12A. Pre-Institution Mediation and Settlement—
(1) A suit, which does not contemplate any urgent
interim relief under this Act, shall not be instituted unless the plaintiff exhausts the remedy of pre-
institution mediation in accordance with such manner and procedure as may be prescribed by rules made
by the Central Government.
(2) The Central Government may, by notification, authorise the Authorities constituted under the
Legal Services Authorities Act, 1987 (39 of 1987), for the purposes of pre-institution mediation.
(3) Notwithstanding anything contained in the Legal Services Authorities Act, 1987, the Authority
authorised by the Central Government under sub-section
(2) shall complete the process of mediation
within a period of three months from the date of application made by the plaintiff under sub-section
(1):
Provided that the period of mediation may be extended for a further period of two months with the
consent of the parties:
Provided further that, the period during which the parties remained occupied with the pre-institution
mediation, such period shall not be computed for the purpose of limitation under the Limitation Act, 1963
(36 of 1963).
1. Ins. by Act 28 of 2018, s. 10 (w.e.f. 3-5-2018).
2. The word “and” omitted by s. 10, ibid., (w.e.f. 3-5-2018).
3. Clause
(e) omitted by s. 10, ibid., (w.e.f. 3-5-2018).
4. Ins. by s. 11, ibid., (w.e.f. 3-5-2018).
7
(4) If the parties to the commercial dispute arrive at a settlement, the same shall be reduced into
writing and shall be signed by the parties to the dispute and the mediator.
(5) The settlement arrived at under this section shall have the same status and effect as if it is an
arbitral award on agreed terms under sub-section
(4) of section 30 of the Arbitration and Conciliation Act,
1996 (26 of 1996).]
CHAPTER IV
APPEALS
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