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

Under Section 5 of the Mediation Act, 2023, how does pre-litigation mediation apply to a commercial dispute of Specified Value, such as one between Pranav Industries and Daksh Logistics?

It must be undertaken in accordance with section 12A of the Commercial Courts Act, 2015 and the rules made under it. The proviso to Section 5(1) of the Mediation Act, 2023 carves out commercial disputes of Specified Value from the general voluntary pre-litigation mediation route.

  1. AIt must be undertaken in accordance with section 12A of the Commercial Courts Act, 2015 and the rules made thereunderCorrect
  2. BIt is governed only by the Mediation Act, 2023 and section 12A is ignored
  3. CIt is prohibited for commercial disputes
  4. DIt is optional and is governed only by the parties' own mediation agreement

Explanation

The proviso to Section 5(1) of the Mediation Act says pre-litigation mediation in commercial disputes of Specified Value shall be undertaken in accordance with section 12A of the Commercial Courts Act, 2015 and its rules. The general voluntary pre-litigation route does not displace this.

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