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Mediation Bill 2023
Explain the salient features of the mediation Bill, 2023. Do you think it is efficacious enough to make the judicial system effective and act as an alternative for conflict resolution? Discuss
Approach
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The Mediation Act 2023 has been notified in the gazette of India after receiving the assent of the President of India on September 15 2023. The act aims to promote and facilitate institutional mediation for resolution of commercial and other disputes. It also seeks to encourage community mediation and to make online mediation as acceptable and cost effective process.
| Key Features of Mediation Act 2023 | |
| Settlement of Disputes through Mediation | The act requires persons to try to settle civil or commercial disputes through mediation before approaching any court or tribunal. |
| Pre-Litigation Mediation | The Act permits parties to a dispute (regardless of whether they have executed a mediation agreement) to voluntarily and mutually refer their dispute to mediation prior to filing a suit or instituting proceedings before any court. Pre-litigation mediation has been made voluntary(departure from earlier bill). |
| Time Period for completion of Mediation | Mediation proceedings under the Act must be completed within a period of 120 days from the date of the first appearance before the mediator, which may be extended for a maximum period of 60 days. |
| Setting up of Mediation Council of India | The act provides for the setting up of The Mediation Council of India. Its functions will include registering mediators,recognising mediation service providers and mediation institutes. |
| Forms of Mediation | The act aims to govern two forms of mediation-voluntary and mandatory.A voluntary mediation is where parties under a written mediation agreement seek mediation. Such an agreement may either be as part of a contract or exist independently.A Mandatory mediation is, where barring certain areas of disputes, there is a legal obligation on parties to mediate before approaching a court/tribunal. |
| Areas excluded from Mediation | The areas excluded from mediation include serious allegations of fraud, criminal offenses, environmental matters reserved for the National Green Tribunal, and matters relating to competition, telecom, securities and electricity law and land acquisition. |
| Court’s Role during Mediation | The act will not prevent any court from referring any dispute to mediation relating to compoundable or matrimonial offenses connected with or arising out of civil proceedings between the parties. |
| Introduction of Concept of Community Mediation | Disputes likely to affect peace, harmony and tranquility amongst the residents or families of any area or locality can be mediated and settled by a panel of mediators appointed by the concerned Authority. |
Significance of Mediation Act 2023
- Reduction of huge pendency of court cases – The act obligates each party to take steps to settle their dispute through pre-litigation mediation before approaching an Indian court. It will reduce the filing of claims before Indian courts. Our courts are already overburdened with 70 thousand cases in pending in Supreme Court and 60 lakh cases are pending in High Courts.
- Strengthening of Alternative Dispute Resolution (ADR)- The bill would facilitate quick disposal of disputes outside of traditional court systems. Mediation results in the amicable resolution of disputes in civil, commercial, family, and matrimonial affairs. It helps develop a collaborative approach and protects relationships between disputants. The act would mitigate the risk of deterioration of the parties’ relationship due to a publicly fought dispute.
- Promotion of ease of doing business- The act has the potential to have a significant positive impact on the country’s economy and business environment by avoiding delays in the standard process through the courts.
- Emergence of India as a centre of Mediation in the world- The mediation act 2023 can put India on the global map as a dispute friendly jurisdiction and attract foreign investments. For Ex- Singapore’s robust mediation ecosystem has attracted greater foreign investments.
- Promotion of peace, law and security in the country- The Act provides for provision of community mediation to settle any dispute likely to affect peace, harmony and tranquillity amongst the residents or families of any area. This will promote peace, law and security in the society by building consensus amongst the communities.
- Faster outcomes- The Act provides a maximum time period of 180 days for mediation settlement. The judicial courts normally dispose of civil matters within 3 years on an average.
- Mediation is a cost-effective method- Mediation is a cost-effective dispute resolution process. For Example- According to an article published in Harvard Business Review mediation through outside counsel has an estimated cost of $700,000 and going to courts has an estimated cost of $2.5 million over a period of three to five years.
- Mediation provided similar position to commercial arbitration in India- As the recent amendments to the Arbitration and Conciliation Act (A&C Act) prioritized institutional arbitration of disputes, the Act also places emphasis on institutional mediation in India. It envisages “mediation service providers” to provide mediation services, secretarial assistance and infrastructure for the efficient conduct of mediation. This will help in generating more avenues of employment and growth in the country.
- Fulfilment of India’s commitment to Singapore Convention on Mediation- India is a signatory to the Singapore Convention on Mediation (United Nations Convention on International Settlement). This act is an important step towards fulfilment of Singapore convention.
Thus, introducing Mediation Bill is a welcome step where the government is trying to address the issues through third party and reduce the load from the judiciary.
