Pre-institution mediation mandatory even for counter-claims in commercial suits: Delhi High Court

The Delhi High Court has mandated that pre-institution mediation is now compulsory for counterclaims in commercial suits. This decision aims to encourage dispute resolution outside of court and reduce the burden on the judiciary. The court’s ruling reflects a broader trend towards alternative dispute resolution (ADR) mechanisms, which can lead to more amicable settlements and faster resolutions. The requirement applies specifically to counterclaims in commercial disputes, signaling a shift towards proactive resolution strategies. This move is expected to enhance efficiency in the judicial process and potentially decrease the number of cases proceeding to full trial.