Synopsis

The defendants filed applications under Order VII Rule 11 CPC seeking rejection of the plaint on three grounds: (i) non‑compliance with mandatory pre‑institution mediation under Section 12‑A of the Commercial Courts Act, 2015; (ii) bar under Section 34 of the SARFAESI Act; and (iii) bar under Section 41 of the Specific Relief Act. The plaintiffs had filed a commercial suit for specific performance of a Framework Agreement and a profit‑sharing agreement, claiming urgent interim relief against enforcement of security by the lenders. The High Court dismissed the applications, holding that: (i) the test under Section 12‑A is whether the suit contemplates urgent interim relief from the plaintiff’s standpoint – mere non‑grant of relief later does not justify rejection; (ii) the substantive relief of specific performance is not barred under SARFAESI; (iii) the plaint disclosed cause of action against all defendants. The court followed the Supreme Court’s decisions in Yamini Manohar, Dhanbad Fuels and Novenco Building.

Court: High Court of Judicature at Bombay, Ordinary Original Civil Jurisdiction

Coram: Hon’ble Mrs. Justice Gauri Godse (Single Judge)

Date of Judgment: 4th April 2026

Citation: Interim Application No.4596 of 2025 & connected matters in Commercial Suit No.126 of 2025 (unreported)

Core Law: Commercial Courts Act, 2015 – Section 12-A (pre‑institution mediation); Code of Civil Procedure, 1908 – Order VII Rule 11 (rejection of plaint); SARFAESI Act, 2002 – Section 34 (bar of civil suit); Specific Relief Act, 1963 – Section 41 (injunction not granted).

1. Heading of the judgment

High court of judicature at bombay ordinary original civil jurisdiction

Interim application no.4596 of 2025, interim application (l) no.22220 of 2025 and interim application no.7764 of 2025 in commercial suit no.126 of 2025

Iifl finance ltd & ors (applicants/original defendants) vs. Paramvir developers pvt ltd & ors (plaintiffs)

Coram: hon’ble mrs. justice gauri godse

Reserved on: 23rd december, 2025; pronounced on: 4th april, 2026

2. Legal framework

Major laws and provisions involved:

• Commercial courts act, 2015 – section 12-a (mandatory pre‑institution mediation before filing commercial suit, except where urgent interim relief is contemplated)

• Code of civil procedure, 1908 – order vii rule 11 (rejection of plaint), order iv and v (institution of suit and summons)

• Securitisation and reconstruction of financial assets and enforcement of security interest act, 2002 (sarfaesi act) – section 34 (civil court jurisdiction barred in matters relati

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