Summary
- The Delhi High Court has imposed ₹5 lakh costs on National Insurance Co. Ltd. for failing to participate in pre-suit mediation in a commercial recovery suit filed by Maxwell Partnership Firm Regd.
- The case involves a ₹24 crore insurance claim related to a fire incident from May 2018, which the insurer delayed and ultimately repudiated in March 2021.
- The court criticized the insurer's conduct as contrary to Section 12A of the Commercial Courts Act, 2015, emphasizing the importance of compliance with mediation procedures.
- This ruling highlights potential legal repercussions for parties that refuse to engage in alternative dispute resolution, reinforcing the necessity of meaningful participation in mediation.
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