Latest News

Corporations to adopt pre-litigation mediation

Courtesy/By: KANIKA GOSWAMY | 2020-08-31 13:38     Views : 291

A large number of companies are opting for pre-litigation mediation as a way of resolution rather than directly going for litigation. They are looking forward to resolve their disputes with consumers, suppliers, manufacturers etc. by using mediation as a method. Many corporate companies are not very keen on using the doctrine of frustration or force majeure because litigation costs have gone up in the previous years. Also many companies believe that since the pandemic is widespread and has brought in a lot of issues of safety it would be better to use these options rather than scheduling litigation dates. The Commercial Courts Act 2015 also calls for such mediation before, in order to decrease the burden of the courts. Many companies are now considering it as a more practical option since it cuts cost and also saves time and effort of the company because there are huge number of cases pending before the commercial courts which are more serious in nature. Many conglomerates are looking forward to cut these legal costs because the pandemic has taken a huge toll on their companies. Any extra costs can harm their business.

This is a very effective idea because not only time and money is being saved, c common ground for resolving the problems is being reached at. Such common ground can lead to further cooperation within the suppliers, merchants, consumers, manufacturers that are associated with in a company. Doctrine of frustration means that an act becomes impossible or unlawful to perform and such impossibility to perform is out of the control of the promise and promisee and the act it ends up becoming void. Force majeure means an act which becomes impossible to perform due to to certain circumstances which cannot be controlled by the promise or promisee. For example the break out of covid-19 pandemic. It is not the fault of any particular person that this virus has started spreading all across the globe and therefore to ask a certain person to compensate will not be right morally and also legally. Why are these clauses not being preferred or being taken into consideration? There is a very simple reason behind it because there has to be a better way to safeguard the interests of the company as well as the consumers of the company. Encouraging unnecessary expenditure can also cause downfall in the economy as previously seen. This is also being enocuraged in public sectors sicne public companies tend to take a lot of cases for litigation.

Courtesy/By: KANIKA GOSWAMY | 2020-08-31 13:38