Information on this blog is being shared only for the purpose of creating legal awareness in public at large, especially in the field of Intellectual Property Right. As there may be possibility of error, omission or mistake in legal interpretation on the contents of this blog, it should not be treated as substitute for legal advise.
Thursday, May 14, 2026
Orient Electric Limited Vs Crompton Greaves Consumer Electricals Limited
Wednesday, May 13, 2026
Hanmi Pharm. Co. Ltd. Vs The Controller General of Patents
Hanmi Pharm. Co. Ltd. Vs. The Controller General of Patents and Designs, 11.05.2026:C.A.(COMM.IPD-PAT) 464/2022: 2026:DHC:4122: Tushar Rao Gedela:
Court set aside the Patent Office order refusing Patent Application No. 6101/DELNP/2014 relating to thieno[3,2-d]pyrimidine derivatives. The application had been rejected on grounds of lack of inventive step under Section 2(1)(ja) and non-patentability under Section 3(d) of the Patents Act, 1970. The Court observed that while the Controller analysed product claims with reference to cited prior art documents, the process claims contained in Claims 14 to 22 were completely ignored in the impugned order. The Court held that failure to consider the process claims rendered the order unsustainable in law. Accordingly, the impugned order dated 25.04.2022 was set aside and the matter was remanded back to the Patent Office for fresh consideration after granting a fresh hearing opportunity to the appellant. The Court further directed that the matter be decided afresh within six months, uninfluenced by any observations made in the judgment.
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Hanmi Pharm vs Controller of Patents: Delhi High Court Sets Aside Patent Rejection for Ignoring Process Claims
Delhi High Court on Patent Examination: Non-Consideration of Process Claims Vitiates Rejection Order
Section 3(d) and Inventive Step in Patent Law: Delhi High Court Remands Hanmi Pharm Patent Case
Patent Office Must Consider All Claims: Important Delhi High Court Ruling in Hanmi Pharm Case
Delhi High Court Clarifies Duty of Patent Controller to Examine Process Claims Separately
Hanmi Pharm Patent Appeal Explained: Delhi High Court Orders Fresh Consideration of Patent Application
Important Patent Law Judgment 2026: Delhi High Court on Fair Examination of Pharmaceutical Patent Claims
Failure to Examine Process Claims Makes Patent Rejection Unsustainable: Delhi High Court
Detailed Analytical Article
Failure to Examine Process Claims Makes Patent Rejection Unsustainable
Introduction:
High Court of Delhi in Hanmi Pharm. Co. Ltd. v. The Controller General of Patents and Designs reaffirmed that the Patent Office must examine every category of claims raised in a patent application before rejecting it. The judgment delivered on 11 May 2026 dealt with refusal of a pharmaceutical patent application on grounds of lack of inventive step under Section 2(1)(ja) and non-patentability under Section 3(d) of the Patents Act, 1970. The Court found that although the Controller discussed product claims, the process claims forming part of the same application were completely ignored. The ruling highlights the importance of procedural fairness, reasoned decision-making, and comprehensive examination in patent adjudication.
Factual and Procedural Background:
The appellant, Hanmi Pharm. Co. Ltd., had filed Indian Patent Application No. 6101/DELNP/2014 on 21 July 2014 as a National Phase Application arising from PCT International Application No. PCT/KR2012/011571 filed on 27 December 2012. The application claimed priority from Korean Priority Application No. 10-2011-0146818 dated 30 December 2011. The invention related to thieno[3,2-d]pyrimidine derivatives and their pharmaceutical applications.
The First Examination Report dated 16 January 2018 raised objections relating to novelty, inventive step, and non-patentability under Sections 3(d), 3(e), and 3(i) of the Patents Act. In response, the appellant filed amended claims on 28 June 2018. Subsequently, a hearing notice dated 12 April 2021 maintained objections relating to novelty, inventive step, and Section 3(d). After the hearing conducted on 13 May 2021, the appellant submitted written submissions along with a revised set of twenty-two claims on 24 June 2021. On the same date, a divisional application bearing No. 202118028356 was also filed.
The Controller of Patents and Designs ultimately rejected the application through order dated 25 April 2022. Aggrieved by this refusal, the appellant approached the Delhi High Court under Section 117A of the Patents Act, 1970 by filing C.A.(COMM.IPD-PAT) 464/2022.
Dispute Before the Court:
The principal dispute before the Court was whether the Patent Controller had legally and properly examined the patent application before rejecting it. The appellant argued that the Controller failed to consider Claims 14 to 22, which were process claims relating to the method of preparing the claimed compounds. According to the appellant, the impugned order discussed only Claims 1 to 13 dealing with the compound itself and did not analyse the independent process claims at all.
The respondent Patent Office defended the rejection on the basis of lack of inventive step and Section 3(d) objections. However, during the hearing before the High Court, the Court specifically questioned whether the process claims had been examined in the impugned order.
Reasoning and Analysis of the Court:
The Court noted that the Controller had analysed only the product claims by comparing them with cited prior art documents D1 and D2. However, there was complete silence regarding Claims 14 to 22, which specifically related to the process for preparing the claimed compound.
The Court observed that Claim 1 covered the compound described as a “thieno[3,2-d]pyrimidine derivative of formula (I)” or its pharmaceutically acceptable salts, whereas Claim 14 independently claimed a method of preparation involving three steps. The Court emphasised that process claims and product claims are legally distinct categories of patent claims and each requires separate examination on its own merits.
A significant aspect of the judgment was the Court’s emphasis on reasoned adjudication. The Court held that when an applicant places multiple categories of claims before the Patent Office, the Controller is duty-bound to examine each category and provide reasons for acceptance or rejection. Failure to do so amounts to non-application of mind and renders the order unsustainable.
The Court also recorded that, pursuant to a judicial query raised on 23 April 2026, the learned Central Government Standing Counsel appearing for the respondent admitted during hearing on 4 May 2026 that the process claims had not been dealt with in the impugned order. This admission became an important factor in the Court’s reasoning.
Although the judgment does not undertake a detailed substantive analysis of Section 3(d) or inventive step jurisprudence, it reinforces broader administrative law principles applicable to patent adjudication. The decision aligns with settled judicial principles that quasi-judicial authorities must provide reasoned findings on all material issues raised before them. The judgment reflects the growing trend in Indian intellectual property jurisprudence requiring higher standards of examination and transparency from the Patent Office.
The Court did not finally decide the patentability of the invention itself. Instead, it focused on procedural legality and fairness in examination. This approach is important because appellate courts in patent matters frequently avoid substituting technical examination with judicial opinion unless absolutely necessary.
Final Decision of the Court:
The Delhi High Court set aside the impugned order dated 25 April 2022 passed by the Controller of Patents and Designs. The matter was remanded back to the Patent Office for fresh consideration on merits after granting the appellant a fresh hearing opportunity. The Court directed the Controller to reconsider the matter independently and in accordance with law without being influenced by observations contained in the judgment. The Court further directed that the reconsideration be completed within six months from the date of the judgment. Additionally, the Court directed that a copy of the order be placed before the Controller General of Patents, Designs and Trademarks for necessary administrative action.
Point of Law Settled in the Case:
The judgment establishes that while examining a patent application, the Patent Office must independently consider and adjudicate all categories of claims, including product claims and process claims. Failure to examine material claims raised in the application constitutes non-application of mind and renders the rejection order legally unsustainable. The ruling reinforces the requirement of reasoned and comprehensive decision-making by quasi-judicial authorities under the Patents Act, 1970.
Disclaimer: Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation]
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
Patent Law, Delhi High Court Patent Judgment, Hanmi Pharm Case, Section 3(d) Patents Act, Inventive Step Patent Law, Pharmaceutical Patent India, Patent Rejection Appeal, Patent Controller Duties, Patent Examination Standards, Process Claims Patent, Product Claims Patent, Intellectual Property Law India, Patent Litigation India, Patent Office Decisions, Patent Appeal Delhi High Court, Patent Law 2026, Quasi Judicial Orders Patent Office, Patent Remand Cases, Indian Patent Jurisprudence, AdvocateAjayAmitabhSuman, IPAdjutor
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Khaza Shakiroddin Javsoddin Inamdar Vs The State of Maharashtra
Monday, May 11, 2026
Arti Srivastava Vs. The Assistant Controller of Patents
Arti Srivastava Vs. The Assistant Controller of Patents:11.05.2026: C.A.(COMM.IPD-PAT) 252/2022: 2026:DHC:4132:Tushar Rao Gedela,H.J.
Delhi High Court upheld the rejection of a patent application relating to a counterfeit product detection system on the ground of insufficiency of disclosure under Sections 10(4)(a) and 10(5) of the Patents Act, 1970.
The patent application titled “Method and System for Detecting Counterfeit Products” proposed a mechanism using visible and hidden alphanumeric codes on product labels to enable consumers to verify product authenticity through a data centre using SMS, phone, email and internet-based communication.
The Assistant Controller of Patents had rejected the application on 31.01.2014 on grounds of lack of inventive step and insufficiency of disclosure.
During the appeal, the respondent did not press the inventive step objection as one of the cited prior art documents had been published after the filing date of the application.
However, the Court examined whether the complete specification adequately disclosed the working methodology of the invention.
The Court held that the patent specification failed to explain essential technical aspects such as code processing, digital verification mechanisms, system architecture, authentication logic, communication protocols and storage methodology required for practical implementation by a Person Skilled In The Art (PSITA).
Relying upon precedents including Farbwerke Hoechst v. Unichem Laboratories, 1968 SCC OnLine Bom 118, Titan Umreifungstechnik GMBH v. Assistant Controller of Patents [Judgement dated 02.05.2023 in C.A.(COMM.IPD-PAT) 114/2022] and Caleb Suresh Motupalli v. Controller of Patents [Judgement dated 29.01.2025 in C.M.A. (PT) No. 2 of 2024] the Court reiterated that a patent specification must fully and clearly disclose the invention and its best method of performance.
Holding that the claims were not fairly based on the complete specification and that substantial further research would be required to implement the invention, the Court dismissed the appeal and upheld rejection of the patent application.
#DelhiHighCourt, #PatentLaw, #PatentDisclosure, #Section10PatentsAct, #PatentLitigation, #PatentSpecification, #PatentEnablement, #IPRIndia, #IntellectualPropertyLaw, #PatentCaseUpdate, #CounterfeitDetectionPatent, #PatentAppeal, #JusticeTusharRaoGedela, #IndianPatentLaw, #PatentDrafting, #PatentRejection, #LegalNewsIndia, #IPLawUpdate, #DelhiHighCourtJudgment, #PatentProsecution, #IPUpdate, #AdvocateAjayAmitabhSuman, #IPAdjutor
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Arti Srivastava v. Assistant Controller of Patents: Delhi High Court Clarifies Sufficiency of Disclosure under Section 10(4) of the Patents Act
Delhi High Court on Patent Specification Enablement: Analysis of Arti Srivastava v. Assistant Controller of Patents
Insufficiency of Disclosure in Patent Law: Detailed Study of Arti Srivastava Case
Section 10(4)(a) of the Patents Act Explained Through Arti Srivastava v. Assistant Controller of Patents
Can a Patent Be Rejected for Inadequate Technical Disclosure? Delhi High Court Answers in Arti Srivastava Case
Inventive Step vs Sufficiency of Disclosure: Delhi High Court’s Landmark Patent Ruling in Arti Srivastava
Patent Enablement and Fair Basis Requirement under Indian Patent Law: Analytical Review of Arti Srivastava Judgment
Delhi High Court on Patent Specification Drafting Standards and PSITA Test in Arti Srivastava Case
Counterfeit Detection Technology Patent Rejected: Important Lessons from Arti Srivastava v. Assistant Controller of Patents
Detailed Legal Analysis of Arti Srivastava Patent Case on Section 10(4) and Section 10(5) of the Patents Act
Analytical Article
Patent Claims Unsupported by Disclosure Violate Section 10(5) of the Patent Act 1970
Introduction:
The decision of the High Court of Delhi in Arti Srivastava Vs. The Assistant Controller of Patents is an important judgment concerning the law relating to sufficiency of disclosure in patent specifications under the Patents Act, 1970. The judgment was delivered on 11 May 2026. The Court examined whether a patent application describing a counterfeit product detection mechanism sufficiently disclosed the manner in which the invention was to operate and be performed.
The case is significant because it clarifies that merely identifying an inventive concept is not enough for grant of a patent. A patent applicant must also fully explain the working methodology of the invention so that a Person Skilled In The Art (PSITA) can practically implement the invention without conducting further research or inventing additional mechanisms. The judgment also discusses the distinction between inventive step and enablement, and explains the legal requirements under Sections 10(4)(a) and 10(5) of the Patents Act, 1970.
The Court ultimately dismissed the appeal and upheld rejection of the patent application on the ground that the complete specification lacked sufficient disclosure regarding transmission, processing, authentication, storage, and communication mechanisms involved in the invention.
Factual and Procedural Background:
The appellant, Arti Srivastava, filed Patent Application No. 1774/DEL/2006 on 03.08.2006 for an invention titled “Method and System for Detecting Counterfeit Products.” The invention related to a system intended to help consumers verify whether a product was genuine or counterfeit. The application proposed the use of labels containing two alphanumeric codes affixed to products. One code was visible while the second code was hidden beneath a scratchable coating.
The invention contemplated that a consumer would transmit both codes to a data centre through communication methods such as telephone, SMS, fax, internet or email. The data centre would compare the received codes with stored records and return a message indicating whether the product was genuine. The system also proposed maintaining records of repeated verification attempts in order to detect possible misuse or counterfeit activities.
The appellant filed a request for examination and early publication on 08.03.2007. The First Examination Report (FER) was issued on 29.06.2011. The appellant submitted a response on 21.05.2012. A hearing notice was issued on 03.06.2013 and the hearing was scheduled for 16.07.2013. Subsequently, post-hearing written submissions along with amended claims were filed on 02.12.2013.
On 31.01.2014, the Assistant Controller of Patents rejected the patent application. The rejection was based on two principal grounds. First, the invention allegedly lacked inventive step under Section 2(1)(ja) of the Patents Act. Second, the complete specification allegedly failed to sufficiently disclose the invention as required under Section 10(4)(a) of the Act.
The appellant challenged the rejection order before the Delhi High Court by filing C.A.(COMM.IPD-PAT) 252/2022.
Dispute Before the Court:
The central dispute before the Court revolved around whether the invention disclosed in the complete specification met the legal requirements under Section 10(4)(a) of the Patents Act.
The appellant argued that the inventive feature of the invention lay in the simultaneous use of two codes on the product packaging , one visible and another hidden under a scratchable layer. According to the appellant, none of the cited prior art documents disclosed such a mechanism. The appellant further contended that the complete specification, flow charts and diagrams adequately explained the operation of the invention and that further technical details regarding transmission and processing were matters obvious to a PSITA.
The respondent, namely the Assistant Controller of Patents, argued that the patent application did not sufficiently disclose how the claimed system actually functioned. According to the respondent, the specification failed to explain how the codes would be digitally processed, authenticated, converted, transmitted, stored or communicated back to the user. It was argued that essential technical details regarding system architecture, workflow, verification mechanisms and processing logic were absent.
Interestingly, during the hearing, the respondent did not continue to press the objection regarding inventive step under Section 2(1)(ja). Instead, the focus shifted entirely to insufficiency of disclosure under Section 10(4)(a).
Reasoning and Analysis of the Court:
The Court first analysed the nature of the invention. The invention related to counterfeit detection by using visible and hidden identification codes on product labels. The Court noted that the system was intended to allow ordinary consumers to authenticate products without specialized tools.
The Court carefully reviewed the complete specification and the figures provided by the appellant. It observed that the invention described a process in which a user transmits visible and hidden codes to a data centre, which thereafter verifies authenticity and communicates the result back to the user. However, the Court found that the specification merely described the broad objective and not the detailed operational mechanism.
The Court noted that the specification did not adequately explain how the transmission and processing of codes would actually occur. There was no detailed disclosure regarding digital conversion mechanisms, verification logic, authentication protocols, data handling, storage systems, or communication architecture. According to the Court, these were essential aspects of the invention and could not be left entirely to the imagination or further research by a PSITA.
The Court specifically observed that the specification lacked sufficient details regarding:the manner in which the data centre would process the incoming codes,the mechanism through which digital information would be authenticated,the protocols and architecture for communication between user and data centre,the storage and reuse of processed information, andthe safeguards against repeated misuse of already verified codes.
The Court emphasized that under Section 10(4)(a), a complete specification must “fully and particularly describe the invention and its operation or use and the method by which it is to be performed.” The Court interpreted this provision to mean that the invention must be practically reproducible by a PSITA without requiring further inventive effort.
The Court further held that although the invention identified communication modes such as SMS, internet and email, it did not disclose the actual implementation mechanism. Merely mentioning communication mediums was not enough to satisfy the enablement requirement.
The Court also held that the best method requirement under Section 10(4)(b) had not been satisfied. Though several communication methods were mentioned, the specification failed to disclose which method constituted the best mode known to the inventor for implementing the invention.
In reaching its conclusion, the Court relied upon several important judicial precedents.
The Court referred to Farbwerke Hoechst v. Unichem Laboratories and Ors., 1968 SCC OnLine Bom 118, where the Bombay High Court explained that insufficiency of disclosure has two aspects. First, the specification must disclose an embodiment of the invention. Second, the disclosure must enable implementation without requiring further inventions. The Delhi High Court applied this principle and concluded that the present specification failed both requirements because essential technical details were missing.
The Court also relied upon Titan Umreifungstechnik GMBH and Co. KG v. Assistant Controller of Patents and Designs & Anr., C.A.(COMM.IPD-PAT) 114/2022 decided on 02.05.2023, where the Delhi High Court had explained that patent specifications must provide clear and complete descriptions enabling a PSITA to reproduce the invention. The Court clarified that working examples may not always be mandatory, especially in non-chemical inventions, but sufficient operational disclosure remains essential.
Another important precedent relied upon was Caleb Suresh Motupalli v. Controller of Patents, C.M.A. (PT) No. 2 of 2024 decided by the Madras High Court on 29.01.2025. In that case, the Madras High Court held that absence of technological enablement and workable implementation details results in failure under Sections 10(4)(a) and 10(5). The Delhi High Court adopted this reasoning and observed that the claims in the present case were not fairly based on the disclosure in the complete specification.
The Court also referred to The General Tire & Rubber Company Va The Firestone Tyre and Rubber Company Limited and Others, [1972] R.P.C. 457, and Biogen Inc v. Medeva Plc, [1997] R.P.C. 1, while discussing clarity, fair basis and enablement requirements under patent law.
A notable aspect of the judgment is the Court’s treatment of the inventive step objection. The Court observed that prior art document D1 could not have been relied upon because D1 was published on 10.08.2006, whereas the subject patent application had already been filed on 03.08.2006. Therefore, D1 was not valid prior art against the application. Consequently, the objection relating to lack of inventive step under Section 2(1)(ja) did not survive.
Nevertheless, despite the appellant overcoming the inventive step objection, the Court held that the patent application still failed because of insufficiency of disclosure and lack of fair basis under Sections 10(4)(a) and 10(5).
The Court concluded that the specification did not provide enough information for a PSITA to implement the invention without conducting further research and experimentation. Since the essential technical architecture and operational methodology were absent, the invention failed the enablement requirement.
Final Decision of the Court:
The Delhi High Court dismissed the appeal and upheld the rejection of Patent Application No. 1774/DEL/2006.
The Court held that the invention suffered from insufficiency of disclosure under Section 10(4)(a) of the Patents Act, 1970 because the complete specification failed to fully describe the operation, implementation methodology and best mode of performing the invention.
The Court also held that the claims were not fairly based on the complete specification and therefore violated Section 10(5) of the Patents Act.
Accordingly, the rejection order dated 31.01.2014 passed by the Assistant Controller of Patents was sustained.
Point of Law Settled in the Case:
The judgment settles the important legal principle that a patent specification must do more than merely identify the inventive concept. The complete specification must disclose sufficient operational and technical details enabling a Person Skilled In The Art to practically implement the invention without requiring additional inventive effort or substantial research.
The decision further clarifies that:A patent may fail even if inventive step exists, where the invention is not sufficiently enabled.
Essential implementation details relating to architecture, processing, workflow, verification and communication mechanisms cannot be omitted.
The best method known to the inventor must be disclosed.
Patent Claims that extend beyond the disclosed technical teaching violate Section 10(5) of the Patents Act.
The judgment therefore reinforces the importance of detailed patent drafting and comprehensive disclosure standards in Indian patent law.
Case Title: Arti Srivastava Vs. The Assistant Controller of Patents
Date of Order: 11 May 2026
Case Number: C.A.(COMM.IPD-PAT) 252/2022
Neutral Citation: 2026:DHC:4132
Court: High Court of Delhi
Hon’ble Judge: Justice Tushar Rao Gedela
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
Disclaimer: Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation.
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Headnote
The Delhi High Court in Arti Srivastava v. Assistant Controller of Patents held that a patent specification must provide sufficient technical disclosure enabling a Person Skilled In The Art to practically implement the invention without further inventive research. The Court clarified that broad functional descriptions without adequate implementation details regarding processing, transmission, authentication and system architecture violate Sections 10(4)(a) and 10(5) of the Patents Act, 1970. The Court upheld rejection of a patent application relating to counterfeit product detection on the ground of insufficiency of disclosure despite the inventive step objection not surviving.
Sunday, May 10, 2026
Indian Explosives Pvt Ltd Vs Ideal Detonators Pvt Ltd and Ors.
Indian Explosives Pvt Ltd Vs Ideal Detonators Pvt Ltd and Ors:05.05.2026:. APD/13/2023 with CS/48/2023, 2026:CHC-OS:157-DB, CalHc:Hon'ble Justice Debangsu Basak and Justice Md. Shabbar Rashidi
Calcutta High Court Division Bench dismissed the appeal challenging revocation of exemption from mandatory pre-institution mediation under Section 12A of the Commercial Courts Act, 2015.
The dispute arose from allegations that a former employee of the plaintiff had illegally shared confidential artistic drawings and trade secrets with the defendant company since 2016, resulting in alleged copyright infringement and breach of confidentiality obligations.
The plaintiff claimed discovery of the misconduct only in 2022 and sought urgent interim relief without undergoing pre-institution mediation. The Court held that the plaintiff failed to disclose specific dates of discovery and had waited several years before instituting the suit, thereby negating any genuine urgency.
Relying upon earlier precedents, the Bench observed that exemption under Section 12A cannot be used to bypass mandatory mediation through vague pleadings or deceptive urgency claims. Upholding the Single Judge’s findings, the Court ruled that there was no justification for dispensing with pre-institution mediation and consequently dismissed the appeal without costs.
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Calcutta High Court Reaffirms Mandatory Nature of Section 12A Mediation in Commercial Suits
Urgent Interim Relief Cannot Be Claimed on Vague Pleadings: Important Ruling by Calcutta High Court
Indian Explosives Pvt Ltd v. Ideal Detonators Pvt Ltd: Detailed Analysis of Section 12A Commercial Courts Act
Commercial Courts Act Explained: Calcutta High Court on Pre-Institution Mediation and Urgent RelieWhen Can Pre-Institution Mediation Be Dispensed With? Analysis of 2026 Calcutta High Court Judgment
Section 12A Commercial Courts Act Made Clear: Delay Defeats Claim of Urgency
Detailed Analytical Article
Copyright and Trade Secret Dispute Fails Due to Non-Compliance with Mandatory Mediation Requirement
Mandatory Pre-Institution Mediation Under Section 12A Cannot Be Bypassed Without Genuine Urgency
Introduction:
The decision delivered by the High Court at Calcutta in Indian Explosives Pvt Ltd vs Ideal Detonators Pvt Ltd & Ors., Neutral Citation No. 2026:CHC-OS:157-DB, is an important judgment explaining the mandatory nature of pre-institution mediation under Section 12A of the Commercial Courts Act, 2015. The judgment was delivered on May 5, 2026 by the Division Bench in APD/13/2023 arising out of CS/48/2023.
The case is significant because it clarifies that commercial litigants cannot avoid the statutory requirement of pre-institution mediation merely by making vague claims of urgency in the plaint. The Court emphasized that the power to dispense with mediation is exceptional and can be exercised only where a real and immediate need for urgent interim relief exists. The judgment further strengthens the judicial trend promoting mediation and discouraging unnecessary commercial litigation.
Factual and Procedural Background:
The appellant-plaintiff, Indian Explosives Pvt Ltd, instituted a commercial suit alleging infringement of copyright, misuse of confidential information, and breach of confidentiality obligations by its former employee and other defendants. According to the plaintiff, Defendant No. 2 had been employed since 2012 and had access to proprietary technical drawings, trade secrets, and confidential documents belonging to the company.
The plaintiff alleged that from around 2016 onwards, the employee illegally shared confidential drawings and documents with Defendant No. 1, Ideal Detonators Pvt Ltd, without authorization. It was further claimed that such conduct continued till 2022 when the employee’s services were terminated due to alleged misconduct and moral turpitude.
The plaintiff contended that it became aware of these activities only in 2022 and thereafter initiated criminal proceedings and subsequently filed the commercial suit in March 2023. While filing the suit, the plaintiff sought exemption from mandatory pre-institution mediation under Section 12A of the Commercial Courts Act, 2015 on the ground that urgent interim relief was necessary. Such leave was granted ex parte on March 23, 2023 and an interim order was passed on March 27, 2023.
Thereafter, Defendant No. 1 filed an application seeking revocation of the exemption granted under Section 12A. The learned Single Judge accepted the contention of the defendants and held that the plaintiff had failed to demonstrate genuine urgency warranting bypass of mandatory mediation. Consequently, the plaint was rejected. Aggrieved by this decision, the plaintiff preferred the present appeal before the Division Bench.
Dispute Before the Court:
The central issue before the Division Bench was whether the plaintiff had legitimately obtained exemption from mandatory pre-institution mediation under Section 12A of the Commercial Courts Act, 2015.
The plaintiff argued that urgent interim relief was necessary because the defendants were allegedly continuing to misuse confidential and copyrighted materials. It was contended that once the illegal conduct was discovered in 2022, immediate legal action was taken and therefore the exemption from mediation was justified.
The defendants, on the other hand, argued that the allegations related to conduct allegedly occurring since 2016 and that the plaintiff had failed to provide any specific dates regarding discovery of the alleged misconduct. According to the defendants, the plaintiff had attempted to circumvent the mandatory statutory requirement of mediation through vague and incomplete pleadings.
Thus, the core dispute was whether the requirement of urgency under Section 12A had genuinely been established.
Reasoning and Analysis of the Judges:
The Division Bench undertook a detailed examination of the plaint and the surrounding circumstances. The Court noted that although the plaintiff alleged that illegal activities had been taking place since 2016, the plaint did not specify any exact dates either of the alleged acts or of the discovery of such acts in 2022.
The Court observed that the suit had been verified on March 17, 2023 and the exemption under Section 12A had been obtained on March 23, 2023. The judges found that despite alleging misconduct continuing for several years, the plaintiff had waited for a substantial period before approaching the Court. This delay seriously undermined the claim of urgency.
The Division Bench emphasized that Section 12A of the Commercial Courts Act, 2015 is mandatory in nature. The provision requires parties to undergo pre-institution mediation before filing a commercial suit unless urgent interim relief is genuinely required.
The Court relied upon and discussed several important precedents. The appellant had relied upon Gavrill Metal Pvt. Ltd. v. Maira Fabricators Pvt. Ltd., 2023 SCC OnLine Cal 2443, Yamini Manohar v. T.K.D. Keerthi, 2023 SCC OnLine SC 1382, and Novenco Building and Industry A/S v. Xero Energy Engineering Solutions Private Ltd. and Another, 2025 SCC OnLine SC 2278. The appellant argued that these decisions supported the grant of exemption under Section 12A where urgent relief was sought.
However, the Division Bench referred to its own earlier judgment in Unique Enterprenuers and Finance Limited and Another v. Really Agritech Private Limited and Another, Neutral Citation 2026:CHC-OS-117-DB. In that case, the Court had held that while considering exemption under Section 12A, courts must carefully examine whether there exists a real need for urgent interim relief. The Court had also clarified that if exemption is obtained by deception, falsity, or suppression of material facts, the court retains power to recall such exemption.
The Division Bench reproduced and relied upon paragraph 21 of the Unique Enterprenuers judgment, where it was observed that courts are not powerless to revisit orders granting leave under Section 12A if such leave was obtained improperly.
Applying this principle, the Court concluded that the plaintiff’s pleadings lacked sufficient particulars and that the delay between the alleged acts and institution of the suit showed absence of real urgency. The Bench warned that the statutory requirement of mediation cannot be defeated merely by cleverly drafted pleadings or generalized allegations of urgency.
The Court also stressed an important policy consideration behind Section 12A. The provision was introduced to encourage settlement of commercial disputes through mediation and to reduce unnecessary burden on courts. Therefore, courts must ensure that litigants do not misuse the “urgent interim relief” exception as a routine escape route.
The judges made it clear that urgency must be real, immediate, and supported by specific facts. Long delay in approaching the court ordinarily weakens the claim for exemption from mediation.
Final Decision of the Court:
The Division Bench upheld the findings of the learned Single Judge and dismissed the appeal. The Court held that there was no genuine requirement for urgent interim relief at the time of institution of the suit and therefore the plaintiff was not entitled to bypass mandatory pre-institution mediation under Section 12A of the Commercial Courts Act, 2015.
The appeal being APD/13/2023 was dismissed without costs.
Point of Law Settled in the Case:
The judgment settles and reiterates several important principles relating to Section 12A of the Commercial Courts Act, 2015.
Firstly, pre-institution mediation under Section 12A is mandatory unless the plaintiff demonstrates a genuine and immediate need for urgent interim relief.
Secondly, vague allegations and generalized assertions of urgency are insufficient for obtaining exemption from mediation.
Thirdly, courts retain the power to recall or revoke exemption granted under Section 12A if it is later found that the exemption was obtained through suppression, deception, or lack of genuine urgency.
Fourthly, delay in approaching the court is a relevant factor while determining whether urgent interim relief actually exists.
Lastly, the judgment reinforces the legislative objective of encouraging mediation in commercial disputes and preventing unnecessary litigation.
Case Title: Indian Explosives Pvt Ltd Vs Ideal Detonators Pvt Ltd and Ors.
Date of Judgment: May 5, 2026
Case Number: APD/13/2023 with CS/48/2023
Neutral Citation: 2026:CHC-OS:157-DB
Court: High Court at Calcutta, Commercial Division, Original Side
Bench: Hon’ble Justice Debangsu Basak and Hon’ble Justice Md. Shabbar Rashidi
Disclaimer: Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation.
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
Headnote
The Calcutta High Court held that exemption from mandatory pre-institution mediation under Section 12A of the Commercial Courts Act, 2015 can be granted only where genuine urgency requiring immediate interim relief is clearly established. Mere vague allegations of copyright infringement and misuse of confidential information, particularly after long delay, are insufficient to bypass the statutory mandate of mediation. The Court further held that courts possess the authority to revoke exemption if obtained through incomplete or misleading pleadings.
Commercial Courts Act, Section12A, PreInstitutionMediation, Commercial Litigation, Copyright Infringement, Confidential Information, Trade Secrets, Urgent Interim Relief, Calcutta High Court, Indian Explosives Case, Mandatory Mediation, Commercial Disputes, Copyright Litigation, Trade Secret Protection, Commercial Division, Mediation Law India, IP Litigation India, Civil Procedure, Legal News India, High Court Judgments, Business Disputes, Commercial Suit, AdvocateAjayAmitabhSuman, IPAdjutor
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