Delhi High Court holds that issuance of correspondence for amicable resolution prior to litigation amounts to satisfaction of pre-litigation mediation under Section 12A of the Commercial Courts Act, 2015
The Delhi High Court (“High Court”) held that the requirement of Section 12A of the Commercial Courts Act (“CCA”) for pre institution mediation will stand satisfied where a party proposes amicable settlement, and the other party rejects the same, in response to the issuance of correspondence for amicable resolution. The High Court in effect has watered down the requirement of the procedure to be followed under Section 12A of the CCA read with Rule 3 of the Commercial Courts (Pre-institution Mediation and Settlement) Rules 2018. The High Court came to the above conclusion basis the fact that the defendant had already responded to the legal notice for amicable resolution by stating that the notice was frivolous and instead sought a compensation of INR 5,00,00,000 (Indian Rupees five crore) for harassment. The High Court after consideration of the facts in the present case, also came to the conclusion that intellectual property rights are valuable rights not only for the parties but also customers and public at large and therefore will fall within the exemption of urgent interim reliefs as contemplated under Section 12A(1) of the CCA.
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