Citation : 2026 Latest Caselaw 637 Bom
Judgement Date : 20 January, 2026
2026:BHC-AS:2755
-CRA470-2025.DOC
Santosh
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
CIVIL REVISION APPLICATION NO. 470 OF 2025
M/s. Pyromaitre Thermal India Pvt. Ltd.
Represented by its Director, ...Applicant
Mr. Vishnu Gangadhar Godse, (Ori.Deft.3)
Versus
1. Pyromaitre INC., (A Company
incorporated under the Canada Business
Incorporations Act) through its authorized
representative Ms. Arunadevi Vinay
Nayarankar
2. Vishnu Gangadhar Godse
3. M/s. R. V. Industries,
SANTOSH Proprietor, Mr. Vishnu Gangadhar Godse
SUBHASH
KULKARNI 4. Radha Vishnu Godse
Digitally signed by
...Respondents
SANTOSH SUBHASH
KULKARNI
Date: 2026.01.20
21:24:07 +0530
Mr. S. S. Patwardhan, i/b M. A. Shelar, for the Applicant.
Mr. Jai Chhabria, a/w Shashwat Rai, Mrinali Dave, i/b
Keystone Partners, for Respondent No.1.
CORAM: N. J. JAMADAR, J.
Reserved On: 6th JANUARY, 2O26
Pronounced On: 20th JANUARY, 2O26
ORDER:
-
1. This revision application is directed against the order
dated 24th June, 2025 passed by the learned District Judge,
Pune, in Commercial Suit No.14 of 2022, whereby an application
preferred by the applicant - original defendant No.3 for rejection
of the plaint under the provisions of Order VII Rule 11 of the
Code of Civil Procedure, 1908 ("the Code"), came to be rejected.
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2. In fact this is the second round of proceedings before this
Court. By an order dated 23 rd October, 2023, the learned
District Judge had initially rejected the said application for
rejection of plaint (Exhibit-28). The said order was assailed in
revision before this Court in CRA/702/2023. By an order dated
4th March, 2025, this Court was persuaded to partly allow the
revision application and remit the same for afresh decision on
the point: whether the suit is barred by the provisions contained
in Section 12A of the Commercial Courts Act, 2015 ('the Act,
2015") for not resorting to pre-institution mediation?
3. The petitioner carried the matter before the Supreme
Court in SLP(C) No.13532/2025. By an order dated 23 rd May,
2025, the Supreme Court disposed of the said SLP observing
that when the Commercial Court at Pune hears the matter
afresh in pursuance of the remand order passed by this Court,
it shall keep in mind the dictum as laid down by the Supreme
Court in one of the recent pronouncements in M/s. Dhanbad
Fuels Pvt. Limited vs. Union of India and another 1. All other
contentions were kept open for the parties to be canvassed
before the Commercial Court.
1 (2025) INSC 696.
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4. By the impugned order, the learned Judge, Commercial
Court, was again persuaded to reject the application holding,
inter alia, that the suit does contemplate an urgent interim relief
and, therefore, the omission to resort to pre-institution
mediation under Section 12A of the Act, 2015 did not entail the
consequence of the rejection of the plaint, the plaint does
disclose a cause of action and the plaint was not liable to be
rejected on the ground that Arunadevi Vinay Nayarankar, who
has signed and verified the plaint, was not authorized to
institute the suit against the applicant - defendant No.3.
5. Being aggrieved the applicant has again invoked the
revisional jurisdiction.
6. An elaborate reference to the facts may not be warranted
as in the order passed in CRA/702/2023 dated 4 th March, 2025,
this Court had adverted to the facts in a little detail.
6.1 Suffice to note that, the applicant is a company
incorporated under the Canada Business Incorporations Act. It
is engaged in the business of manufacture and sell of the
industrial ovens and complex heat transfer machinery. The
plaintiff claims, its brand has earned an enviable reputation in
the industry. A Licence Agreement, dated 5 th December, 2013,
was executed between the plaintiff and Pyromaitre Terminal
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India Pvt. Ltd. (D3), a Company incorporated to manufacture,
use and sell the plaintiff's product using the technical and
engineering knowledge and know how developed by the plaintiff.
Alleging breach on the part of the defendants, the said Licence
Agreement came to be terminated with effect from 30 th October,
2015.
6.3 In the month of April, 2019, the plaintiff learnt that, one of
the prospective purchaser of the plaintiff was in possession of
an industrial oven that was a replica of P-4412E Oven designed
by the plaintiff. Further enquiries revealed that, the infringing
oven was identical in its design and make as the plaintiff's oven.
The infringing oven was manufactured by illegally using the
plaintiff's proprietary information. Thus, the suit came to be
instituted for injunction, damages and consequential reliefs.
7. In the wake of the averments in the plaint and the
documents annexed with it, I have heard Mr. Patwardhan, the
learned Counsel for the applicant - defendant, and Mr.
Chhabria, the learned Counsel for the respondents - plaintiffs,
at some length.
8. Mr. Patwardhan, the learned Counsel for the applicant,
submitted that despite directions by the Supreme Court and
this Court to apply the correct principles in the matter of
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rejection of the plaint for not-resorting to pre-institution
mediation as mandated by Section 12A of the Act, 2015, the
learned Judge, Commercial Court, approached the controversy
from an incorrect perspective. Amplifying the submission Mr.
Patwardhan submitted that, the incorrect approach becomes
evident from the fact that the learned Judge posed a wrong
question namely, "whether the suit can be protected from the
rejection of the plaint" (paragraph 14 of the impugned order).
According to Mr. Patwardhan, the wrong question led to wrong
answer. Instead, the learned Judge ought to have posed upto
himself the question as to whether the plaint was liable to be
rejected for not resorting to mandatory pre-institution
mediation.
9. In view of the decision of the Supreme Court in the case of
Patil Automation Pvt. Ltd. V/s. Rakheja Engineers Pvt. Ltd. 2,
that Section 12A of the Ac, 2015 is mandatory and that, any
suit instituted violating mandate of Section 12A must be visited
with rejection of plaint under Order VII Rule 11 CPC, even suo
motu by the Commercial Court, in the instant case, the learned
Judge misdirected himself in examining his issue with a view to
2 (2022) 10 SCC 1
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protect the suit from the rejection of the plaint, submitted Mr.
Patwardhan.
10. On the merits of the matter, Mr. Patwardhan would urge
that, a bare perusal of the averments in paragraphs 41 and 42
of the plaint would indicate that there was no semblance of
immediacy in seeking the interim relief. The plaintiff allegedly
learned about the alleged infringement of its intellectual
property rights in the month of April, 2019. Yet, the suit came
to be instituted in the month of March, 2022. From the own
showing of the plaintiff, the plaint did not contemplate any
urgent interim relief.
11. Mr. Patwardhan would urge the learned Judge was swayed
by the alleged intellectual property rights violation, and, in the
process, lost sight of the fact that, there was no case for urgent
interim relief. Mr. Patwardhan submitted that, in fact, the
instant suit does not, strictly speaking involve infringement of
the rights and obligations in relation to intellectual property. At
any rate, the timelag between the accrual of the cause of action
and the institution of the suit was such that, by no stretch of
imagination, could it be said that the suit contemplates urgent
interim relief.
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12. Lastly, Mr. Patwardhan would urge, if the expression
"contemplates any urgent interim relief" is construed so losely,
as has been construed in the impugned order, the very object of
peremptory pre-institution mediation under Section 12A of the
Act, 2015 would be defeated. To lend support to this
submission, Mr. Patwardhan placed reliance on the decision of
the Supreme Court in the case of Patil Automation (supra) and
the judgment of this Court in the cases of Chemco Plast V/s.
Chemco Plastic Industries Ltd.3 and Y-Not Films LLP and
another vs. Ultra Media and Entertainment Private Limited4.
13. Per contra, Mr. Chhabria, the learned Counsel for the
respondents, submitted that the endeavour of the defendants
has been to keep the plaintiff away from interim reliefs, on one
or the other pretext. Despite a period of more than three years
having been elapsed since the institution of the suit, the
application for interim reliefs has not been effectively heard. Mr.
Chhabria would urge, the controversy sought to be raised by the
petitioner has been settled by the decisions of the Supreme
Court and this Court, especially, in the context of a suit where
the plaintiff alleges infringement of intellectual property rights.
In the case at hand, the plaint contains clear and explicit
3 2024 SCC OnLine Bom 1607.
4 2024 SCC OnLIne Bom 3085.
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averments to demonstrate that the plaintiff alleges infringement
of the intellectual property rights and has, in fact, pleaded that
the alleged infringement furnishes a continuing cause of action.
In the backdrop of the nature of the suit and a very strong
prima facie case of infringement of the plaintiff's intellectual
property rights, the learned Judge, Commercial Court, was fully
justified in declining to reject the plaint as the suit does
contemplate an urgent interim relief.
14. Mr. Chhabria laid emphasis on the judgment of the
Supreme Court in the case of Dhanbad Fuels Private Limited vs.
Union of India and another5 and a recent pronouncement in the
case of Novenco Building and Industry A/S vs. Xero Energy
Engineering Solutions Private Ltd. and another6, wherein the
Supreme Court has expounded the import of the expression,
"contemplates any urgent interim relief" under Section 12A of
the Act, 2015, in its application to an action for infringement of
intellectual property rights.
15. In the light of the facts of the case, adverted to above, the
moot question that wrenches to the fore is, whether the
purported delay in seeking the interim reliefs in relation to the
infringement of the intellectual property rights, from the date of 5 2025 SCC OnLIne SC 1129.
6 2025 SCC OnLine SC 2278.
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the accrual of the cause of action, justifies an inference that the
suit does not contemplate an urgent interim relief?
16. With the pronouncement of the Supreme Court in the case
of Patil Automation (supra), there can be no duality of opinion
that the pre-institution mediation, envisaged by Section 12A of
the Act, 2015, is mandatory. In a commercial suit, the Court is
enjoined to examine whether the institution of the suit without
resorting to pre-institution mediation was justifiable on the
touchstone of contemplation of an urgent interim relief, even
suo motu. The only outlet to claim exemption from the
peremptory pre-institution mediation is, the contemplation of an
urgent interim relief in such suit.
17. Thus, when confronted with the question, as to whether
the plaint is liable to be rejected for not exploring pre-institution
mediation, the approach to be adopted by the Court would be
one of striking a balance. At the one end of the spectrum is, the
necessity to adopt an approach which does not defeat the object
of mandatory pre-institution mediation. At the other end of the
spectrum is, the compulsion to not shut doors on a party which
requires an urgent interim relief in a commercial suit. A too
rigid construction of the expression, "contemplates an urgent
interim relief", would deprive a party of the hearing, at the
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threshold, where urgent interim relief is necessary to protect its
interest.
18. In the suits involving assertions of infringement of
intellectual property rights, the construction of the expression,
"contemplates any urgent interim relief", is informed by two
critical factors. One, often than not, an infringement of
intellectual property rights affords a continuing cause of action
as the injury is caused at the every moment of infringement.
Two, in the matter of infringement of intellectual property rights
there is an element of public interest as well.
19. In the case of Yamini Manohar vs. T.K.D. Keerthi7, the
Supreme Court expounded the import of the expression, "a suit
which does not contemplate any urgent interim relief", from the
point of view of the party; whose contemplation matters, the test
to be applied to judge the existence of contemplation of urgent
interim relief and the possibility of urgent interim relief being
prayed for to circumvent the mandate of pre-instittuion
mediation. The observations of the Supreme Court in
paragraphs 10 to 12 read as under:
"10. We are of the opinion that when a plaint is filed under the CC Act, with a prayer for an urgent interim relief, the commercial court should examine the nature
7 (2024) 5 SCC 815.
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and the subject matter of the suit, the cause of action, and the prayer for interim relief. The prayer for urgent interim relief should not be a disguise or mask to wriggle out of and get over Section 12-A of the CC Act. The facts and circumstances of the case have to be considered holistically from the standpoint of the plaintiff. Non-grant of interim relief at the ad-interim stage, when the plaint is taken up for registration/admission and examination, will not justify dismissal of the commercial suit under Order VII, Rule 11 of the Code; at times, interim relief is granted after issuance of notice. Nor can the suit be dismissed under Order VII, Rule 11 of the Code, because the interim relief, post the arguments, is denied on merits and on examination of the three principles, namely, (i) prima facie case, (ii) irreparable harm and injury, and (iii) balance of convenience. The fact that the court issued notice and/or granted interim stay may indicate that the court is inclined to entertain the plaint.
11. Having stated so, it is difficult to agree with the proposition that the plaintiff has the absolute choice and right to paralyze Section 12-A of the CC Act by making a prayer for urgent interim relief. Camouflage and guise to bypass the statutory mandate of pre-litigation mediation should be checked when deception and falsity is apparent or established. The proposition that the commercial courts do have a role, albeit a limited one, should be accepted, otherwise it would be up to the plaintiff alone to decide whether to resort to the procedure under Section 12-A of the CC Act. An "absolute and unfettered right" approach is not justified if the pre-institution mediation under Section 12-A of the CC Act is mandatory, as held by this Court in Patil Automation Pvt. Ltd. (supra).
12. The words "contemplate any urgent interim relief" in Section 12-A(1) of the CC Act, with reference to
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the suit, should be read as conferring power on the court to be satisfied. They suggest that the suit must "contemplate", which means the plaint, documents and facts should show and indicate the need for an urgent interim relief. This is the precise and limited exercise that the commercial courts will undertake, the contours of which have been explained in the earlier paragraph(s). This will be sufficient to keep in check and ensure that the legislative object/intent behind the enactment of Section 12-A of the CC Act is not defeated."
(emphasis supplied)
20. In the case of Dhanbad Fuels (supra), after adverting to
the aforesaid pronouncement in the case of Yamini Manohar
(supra), the Supreme Court enunciated that the test under
Section 12A is not whether the prayer for urgent interim relief
actually comes to be allowed or not, but whether on
examination of the nature and the subject-matter of the suit
and the cause of action, the prayer for urgent interim relief by
the plaintiff could be said to be contemplable when the matter is
seen from the standpoint of the plaintiff. However, what also be
kept in mind by the Court is that the urgent interim relief must
not be merely on unfounded cause of action by the plaintiff to
bypass the mandatory requirement of Section 12A of the Act,
2015.
21. The recent pronouncement of the Supreme Court in the
case of Novenco Building (supra) further illuminates the path,
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especially in an action for infringement of intellectual property
rights. The facts in the said case appear to have a
resemblance to the facts of the case at hand. Novenco Building,
the appellant therein, a Danish Company, initiated a patent and
design infringement a suit before the Delhi High Court, alleging
that the respondents were unlawfully manufacturing and selling
products that violated its registered intellectual property rights.
Xero Energy, the defendant therein, allegedly, in violation of the
distribution agreement, incorporated Aeronaut Fans Industry
Pvt. Ltd. (R2) for manufacture and sell of identical fans. Novenco
Building discovered the said fact in the month of July, 2022.
The Commercial Suit came to be instituted on 4th June, 2024.
22. In the backdrop of the delay, the Delhi High Court held
that delay between inspection and filing of the commercial suit
exhibits patent lack of urgency and exemption from requirement
of compliance of the mandate contained in Section 12A of the
Act could not be claimed merely because interim reliefs were
sought.
23. The Supreme Court, in the light of the aforesaid facts,
emphasized that, the insistence of pre-institution mediation in a
situation of ongoing infringement would render the plaintiff
remediless allowing the infringer to continue to profit under the
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protection of procedural formality. The Supreme Court
expounded the legal test distilled from the previous precedents,
and enunciated the law as under:
"20. The legal test distilled from the aforesaid decisions for the purposes of rejection of the plaint and for adjudication of interim relief can be culled out as follows:
(i) Section 12A mandatorily requires pre-institution mediation for commercial suits, non-compliance of which would ordinarily render the plaint institutionally defective.
(ii) A plaintiff can be exempted from the requirement of Section 12A only when the plaint and the documents attached with it clearly show a real need for urgent interim intervention. A wholesome reading of the plaint and the material annexed to the plaint ought to disclose the need for urgent relief.
(iii) The court must look at the plaint, pleadings and supporting documents to decide whether urgent interim relief is genuinely contemplated. The court may also look for immediacy of the peril, irreparable harm, risk of losing rights/assets, statutory timelines, perishable subject-matter, or where delay would render eventual relief ineffective.
(iv) A proforma or anticipatory prayer for urgent relief used as a device to skip mediation will be ignored and the court can require the parties to comply with Section 12A of the Act.
(v) The court is not concerned with the merits of the urgent relief, but if the relief sought seems to be plausibly urgent from the standpoint of the plaintiff the court can dispense with the requirement under Section 12A of the Act.
ANALYSIS
21. Thus, the question whether a suit "contemplates any urgent interim relief" needs to be examined on the touchstone of the aforementioned criteria. The issue which arises for consideration in this appeal is whether a suit alleging continuing infringement of patent and design rights, accompanied by a prayer for interim injunction, can be said to contemplate urgent relief within the meaning of Section 12A of the Act, notwithstanding certain delay in its institution.
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22. The subject matter of the present action is continuing infringement of intellectual property. Each act of manufacture, sale, or offer for sale of the infringing product constitutes a fresh wrong and recurring cause of action. It is well settled in law that mere delay in bringing an action does not legalise an infringement and the same cannot defeat the right of the proprietor to seek injunctive relief against the dishonest user. The appellant has pleaded that Xero Energy, its former distributor, has dishonestly appropriated its proprietary designs and patents to manufacture and market identical fans under deceptively similar name. The accompanying material demonstrates that such infringing activity is continuing and causing immediate and irreparable harm to the appellant's business reputation, goodwill and proprietary rights.
23. From the standpoint of the appellant, each day of continuing infringement aggravates injury to its intellectual property and erodes its market standing. The urgency, therefore, Midas Hygiene Industries Private Ltd. & Anr. (supra) is inherent in the nature of the wrong and does not lie in the age of the cause but in the persistence of the peril. The court cannot be unmindful of the fact that intellectual property disputes are not confined to the private realm. When imitation masquerades as innovation, it sows confusion among consumers, taints the market place and diminishes faith in the sanctity of the trade. The public interest, therefore, becomes the moral axis upon which the urgency turns. Therefore, the public interest element, need to prevent confusion in the market and to protect consumers from deception further imparts a colour of immediacy to the reliefs sought.
24. The appellant's prayer for injunction cannot be characterised as mere camouflage to evade mediation. It is a real grievance founded on the continuing nature of infringement and irreparable prejudice likely to be caused by the delay. The court must look beyond time lag and evaluate the substance of the plea for interim protection. The insistence of pre-institution mediation in a situation of ongoing infringement, in effect, would render the plaintiff remediless allowing the infringer to continue to profit under the protection of procedural formality. Section 12A of the Act was not intended to achieve such kind of anomalous result.
25. The learned Single Judge as well as the Division Bench of the High Court erred in construing the test for urgent relief enumerated in Section 12A of the Act, in as much as the courts have proceeded to examine the entitlement of the appellant to urgent relief based on the merits of the case rather than looking at the urgency as is evident from the plaint and the documents annexed thereto from the standpoint of the plaintiff. The High Court has proceeded on
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the premise that lapse of time between the appellant's discovery of infringement and filing of suit negated the element of urgency. Such an approach, in our considered view, is contrary to the principles laid down by the decisions of this Court. The High Court has also failed to take into account that the present action is one of the continuous infringement of intellectual property.
CONCLUSION
26. For the reasons stated above, we hold that (i) In actions alleging continuing infringement of intellectual property rights, urgency must be assessed in the context of the ongoing injury and the public interest in preventing deception, (ii) Mere delay in institution of a suit by itself, does not negate urgency when the infringement is continuing."
(emphasis supplied)
24. Mr. Patwardhan made a valiant effort to demonstrate that,
the facts in the case at hand are such that the aforesaid
pronouncement does not come to the rescue of the plaintiff. As
noted above, laying emphasis on the date of the accrual of the
cause of action, as articulated in paragraphs 41 and 42 of the
plaint, and the date of the institution of the suit, Mr.
Patwardhan would urge, even if maximum latitude is given to
the plaintiff and some allowance is given for the time spent in
ascertaining the facts and taking steps to institute the suit, the
delay of almost three years under no circumstances can be said
to be such as to still retain an element of urgency in seeking the
interim relief.
25. I am afraid to accede to the aforesaid submissions of Mr.
Patwardhan. The paragraphs 41 and 42 of the plaint cannot be
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read in isolation and torn out of context. Indeed the plaintiff
refers to the different dates at which the cause of action arose.
However, the Court cannot lose sight of the fact that, in
paragraph 41 itself, the plaintiff categorically asserted that the
defendants were continuously making unauthorized use of the
proprietary information and such infringement furnishes a
continuing cause of action and the cause of action would
continue to arise till such time as the defendants were
restrained by the Court from committing the offending acts. In
paragraph 42 an effort was made by the plaintiff to account for
the delay. Eventually the Court may or may not find that the
delay has been properly accounted for. The question as to
whether the Court would ultimately grant the interim relief is
not the barometer on which the contemplation of urgent interim
relief is to be judged.
26. The submission of Mr. Patwardhan that the suit is not in
effect an action for infringement of intellectual property rights is
required to be stated to be repelled. If the plaint is read as
whole, in a meaningful manner; that is what required to be done
at the stage of consideration of the application under Order VII,
Rule 11, it becomes abundantly clear that the plaintiff is
asserting infringement of the intellectual property rights and
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has specifically asserted that the defendants have manufactured
the industrial oven by infringing the design of P-4412E Oven
manufactured by the plaintiff. It has been categorically asserted
that the infringing oven was identical in its design and make as
the plaintiff's oven.
27. On a careful analysis of the facts of the case, this Court
finds that the enunciation of law in the case of Novenco Building
(supra) is on all four with the facts of the case at hand. If the
urgency is assessed on the touchstone of continuous injury and
public interest, as has been ordained in the said decision, the
delay in the institution of the suit does not detract materially
from the plaintiff's contemplation of an urgent interim relief
especially when the plaintiff alleges that the infringement of its
intellectual property rights is continuing.
28. The ground of absence of cause of action is clearly
untenable. The contention that the plaint was liable to be
rejected on the ground that Arunadevi Vinay Nayarankar was
not authorized to institute the suit against the applicant -
defendant No.3, also does not merit countenance. In the order
passed by this Court in CRA/702/2003 dated 4th March, 2025,
after adverting to the provisions of Order VI Rule 14 and Order
XXIX Rule 1 of the Code and the judgment of the Supreme
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Court in the case of Union Bank of India vs. Naresh Kumar and
others8, this Court has already repelled the said challenge as
the defect, if any, is plainly curable and, even otherwise, such
defect in signing and verification of the plaint does not
constitute a ground for rejection of the plaint under Order VII
Rule 11 of the Code. Thus, it would be superfluous to further
delve into this aspect of the matter.
29. For the foregoing reasons, I am inclined to hold that the
learned Judge, Commercial Court, was justified in rejecting the
application for rejection of the plaint. Revision application,
therefore, deserves to be dismissed.
30. Hence, the revision application stands dismissed with
costs.
[N. J. JAMADAR, J.]
8 (1996) 6 SCC 660.
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