Case Note & Summary
The dispute arises from a commercial suit filed by the plaintiffs against three defendants, seeking specific performance of a Framework Agreement dated 20 December 2024. The plaintiffs are part of the Mordani Group, engaged in real estate development, while defendant nos. 1 and 2 are non-banking financial companies that had extended loan facilities to the plaintiffs. Defendant no. 3 was a nominee developer under the Framework Agreement. The Framework Agreement purportedly settled all outstanding loan facilities, but contained a clause that if the plaintiffs failed to perform certain obligations by close of business on 31 December 2024, the agreement would automatically and forthwith stand revoked, cancelled and terminated. It was admitted by the plaintiffs that they did not comply with their obligations within the stipulated time. Nevertheless, the plaintiffs filed the suit without first resorting to pre-litigation mediation as required under Section 12-A of the Commercial Courts Act, 2015, claiming urgency because the defendants were allegedly taking precipitative steps against secured assets. The plaintiffs sought injunctions restraining the defendants from dealing with three real estate projects and from enforcing securities. The defendants filed interim applications under Order VII Rule 11 of the Code of Civil Procedure, 1908, seeking rejection of the plaint on three main grounds: (1) non-compliance with the mandatory pre-litigation mediation under Section 12-A of the Commercial Courts Act, 2015, (2) the suit being barred under Section 41 of the Specific Relief Act, 1963, and (3) the suit being barred under Section 34 of the SARFAESI Act, 2002. Learned senior counsel for defendant no. 1 argued that a meaningful reading of the plaint was required and that the test for urgency to bypass Section 12-A is not whether the interim relief is actually granted, but whether the prayer for urgent interim relief is genuinely contemplable and not a mere camouflage. Counsel for defendant no. 2 supported these submissions and additionally pressed the bars under the Specific Relief Act and SARFAESI Act. The court heard the applications and reserved judgment on 23 December 2025, but the available text does not record the court's analysis or final decision on the applications.
Headnote
A) Civil Procedure – Rejection of Plaint – Order VII Rule 11 – Non-compliance with Section 12-A of Commercial Courts Act, 2015 – When considering an application for rejection of plaint, the court must do a meaningful reading of the plaint; if it discloses no cause of action or is barred by law, rejection is mandatory – The absence of pre-litigation mediation under Section 12-A without valid urgency may render the plaint liable for rejection (Paras 7-8). B) Commercial Law – Pre-Litigation Mediation – Section 12-A, Commercial Courts Act, 2015 – The test for whether urgent interim relief justifies bypassing Section 12-A is not whether the prayer is eventually granted, but whether, on examination of the nature of the suit and cause of action, the prayer for urgent interim relief is contemplable from the plaintiff’s standpoint and not a mere camouflage – The plaintiff’s subsequent conduct in pursuing interim relief is also a material criterion (Paras 8-9). C) Specific Relief – Bar Under Section 41, Specific Relief Act, 1963 – The plaint is assailed on the ground that it is barred under Section 41 of the Specific Relief Act, though no analysis or finding is recorded in the available excerpts (Para 11). D) SARFAESI – Bar of Civil Court Jurisdiction – Section 34, SARFAESI Act, 2002 – The plaint is liable to be rejected if it is barred by Section 34 of the SARFAESI Act, which restricts civil court jurisdiction over matters covered by the Act (Paras 1, 11).
Issue of Consideration
Whether the plaint is liable to be rejected under Order VII Rule 11 CPC for non-compliance with Section 12-A of the Commercial Courts Act, 2015, and whether the suit is barred under Section 41 of the Specific Relief Act, 1963 and Section 34 of the SARFAESI Act, 2002.
Law Points
- mandatory pre-litigation mediation under Section 12-A
- test for urgent interim relief
- bar under Section 41 Specific Relief Act
- bar under Section 34 SARFAESI Act
