Pre-Institution Mediation – An Inescapable Mandate Or Just A Volition

Introduction

The Commercial Courts Act, 2015 (hereinafter referred to as the 'Act') was introduced with the sole purpose of constituting Commercial Courts, Commercial Division and Commercial Appellate Division in High Courts throughout India for swift adjudication of commercial disputes of a specified value and matters connected therewith.

In 2018, the said Act was amended and Commercial Courts were also set up in District Courts, and bring commercial matters of lesser pecuniary value within its purview. Furthermore, matters relating to intellectual property rights were also included within the definition of a 'commercial dispute' under Section – 2(c)(xvii) of the Act.

However, the step taken in order to improve the disposal of commercial matters was advanced by the inclusion of Section – 12A under Chapter III-A of the Act, which for the first time, mandated parties to the suit to exhaust the remedy of pre-institution mediation before instituting a suit of