SC Appoints Ex-CJI Chandrachud as Mediator in ₹1,700Cr Iron Ore Dispute

September 22, 2025

Supreme Court Appoints Former CJI Dr. D.Y. Chandrachud as Mediator in ₹1,700-Crore Iron Ore Dispute, Stays All Proceedings

Bench says litigation has become “murkier and murkier”; mediation seen as best way forward

Status quo to be maintained; civil and criminal cases between parties put on hold until mediator’s report

By Our Legal Reporter

New Delhi, September 22, 2025 – In a rare move aimed at ending a long and increasingly bitter legal battle, the Supreme Court of India has appointed former Chief Justice of India Dr. D.Y. Chandrachud as mediator in a high-value commercial dispute involving 1.7 lakh metric tonnes of iron ore, valued at over ₹1,700 crore.

The dispute is between Euro Pratik Ispat (India) Private Limited and Geomin Industries Private Limited, and has been the subject of multiple rounds of litigation in the Commercial Court, the Madhya Pradesh High Court, and now the Supreme Court.

A bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan passed the order on September 19, 2025, staying all ongoing civil and criminal proceedings between the parties until the mediation process is completed and a report is submitted.

Background: From Commercial Court to Supreme Court

The case began when Geomin Industries filed a suit in the Commercial Court on July 31, 2024, seeking to restrain Euro Pratik from transporting and selling the iron ore stock under an agreement dated April 3, 2023.

The Commercial Court, however, returned the plaint, citing non-compliance with Section 12A of the Commercial Courts Act, 2015, which mandates pre-institution mediation for suits that do not seek urgent interim relief.

Geomin appealed to the Madhya Pradesh High Court at Jabalpur, which on August 11, 2025, allowed the appeal, holding that the suit sought urgent interim relief and was therefore exempt from Section 12A.

The High Court:

  • Restored the suit to the Commercial Court’s file.
  • Granted an interim injunction restraining Euro Pratik from transporting or selling the disputed iron ore until the Commercial Court decided the injunction application under Order 39 Rules 1 & 2 of the CPC.
  • Directed that if any portion of the stock had already been removed, Euro Pratik could not sell the deficit quantity from other stocks of similar specification.

Euro Pratik challenged this order in the Supreme Court through a Special Leave Petition (SLP).

Supreme Court’s Observations

During the hearing, Senior Advocate Dr. Abhishek Manu Singhvi appeared for Euro Pratik, while Senior Advocate Gopal Subramanium represented Geomin Industries.

The bench noted that the litigation had become “murkier and murkier” with each passing stage and that the stakes involved were significant.

The court observed:

“This long-drawn litigation between the parties, which is getting murkier day by day, could be brought to an end if the parties are persuaded to go for mediation before a former judge of this Court, considering the nature of the disputes and the stakes involved.”

Both sides “very graciously accepted” the court’s proposal for mediation.

Orders Passed by the Supreme Court

The bench issued the following directions:

  1. Appointment of Mediator – Hon’ble Dr. Justice D.Y. Chandrachud, former Chief Justice of India, appointed as mediator to resolve the dispute.
  2. Stay on Proceedings – All pending civil and criminal proceedings between the parties to remain stayed until the mediator’s report is submitted.
  3. Status Quo – Both parties to maintain the current state of affairs regarding the disputed iron ore.
  4. Mediation Process – Parties to appear before the mediator; his fees to be fixed in consultation with both sides.
  5. Timeline – Mediator requested to submit a report at the earliest; matter to be listed again after eight weeks for further directions.

Significance of the Appointment

The appointment of a former CJI as mediator is unusual and underscores the importance and complexity of the dispute.

Dr. D.Y. Chandrachud, who retired as Chief Justice in November 2024, is widely respected for his judicial acumen and experience in handling complex commercial and constitutional matters. His involvement is expected to lend credibility and authority to the mediation process.

Why Mediation?

Mediation is increasingly being encouraged by Indian courts, especially in commercial disputes, for several reasons:

  • Speed – Mediation can resolve disputes faster than prolonged litigation.
  • Confidentiality – Proceedings are private, protecting sensitive business information.
  • Cost-effectiveness – Reduces legal costs for both sides.
  • Preservation of Relationships – Allows parties to maintain business ties.

In this case, the court clearly felt that a negotiated settlement would be more beneficial than continuing with adversarial proceedings.

Section 12A of the Commercial Courts Act

The case also highlights the role of Section 12A, which requires pre-institution mediation for commercial suits unless urgent interim relief is sought.

The Madhya Pradesh High Court’s ruling that Geomin’s suit fell within the urgent relief exception was a key turning point, allowing the case to proceed without prior mediation — ironically, the Supreme Court has now directed mediation at a later stage.

Industry Impact

The dispute involves a large quantity of iron ore, a commodity critical to India’s steel industry. The outcome could have implications for commodity contracts, supply chain agreements, and commercial dispute resolution practices in the mining sector.

Legal experts say the case could set a precedent for court-directed mediation in high-value commercial disputes, especially where the litigation has become protracted and complex.

Next Steps

The parties will now appear before Dr. Chandrachud to begin the mediation process. If a settlement is reached, it will be recorded by the Supreme Court, bringing the litigation to an end.

If mediation fails, the case will return to the Supreme Court for adjudication on merits after the eight-week period.

Key Takeaways for Readers

  1. Former CJI as Mediator – Rare appointment signals the seriousness of the dispute.
  2. All Proceedings Stayed – No civil or criminal action can proceed until mediation ends.
  3. Status Quo Maintained – Disputed iron ore cannot be moved or sold.
  4. Mediation Encouraged – Courts increasingly prefer negotiated settlements in commercial cases.
  5. Potential Precedent – Could influence future handling of high-stakes business disputes.

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