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Mere Initiation of Pre-Institution of Mediation Is Not Compliance

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Judgment dated 29.9.2026 of the High Court of Bombay in Interim Application No.2847 of 2026 in Commercial suit No.59 of 2025 of Hapag Lloyd (India) Private Ltd in the matter of Rushabh Sealink and Logistic Private Limited with connected matter

Rejection of Plaint for Non-compliance of Section 12A of the Commercial Courts Act.

The cause of action arose on 23.2.2022, the application for pre-institution mediation was filed on 21.2.2025 and after 5 days, the commercial suit was filed on 26.2.2025.  It was stated that the plaintiff had initiated pre-institution mediation as per Section 12A of the CC Act.  That events subsequent to filing of the suit are irrelevant for deciding compliance with the provisions of Section 12A of the C.C. Act. That the second mediation notice was never received by the Defendant. That under Rule 3 of the Commercial Courts (Pre-institution Mediation and Settlement) Rules, 2018 (Pre-institution Mediation Rules), the process is completed only upon a settlement or after submission of a report of non-settlement or on submission of a non starter report.

after making the application for mediation on 21 February 2025 under Rule 3 of the Pre-institution Mediation Rules before the Main Mediation Centre of this Court, Plaintiff immediately instituted the present Suit on 26 February 2025. Thus, Plaintiff merely completed the formality of filing application under Rule 3(1) of the Pre-institution Mediation Rules and did not even await the Mediation Centre to issue notice under Rule 3(2) to the Defendant. The notice was issued by the Mediation Centre much later on 27 February 2025. On 13 March 2025, the Plaintiff remained present before the Mediation Centre, but Defendant did not appear despite receipt of notice dated 27 February 2025. The Mediation Centre issued final notice under Rule 3(3) of the Pre institution Mediation Rules to the Defendant on 17 March 2025.

Mere initiation of pre-institution mediation and filing of commercial suit is not in compliance with Section 12A.

Non-starter mediation report after filing of the commercial suit is not compliance with section 12A of the CC Act.

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