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

Meridian Textiles Pvt Ltd and its supplier, Kaveri Yarns, have a dispute over unpaid invoices. Before any suit is filed, both agree voluntarily to try mediation, though their contract has no mediation clause. Under the Mediation Act, 2023, can they go for pre-litigation mediation?

Yes. The Act lets parties try pre-litigation mediation before filing any civil or commercial suit, voluntarily and with mutual consent, whether or not a mediation agreement exists. So the lack of a mediation clause in the supply contract does not prevent the parties from mediating.

  1. ANo, pre-litigation mediation is possible only if a mediation agreement exists
  2. BYes, whether or not a mediation agreement exists, parties may voluntarily and with mutual consent opt for it before filing a suitCorrect
  3. CNo, it is possible only after a court refers them
  4. DYes, but only if the Central Government permits it in each case

Explanation

Section 5(1) allows parties, whether any mediation agreement exists or not, to voluntarily and with mutual consent take steps for pre-litigation mediation before filing a suit or proceeding of civil or commercial nature. The absence of a clause is therefore not a bar. Option A wrongly makes an agreement compulsory.

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