Why is it in the news?
Recently, both the houses of the Parliament passed the Mediation Bill, 2023.
About the Mediation Act 2023
- Allows parties to enforce mediated settlements as court judgments.
- Allows challenges based on fraud, corruption, impersonation, or impermissibility under the Act.
- Requires written mediation agreements, where parties commit to resolving disputes through mediation.
- Permits parties to voluntarily refer disputes to mediation before filing lawsuits, with courts maintaining panels of mediators.
- Lists matters ineligible for mediation, including criminal offenses, professional misconduct, and tax disputes.
- Sets a 120-day timeline for mediation, extendable by 60 days.
- The Act provides for the setting up of the Mediation Council of India with functions includes registering mediators, recognizing mediation service providers and mediation institutes.
Significance of the Act
- Aims to reduce frivolous court claims and maintain confidentiality to protect relationships.
- Requires neutral empanelled mediators with expertise.
- Prioritizes expertise and efficiency, encouraging parties to focus on commercial dealings.
| Mediation · Mediation is an alternative dispute resolution (ADR) method in which a neutral third party, known as a mediator, helps parties in a dispute reach a mutually agreeable resolution. · Mediation is considered a more cost-effective, efficient, and less adversarial method compared to traditional court litigation. |
| About Alternative Dispute Resolution (ADR) · Alternative Dispute Resolution (ADR) is a non-adversarial dispute resolution mechanism that emphasizes cooperation and collaboration. · ADR aims to reduce the burden of litigation on courts, provide a satisfying experience for parties, and address case backlog in the Indian judicial system.
Types of ADR · Arbitration: Involves an arbitral tribunal issuing a binding decision, with relaxed formalities. · Conciliation: A non-binding procedure with a neutral third-party helping parties reach a mutual settlement. · Mediation: An impartial mediator assists parties in achieving a mutually acceptable resolution without making decisions. · Negotiation: Parties engage in non-binding discussions to negotiate a settlement.
Advantages of ADR · Maintains confidentiality. · Cost-effective and efficient. · Flexible procedures save time and money. · Encourages creative solutions and improved relationships. · Specialized expertise available through ADR professionals. · Provides greater control over outcomes.
Status of ADR in India · Statutory backing through acts like the Legal Services Authorities Act (1987) and the Arbitration and Conciliation Act (1996). · Introduction of plea bargaining in the Code of Criminal Procedure in 2005. · Use of Lok Adalats for informal dispute resolution. · Emergence of Online Dispute Resolution (ODR) as an ICT-based ADR mechanism.
Challenges and Recommendations · Lack of awareness about ADR mechanisms. · Need for wider dissemination of information by National and State Legal Services Authorities. · Potential reliance on ICT innovations and accessible ODR processes for the future of dispute resolution. |