PARASHNATH PAPER UDYOG Vs. DEVIKA PACKAGING

JUDGEMENT

(1.) The present appeal arises out of the order dtd. 30/3/2022 passed by the learned District Judge, Karkardooma Court, Shahdara, New Delhi in CS (COMM) No. 194/2019. By way of the impugned order, plaint filed on behalf of appellant was rejected under Order VII Rule 11 (d) of Code of Civil Procedure, 1908 (CPC) by holding the same to be barred by law, on account of non-compliance of provision of Sec. 12A of the

(2.) Appellant filed a suit for recovery of an amount of Rs.4,90,068.00against respondent herein. The learned District Judge considered the matter as regards maintainability of the suit and came to a finding that appellant had not complied with the procedure of Pre-Institution Mediation before institution of the suit and had filed the application under Sec. 12A of the Act only as a formality. By the impugned order, it was held that moving an application before Delhi Legal Services Authority (DLSA) for namesake to meet out the requirements of law without genuine intention to join the mediation proceedings, is not sufficient and cannot be termed as proper compliance of law. Accordingly, suit filed by appellant was held as not maintainable and was rejected.

(3.) Learned counsel for appellant has canvassed before this Court that the Trial Court has erred in holding that appellant herein had not complied with provisions under Sec. 12A of the Act. It is submitted that appellant had filed an application seeking initiation of Pre-Institution Mediation between the parties and had also paid a fee of Rs.1000.00 for the same. Respondent appeared for the mediation proceedings on 3/7/2019, however, the mediation was closed and treated as non-starter in terms of Rule 3(4) of the Commercial Courts (Pre-Institution Mediation and Settlement) Rules, 2018 (hereinafter called 'the Rules'). Thus, it is contended that the appellant had duly complied with the procedure as laid down under Sec. 12A of the Act.