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A new set of amendments to the Code of Civil Procedure, 1908 (CPC), as applicable to the state of Karnataka, is in the works. One of the key amendments being proposed is mandating pre-litigation mediation for civil suits. The amendment is likely to increase the burden on the justice system, specifically for mediation authorities, and it is therefore opportune for the system to ensure that administrative plans are in place to appoint, train, and ensure adequate capacity-building to give meaning to the purpose behind the amendment.
The 16th Karnataka Legislative Assembly, in its fifth session in December 2024, introduced the Code of Civil Procedure (Karnataka Amendment) Bill, 2024 to amend the CPC towards providing speedy justice. The Bill, which has been passed by the Legislative Assembly and the Legislative Council, now requires the assent of the Governor and the President before it can come into force.
As the Bill awaits approval, it provides an opportunity for the judiciary in Karnataka to plan for the administrative impact of the Bill on court and related processes.
Many provisions of the Bill closely mirror procedural changes that were made around the introduction of commercial courts to ensure speedy disposal of commercial disputes through the Commercial Courts Act, 2015 (CCA).
A key provision that the Bill seeks to insert is a new Section 89-A on mediation and settlement (similar to Section 12A of the CCA), as per which, “every suit that does not contemplate any urgent interim relief shall be referred to mediation”.
While the Bill provides that the amendment is to apply to all civil courts and all civil cases, a cautious approach could be to quantify the impact in terms of civil suits alone. As per the National Judicial Data Grid (NJDG), as on January 9, 2025, there were 4,99,131 pending civil suits in Karnataka out of a total of 9,92,067 pending civil cases (this includes other civil matters such as execution petitions, appeal cases, and miscellaneous cases). This means that about 50% of the civil cases in the state are civil suits.
The NJDG also shows that 31,359 civil cases were filed in the last month alone; if we extrapolate the pendency numbers, that means about 15,000 civil suits were filed in one month. If, on a conservative estimate, even two-thirds of these suits did not require urgent relief, there would be approximately 5,000 civil suits per month that would need to be referred to mediation.
Section 89-A further mandates that mediation be completed within two months from the date of reference unless the parties consent to extend the period of mediation for another month. While the encouragement of pre-litigation mediation is a welcome step to reduce the growing case-load of the judiciary, it would be important to ensure that there exists adequate capacity to provide effective mediation forums for complying with the statutory mandate.
Towards improved justice delivery
Training According to the Karnataka Mediation Centre, there are 1,988 mediators spread across 173 talukas. However, as per information gathered through a telephonic conversation with the Karnataka State Legal Services Authority, there are currently 1,717 mediators spread across Karnataka, covering all talukas. It is important to assess whether such existing capacity and distribution across districts/talukas thereof, would suffice should the Bill receive the requisite approvals.
It is also imperative to ensure adequate training for the mediators in the settlement of disputes. Statistics provided by the Karnataka Mediation Centre indicate that 770 cases were referred for pre-litigation mediation to the Bangalore Mediation Centre between 2014 and 2020, of which only 79 cases (10%) were settled. Studies have indicated that reasons for mediation not being effective include parties not being interested, parties not appearing for follow-ups etc.
Data regarding the number of cases referred for pre-litigation mediation as per the website of the Commercial Courts of Karnataka show that 957 cases were pending at the beginning of November 2024 (which increased to 1,035 by the end of the month), 350 cases were received during the month, 265 cases were deemed to be non-starter cases, 2 cases were settled, and 5 cases failed settlement. These statistics paint a grim picture of the efficacy of pre-litigation mediation, highlighting the importance of identifying and addressing any underlying problems that hinder effective mediation of disputes.
Extending the mediation framework established for Commercial Courts, i.e. mandating pre-institution mediation for cases not requiring urgent interim relief, to civil cases in general might be a tall order. However, through rigorous analysis of systemic and other inefficiencies that result in disputes not being settled through mediation, and through better planning of resources, the proposed amendments could make a significant mark in advancing the goal of effective justice delivery.
(The writer is a senior research fellow at Vidhi Centre for Legal Policy)