Mediation Act, 2023 | Ninth Schedule | Section 64

Ninth Schedule of the Mediation Act, 2023: Commercial Courts Act Amendment

The Ninth Schedule to the Mediation Act, 2023 (Act 32 of 2023) sets out amendments contemplated by Section 64 to Chapter IIIA, Section 12A and Section 21A of the Commercial Courts Act, 2015 (Act 4 of 2016). It addresses mandatory pre-litigation mediation for commercial suits not seeking urgent interim relief.

Commencement status (7 October 2026): Section 64 was not included in the provisions brought into force by notification S.O. 4384(E) dated 9 October 2023. No subsequent commencement notification for Section 64 was identified in the official materials reviewed. Accordingly, the Ninth Schedule's replacement wording should not be mistaken for the currently operative text of Section 12A. The existing pre-institution mediation regime under the Commercial Courts Act, 2015 and applicable rules remains relevant. See the official commencement notification and official Act.

Purpose and legal effect of the Ninth Schedule

Section 64 states that the Commercial Courts Act, 2015 shall be amended in the manner specified in the Ninth Schedule. Once the provision is brought into force, the Schedule provides for substitution of Chapter IIIA with a framework titled Pre-litigation Mediation and Settlement, and a consequential change to the Central Government's rule-making power in Section 21A(2)(a).

Provisions of the Ninth Schedule (see Section 64)

Amendment (a): Substitution of Chapter IIIA

In the Commercial Courts Act, 2015 (4 of 2016), for Chapter IIIA, the following Chapter shall be substituted:

Chapter IIIA - Pre-litigation Mediation and Settlement

Section 12A - Pre-litigation Mediation and Settlement

Sub-section (1) - Mandatory pre-litigation mediation. A suit which does not contemplate any urgent interim relief under the Commercial Courts Act cannot be instituted unless the plaintiff first exhausts pre-litigation mediation in the manner and procedure prescribed by rules made by the Central Government.

Sub-section (2) - Authorised mediation bodies. For pre-litigation mediation, the Central Government may, by notification, authorise either (i) an Authority constituted under the Legal Services Authorities Act, 1987 (39 of 1987), or (ii) a mediation service provider as defined in Section 3(m) of the Mediation Act, 2023.

Sub-section (3) - Time limit and limitation. The authorised Authority or mediation service provider must complete mediation within 120 days from the plaintiff's application. With the parties' consent, the period may be extended by 60 days. Time spent in pre-litigation mediation is excluded when computing limitation under the Limitation Act, 1963 (36 of 1963).

Sub-section (4) - Written settlement. Where the parties settle a commercial dispute, the settlement must be reduced to writing and signed by the parties and the mediator.

Sub-section (5) - Treatment of settlement agreement. The mediated settlement agreement under this provision is to be dealt with in accordance with Sections 27 and 28 of the Mediation Act, 2023, concerning enforcement and challenge to mediated settlement agreements.

Amendment (b): Section 21A(2)(a)

The Ninth Schedule also substitutes Section 21A(2)(a), providing for Central Government rules on the manner and procedure of pre-litigation mediation under Section 12A(1).

What applies to commercial suits at present?

The operative Section 12A of the Commercial Courts Act, 2015 provides for pre-institution mediation and settlement where a commercial suit does not contemplate urgent interim relief. Under its existing wording, mediation ordinarily must be completed within three months of application, extendable by two months with consent. A qualifying settlement has the status and effect of an arbitral award on agreed terms under Section 30(4) of the Arbitration and Conciliation Act, 1996. These existing provisions must be distinguished from the Ninth Schedule's uncommenced 120-day plus 60-day framework.

Pre-institution mediation is generally mandatory for qualifying suits, as explained by the Supreme Court in Patil Automation Private Limited v. Rakheja Engineers Private Limited (2022). Whether urgent interim relief is genuinely contemplated depends on the circumstances of the suit.

Definitions and related provisions

Commercial dispute: A dispute within Section 2(1)(c) of the Commercial Courts Act, 2015, including specified commercial transactions and relationships.
Specified value: The monetary threshold determined under Sections 2(1)(i) and 12 of the Commercial Courts Act, 2015 for its application.
Mediation service provider: An entity falling within Section 3(m) of the Mediation Act, 2023; its proposed role under the substituted Section 12A depends on commencement and authorisation.
Urgent interim relief: Immediate protective relief sought from the court; Section 12A recognises an exception where such relief is contemplated.
Section 27 and Section 28: Provisions in the Mediation Act, 2023 addressing enforcement and challenge of mediated settlement agreements, subject to their respective commencement.

Official legal sources

This page distinguishes the enacted wording of the Ninth Schedule from the provisions actually commenced. Check subsequent Gazette notifications and current rules before relying on a provision in litigation.