Common questions on pre-institution mediation (section 12a), explained in plain terms, under Indian law.
Before the frequently asked questions
Section 12A of the Commercial Courts Act makes pre-institution mediation mandatory for commercial disputes of specified value ₹3 lakh or more, except where a party seeks urgent interim relief.
The Supreme Court's decision in Patil Automation (17 Aug 2022) first made this mandatory rather than optional, and Dhanbad Fuels v Union of India (15 May 2025) confirmed that suits filed on or after 20 Aug 2022 without it must be rejected under Order VII Rule 11 CPC.
Frequently asked questions
Do I have to attempt mediation before filing a commercial suit?
If the claim is ₹3 lakh or more and qualifies as a commercial dispute, yes, under s.12A of the Commercial Courts Act, unless you are seeking urgent interim relief. Courts have rejected suits filed without this step.
For a fuller explanation, see Recovering Money Owed to You: The Limitation Period and Your Options.
If you are weighing a decision on this, a short consultation can help map out the options.
This page is general information about the law in India and is not legal advice. The position can vary with the facts, so it is worth getting advice on your specific situation.
This page provides general information about the law in India and is not legal advice. For advice on your specific situation, please consult a qualified advocate.