building commercial mediation practice

Pre-litigation mediation is now mandatory. Here is what changes for every in-house counsel, general counsel, and corporate executive.

1. Mandatory Pre-Litigation Mediation Requirement

The enactment of the India Mediation Act 2023 establishes a statutory obligation for commercial disputants to attempt mediation prior to approaching civil courts or tribunals. This shift transforms mediation from a voluntary alternative into a mandatory legal prerequisite.

2. Time-Bound Resolution Framework

Mediation proceedings must be completed within 180 days from the date of initial appearance, extendable by a maximum of 60 days with mutual consent. This strict timeline drastically reduces commercial dispute resolution latency compared to litigation.

3. Enforceability of Mediated Settlement Agreements

Under Section 27, a Mediated Settlement Agreement (MSA) resulting from mediation is final, binding, and enforceable in the same manner as a decree of a court.