Bombay High Court: Pre-Litigation Mediation Not Mandatory Where Genuine Urgency Exists
Stories are grouped across languages, rewritten into a fixed editorial format, and linked to original sources.
TL;DR
- Bombay High Court held pre-litigation mediation is not mandatory where genuine urgency for interim relief exists.
- The dispute involved Exquisite Co-operative Housing Society Ltd and Oberoi Realty Ltd over development rights.
- The court found the plaintiff society's claim for urgent relief was not merely a pretext to bypass Section 12A.
- Oberoi Realty's application to dismiss the suit for lack of pre-litigation mediation was rejected.
Overview
On August 21, 2026, the Bombay High Court ruled that commercial suits genuinely seeking urgent interim relief are not required to undergo mandatory pre-litigation mediation under Section 12A of the Commercial Courts Act. The decision came in the context of a dispute between Exquisite Co-operative Housing Society Ltd and Oberoi Realty Ltd over development rights and shares in a residential project.
What Happened
On August 21, 2026, Justice Sandeep Marne of the Bombay High Court ruled that pre-litigation mediation under Section 12A of the Commercial Courts Act is not mandatory where a commercial dispute genuinely contemplates urgent interim relief.
The case concerned a dispute between Exquisite Co-operative Housing Society Ltd and Oberoi Realty Ltd regarding rights in the Exquisite residential project, particularly undivided shares in land, FSI, TDR, and conveyance of its share or compensation of Rs 500 crore.
Oberoi Realty argued that the plaintiff's claim of urgency was a disguise to avoid mandatory mediation, noting the interim application was filed nearly two-and-a-half years after the initial suit.
The court found that the urgency should be evaluated from the plaintiff's viewpoint and in the context of the ongoing use of its FSI by the developer, and that delay alone does not negate genuine urgency. Justice Marne rejected Oberoi Realty's application seeking dismissal of the suit for non-compliance with Section 12A, and awarded costs.
Context
Section 12A of the Commercial Courts Act requires pre-litigation mediation for commercial suits unless urgent interim relief is sought.
There had been debate and litigation on what constitutes 'genuine urgency' sufficient to bypass mandatory mediation requirements.
The case relates to development rights, share in land, FSI, and TDR in a high-value residential project in Goregaon, Mumbai.
Why It Matters
- Clarifies the scope of Section 12A of the Commercial Courts Act regarding pre-litigation mediation in India.
- Establishes that delay in seeking interim relief does not automatically disqualify a case from being considered urgent.
- Provides guidance for parties and practitioners on when pre-litigation mediation can be bypassed.