As of now, there is no new Supreme Court ruling specifically stating that commercial suits filed before August 20, 2022, without pre-institution mediation, should be kept in abeyance to explore mediation. However, a significant judgment was delivered on August 17, 2022, in the case of Patil Automation Pvt. Ltd. v. Rakheja Engineers Pvt. Ltd., where the Supreme Court held that pre-institution mediation under Section 12A of the Commercial Courts Act is mandatory for all commercial suits that do not seek urgent interim relief.

The Court declared that any suit filed in violation of this mandate is liable to be rejected under Order VII Rule 11 of the Code of Civil Procedure. To ensure that stakeholders had adequate time to comply, the Court made this declaration effective from August 20, 2022.

This means that commercial suits instituted on or after August 20, 2022, without undergoing pre-institution mediation (and not seeking urgent interim relief) are subject to rejection. For suits filed before this date, the Court’s ruling does not retroactively apply, and such suits are not automatically kept in abeyance to explore mediation.

Sources