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DISPUTES & REPLIES

Pre-Institution Mediation Application (Section 12A)

Use before filing a commercial suit (for example, recovery of dues for goods or services) where the claim is ₹3 lakh or more and you do not need urgent interim relief. Mediation must ordinarily be tried first; a settlement reached is enforceable like an arbitral award, and if it fails you receive a failure report to file with your suit.

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Section 12A mediation applies to commercial disputes of ₹3 lakh or more.

Laws this relies on

  • Commercial Courts Act, 2015 · Section 12AA commercial suit not seeking urgent interim relief can be filed only after exhausting pre-institution mediation.
  • Commercial Courts (Pre-Institution Mediation and Settlement) Rules, 2018Mediation is conducted through the Legal Services Authority and ends within 3 months (extendable by 2 months) under the rules currently in force — check for any amendment (including under the Mediation Act, 2023).
  • Commercial Courts Act, 2015Applies to commercial disputes with a specified value of ₹3 lakh or more.
  • Arbitration and Conciliation Act, 1996 · Section 30A settlement reached in mediation has the same status and effect as an arbitral award on agreed terms.

How to execute

Sign on your letterhead and send. No stamp paper needed.

File with the District Legal Services Authority (DLSA) of the district where the suit would lie; many DLSAs accept applications online or by e-mail and charge a small fee. Attach your notice, invoices, ledger and correspondence. Use the Authority's own form if it has one. Time spent in mediation is excluded when computing limitation.

Click anywhere in the letter to edit it. Changes to the form keep flowing in.

This is a general template, not legal advice. Laws, stamp duty and procedures vary by state and change over time — have a qualified advocate review it for your facts before signing or sending.