Commercial Litigation - The Legal Chamber

The Supreme Court upheld the Calcutta High Court’s decision, ruling that a partnership firm does not automatically dissolve upon a partner’s death if the partnership deed permits continuation with surviving partners. The Court held that Indian Oil Corporation (IOCL) could not arbitrarily stop kerosene supply without terminating the dealership agreement. It clarified that reconstitution of the firm does not require all legal heirs to join, emphasizing IOCL’s obligation to act fairly as a state instrumentality. The judgment reinforced that contractual terms and partnership deeds override rigid policy guidelines in commercial disputes. Facts Of The Case: The case involved a dispute between Indian Oil Corporation Limited (IOCL) and M/s Shree Niwas Ramgopal, a partnership firm operating as a ...

The Supreme Court upheld the mandatory nature of Section 12A of the Commercial Courts Act, 2015, requiring pre-institution mediation for commercial suits unless urgent interim relief is sought. However, it clarified that non-compliance before August 20, 2022 (the date of its earlier ruling in Patil Automation) does not warrant plaint rejection—instead, courts may refer parties to mediation while keeping suits in abeyance. The judgment harmonizes procedural rigor with practical enforcement, ensuring mediation’s role in reducing litigation backlog without unduly penalizing past filings. Facts Of The Case: The case arose from a money suit filed by the Union of India against M/s Dhanbad Fuels Pvt. Ltd. in the Commercial Court, Alipore, seeking recovery of ₹8.73 crores as differential freight...

Tag: Commercial Litigation

Death of a Partner Doesn’t End Business: Supreme Court Rules in Favor of Reconstituted Firm

“Can Courts Reject a Plaint for Skipping Mediation? :Supreme Court’s Strict Rule for Commercial Cases”