The Drastic Power of Rejecting a Plaint VI


Section 12A, inserted by The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Act, 2018, cannot be described as a mere procedural law. Parliament intended to give it a mandatory flavor.

It is logical, just and imperative, to attempt and persevere in out-of-the-box thinking. At least when Parliament has decided to move ahead, it becomes Court’s duty not to greet it with undue skepticism. It is an undeniable reality, Courts in India are reeling under an extraordinary docket explosion. Mediation has been identified as a workable solution.

Doctrine of Prospective Overruling began its innings with L.C. Golak Nath v. State of Punjab, AIR 1967 SC 1643. This is a case where, Amending Act containing Section 12A is a toddler.  

Any suit instituted violating mandate of Section 12A must be visited with rejection of plaint under Order 7, Rule 11. This power can be exercised even suo moto by Court. We, however, make this declaration effective from 20.08.2022.

In case plaints have been already rejected and no steps have been taken within period of limitation, matter cannot be reopened on basis of this declaration. If order of rejection of plaint has been acted upon by filing a fresh suit, this declaration will not avail. Finally, if a plaint is filed violating Section 12A, after High Court has declared Section 12A to be mandatory, there is no entitlement to relief.

Hon’ble Justice K.M. Joseph, M/s. Patil Automation Private Limited v. Rakheja Engineers Private Limited, [Special Leave Petition (Civil) No. 14697 of 2021].

PROSPECTIVE



Source link

Comments are closed.