Supreme Court Directs Mediation in High-Stakes Iron Ore Dispute
Apex Court Orders Status Quo and Stays Proceedings as Former CJI Chandrachud Appointed Mediator
News Report: In a significant turn of events, the Supreme Court of India has intervened in the protracted legal battle between Euro Pratik Ispat (India) Private Limited and Geomin Industries Private Limited. The dispute, centered on the transportation and sale of 170,000 MT of iron ore, has been embroiled in legal complexities for over a year. The apex court, comprising Justices J.B. Pardiwala and K.V. Viswanathan, ordered mediation to resolve the contentious issues between the parties.
The case originated from the order passed by the High Court of Madhya Pradesh at Jabalpur, which overturned a Commercial Court's decision to reject the plaint due to non-compliance with Section 12A of the Commercial Courts Act, 2015. The High Court had reinstated the suit, acknowledging the necessity for urgent interim relief, thus exempting it from the mandatory pre-institution mediation under Section 12A(1).
While the High Court had restrained Geomin Industries from transporting and selling the disputed iron ore until the resolution of an application under Order 39 Rules 1 and 2 of the Code of Civil Procedure, the Supreme Court has now directed both parties to maintain the status quo. All pending civil and criminal proceedings have been stayed until the mediator's report is submitted.
The decision to appoint Dr. Justice D.Y. Chandrachud, former Chief Justice of India, as the mediator was met with approval from both parties. The mediator's report is expected to offer a resolution to the dispute, which has seen mounting stakes and complexities. The parties have been instructed to appear before the mediator and cooperate fully in the proceedings.
This move by the Supreme Court underscores its commitment to resolving commercial disputes through alternative dispute resolution mechanisms, reflecting the judiciary's evolving stance on mediation in high-stakes commercial litigation.
The parties will reconvene before the Supreme Court in eight weeks for further directions, pending the mediator's report. This case serves as a pivotal example of the judiciary's role in facilitating mediation as an effective tool for dispute resolution, especially in intricate commercial matters.
Bottom Line:
Commercial Courts Act, 2015 - Section 12A - Suit seeking urgent interim relief not barred under Section 12A(1) of the Act - Mediation ordered between parties to resolve the dispute.
Statutory provision(s): Commercial Courts Act, 2015 - Section 12A, Code of Civil Procedure, 1908 - Order 39 Rules 1 and 2
