Test/ basis for seeking exemption from the mandate of pre-suit mediation in a commercial suit?

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Shubham Budhiraja[1]


 


A and B entered into an agreement regarding supply of kitchen equipment’s. A filed a suit for recovery against B for supplying inferior quality of goods at higher prices. During the suit, A filed an application seeking exemption from undergoing pre-suit mediation on the ground that A is in need of money and any delay would cause irreparable harm to A. The Hon’ble Delhi High Court rejected the A’s application and held as under[2]:

 

1.    It is well settled that exemption from invoking pre-litigation mediation can be granted only when very urgent reliefs are sought by the Plaintiff and it is demonstrated that unless urgent reliefs are not granted the suit itself would become infructuous.

 

2.    The Plaintiff has to demonstrate that if the parties are sent to pre-litigation mediation, then the Defendant will take steps which will make the Suit infructuous.

 

3.    In the opinion of this Court, no irreparable loss would be caused to the Plaintiff as no urgent relief is required in the present case. Since no urgent relief is sought for by the Plaintiff, the Plaintiff is directed to approach the authorities for invoking pre-institution mediation and settlement. Accordingly, the plaint is returned.


[1] LLB, ACS, BCOM(H), +91-9654055315, Budhirajalawchambers@gmail.com

[2] CS(COMM) 1176/2024, Delhi High Court

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