Commercial Courts (Pre-Institution Mediation and Settlement) Rules, 2018
(1) These rules may be called the Commercial Courts (Pre-Institution Mediation and Settlement) Rules, 2018.
(2) They shall come into force on the date of their publication in the Official Gazette.
(1) In these rules unless the context otherwise requires,--
(a) "Act" means the Commercial Courts Act, 2015 (4 of 2016);
(b) "applicant" means a person who approaches the Authority under Rule 3 for the initiation of mediation process;
(c) "Authority" means the Authority notified by the Central Government under sub-section (2) of Section 12-A of the Act;
(d) "commercial dispute" means the commercial dispute as defined in clause (c) of sub-section (1) of Section 2 of the Act;
(d) "Form" means the Form specified in the Schedule to these rules;
(e) "mediation" means a process undertaken by a Mediator to resolve, reconcile and settle a commercial dispute between the parties thereto.
(f) "Mediator" means a person empanelled by the Authority for conducting the mediation;
(g) "opposite party" means a party against whom relief is sought in a commercial dispute;
(h) "Schedule" means the Schedule appended to these rules; and
(1) A party to a commercial dispute may make an application to the Authority as per Form 1 specified in Schedule I, either online or by post or by hand, for initiation of mediation process under the Act along with a fee of one thousand rupees payable to the Authority either by way of demand draft or through online;
(2) The Authority shall, having regard to the territorial and pecuniary jurisdiction and the nature of commercial dispute, issue a notice, as per Form 2 specified in Schedule I through a registered or speed post and electronic means including e-mail and the like to the opposite party to appear and give consent to participate in the mediation process on such date not beyond a period of ten days from the date of issue of the said notice.
(3) Where no response is received from the opposite party either by post or by e-mail, the Authority shall issue a final notice to it in the manner as specified in sub-rule (2).
(4) Where the notice issued under sub-rul
The venue for conducting of the mediation shall be the premises of the Authority.
The Mediator shall, on receipt of the assignment under subrule (7) of Rule 3, facilitate the voluntary resolution of the commercial dispute between the parties and assist them in reaching a settlement.
A party to a commercial dispute shall appear before the Authority or Mediator, as the case may be, either personally or through his duly authorised representative or Counsel.
(1) The mediation shall be conducted as per the following procedure--
(i) At the commencement of mediation, the Mediator shall explain to the parties the mediation process;
(ii) The date and time of each mediation sitting shall be fixed by the Mediator in consultation with the parties to the commercial dispute.
(iii) The Mediator may, during the course of mediation, hold meetings with the parties jointly or separately, as he thinks fit;
(iv) The applicant or opposite party may share their settlement proposals with the Mediator in separate sittings with specific instruction as to what part thereof can be shared with the other party;
(v) The parties to the mediation can exchange settlement proposals with each other during mediation sitting either orally or in writing;
(vi) During the process of mediation, the Mediator shall maintain confidentiality of discussions made in the separate sittings with each party and only those facts which a party
All the parties to a commercial dispute shall participate in the mediation process in good faith with an intention to settle the dispute.
The Mediator, parties or their authorized representatives or Counsel shall maintain confidentiality about the mediation and the Mediator shall not allow stenographic or audio or video recording of the mediation sittings.
(1) The District Legal Services Authority shall forward the detailed data of the mediation dealt by it under the Act to the State Legal Services Authority.
(2) The State Legal Services Authority shall, maintain the data of all mediations carried out by it or under its jurisdiction and publish the same, 1[on its website on monthly basis as per Form 6(i) and on quarterly basis as in Form 6(ii), specified in Schedule I].
Before the commencement of the mediation, the parties to the commercial dispute shall pay to the Authority a one-time mediation fee, to be shared equally, as per the quantum of claim as specified in Schedule II.
The Mediator shall --
(i) uphold the integrity and fairness of the mediation process;
(ii) ensure that the parties involved in the mediation are fairly informed and have an adequate understanding of the procedural aspects of the mediation process;
(iii) disclose any financial interest or other interest in the subject-matter of the commercial dispute;
(iv) avoid any impropriety, while communicating with the parties to the commercial dispute;
(v) be faithful to the relationship of trust and confidentiality reposed in him;
(vi) conduct mediation related to the resolution of a commercial dispute, in accordance with the applicable laws for the time being in force;
(vii) recognise that the mediation is based on the principles of self-determination by the parties and that mediation process relies upon the ability of parties to reach a voluntary agreement;
(viii) refrain from promises or guarantees of results;
(ix) not meet the
1[SCHEDULE II | ||
Mediation Fee [See Rule 11] | ||
Sl.No. | Quantum of Claim | Mediation Fee Payable to Authority (in Indian rupees). |
| 1. | From Rs 3,00,000 to Rs.10,00,000. | Rs 15,000 |
| 2. | Above Rs 10,00,000. to Rs 50,00,000. | Rs 30,000 |
| 3. | Above Rs 50,00,000. to Rs 1,00,00,000. | Rs 40,000 |
| 4. | Above Rs.1,00,00,000. to Rs.3,00,00,000. | Rs 50,000 |
| 5. | Above Rs 3,00,00,000. | Rs |
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