were issued by another company MMIPL and not the defendant no.1 MCPL. Both are distinct legal entity. The agreement with MCPL and the invoice dated 28.9.2010 issued by MCPL corroborates the Defendant’s case that the entities are separate.
Mere fact that the same individual signed both the affidavit on behalf of MCPL and the invoices for MMIPL cannot by itself establish any legal inter-connection. No such averments find place in the plaint.
Mere unilateral correspondence by the Plaintiff without any acknowledgement of liability by the Defendant No.1 cannot extend the limitation period. The plaintiff has not disclosed steps taken from 2010 to 2014. Such inaction by the plaintiff for four years is uncondonable. The Court cannot place premium on lethargy and inaction.
The plaintiffs have subjected the defendants to litigation nearly for a decade and therefore, costs of Rs.20 lakhs
Judgment dated 29.9.2025 of the High Court of Bombay in Notice of Motion No.121 of 2016 in Commercial Suit No.87 of 2016 of Mediacom Communication Private Limited in the matter between Multi Commodity Exchange of India Ltd Vs. Mediacom Communication Private Limited and others.
