The Supreme Court’s Novenco judgment expands the meaning of “urgent interim relief” under Section 12A of the Commercial Courts Act, 2015. It holds that ongoing IP infringements create inherent urgency, allowing plaintiffs to bypass pre-institution mediation. This ruling reshapes India’s mediation landscape and redefines the balance between speedy justice and alternative dispute resolution.
New Delhi (ABC Live): The Supreme Court’s decision in Novenco v. Xero Energy has reshaped how courts interpret “urgent interim relief” under Section 12A of the Commercial Courts Act, 2015.
Earlier, pre-institution mediation was compulsory before filing commercial suits. However, the Court has now ruled that intellectual property (IP) infringement cases often involve continuing harm, which creates an inherent urgency. As a result, such cases may proceed directly to court without prior mediation.
This ruling will significantly affect commercial dispute resolution, innovation enforcement, and India’s broader mediation policy under the Mediation Act, 2023.
Factual Matrix
The appellant, Novenco, is a Danish manufacturer of patented industrial fans sold under the brand ZerAx. It accused its Indian distributor, Xero Energy and affiliate Aeronaut Fans of copying its designs and selling deceptively similar products.
The Himachal Pradesh High Court dismissed Novenco’s suit for not following Section 12A, stating that no genuine urgency was shown. The Supreme Court disagreed, explaining that the infringement was ongoing and that every new sale caused fresh harm. Therefore, the delay in filing did not negate urgency.
Legal Issue
Whether a suit alleging continuing IP infringement can be said to “contemplate urgent interim relief” under Section 12A — even if there is a time gap between discovery and filing.
Court’s Reasoning
To answer this, the Bench drew upon earlier cases such as Patil Automation (2022), Yamini Manohar (2024), and Dhanbad Fuels (2025). The Court established a five-point test to decide whether mediation can be skipped.
| Criterion | Explanation |
|---|---|
| (i) | Mediation is mandatory unless urgency is clearly shown. |
| (ii) | The pleadings and documents must reflect a genuine need for immediate relief. |
| (iii) | Urgency must be viewed from the plaintiff’s perspective. |
| (iv) | Generic or artificial claims of urgency will not suffice. |
| (v) | The court need not judge the merits, only the plausibility of urgency. |
According to the Bench, each act of infringement is a new violation, meaning that the harm continues daily. Therefore, delay cannot be used as a reason to deny relief.
“Urgency lies not in the age of the cause but in the persistence of the peril,” the Court observed.
Doctrinal Significance
The judgment redefines the balance between procedural compliance and substantive justice. It establishes that:
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“Continuing injury” is equivalent to “continuing urgency.”
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Procedural rules should not shield wrongdoers.
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Intellectual property rights have a public interest dimension.
Consequently, the decision strengthens the protection of innovation and prevents misuse of Section 12A as a procedural hurdle.
Practical Impact
For IP Holders
The ruling empowers rights-holders to seek injunctions immediately, without waiting for mediation. It also enhances investor and brand confidence by ensuring timely judicial protection.
For Defendants
Businesses accused of infringement will now lose a common technical defence—that the plaintiff skipped pre-institution mediation. They will need to respond on merits instead.
For Courts
Commercial courts may see more direct filings, as many IP disputes will qualify as urgent. Judges will, therefore, have to scrutinise urgency claims carefully to prevent misuse.
For Policymakers
The decision could narrow the reach of India’s Mediation Act, 2023. Lawmakers may need to clarify how mediation should operate when urgency is alleged.
Interaction with the Mediation Act, 2023
Although the Mediation Act, 2023, promotes mediation as a first resort for all civil and commercial disputes, Section 12A of the Commercial Courts Act remains a special provision for commercial suits. Both are “special Acts,” yet they serve different purposes.
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The Commercial Courts Act focuses on speedy commercial adjudication.
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The Mediation Act focuses on institutionalising dialogue and settlement.
The Novenco ruling broadens Section 12A’s exception, allowing more suits to bypass mediation. As a result, a “soft conflict” now exists between these two laws.
Hierarchical Framework Between the Acts
| Level | Focus Area | Prevailing Law | Reasoning | Practical Effect |
|---|---|---|---|---|
| 1 | Judicial Interpretation | Supreme Court’s Novenco Ruling | Article 141 makes it binding. | “Continuing harm” equals urgency across India. |
| 2 | Legislative Intent | Mediation Act, 2023 | Later, and comprehensive statute encouraging mediation. | Promotes a mediation-first approach but must align with 12A. |
| 3 | Specific Domain | Commercial Courts Act, 2015 | Lex specialis principle — commercial disputes are its domain. | For commercial suits, Section 12A prevails. |
| 4 | Procedure | Mediation Act, 2023 | Section 61 ensures harmony between laws. | 12A mediations should follow the Mediation Act standards. |
| 5 | Implementation | Legal Services Authorities & Mediation Councils | Transitional overlap between the two frameworks. | Gradual unification under the Mediation Act institutions. |
Summary of Legal Hierarchy
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The Commercial Courts Act determines when mediation is required.
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The Mediation Act determines how mediation is conducted.
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The Novenco judgment currently governs judicial interpretation until Parliament revises either statute.
Broader Implications
Positive Effects:
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Strengthens IP protection and investor confidence.
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Aligns with global best practices on quick interim remedies.
Challenges:
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Weakens the universality of pre-institution mediation.
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Risks of overuse of the “urgency” claim by litigants.
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May increase the Commercial Courts’ workload.
Conclusion
The Novenco decision is a landmark shift in India’s commercial dispute system. It recognises that modern markets demand speedy judicial intervention, not procedural delays. However, the ruling also narrows the scope of mandatory mediation, which was meant to reduce court congestion.
In effect, the Court prioritised substantive justice for innovators over procedural uniformity for mediators. Unless Parliament harmonises both Acts, this interpretation will guide commercial litigation for years to come.
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