Mediation: The Rise Of Commercial Mediation In India
- IJLLR Journal
- Mar 6
- 2 min read
Pallavi Raj, Amity University Noida
Commercial mediation involves resolving business disputes outside of court, where a neutral mediator assists the parties to reach a mutually agreeable resolution. Mediation has always been an informal and ad hoc process. Lack of standardization and varying approaches followed by different mediators tend to have a significant impact on the outcome of the mediation process. India has seen a significant rise in the use of commercial mediation. Statistics indicate a substantial increase in the number of cases resolved through mediation, reflecting a growing trust in this process. According to data presented by the law minister in August 2023 to Lok Sabha pertaining to Mediation Centres operating under the National Legal Services Authority (NALSA), mediation in India has witnessed significant expansion in recent years. The number of cases submitted for mediation has steadily increased each year since 2018. The financial year 2022-23 had 4,12,990 cases, the highest number, brought for mediation, out of which 92,446 cases were successfully resolved.
India has long embraced the principle of mediation, from ancient times to the modern era. Legislators and jurists have consistently promoted mediation, but the process has historically lacked formal codification. To address this, the Indian Parliament enacted the Mediation Act 2023, aiming to formalize and enhance the mediation process. Codification was crucial, as the informal nature of previous mediation efforts often led to their failure. As the number of cases submitted to mediation has been rising over the last six years, the formal codification of this process has significantly increased public trust in choosing mediation as an option to resolve commercial disputes.
The main provisions of the Mediation Act, 2023, include voluntary pre-litigation mediation for civil and commercial disputes, requiring parties to attempt mediation before approaching a court or tribunal. This process must be completed within a maximum of 180 days. This legislative framework supports the rise in commercial mediation by offering a time-efficient resolution method.
