MA Schedule 9 : Amendment to Commercial Courts Act, 2015

Explanation using Example

Example 1: Business Contract Dispute

Introduction: ABC Corp, a manufacturing company, enters into a contract with XYZ Ltd, a supplier, for the delivery of raw materials. Due to a disagreement over the quality of materials delivered, ABC Corp decides to take legal action against XYZ Ltd.

Application: According to Section 12A, Sub-section (1) of the Commercial Courts Act, 2015, as amended by the Mediation Act, 2023, ABC Corp must first exhaust the remedy of pre-litigation mediation before instituting a suit, as there is no urgent interim relief sought.

Outcome: ABC Corp applies for pre-litigation mediation through a mediation service provider authorized under Section 12A, Sub-section (2). The mediation process must be completed within 120 days, with a possible extension of 60 days if both parties agree. If a settlement is reached, it will be documented and signed by both parties and the mediator, as per Section 12A, Sub-section (4).

Conclusion: Compliance with the pre-litigation mediation requirement helps avoid court proceedings and encourages an amicable settlement. Non-compliance could result in the court dismissing the suit until mediation is attempted.

Example 2: Real Estate Dispute

Introduction: John, a ...

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