Introducing the Mediation Act, 2023: Your Guide to Mediation in India

The Mediation Act, 2023 is a groundbreaking Indian lawwhich received the assent of the President on September 14, 2023, with a mission to foster and streamline mediation, particularly institutional mediation, as a powerful tool for resolving a spectrum of disputes, including commercial disputes with the government. This visionary act doesn't just stop there; it sets up a body for mediator registration, advocates for community-driven conflict resolution and strives to enhance accessibility to mediation through online mediation processes. This law holds sway across the entirety of India and will roll out in phases, with different segments taking effect at different junctures.

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Who Does the Mediation Act, 2023 Impact??

This Act's purview extends to disputes involving residents or entities incorporated in India, as well as disputes that include a mediation agreement specifying its applicability. It leaves no stone unturned, covering international disputes and matters entangling government bodies. The legislation defines terms like "commercial dispute" and "mediator" and presents an array of mediation avenues, including the digital realm. Plus, it creates bodies like the Mediation Council and lays the foundation for mediation-related terminology, such as "mediation communication" and "mediation service provider."

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Provisions at a Glance:

Mediation Agreements (Section 4): Mediation agreements, be they part of contracts or standalone pacts, must be in writing. A nod from the parties involved, or a contract with a mediation clause in writing, signifies an agreement.

?Pre-Litigation Mediation (Section 5): Parties, even in the absence of a formal mediation agreement, can dive into pre-litigation mediation. For commercial disputes where the valueof the subject matter is not less than Rs.1,00,00,000/- (Rupees One Crore Only) the pre -litigation mediation follows the provisions of Section 12A of the Commercial Courts Act, 2015.

?Excluded Disputes (Section 6): Some disputes are off-limits for mediation, as outlined in the First Schedule. However, certain compoundable offenses, even matrimonial ones, can venture into mediation at the court's discretion.

?Court-Initiated Mediation (Section 7): Courts and tribunals wield the power to usher parties into mediation at any stage of the proceeding. They may issue interim orders during the mediation process for safeguarding interests of the parties involved.

?Mediator Selection (Section 8): Parties enjoy the freedom to choose their mediator, based on mutual agreement or by making an application to a mediation service provider.

?Mediator Suitability (Section 9): Mediation service providers assess mediator suitability, taking parties' preferences into account.

?Mediator's Disclosure of Conflicts of Interest (Section 10): Mediators must disclose conflicts of interest before and during mediation.

?Termination of Mediator's Mandate (Section 11): Mediation service providers can terminate a mediator's mandate on receipt of an application by either parties, on receipt of information about the mediator being involved in conflict of interest; in which case a hearing is to be given to the mediator or upon withdrawal by the mediator from mediation.

?Time limit for completion of mediation (Section 18): It provides for the process of mediation to be completed in a time bound manner i.e. within a period of one hundred and twenty days from the date fixed for the first appearance before the mediator with a further extension of maximum sixty days.

?And that's just the beginning! The Mediation Act, 2023 delves deep into territorial jurisdiction, the commencement of mediation, mediation processes, the role of mediators, mediated settlement agreements, their registration, non-settlement reports, confidentiality, cost of mediation, and exclusion of Lok Adalat proceedings. It's an all-encompassing guide to navigating mediation in India.

?Enforcement of mediated settlement agreement (Section 27): A mediated settlement agreement shall be enforceable in the same manner as if it were a judgment or decree passed by a court.

?Challenge to mediated settlement agreement (Section 28): It provides that a mediated settlement agreement can be challenged only on all or any of the following grounds i.e.fraud, corruption, impersonation and where the mediation was conducted in matter not fit for mediation under Section 6

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Mediation 2.0: Key Online Mediation Provision (Section 30)

In a digital age, this Act ensures that online mediation, including pre-litigation mediation, is a feasible option at any stage of the mediation process. Parties just need to provide written consent, and the process guarantees confidentiality and integrity.

?Powerful Oversight: The Mediation Council of India (Section 31)

The Central Government establishes the Mediation Council of India. It's tasked with setting standards, accrediting mediators, promoting ethical conduct, and much more. Plus, it's home to experienced professionals, legal experts, and government representatives.

?Institutional Mediation: Mediation Service Providers and Mediation Institutes (Sections 40-42)

Recognized organizations, court-annexed mediation centres, and more form a crucial part of this legislation, ensuring a structured approach to mediation services and mediator accreditation.

?Community Harmony: Community Mediation (Sections 43-44)

This Act isn't just about legalities; it recognizes the importance of community peace. It outlines procedures for resolving disputes within communities through a panel of respected individuals and local representatives.

?Supporting Mediation: The Mediation Fund (Section 45)

The Mediation Council of India is endowed with a Mediation Fund, sourced from the Central Government, fees, grants, and more. It's all for the cause of supporting mediation and its dedicated personnel.

?In Good Faith: Protection from Legal Proceedings (Section 50)

This act provides protection for those acting in good faith under its provisions, shielding them from legal actions.

?This legislation, with its wealth of provisions and a clear roadmap for mediation in India, signifies a landmark moment in the nation's legal landscape. Its impact is poised to shape dispute resolution and mediation practices for years to come.