Karnataka mandates mediation and strict timelines in civil disputes under new law

Bengaluru

In a significant move aimed at streamlining civil litigation and accelerating the judicial process, the Government of Karnataka has enacted the Code of Civil Procedure (Karnataka Amendment) Act, 2024, officially published as Karnataka Act No. 40 of 2025. The amendment, which received Presidential assent on May 19, 2025, and was published in the Karnataka Gazette on May 26, marks a major overhaul in civil procedure for courts across the state.

The primary objective of the amendment is to ensure expeditious disposal of civil cases and enhance access to speedy justice. Key among the provisions is the insertion of Section 89A, which mandates that all civil suits, barring those requiring urgent interim relief, must first be referred to mediation. The process must be completed within two months, with a possible one-month extension upon mutual consent.

In line with modern litigation practices, the amendment also introduces Section 158A, asserting that civil suits in Karnataka will be governed by this state-specific version of the Code, even if it contradicts High Court rules or central amendments.

The Act introduces strict timelines for case management. A new Order XV-AA prescribes the First Case Management Hearing within four weeks after pleadings are completed. Courts are empowered to set deadlines for the submission of evidence, witness examination, and oral arguments, with a firm cap of 24 months from the first hearing for conclusion of arguments.

Additional reforms include:

1. Verification of pleadings with a mandatory affidavit of truth.
2. Strict timelines for filing Written Statements—up to 120 days with no extensions beyond.
3. Enhanced rules for oral arguments, submission of written arguments, and affidavits of evidence, emphasising efficiency and relevance.
4. Limitations on adjournments, restricting parties to a maximum of three adjournments totalling no more than 30 days.

The amendment also enhances judicial discretion by allowing courts to control evidence, strike out irrelevant material, and impose sanctions for non-compliance with case management orders. Courts are directed to avoid granting adjournments solely due to lawyer absence unless justified.

This amendment applies to all civil courts in Karnataka and is seen as complementary to existing provisions under commercial court procedures. The government retains the authority to frame rules and resolve implementation difficulties over the next two years.

Legal experts have welcomed the move as a progressive reform, likely to reduce the backlog of civil cases and promote alternative dispute resolution mechanisms.