The Ministry of Law and Justice released the Draft Mediation Bill, 2021. Mediation is a form of alternative dispute resolution, where parties attempt to settle their dispute (outside courts) with the assistance of an independent third person (mediator).
Key features of the draft Bill include:
Mediation process: Before approaching any court or tribunal, a person must try to settle the dispute by mediation. Mediation proceedings will be confidential and must be completed within 90 days (even if parties do not arrive at an agreement). The mediation period may be extended by 90 days, if the parties agree.
Disputes not fit for mediation: Certain disputes are not fit for mediation. These include disputes: (i) relating to claims against minors or persons of unsound mind, (ii) affecting the rights of third parties, and (iii) relating to levy or collection of taxes
Mediators: Mediators may be appointed by: (i) the parties, or (ii) by a mediation service provider (an institution administering mediation) from its panel of mediators. Mediators must disclose any circumstances that may constitute a conflict of interest or raise doubts as to their independence or impartiality in conducting the mediation process. Mediators will only facilitate dispute resolution and cannot impose a settlement on the parties. Mediators must: (i) register with the Mediation Council of India (which will be established by the central government), and (ii) be accredited by a mediation service provider.
Mediated settlement agreement: All agreement resulting from mediation, must be registered. Such agreements will be final and binding, and enforceable in the same manner as court judgments. The Mediation Council of India will maintain an electronic depository of the mediated settlement agreements made in India.
Settlement agreements resulting from domestic mediation can be challenged only on the grounds of: (i) fraud, (ii) corruption, (iii) gross impropriety, or (iv) impersonation. Enforcement of settlement agreements resulting from international mediation (related to commercial disputes) may be refused on certain grounds. These include: (i) fraud or corruption, (ii) the dispute is not capable of settlement by mediation as per Indian law, or (iii) the mediator does not disclose facts which may raise doubts as to his/her impartiality.
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