The Standing Committee on Personnel, Public Grievances, Law and Justice (Chair: Mr. Sushil Kumar Modi) submitted its report on the Mediation Bill, 2021. 23 The Bill was introduced in Lok Sabha in December 2021. It seeks to promote mediation (including online mediation) and provide for enforcement of settlement agreements resulting from mediation.
Key observations and recommendations of the Committee include: ▪
Pre-litigation mediation: The Bill mandates parties to attend at least two mediation sessions. A cost may be imposed on them if they fail to attend the sessions without reasonable cause. The Committee observed that by mandating pre-litigation mediation, parties will have to wait for several months before being allowed to approach a court or tribunal. This may result in delaying of cases. The Committee recommended reconsidering mandating prelitigation, making it optional and introducing it in a phased manner. The Bill also provides that prelitigation mediation will be applicable to matters pending before a tribunal. The Committee noted that there is lack of clarity as to how such matters can come under the purview of pre-litigation mediation.
Timeline for mediation: Mediation process must be completed within 180 days, which may be extended by another 180 days. The Committee recommended reducing it to 90 days with an extension of 60 days.
Confidentiality in proceedings: Parties in a mediation proceeding are required to keep information relating to the proceedings confidential. The Committee noted that there is no punishment/ liability for breaching confidentiality. It recommended that the Bill should provide for a provision for cases of breach of confidentiality.
Registration of agreements: The Bill provides for mandatory registration of mediated settlement agreement. The Committee recommended leaving registration to the discretion of the parties.
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