Centre drafts Bill to institutionalise mediation process

The Centre has come up with a draft Mediation Bill to institutionalise the mediation process in the country. The Bill aims to “promote, encourage and facilitate” mediation, especially institutional mediation for the resolution of disputes, commercial and otherwise.

It also provides for enforcement of various domestic and international mediation settlement agreements. It creates a body for registration of mediators, and encourages community and online mediation to make mediation an acceptable and cost-effective process. It proposes mediation as a method to resolve disputes among individuals, corporate users, governments, judiciary and lawyers.

The Bill proposes pre-litigation mediation and also safeguards the interest of litigants to approach the judiciary in case an urgent relief is sought. “The successful outcome of mediation in the form of Mediation Settlement Agreement (MSA) has been made enforceable by law. Since the Mediation Settlement Agreement is out of the consensual agreement between the parties, the challenge to the same has been permitted on limited grounds,” said a government release.

The draft Bill defines mediation as “a process, whether referred to by the expression mediation, pre-litigation mediation, online mediation, conciliation or an expression of similar import, whereby parties request a third person or persons (the mediator) to assist them in their attempt to reach an amicable settlement of the dispute”.

Immunity in certain cases

The mediation process, according to the draft Bill, protects the confidentiality of the mediation undertaken, and provides for immunity in certain cases against its disclosure.

It also provides for establishment of the Mediation Council of India. “Government of India has been taking various policy initiatives for promotion and strengthening of Alternative Dispute Resolution (ADR) mechanisms through amendment in existing laws and by enactments, for facilitating quick disposal of disputes, outside of traditional court systems. As a continuation of the exercise, bringing a standalone law on mediation is under consideration,” said the release.

The Bill contemplates the international practice of using the terms ‘conciliation’ and ‘mediation’ interchangeably. The country has to enact a law in mediation on issues of domestic and international mediation as India is a signatory to the Singapore Convention on Mediation.

Chapter six of the Bill talks about online mediation. “Online mediation means conducting mediation, including pre-litigation mediation as defined in this Act, by the use of applications and computer networks but not limited to an encrypted email service, secure chat rooms and conferencing by video or audio mode or both.”