Procedural framework, Schedule I Prescribed Forms (Forms 1 to 6), Schedule II Mediation Fee Slabs, and Section 12A Pre-Institution Mediation rules under the Commercial Courts Act, 2015.
Under Section 12A of the Commercial Courts Act, 2015 read with the Commercial Courts (PIMS) Rules, 2018, pre-institution mediation is an absolute statutory prerequisite before instituting any commercial suit, unless the plaintiff seeks urgent interim relief.
In Patil Automation Pvt. Ltd. v. Rakheja Engineers Pvt. Ltd. (2022) 10 SCC 1, the Supreme Court declared Section 12A mandatory. Commercial plaints filed without compliance must be rejected under Order VII Rule 11 CPC. A mediated settlement under Form 4 possesses the full legal status of an Arbitral Award under Section 30(4) of the Arbitration and Conciliation Act, 1996, executable directly under Order XXI CPC.
Official statutory instruments notified under Rule 3, Rule 7, and Rule 10 of the Commercial Courts (PIMS) Rules, 2018.
Filed by an intending plaintiff (Applicant) before the Member Secretary / Secretary of the District Legal Services Authority (DLSA) or State Legal Services Authority (SLSA) having territorial jurisdiction over the commercial dispute. Initiates statutory mediation under Section 12A.
SCHEDULE I • FORM 1 MEDIATION APPLICATION FORM [See rule 3(1)] Name of the Authority and Address: __________________________________________________ Part A: Details of Parties 1. Name of Applicant: __________________________________________________ 2. Address and contact details of Applicant: Address: ____________________________________________________________ Telephone No.: _________________ Mobile: _________________ E-mail ID: _________________ 3. Name of Opposite Party: _____________________________________________ 4. Address and contact details of Opposite Party: Address: ____________________________________________________________ Telephone No.: _________________ Mobile: _________________ E-mail ID: _________________ Part B: Details of Dispute 1. Nature of commercial dispute: ______________________________________ 2. Specified Value of the claim (in INR): ₹_______________________________ Part C: Details of Fee Paid Amount: ₹1,000/- (Rupees One Thousand only) DD / Cheque / Receipt No.: _________________ Date: _______________ Bank: _________________ Part D: Verification I, ___________________________________, son/daughter/wife of _________________________, aged about _____ years, do hereby solemnly declare and verify that the particulars given above are true and correct to the best of my knowledge and belief. Date: _______________ Place: ______________ Signature of the Applicant: _________________________ For Office Use Only 1. Date of receipt of application: __________________ 2. File No. / Application No.: ______________________ 3. Name of Assigned Mediator: ______________________ 4. Date of Assignment: _____________________________ Authorized Signatory / Secretary: ___________________
Issued by the Legal Services Authority to the Opposite Party through registered speed post, official courier, or electronic mail. Notifies them of the mediation application and requires their written appearance and consent within 10 days.
SCHEDULE I • FORM 2 OFFICE OF THE LEGAL SERVICES AUTHORITY NOTICE TO OPPOSITE PARTY [See rule 3(2) and 3(3)] Office Address: ____________________________________________________________________ Ref. / Application No.: _____________________________________ Date: _________________ To, Name of Opposite Party: _____________________________________________________________ Address: __________________________________________________________________________ WHEREAS an application under sub-section (1) of section 12A of the Commercial Courts Act, 2015 has been filed by: Applicant Name: ___________________________________________________________________ in respect of a commercial dispute of Specified Value ₹________________________________. TAKE NOTICE that you are hereby called upon to appear in person or through an authorized representative, and signify your consent to participate in the pre-institution mediation on or before ____________________ (within 10 days of receipt of this notice). TAKE FURTHER NOTICE that in the event of your refusal or non-appearance, the Authority shall treat the mediation proceedings as a Non-Starter and issue a Non-Starter Report under Form 3, enabling the Applicant to initiate suit proceedings in the competent Commercial Court. Member Secretary / Secretary Legal Services Authority: _________________________ Seal of Authority: _______________________________
Issued by the Legal Services Authority certifying that pre-institution mediation could not take place due to refusal, non-appearance, or non-consent of the Opposite Party. Form 3 is the mandatory jurisdictional gateway document required to institute a commercial suit under Section 12A.
Filing Form 3 along with the plaint permanently protects the suit from rejection under Order VII Rule 11 CPC. Under Section 12A(3), the entire period spent in mediation between the date of application and the issuance of Form 3 is statutorily excluded from the limitation period under the Limitation Act, 1963.
SCHEDULE I • FORM 3 OFFICE OF THE LEGAL SERVICES AUTHORITY REPORT OF NON-STARTER [See rule 3(4) and 3(6)] Office Address: ____________________________________________________________________ Case File No.: _____________________________________________ Date: _________________ Details of Application: 1. Name of Applicant: _____________________________________________________________ 2. Name of Opposite Party: ________________________________________________________ 3. Date of filing of Application (Form 1): ___________________________________________ 4. Dates of issuance of Notice (Form 2): Notice 1: ______________ Notice 2: ______________ REPORT: This is to certify that: [ ] Notice sent to the Opposite Party was returned unserved / untraceable. [ ] The Opposite Party refused to acknowledge / accept the notice. [ ] The Opposite Party failed to appear despite two successive notices under rule 3(2) & 3(3). [ ] The Opposite Party appeared but specifically refused to participate in mediation. Accordingly, the pre-institution mediation proceedings under section 12A of the Commercial Courts Act, 2015 stand closed as a NON-STARTER. Member Secretary / Secretary Legal Services Authority: _________________________ Seal of Authority: _______________________________
Executed upon successful completion of mediation proceedings. Drawn up in writing, reduced to mutual terms, and signed by the parties and the mediator.
A mediated settlement arrived at under Section 12A has the exact same legal status and effect as an Arbitral Award on agreed terms under Section 30(4) of the Arbitration and Conciliation Act, 1996. It is final, binding, and can be executed directly as a decree in a Civil Court under Order XXI CPC without filing a fresh suit.
SCHEDULE I • FORM 4 SETTLEMENT AGREEMENT [See rule 7(1)] BEFORE THE MEDIATION CENTRE / LEGAL SERVICES AUTHORITY Case / Application No.: _____________________________________ BETWEEN: Applicant: ________________________________________________________________________ AND Opposite Party: ___________________________________________________________________ SETTLEMENT AGREEMENT UNDER SECTION 12A OF COMMERCIAL COURTS ACT, 2015 1. Brief facts and background of commercial dispute: _________________________________ 2. Settlement terms and reciprocal covenants agreed between parties: Clause (a): _____________________________________________________________________ Clause (b): _____________________________________________________________________ Clause (c): Mode, schedule, and bank account for financial payments: ______________ Clause (d): Mutual discharge and withdrawal of claims/disputes: __________________ The parties declare that they have entered into this Settlement Agreement voluntarily, without coercion, duress, or undue influence, with full comprehension of its legal binding effect under section 12A(4) of the Commercial Courts Act, 2015. Signature of Applicant: ________________________ Signature of Opposite Party: ________________________ Name: _________________________________________ Name: ______________________________________________ Signature of Mediator: ________________________ Name of Mediator: _____________________________ Approved and forwarded to: Member Secretary / Secretary, Legal Services Authority
Drawn up by the mediator when both parties participated in mediation sessions but were unable to reach an amicable settlement within the statutory period of 3 months (or the 2-month extension granted with mutual consent).
SCHEDULE I • FORM 5 MEDIATION FAILURE REPORT [See rule 7(3)] OFFICE OF THE LEGAL SERVICES AUTHORITY Case File No.: _____________________________________________ Date: _________________ Parties to the Mediation: 1. Applicant: _____________________________________________________________________ 2. Opposite Party: ________________________________________________________________ Report of the Mediator: 1. Date of commencement of mediation: ______________________________________________ 2. Number of joint and separate sessions held: _____________________________________ 3. Statutory expiry date (including consent extension, if any): ___________________ REPORT: The parties participated in the mediation process. However, despite diligent conciliation efforts, no mutually acceptable settlement could be arrived at within the prescribed statutory period. Accordingly, the mediation proceedings stand terminated as an UNSUCCESSFUL MEDIATION under rule 7(3). Signature of Mediator: _________________________ Name of Mediator: ______________________________ Forwarded to Member Secretary / Secretary, Legal Services Authority
Official statistical return submitted quarterly by the District Legal Services Authority (DLSA) to the State Legal Services Authority (SLSA) and High Court, tracking institutional throughput, settlement rates, and non-starters under Section 12A.
| Quarter | Opening Balance | Applications Received | Non-Starters (Form 3) | Settled (Form 4) | Failed (Form 5) | Closing Balance |
|---|---|---|---|---|---|---|
| Q1 / Q2 | Total pending applications brought forward | New Form 1 applications filed | Opposite party non-appearance / refusal | Successful settlements recorded | Mediation failed after sessions | Applications remaining under active mediation |
Prescribes the mandatory honorarium payable to the mediator. Under Rule 11, the fee is shared equally (50:50) by the Applicant and the Opposite Party upon commencement of mediation proceedings.
| Slab | Specified Value of Commercial Dispute | Statutory Mediation Fee Payable |
|---|---|---|
| Slab I | ₹3,00,000 to ₹10,00,000 | ₹15,000 |
| Slab II | ₹10,00,000 to ₹50,00,000 | ₹20,000 |
| Slab III | ₹50,00,000 to ₹1,00,00,000 (₹1 Crore) | ₹30,000 |
| Slab IV | ₹1,00,00,000 to ₹3,00,00,000 (₹3 Crore) | ₹40,000 |
| Slab V | Above ₹3,00,00,000 (Above ₹3 Crore) | ₹50,000 |
Statutory Notes on Fee Payment: The non-refundable ₹1,000 application fee is paid exclusively by the Applicant at the time of filing Form 1. The Schedule II mediation fee is deposited only after the Opposite Party appears and consents to participate in mediation, payable 50% by the Applicant and 50% by the Opposite Party.
Notified by the Central Government under Section 21A read with Section 12A(2) of the Commercial Courts Act, 2015.
Applicant files Form 1 with ₹1,000 fee. Authority issues Form 2 notice with a 10-day response deadline. If unserved or unanswered, a second notice is issued. If the opposite party fails to respond, Form 3 Non-Starter is drawn up.
Mediation takes place at the Legal Services Authority venue or via approved virtual video conferencing. The Secretary appoints an empaneled mediator trained under MCPC Supreme Court standards.
Parties must appear in person or through an authorized representative/advocate having full authority to settle. Joint and separate caucuses are conducted to facilitate commercial dispute resolution.
Must be completed within 3 months (extendable by 2 months with mutual consent). Upon accord, Form 4 is executed. If no accord is reached, Form 5 Failure Report is rendered.
All proposals, statements, admissions, or documents disclosed during mediation are strictly confidential and privileged. They cannot be produced or referred to in court trial proceedings.
The prescribed honorarium in Schedule II is deposited prior to the commencement of hearings, shared 50% by Applicant and 50% by Opposite Party.