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CS Professional · Arbitration, Mediation and Conciliation · Various Modes and Scope of Mediation including Role of Mediation in other ADR Domains

Arjun Traders applied for pre-institution mediation under Section 12A against Kaveri Components on 1 March. By 1 June the process was incomplete, and both parties agree they want more time. What is the position?

The mediation may be extended by a further two months with the parties' consent. Section 12A(3) requires completion within three months of the plaintiff's application, and its proviso permits only this two-month extension, which depends on the consent of the parties.

  1. AThe mediation can be extended by a further two months with the consent of the partiesCorrect
  2. BThe mediation lapses automatically and the plaintiff must sue at once
  3. CThe Authority may extend the period by six months without the parties' consent
  4. DThe mediation can be extended only by the Central Government by notification

Explanation

Section 12A(3) requires completion within three months from the plaintiff's application, with a proviso allowing extension by a further two months with the consent of the parties. Extension depends on party consent, not on the Authority's unilateral wish or a notification.

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