Pre-litigation mediation in India, as promoted under section 3(u) & 12A (Chapter IIIA) of the Mediation Act, 2023, refers to the process of settling disputes before a lawsuit is filed, aiming to resolve conflicts through a neutral third party before resorting to court. It's a voluntary process, where parties can choose to engage in mediation to reach a settlement.
Pre - litigation mediation covers a wide range of cases - domestic, commercial, consumer, property, minor criminal cases amongst others. In disputes relating to family matters, the family courts have been assigned the responsibility to persuade the parties to opt for mediation. However, the Indian laws do not provide for a compulsory mediation in the pre - litigation stage. Certain commercial disputes, particularly under Section 12A of the Commercial Courts Act, 2015, require pre-litigation mediation before a suit can be filed.
A proper codification of the concept of pre - litigation mediation in cases of commercial disputes can be found in the Commercial Courts Act, 2015. Later by an amendment in 2018 section 12A was inserted that made a provision for pre - litigation mediation. The section says that in cases that do not contemplate an urgent interim relief under the Act, pre - institution mediation must be resorted to by the parties. The procedure for such pre - institution mediation in cases of commercial disputes is in the Commercial Courts (pre - institution mediation and settlement) Rules, 2018.
Pre- Litigation Mediation is recourse to the parties that they can opt for mediation before they even step into the loop of litigation. Pre- Litigation mediation is comparatively much easier for the parties rather than facing tedious litigation proceeding and litigation expenses for years and also if the matter can be resolved through the pre-litigation proceedings then there is no point is wasting crucial judicial time.
There are some pivotal advantages to opt for the pre-litigation proceedings:
- Pre-litigation is cost and time saving: Mediation is generally less expensive than litigation due to lower legal fees, court costs, and other associated expenses.
- Pre-Litigation can safeguard the Relationships: Mediation enriches a better way to have communications between the parties which can be vandalized during the litigation proceedings.
- Confidentiality: The proceedings of Pre-Litigation Mediation are kept private as to protect the rights and information provided by the parties during the mediation process.
- Pre-Litigation Mediation is flexible: In the Pre-Litigation Mediation parties can set the dates for their mediation, negotiate and talk on own terms which will be best for the matter. Mediators are being appointed by the Court itself.
- Judicial efficiency: Parties when go for the Pre-Litigation Mediation and if the disagreements are being resolved there itself, it will save the courts with unnecessary burdening of the cases which can ultimately be resolved through mediation.
The Aegis Legal has separate team for Arbitration Practice including domestic arbitration & International Arbitration, under the leadership of Mr A K Singh renowned Arbitration lawyer in India. The Aegis Legal is the pioneer in the Arbitration practice in India and known as one of the best arbitration lawyers in Delhi India. The Aegis Legal has been engaged in various top-notch arbitration cases across the country.
