MANDATORY MEDIATION BEFORE LITIGATION: PROMISE OR PROCEDURAL HURDLE

AUTHOR – KARAN VERMA, FINAL YEAR LAW STUDENT, AMITY LAW SCHOOL NOIDA

BEST CITATION – KARAN VERMA, MANDATORY MEDIATION BEFORE LITIGATION: PROMISE OR PROCEDURAL HURDLE, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (7) OF 2026, PG. 671-677, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

The introduction of mandatory pre-litigation mediation marks a significant shift in India’s approach to commercial dispute resolution, reflecting a broader global trend toward consensual and efficient mechanisms. Envisaged under the Commercial Courts Act, 2015, compulsory mediation seeks to reduce judicial backlog, promote early settlement, and preserve commercial relationships. However, its practical implementation raises important questions regarding its effectiveness and procedural implications. This study critically examines whether mandatory mediation serves as a genuine opportunity for dispute resolution or merely operates as an additional procedural hurdle before accessing courts. It analyses the legislative framework, judicial interpretations, and emerging practices in India, with particular attention to timelines, enforceability of settlements, and parties’ willingness to engage in good faith. The research also explores comparative perspectives to evaluate how similar mechanisms function in other jurisdictions. While mandatory mediation holds promise in enhancing efficiency and reducing litigation costs, concerns persist regarding its potential misuse as a delaying tactic, lack of institutional infrastructure, and uneven quality of mediators. The paper argues that the success of compulsory mediation depends on its implementation, institutional support, and alignment with principles of access to justice. It concludes by suggesting reforms to strike a balance between procedural efficiency and substantive fairness in commercial dispute resolution.

Keywords: pre-litigation mediation, Commercial Courts, efficiency, substantive fairness, dispute resolution