Disputes in transactions which are of commercial nature are unavoidable. It gets way more complicated when it comes to cross boundary transactions. Usually, the parties involved in a commercial transaction, take the recourse of arbitration and mediation.

Contracts usually govern the commercial relationships and an efficiently enforced contract is very important for the economic development and sustainable growth. This is applicable to even international transactions. Mediation may not be the perfect recourse for all cases of commercial disputes. But it is usually used as a proper and suitable recourse in many matters of commercial disputes. There are also other recourses for dispute resolution that are available to parties. The oldest mode is the mode of litigation, which is not preferred in the present times. Parties also prefer ADR mechanism (Alternate Dispute Resolution) such as negotiation, conciliation, mediation etc. arbitration is, however, preferred mode of resolution, transnationally.

While mediation is predominantly being used as the mechanism for a third party intervention, there are a few challenges of international, instruments that the national courts cannot solve as the international instruments do not oblige to the national courts to enforce agreements. For the same reason, the government must discuss and debate the possibility of the mediation lae, its ambit and scope. The government should also consider separating the mediation and conciliation regimes in the country. Last but not the least, the government must also take efforts in understanding the virtues of this type and form of dispute resolution and rather than naming it as National Dispute Resolution Policy, the government should promote it in its National Litigation Policy.