Related Topics

Lok Adalats
2022 OCT   21
Online Dispute Resolution
2021 MAY   25

Mediation Bill 2021

2022 OCT 4

Preliminary   > Polity   >   Miscellaneous   >   Alternate Dispute Redressal

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