The Role of Mediation in Resolving Commercial Disputes: A Growing Trend in India

Why Mediation is Becoming the Preferred Choice for Commercial Disputes

Mediation has emerged as one of the most effective alternative dispute resolution (ADR) mechanisms in India, offering businesses a cost-effective, timely, and confidential means to resolve disputes. Mediation allows the parties to control the outcome of the process rather than leaving the decision to a judge or arbitrator, fostering more amicable resolutions.

India's Commercial Courts Act, 2015, as amended in 2018, encourages mandatory mediation before litigation in certain disputes, reflecting the government's intention to reduce the burden on the courts while promoting faster resolution of commercial disputes. In Punjab and Haryana, where trade and manufacturing are key economic drivers, businesses are increasingly opting for mediation to resolve contract disputes, partnership disagreements, and business transactions.

Benefits of Mediation

  1. Cost-Efficiency: Mediation typically costs less than lengthy court battles, saving parties both time and money.
  2. Confidentiality: Unlike court proceedings, mediation is private, which allows businesses to protect sensitive information and maintain trade secrets.
  3. Time-Saving: Mediation sessions can be scheduled quickly, leading to faster resolutions. This is especially beneficial for businesses that need swift resolution to avoid disruptions.

At CLV Associates, our experienced mediators guide clients through the mediation process, helping them find mutually beneficial solutions without the need for prolonged litigation.

The Supreme Court's Support for Mediation

The Supreme Court has been proactive in promoting mediation as a primary form of dispute resolution, particularly in commercial matters. The Court has observed that mediation reduces the burden on the judiciary and encourages quicker resolutions, avoiding the high costs and adversarial nature of litigation.

At CLV Associates, we are well-versed in both voluntary and court-ordered mediation processes, ensuring that our clients receive expert guidance to achieve favorable outcomes in commercial disputes.

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