High Court of Bombay: Mandatory Pre-Litigation Mediation Under Section 12-A of the Commercial Courts Act Reaffirmed in Intellectual Property Infringement Cases. The court emphasized that Section 12-A of the Commercial Courts Act applies to IP disputes unless there is clear evidence of deception or urgency requiring interim relief.


Summary of Judgement

The Bombay High Court dealt with the application of Section 12-A of the Commercial Courts Act in the context of intellectual property (IP) rights disputes. Y-Not Films LLP sought the dismissal of a copyright infringement suit brought by Ultra Media and Entertainment Pvt. Ltd. on grounds of non-compliance with mandatory pre-litigation mediation.

The court examined whether urgent interim relief justified bypassing mediation and ruled that the plaintiff’s claim for interim relief was not a mere disguise to escape mediation. The court upheld the principle that intellectual property cases, due to their nature, often warrant immediate relief despite delays in initiating the lawsuit.

1. Parties Involved:

  • Plaintiff: Ultra Media and Entertainment Pvt. Ltd.
  • Defendant: Y-Not Films LLP and others

2. Main Legal Issues:

  • Whether the suit should be dismissed for failure to comply with mandatory pre-litigation mediation under Section 12-A of the Commercial Courts Act.
  • Whether the plaintiff's delay in filing the suit negates the urgency for interim relief.

3. Defendant’s Arguments:

  • The plaintiff was aware of the alleged infringement in May 2023 but took no legal steps until April 2024.
  • The defendants argued that this delay showed there was no urgency, and the plaintiff was trying to evade the mandatory mediation requirement.

4. Plaintiff’s Counterarguments:

  • The infringement was a continuous violation of the copyright in the TV series “Shaktimaan”, warranting urgent interim relief.
  • The defendants’ response to the cease-and-desist notice indicated no intention of amicable settlement, making mediation futile.

5. Court’s Findings:

  • The court held that Section 12-A is mandatory but clarified that in intellectual property rights cases, where urgent interim relief is genuinely contemplated, bypassing mediation may be justified.
  • It rejected the defendants' claim that the plaintiff created artificial urgency to bypass mediation.

Ratio:

The court reaffirmed that while Section 12-A of the Commercial Courts Act mandates pre-litigation mediation, intellectual property disputes, especially those involving ongoing infringements, can bypass this requirement if urgent interim relief is necessary. The court must scrutinize the urgency and ensure the plaintiff is not using clever drafting to evade mandatory mediation.

Acts and Sections Discussed:

  • Section 12-A, Commercial Courts Act, 2015: Mandatory pre-litigation mediation.
  • Order VII Rule 11, Code of Civil Procedure, 1908: Rejection of plaints on various grounds.

Subjects:

mandatory mediation, interim relief.

Intellectual Property, Copyright Infringement, Commercial Courts Act, Pre-Litigation Mediation, Interim Relief, Section 12-A, Urgency in Legal Proceedings.

The Judgement

Case Title: Y-Not Films LLP and Anr. In the matter between Ultra Media and Entertainment Pvt. Ltd. Versus Y-Not Films LLP and Anr.

Citation: 2024 LawText (BOM) (9) 65

Case Number: NTERIM APPLICATION (L) NO.26065 OF 2024 IN COM IPR SUIT (L) NO.10862 OF 2024

Date of Decision: 2024-09-06