Mediation Bill 2021

Why in news?

• The Mediation Bill, 2021 was introduced in the Rajya Sabha with the Parliamentary Standing Committee being tasked with a review of the Bill.

Key features of the Bill:

• Aim:
  • To promote, encourage, and facilitate mediation, especially institutional mediation.
  • To resolve disputes, commercial and otherwise.
• Mandatory mediation:
  • Before litigation.
• Rights of litigants:
  • It safeguards the rights of litigants to approach competent adjudicatory forums/courts for urgent relief.
• Mediation Settlement Agreement (MSA):
  • It will be legally enforceable and can be registered with the State/district/taluk legal authorities within 90 days.
• Mediation council of India:
  • The Bill establishes the Mediation Council of India and also provides for community mediation.
• Committee recommendations on bill:
  • Institutionalizing mediation
  • Establishing the Mediation Council of India.

Laws containing mediation provisions:

• Code of Civil Procedure, 1908
• Arbitration and Conciliation Act, 1996
• Companies Act, 2013
• Commercial Courts Act, 2015
• Consumer Protection Act, 2019

Need for Mediation:

• Mediation and Conciliation Project Committee of the Supreme Court of India:
  • It describes mediation as a tried and tested alternative for conflict resolution.
• India is a signatory to the Singapore Convention on Mediation:
  • It is appropriate to enact a law governing domestic and international mediation.

Concerns with the Bill:

• Pre-litigation mediation is mandatory for both parties:
  • Before filing any suit or proceeding in a court, whether or not there is a mediation agreement between them.
  • Parties who fail to attend pre-litigation mediation without a reasonable reason may incur a cost.
  • This is in violation of Article 21 of the Constitution, under which access to justice is a constitutional right which cannot be fettered or restricted.
• Denial of justice:
  • Mediation should just be voluntary and making it otherwise would amount to denial of justice.
• Conducting cross-border mediation in India will take away the tremendous benefits of worldwide enforceability.

PRACTICE QUESTION:

Consider the following statements:

1. India is a signatory to the Singapore Convention on Mediation

2. Companies Act, 2013 and Consumer Protection Act, 2019 provides provisions for mediation

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer