Less Than 2% Commercial Disputes Settled Through Pre-Institution Mediation: Law Ministry

The Union Law Ministry informed the Rajya Sabha that less than 2% of commercial disputes routed through mandatory pre-institution mediation have resulted in settlements.

Since the introduction of Section 12A of the Commercial Courts Act in 2018, over 5.6 lakh applications were filed under the Pre-Institution Mediation and Settlement (PIMS) mechanism, but only a small fraction concluded successfully.

In 2024–25, just 877 settlements were recorded out of nearly 60,000 applications.

The Ministry noted that many cases were “non-starters” and highlighted the role of Lok Adalats, which resolved over 14.8 crore cases in 2025.