Novenco Building and Industry A/S v. Xero Energy Engineering Solutions Pvt. Ltd.

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Novenco Building and Industry A/S v. Xero Energy Engineering Solutions Pvt. Ltd.

Citation: 2025 INSC 1256 (27 October 2025)
Bench: Justice Alok Aradhe and Justice Sanjay Kumar
Jurisdiction: Civil Appellate – arising out of SLP (C) No. 2753 of 2025
Key Statute: Section 12A of the Commercial Courts Act, 2015


Legal Issue

Whether a suit alleging continuing infringement of intellectual property rights can be exempted from mandatory pre-institution mediation under Section 12A of the Commercial Courts Act, 2015, on the ground that it contemplates urgent interim relief.


Factual Background

  • Novenco, a Danish manufacturer of patented industrial fans, had a dealership agreement with Xero Energy in India.
  • Novenco alleged that Xero Energy violated the agreement by forming Aeronaut Fans to manufacture and sell deceptively similar products.
  • After discovering the infringement in 2022, Novenco terminated the dealership and sent cease-and-desist notices.
  • In June 2024, Novenco filed a commercial suit seeking injunction and exemption from pre-institution mediation under Section 12A.
  • The High Court rejected the plaint, citing lack of urgency and delay in filing.
  • The Division Bench upheld the rejection, stating that mere filing of interim relief does not establish urgency.
  • Novenco appealed to the Supreme Court.


Statutory Framework

Section 12A of the Commercial Courts Act, 2015 mandates pre-institution mediation for commercial suits unless the suit “contemplates any urgent interim relief.”
The Court clarified that urgency must be assessed from the plaintiff’s standpoint and not merely by the time elapsed.


Supreme Court’s Analysis

  • The Court emphasized that continuing infringement of intellectual property constitutes a recurring cause of action.
  • Delay in filing does not negate urgency when the harm is ongoing.
  • Urgency lies in the persistence of the peril, not the age of the cause.
  • The Court highlighted the public interest in preventing consumer deception and protecting market integrity.
  • It held that the High Court erred by evaluating the merits of the relief rather than the urgency evident from the pleadings.


Final Holding

  • The Supreme Court set aside the High Court’s rejection of the plaint.
  • It restored the commercial suit to be heard on merits.
  • It affirmed that suits alleging ongoing IP infringement can bypass pre-institution mediation under Section 12A if urgency is genuine and substantiated.

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