Telangana HC Dismisses PAIL Plea in RAKIA Dispute

Hyderabad: The Telangana High Court has dismissed a civil revision petition filed by M/s Pioneer Aluminium Industries Limited (PAIL), promoted by the Penna Group, challenging proceedings initiated by M/s Ras Al Khaimah Investment Authority (RAKIA) before the Commercial Court in Hyderabad.

RAKIA had filed a suit seeking to restrain exchange transactions between PAIL and Russian aluminium major M/s Rusal, which had agreed to acquire up to 50 per cent stake in PAIL through a phased transaction. According to counsel for RAKIA, G. Vamshi Krishna, the authority had invested in the company at the time of its formation in 2007 and objected to the agreement of sale on the ground that its concerns were not addressed. The matter is pending before the Commercial Court.

PAIL approached the High Court challenging the order of the Commercial Court dispensing with compliance under Section 12A of the Commercial Courts Act, 2015, and directing registration of the suit filed by RAKIA. Section 12A mandates pre-institution mediation in commercial disputes that do not seek urgent interim relief, and non-compliance may result in rejection of the plaint.

Dismissing the petition, the High Court observed that the provision could not be used to stall the proceedings and declined to interfere with the order of the Commercial Court.