Plaint Rejection - The Legal Chamber

The Supreme Court held that the plea of res judicata cannot be adjudicated under Order VII Rule 11 of the Civil Procedure Code (CPC) as it requires an in-depth examination of pleadings, issues, and decisions from the previous suit, which is beyond the scope of a plaint rejection application. The Court emphasized that only the averments in the plaint must be considered, and defenses or external documents cannot be relied upon. The judgment clarified that issues like fraud, collusion, or jurisdictional defects in a prior decree must be examined during trial, not at the preliminary stage. The appeal was allowed, and the suit was restored for expeditious disposal. Facts Of The Case: The appellant, Pandurangan, purchased a disputed property from Hussain Babu in 1998, who had earlier acquired ...

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: Plaint Rejection

Supreme Court Rules : Res Judicata Can’t Be Decided at Plaint Stage

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