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

Meera Exports spent two months in pre-institution mediation under Section 12A, which failed. The defendant later argues the suit is barred by limitation, counting those two months. How does the Section 12A proviso treat that period?

The two months are excluded when computing limitation. The second proviso to Section 12A(3) says the period during which parties were occupied with pre-institution mediation is not computed for the Limitation Act, 1963, whether or not the mediation ended in settlement.

  1. AIt is not computed for the purpose of limitation under the Limitation Act, 1963Correct
  2. BIt is counted fully, as mediation does not affect limitation
  3. CIt is counted only if the mediation ended in settlement
  4. DIt is counted at half its length

Explanation

The second proviso to Section 12A(3) says the period during which the parties remained occupied with pre-institution mediation shall not be computed for limitation under the Limitation Act, 1963. The period is excluded regardless of the outcome.

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