COMPULSORY PRE-LITIGATION MEDIATION IN COMMERCIAL DISPUTES: A CRITICAL STUDY OF THE COMMERCIAL COURTS ACT, 2015

AUTHOR – PRIYANKA GANGULY* & DR. RAJVARDHAN**

* PH.D. (LAW) RESEARCH SCHOLAR AT SCHOOL OF LAW & JURISPRUDENCE, SHRI VENKATESHWARA UNIVERSITY, GAJRAULA, U.P.

** ASSISTANT PROFESSOR AT SCHOOL OF LAW & JURISPRUDENCE, SHRI VENKATESHWARA UNIVERSITY, GAJRAULA, U.P.

BEST CITATION – PRIYANKA GANGULY & DR. RAJVARDHAN, COMPULSORY PRE-LITIGATION MEDIATION IN COMMERCIAL DISPUTES: A CRITICAL STUDY OF THE COMMERCIAL COURTS ACT, 2015, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (7) OF 2025, PG. 869-877, APIS – 3920 – 0001 & ISSN – 2583-2344.

I. Abstract

This paper critically examines the provisions of the Commercial Courts Act, 2015 (CCA), particularly focusing on its mandate of compulsory pre-litigation mediation in commercial disputes. As India’s commercial litigation landscape grapples with case backlogs and prolonged delays, the CCA seeks to institutionalize mediation as a cost-effective, efficient, and amicable alternative dispute resolution (ADR) mechanism. This study evaluates the statutory framework under Section 12A of the Act, the role of mediation institutions, and the judicial approach towards enforcing pre-institution mediation. Through a doctrinal legal research methodology supplemented with a comparative analysis of international best practices from jurisdictions like the United States, European Union, Singapore, and Australia, this paper identifies both the merits and operational challenges of the compulsory mediation framework in India. It highlights key issues such as legal awareness, mediation infrastructure, enforceability of outcomes, and resistance from litigants. Empirical insights from Indian and international experiences, alongside relevant case studies, are integrated to assess the practical effectiveness of this mechanism. Finally, the paper proposes recommendations to strengthen the pre-litigation mediation framework and align it more closely with global standards, emphasizing the need for institutional support, mediator training, legislative clarity, and enhanced awareness among commercial litigants.

Keywords: Commercial Courts Act, 2015, Pre-Litigation Mediation, Commercial Disputes, Alternative Dispute Resolution, Mediation in India, Legal Reforms, Dispute Settlement Mechanisms.