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Supreme Court Landmark Ruling: Order Rejecting Plaint Under Order VII Rule 11 is Appealable as a Decree

29Jan

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Supreme Court

Supreme Court Landmark Ruling: Order Rejecting Plaint Under Order VII Rule 11 is Appealable as a Decree

The Supreme Court held that an order rejecting a plaint under Order VII Rule 11 of the CPC is a decree under Section 2(2). Consequently, such an order is appealable under Section 13(1A) of the Commercial Courts Act, 2015, as it constitutes a final adjudication, not merely an interlocutory order restricted by the proviso. Facts Of The Case: The appellant, MITC Rolling Mills Private Limited, filed a commercial suit before the Commercial Court. The respondents, M/s. Renuka Realtors and others, filed an application under Order VII Rule 11 of the Code of Civil Procedure, 1908, seeking rejection of the plaint. Their ground was that the appellant had not undertaken the mandatory Pre-Institution Mediation and Settlement (PIMS) as required under Section 12A of the Commercial Courts Act, 2015. The...

Landmark Ruling Protects IP Owners: Supreme Court Says Continuous Infringement Creates Inherent Urgency

This Supreme Court judgment clarifies that under Section 12A of the Commercial Courts Act, a suit alleging continuing infringement of intellectual property rights inherently contemplates urgent interim relief. The Court held that mere delay in filing the suit does not negate urgency, as each ongoing act of infringement causes immediate and irreparable harm, and public interest in preventing market deception also factors into the assessment. Facts Of The Case: The appellant, a Danish company named Novenco Building and Industry A/S, held patents and design registrations in India for its industrial fans sold under the brand ‘Novenco ZerAx’. It had entered into a dealership agreement with respondent No. 1, Xero Energy Engineering Solutions Pvt. Ltd., in 2017. The appellant later discov...

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

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...